Question 1

What is the difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics studies the decisions of smaller economic actors, such as individual consumers or individual firms, and how the government can affect these decisions, say through how it regulates an industry. Macroeconomics studies the aggregate, or economy- wide, consequences of the decisions made by individuals and firms. Macroeconomics also studies the aggregate effects of government policies, such as the Federal Reserve's decisions to raise or lower interest rates.

Question 2

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

Accepted Answer

A)  5/3. 
B)  - 5/3. 
C)  - 3/5. 
D)  3/5. 
A)  5/3. 
B)  - 5/3. 
C)  - 3/5. 
D)  3/5. B

Question 3

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

Accepted Answer

A)  upward and may be linear or nonlinear. 
B)  downward and be linear. 
C)  upward and be linear. 
D)  downward and may be linear or nonlinear. 
A)  upward and may be linear or nonlinear. 
B)  downward and be linear. 
C)  upward and be linear. 
D)  downward and may be linear or nonlinear. D

Question 4

The fact that KFC decides to produce chicken rather than meat loaf best reflects tradeoff.

Accepted Answer

A)  a how 
B)  an incentive 
C)  a for whom 
D)  a what 
A)  a how 
B)  an incentive 
C)  a for whom 
D)  a what

Question 5

If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

Accepted Answer

A)  always be an upward- sloping line. 
B)  have a minimum point. 
C)  always be a downward- sloping line. 
D)  have a maximum point. 
A)  always be an upward- sloping line. 
B)  have a minimum point. 
C)  always be a downward- sloping line. 
D)  have a maximum point.

Question 6

-In the above figure, when income is zero, household expenditures equal

Accepted Answer

A)  $1000. 
B)  0. 
C)  $8000. 
D)  $4000. 
A)  $1000. 
B)  0. 
C)  $8000. 
D)  $4000.

Question 7

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

Question 8

When the New York Jets pay their new player a signing bonus of $10 million, the team is answering

Accepted Answer

A)  the what question. 
B)  the how and what questions. 
C)  the for whom question. 
D)  the how question. 
A)  the what question. 
B)  the how and what questions. 
C)  the for whom question. 
D)  the how question.

Question 9

Scarcity affects only those who are in need.

Accepted Answer

A) True 
 B)False

Question 10

-The figure above shows

Accepted Answer

A)  a time- series relationship. 
B)  a negative relationship. 
C)  a positive relationship. 
D)  no relationship between the variables. 
A)  a time- series relationship. 
B)  a negative relationship. 
C)  a positive relationship. 
D)  no relationship between the variables.

Question 11

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

Accepted Answer

A) True 
 B)False

Question 12

What kind of information is conveyed in a time- series graph?

Accepted Answer

A time series graph reveals four types o

Question 13

-In the above figure, the axis break in the x- axis

Accepted Answer

A)  shows that there is no relationship between inflation and unemployment. 
B)  misleadingly shows that inflation has changed very little even though the unemployment rate has increased a great deal. 
C)  implies that for the years covered in the figure, the inflation rate was always greater than 1 percent. 
D)  reflects the fact that for the years covered in the figure, the unemployment rate was never less than 3 percent. 
A)  shows that there is no relationship between inflation and unemployment. 
B)  misleadingly shows that inflation has changed very little even though the unemployment rate has increased a great deal. 
C)  implies that for the years covered in the figure, the inflation rate was always greater than 1 percent. 
D)  reflects the fact that for the years covered in the figure, the unemployment rate was never less than 3 percent.

Question 14

When a photographer decides to use a digital camera to take shots versus using film, the photographer is facing the

Accepted Answer

A)  microeconomic question. 
B)  "what" tradeoff. 
C)  "for whom" tradeoff. 
D)  "how" tradeoff. 
A)  microeconomic question. 
B)  "what" tradeoff. 
C)  "for whom" tradeoff. 
D)  "how" tradeoff.

Question 15

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

Accepted Answer

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

Question 16

-In the table above, y is measured along the y- axis and x along the x- axis. The slope of the relationship between x = 0 and x = 2 is

Accepted Answer

A)  3. 
B)  6. 
C)  - 6. 
D)  2. 
A)  3. 
B)  6. 
C)  - 6. 
D)  2.

Question 17

When a country decides to produce fewer bombers and more public housing projects, it is answering the question.

Accepted Answer

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

Question 18

Which type of graph should be used if the purpose of the graph is to check the strength of the relationship between savings and income?

Accepted Answer

A)  a scatter diagram 
B)  a time- series graph 
C)  a trend diagram 
D)  a bar chart 
A)  a scatter diagram 
B)  a time- series graph 
C)  a trend diagram 
D)  a bar chart

Question 19

Factors of production include all of the following EXCEPT .

Accepted Answer

A)  an wheat field that is not irrigated 
B)  money 
C)  machines made in past years 
D)  entrepreneurship 
A)  an wheat field that is not irrigated 
B)  money 
C)  machines made in past years 
D)  entrepreneurship

Question 20

Household consumption depends on both income and interest rates. In the above figure

Accepted Answer

A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  no variable is held constant. 
D)  household income is held constant. 
A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  no variable is held constant. 
D)  household income is held constant.

What is the difference between microeconomics and macroeconomics?

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

The fact that KFC decides to produce chicken rather than meat loaf best reflects tradeoff.

If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

-In the above figure, when income is zero, household expenditures equal

-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

When the New York Jets pay their new player a signing bonus of $10 million, the team is answering

Scarcity affects only those who are in need.

-The figure above shows

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

What kind of information is conveyed in a time- series graph?

-In the above figure, the axis break in the x- axis

When a photographer decides to use a digital camera to take shots versus using film, the photographer is facing the

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

-In the table above, y is measured along the y- axis and x along the x- axis. The slope of the relationship between x = 0 and x = 2 is

When a country decides to produce fewer bombers and more public housing projects, it is answering the question.

Which type of graph should be used if the purpose of the graph is to check the strength of the relationship between savings and income?

Factors of production include all of the following EXCEPT .

Household consumption depends on both income and interest rates. In the above figure

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 1: What Is Economics

What is the difference between microeconomics and macroeconomics?

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

The fact that KFC decides to produce chicken rather than meat loaf best reflects tradeoff.

If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

-In the above figure, when income is zero, household expenditures equal

-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

When the New York Jets pay their new player a signing bonus of $10 million, the team is answering

Scarcity affects only those who are in need.

-The figure above shows

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

What kind of information is conveyed in a time- series graph?

-In the above figure, the axis break in the x- axis

When a photographer decides to use a digital camera to take shots versus using film, the photographer is facing the

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

-In the table above, y is measured along the y- axis and x along the x- axis. The slope of the relationship between x = 0 and x = 2 is

When a country decides to produce fewer bombers and more public housing projects, it is answering the question.

Which type of graph should be used if the purpose of the graph is to check the strength of the relationship between savings and income?

Factors of production include all of the following EXCEPT .

Household consumption depends on both income and interest rates. In the above figure

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters