Question 1

-In the figure above, an increase in z leads to a

Accepted Answer

A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y.

Question 2

In the above figure, if household consumption is positively related to household income, then an increase in household income will

Accepted Answer

A)  shift the line rightward. 
B)  shift the line leftward. 
C)  make the line positively sloped. 
D)  cause a movement along the line. 
A)  shift the line rightward. 
B)  shift the line leftward. 
C)  make the line positively sloped. 
D)  cause a movement along the line.

Question 3

Which of the following is correct? Factors of production are

Accepted Answer

A)  land, labor, the price system, and capital. 
B)  the inputs used to produce goods and services. 
C)  the fundamental source of abundance. 
D)  only land and labor. 
A)  land, labor, the price system, and capital. 
B)  the inputs used to produce goods and services. 
C)  the fundamental source of abundance. 
D)  only land and labor.

Question 4

Ben Bernanke, Chairman of the Federal Reserve, must choose whether tomorrow he meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

Accepted Answer

A)  fact that Bernanke faces scarcity. 
B)  concept of entrepreneurship. 
C)  fact that Bernanke responds to incentives 
D)  use of capital. 
A)  fact that Bernanke faces scarcity. 
B)  concept of entrepreneurship. 
C)  fact that Bernanke responds to incentives 
D)  use of capital.

Question 5

-In the above figure, the curve has a slope that is ________.

Accepted Answer

A)  positive and becoming larger in magnitude 
B)  positive and becoming smaller in magnitude 
C)  negative and becoming larger in magnitude 
D)  negative and becoming smaller in magnitude 
A)  positive and becoming larger in magnitude 
B)  positive and becoming smaller in magnitude 
C)  negative and becoming larger in magnitude 
D)  negative and becoming smaller in magnitude

Question 6

-"If you hire 1 worker, the worker can produce 20 pizzas a day. If you hire a 2nd worker, that worker can produce 10 more pizzas. If you hire a 3rd worker, that worker can produce 2 more pizzas a day." A graph displaying this relationship between the number of employees and total pizza output per day would show

Accepted Answer

A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  a negatively-sloped curve that becomes less steep. 
A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  a negatively-sloped curve that becomes less steep.

Question 7

If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by

Accepted Answer

A)  an increase in the value of variable y. 
B)  a decrease in the value of variable y. 
C)  no change in the value of variable y. 
D)  variable y reaching its maximum value. 
A)  an increase in the value of variable y. 
B)  a decrease in the value of variable y. 
C)  no change in the value of variable y. 
D)  variable y reaching its maximum value.

Question 8

An economic model includes

Accepted Answer

A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential. 
A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential.

Question 9

-In the above figure, the relationship between x and y is

Accepted Answer

A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases. 
A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases.

Question 10

-If you study 3 hours for an exam, you can raise your score by 30 points. If you study for another 3 hours your score increases by 10 points. And if you study for another 3 hours, your score will increase by 5 more points. A graph displaying this relationship between the number of hours studied and your total exam score would show

Accepted Answer

A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  an upward-sloping curve that becomes more steep. 
A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  an upward-sloping curve that becomes more steep.

Question 11

-If there is a direct relationship between two variables,

Accepted Answer

A)  the graph of the relationship will be upward-sloping. 
B)  the graph of the relationship will be downward-sloping. 
C)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
D)  Both answers A and C are correct. 
A)  the graph of the relationship will be upward-sloping. 
B)  the graph of the relationship will be downward-sloping. 
C)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
D)  Both answers A and C are correct.

Question 12

Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5. Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?

Accepted Answer

Marginal benefit is the benefit that ari

Question 13

-The slope of a straight line is

Accepted Answer

A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero. 
A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero.

Question 14

What is the difference between scarcity and poverty?

Accepted Answer

Scarcity exists when availabil

Question 15

-Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed,

Accepted Answer

A)  the price of a pizza and the income of pizza consumers are the only variables that are allowed to change. 
B)  the price of pizza and quantity consumed of pizza are the only variables that are allowed to change. 
C)  consumers' taste for pizza and the income of pizza purchasers are the only variables that are allowed to change. 
D)  None of the above answers are correct. 
A)  the price of a pizza and the income of pizza consumers are the only variables that are allowed to change. 
B)  the price of pizza and quantity consumed of pizza are the only variables that are allowed to change. 
C)  consumers' taste for pizza and the income of pizza purchasers are the only variables that are allowed to change. 
D)  None of the above answers are correct.

Question 16

Entrepreneurs do all of the following EXCEPT

Accepted Answer

A)  organize labor, land, and capital. 
B)  come up with new ideas about what and how to produce. 
C)  bear risk from business decisions. 
D)  own all the other resources used in the production process. 
A)  organize labor, land, and capital. 
B)  come up with new ideas about what and how to produce. 
C)  bear risk from business decisions. 
D)  own all the other resources used in the production process.

Question 17

-On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a

Accepted Answer

A)  positive relationship with an increasing slope. 
B)  positive relationship with a decreasing slope. 
C)  negative relationship with an increasing slope. 
D)  negative relationship with a decreasing slope. 
A)  positive relationship with an increasing slope. 
B)  positive relationship with a decreasing slope. 
C)  negative relationship with an increasing slope. 
D)  negative relationship with a decreasing slope.

Question 18

-Given the information in the above table, the relationship between x and y is

Accepted Answer

A)  positive, and the curve becomes flatter as x increases. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive and linear. 
D)  negative and linear. 
A)  positive, and the curve becomes flatter as x increases. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive and linear. 
D)  negative and linear.

Question 19

-The relationship between x and y in the above figure is

Accepted Answer

A)  positive with an increasing slope. 
B)  positive with a decreasing slope. 
C)  negative with an increasing slope. 
D)  negative with a decreasing slope. 
A)  positive with an increasing slope. 
B)  positive with a decreasing slope. 
C)  negative with an increasing slope. 
D)  negative with a decreasing slope.

Question 20

-Using the above figure, which of the following is true?

Accepted Answer

A)  Axis 1 is typically called the y-axis. 
B)  Axis 1 is also known as the origin. 
C)  Axis 2 is typically called the x-axis. 
D)  Point b is known as the origin. 
A)  Axis 1 is typically called the y-axis. 
B)  Axis 1 is also known as the origin. 
C)  Axis 2 is typically called the x-axis. 
D)  Point b is known as the origin.

Exam 1: What Is Economics

-In the figure above, an increase in z leads to a

In the above figure, if household consumption is positively related to household income, then an increase in household income will

Which of the following is correct? Factors of production are

Ben Bernanke, Chairman of the Federal Reserve, must choose whether tomorrow he meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

-In the above figure, the curve has a slope that is ________.

If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by

An economic model includes

-In the above figure, the relationship between x and y is

-If there is a direct relationship between two variables,

-The slope of a straight line is

What is the difference between scarcity and poverty?

-Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed,

Entrepreneurs do all of the following EXCEPT

-On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a

-Given the information in the above table, the relationship between x and y is

-The relationship between x and y in the above figure is

-Using the above figure, which of the following is true?

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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