Question 1

Marginal cost is the

Accepted Answer

A)  cost of an increase in an activity. 
B)  total cost of an activity. 
C)  cost of an activity minus the benefits of the activity. 
D)  cost of all forgone alternatives. 
A)  cost of an increase in an activity. 
B)  total cost of an activity. 
C)  cost of an activity minus the benefits of the activity. 
D)  cost of all forgone alternatives.

Question 2

-The slope of the line shown in the above figure is

Accepted Answer

A)  -1 3/8. 
B)  -1 2/3. 
C)  5/8. 
D)  -0.625. 
A)  -1 3/8. 
B)  -1 2/3. 
C)  5/8. 
D)  -0.625.

Question 3

-The slope of the line shown in the above figure is

Accepted Answer

A)  3/4. 
B)  2/3. 
C)  1 1/3. 
D)  1 3/4. 
A)  3/4. 
B)  2/3. 
C)  1 1/3. 
D)  1 3/4.

Question 4

-A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative. Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Accepted Answer

@#IMG-DLM& The point is a maximum point. Examine t

Question 5

-The relationship between income and consumption illustrated in the figure above is

Accepted Answer

A)  positive and linear. 
B)  positive and nonlinear. 
C)  negative and linear. 
D)  negative and nonlinear. 
A)  positive and linear. 
B)  positive and nonlinear. 
C)  negative and linear. 
D)  negative and nonlinear.

Question 6

-As a curve approaches a maximum point, the slope will

Accepted Answer

A)  be positive, then negative after the maximum point. 
B)  be negative, then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
A)  be positive, then negative after the maximum point. 
B)  be negative, then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point.

Question 7

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "what" 
B)  "how" 
C)  "for whom" 
D)  "where" 
A)  "what" 
B)  "how" 
C)  "for whom" 
D)  "where"

Question 8

When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "what" 
B)  "for whom" 
C)  "how" 
D)  "why" 
A)  "what" 
B)  "for whom" 
C)  "how" 
D)  "why"

Question 9

-If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the line relating price and quantity has a slope of

Accepted Answer

A)  0.8. 
B)  -8.0. 
C)  -1.25. 
D)  8.0. 
A)  0.8. 
B)  -8.0. 
C)  -1.25. 
D)  8.0.

Question 10

The slope of a positive relationship is

Accepted Answer

A)  positive. 
B)  undefined. 
C)  positive to the right of the maximum point and negative to the left. 
D)  constant as long as the relationship is nonlinear. 
A)  positive. 
B)  undefined. 
C)  positive to the right of the maximum point and negative to the left. 
D)  constant as long as the relationship is nonlinear.

Question 11

A positive statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts. 
A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts.

Question 12

The study of economics

Accepted Answer

A)  focuses mainly on individual consumers. 
B)  arises from the fact that our wants exceed available resources. 
C)  recognizes that scarcity does not affect rich nations. 
D)  deals mainly with microeconomics. 
A)  focuses mainly on individual consumers. 
B)  arises from the fact that our wants exceed available resources. 
C)  recognizes that scarcity does not affect rich nations. 
D)  deals mainly with microeconomics.

Question 13

Which of the following is NOT a factor of production?

Accepted Answer

A)  the water used to cool a nuclear power plant 
B)  the effort of farmers raising cattle 
C)  the wages paid to workers 
D)  the management skill of a small business owner 
A)  the water used to cool a nuclear power plant 
B)  the effort of farmers raising cattle 
C)  the wages paid to workers 
D)  the management skill of a small business owner

Question 14

Which of the following is NOT an investment in human capital?

Accepted Answer

A)  a business student takes a seminar in using a laptop computer 
B)  a student purchases a laptop computer 
C)  a computer science student learns how to repair a laptop computer 
D)  a computer science student takes a course on programming a laptop computer 
A)  a business student takes a seminar in using a laptop computer 
B)  a student purchases a laptop computer 
C)  a computer science student learns how to repair a laptop computer 
D)  a computer science student takes a course on programming a laptop computer

Question 15

The faster an automobile is driven (speed), the lower the miles per gallon (mpg) for that automobile. Given this information, we say that an automobile's speed and mpg have

Accepted Answer

A)  a direct relationship. 
B)  an inverse relationship. 
C)  a linear relationship. 
D)  a maximum relationship. 
A)  a direct relationship. 
B)  an inverse relationship. 
C)  a linear relationship. 
D)  a maximum relationship.

Question 16

In the U.S. economy, which of the following statements is true?

Accepted Answer

A)  More goods are produced than services. 
B)  More services are produced than goods. 
C)  Production is divided evenly between goods and services. 
D)  The economy is too complex to determine the proportion of production that is devoted to producing services. 
A)  More goods are produced than services. 
B)  More services are produced than goods. 
C)  Production is divided evenly between goods and services. 
D)  The economy is too complex to determine the proportion of production that is devoted to producing services.

Question 17

-A scatter diagram will be most useful

Accepted Answer

A)  in discerning a possible relationship between height and weight for individuals. 
B)  in resolving a dispute over two normative assertions. 
C)  in predicting next year's rate of unemployment. 
D)  All of the above are correct. 
A)  in discerning a possible relationship between height and weight for individuals. 
B)  in resolving a dispute over two normative assertions. 
C)  in predicting next year's rate of unemployment. 
D)  All of the above are correct.

Question 18

-The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

Accepted Answer

A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above. 
A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above.

Question 19

-The slope of the line in the above figure is

Accepted Answer

A)  -1/2. 
B)  -3. 
C)  -4. 
D)  -1/3. 
A)  -1/2. 
B)  -3. 
C)  -4. 
D)  -1/3.

Question 20

All economic questions arise because we

Accepted Answer

A)  want more than we can get. 
B)  want more than we need. 
C)  have an abundance of resources. 
D)  have limited wants that need to be satisfied. 
A)  want more than we can get. 
B)  want more than we need. 
C)  have an abundance of resources. 
D)  have limited wants that need to be satisfied.

Exam 1: What Is Economics

Marginal cost is the

-The slope of the line shown in the above figure is

-The slope of the line shown in the above figure is

-A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative. Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

-The relationship between income and consumption illustrated in the figure above is

-As a curve approaches a maximum point, the slope will

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions.

-If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the line relating price and quantity has a slope of

The slope of a positive relationship is

A positive statement is

The study of economics

Which of the following is NOT a factor of production?

Which of the following is NOT an investment in human capital?

The faster an automobile is driven (speed), the lower the miles per gallon (mpg) for that automobile. Given this information, we say that an automobile's speed and mpg have

In the U.S. economy, which of the following statements is true?

-A scatter diagram will be most useful

-The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

-The slope of the line in the above figure is

All economic questions arise because we

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

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