Question 1

-If a curve falls and then rises, it shows

Accepted Answer

A)  a maximum. 
B)  a minimum. 
C)  a linear relationship. 
D)  a constant slope relationship. 
A)  a maximum. 
B)  a minimum. 
C)  a linear relationship. 
D)  a constant slope relationship.

Question 2

Economics is best defined as the science of choice and how people cope with

Accepted Answer

A)  differences in wants. 
B)  differences in needs. 
C)  scarcity. 
D)  different economic systems. 
A)  differences in wants. 
B)  differences in needs. 
C)  scarcity. 
D)  different economic systems.

Question 3

Which of the following questions is a macroeconomic issue?

Accepted Answer

A)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  What is the future growth prospect for an economy? 
D)  How many workers should the owner of a business hire? 
A)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  What is the future growth prospect for an economy? 
D)  How many workers should the owner of a business hire?

Question 4

-The slope of the line in the above figure is

Accepted Answer

A)  -10. 
B)  10. 
C)  5. 
D)  -5. 
A)  -10. 
B)  10. 
C)  5. 
D)  -5.

Question 5

A graph of two variables is a vertical line. What is the interpretation of this result?

Accepted Answer

When the graph of two variables is a ver

Question 6

Human capital is

Accepted Answer

A)  all capital owned by individuals, but not by corporations or governments. 
B)  all capital owned by individuals or corporations, but not by governments. 
C)  machinery that meets or exceeds federal safety standards for use by humans. 
D)  the skill and knowledge of workers. 
A)  all capital owned by individuals, but not by corporations or governments. 
B)  all capital owned by individuals or corporations, but not by governments. 
C)  machinery that meets or exceeds federal safety standards for use by humans. 
D)  the skill and knowledge of workers.

Question 7

-The formula for the slope across an arc is used to approximate the slope for

Accepted Answer

A)  linear relationships only. 
B)  a curved line. 
C)  a positive relationship only. 
D)  a negative relationship only. 
A)  linear relationships only. 
B)  a curved line. 
C)  a positive relationship only. 
D)  a negative relationship only.

Question 8

If the slope of the relationship between savings and interest rates is 0.5, then

Accepted Answer

A)  savings and interest rates have a positive relationship. 
B)  savings and interest rates have a negative relationship. 
C)  savings and interest rates have no relationship. 
D)  savings and interest rates have an inverse relationship. 
A)  savings and interest rates have a positive relationship. 
B)  savings and interest rates have a negative relationship. 
C)  savings and interest rates have no relationship. 
D)  savings and interest rates have an inverse relationship.

Question 9

-The slope of the line in the above figure is

Accepted Answer

A)  -4. 
B)  -2.5. 
C)  -1.0. 
D)  1.0. 
A)  -4. 
B)  -2.5. 
C)  -1.0. 
D)  1.0.

Question 10

-In the above figure, the relationship between costs and quantity is negative

Accepted Answer

A)  between point A and point B. 
B)  between point B and point C. 
C)  along the entire curve. 
D)  nowhere along the curve. 
A)  between point A and point B. 
B)  between point B and point C. 
C)  along the entire curve. 
D)  nowhere along the curve.

Question 11

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

Accepted Answer

A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement. 
A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement.

Question 12

The term used to emphasize that making choices in the face of scarcity involves a cost is

Accepted Answer

A)  substitution cost. 
B)  opportunity cost. 
C)  utility cost. 
D)  accounting cost. 
A)  substitution cost. 
B)  opportunity cost. 
C)  utility cost. 
D)  accounting cost.

Question 13

In which of the following cases is the slope of a line positive?

Accepted Answer

A)  As x increases, y increases. 
B)  As x increases, y decreases. 
C)  As x increases, y remains the same. 
D)  As x increases, y equals a positive number. 
A)  As x increases, y increases. 
B)  As x increases, y decreases. 
C)  As x increases, y remains the same. 
D)  As x increases, y equals a positive number.

Question 14

-In the figure above, point B is

Accepted Answer

A)  on the x-axis. 
B)  on the y-axis. 
C)  at the origin. 
D)  a coordinate. 
A)  on the x-axis. 
B)  on the y-axis. 
C)  at the origin. 
D)  a coordinate.

Question 15

The slope of a line equals the

Accepted Answer

A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis. 
A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis.

Question 16

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

Accepted Answer

The figure shows that there is a negativ

Question 17

Marginal benefit is the benefit

Accepted Answer

A)  that your activity provides to someone else. 
B)  of an activity that exceeds its cost. 
C)  that arises from the secondary effects of an activity. 
D)  that arises from an increase in an activity. 
A)  that your activity provides to someone else. 
B)  of an activity that exceeds its cost. 
C)  that arises from the secondary effects of an activity. 
D)  that arises from an increase in an activity.

Question 18

-The data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies

Accepted Answer

A)  directly with their total household income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  negatively with their income. 
A)  directly with their total household income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  negatively with their income.

Question 19

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

Accepted Answer

A)  -0.057 
B)  -19.28 
C)  -35 
D)  70 
A)  -0.057 
B)  -19.28 
C)  -35 
D)  70

Question 20

If variable x always increases when variable y decreases, x and y are said to be

Accepted Answer

A)  positively related. 
B)  negatively related. 
C)  unrelated. 
D)  trend related. 
A)  positively related. 
B)  negatively related. 
C)  unrelated. 
D)  trend related.

Exam 1: What Is Economics

-If a curve falls and then rises, it shows

Economics is best defined as the science of choice and how people cope with

Which of the following questions is a macroeconomic issue?

-The slope of the line in the above figure is

A graph of two variables is a vertical line. What is the interpretation of this result?

Human capital is

-The formula for the slope across an arc is used to approximate the slope for

If the slope of the relationship between savings and interest rates is 0.5, then

-The slope of the line in the above figure is

-In the above figure, the relationship between costs and quantity is negative

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

The term used to emphasize that making choices in the face of scarcity involves a cost is

In which of the following cases is the slope of a line positive?

-In the figure above, point B is

The slope of a line equals the

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

Marginal benefit is the benefit

-The data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

If variable x always increases when variable y decreases, x and y are said to be

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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