Question 1

Using the data in the above table, if income is on the x- axis and the amount spent on restaurant meals is on the y- axis, the slope of the straight line graph equals

Accepted Answer

A)  0.2. 
B)  0.5. 
C)  2.5. 
D)  0.4. 
A)  0.2. 
B)  0.5. 
C)  2.5. 
D)  0.4.

Question 2

-Using the above figure, during which month was the price for crude oil the highest?

Accepted Answer

A)  October 
B)  July 
C)  December 
D)  May 
A)  October 
B)  July 
C)  December 
D)  May

Question 3

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

Accepted Answer

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

Question 4

What is the difference between a positive and a negative relationship?

Accepted Answer

Two variables are positively related whe

Question 5

Which term best describes the study of the decisions of people and businesses and the interaction of these decisions?

Accepted Answer

A)  macroeconomics 
B)  marginal study 
C)  microeconomics 
D)  scarcity science 
A)  macroeconomics 
B)  marginal study 
C)  microeconomics 
D)  scarcity science

Question 6

-In the table above, Y is measured along the y- axis and X along the x- axis. The slope between points c and d is

Accepted Answer

A)  0. 
B)  0.25. 
C)  - 4. 
D)  100. 
A)  0. 
B)  0.25. 
C)  - 4. 
D)  100.

Question 7

A time- series graph reveals whether there is a which represents .

Accepted Answer

A)  trend in a variable; a general tendency for the variable to rise or fall 
B)  trend in a variable; unrelated variables 
C)  relationship between two variables; a cross- section graph 
D)  relationship between two variables; a trend in a variable 
A)  trend in a variable; a general tendency for the variable to rise or fall 
B)  trend in a variable; unrelated variables 
C)  relationship between two variables; a cross- section graph 
D)  relationship between two variables; a trend in a variable

Question 8

In 2008, China chose to allow its peasant farmers to have right to rent out their land. China hopes that these farmers will

Accepted Answer

A)  act in the social interest. 
B)  act in their self- interest. 
C)  respond to incentives and increase agricultural output. 
D)  all of the above. 
A)  act in the social interest. 
B)  act in their self- interest. 
C)  respond to incentives and increase agricultural output. 
D)  all of the above.

Question 9

The benefit that arises from an increase in an activity is called

Accepted Answer

A)  an incentive. 
B)  the marginal cost. 
C)  the marginal benefit. 
D)  opportunity cost. 
A)  an incentive. 
B)  the marginal cost. 
C)  the marginal benefit. 
D)  opportunity cost.

Question 10

The largest part of what the United States produces today is _ such as .

Accepted Answer

A)  goods; education and entertainment 
B)  services; textbooks and computers 
C)  goods; food and electronic equipment 
D)  services; trade and health care 
A)  goods; education and entertainment 
B)  services; textbooks and computers 
C)  goods; food and electronic equipment 
D)  services; trade and health care

Question 11

-In the above figure, a negative relationship between price and quantity is shown in

Accepted Answer

A)  Figure A. 
B)  Figure B. 
C)  both Figure A and Figure B. 
D)  neither Figure A nor Figure B. 
A)  Figure A. 
B)  Figure B. 
C)  both Figure A and Figure B. 
D)  neither Figure A nor Figure B.

Question 12

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts. If the price of a pound of peanuts is $1 and the price of a pound of pecans is
$2, peanut farmers are willing to sell

Accepted Answer

A)  1000 pounds of peanuts. 
B)  no peanuts. 
C)  2000 pounds of peanuts. 
D)  4000 pounds of peanuts. 
A)  1000 pounds of peanuts. 
B)  no peanuts. 
C)  2000 pounds of peanuts. 
D)  4000 pounds of peanuts.

Question 13

Time- series graphs can quickly convey information about

Accepted Answer

A)  the direction of change in the value of a variable over time. 
B)  the level of a variable at any point in time. 
C)  whether there is a trend in the variable over time. 
D)  All of the above answers are correct. 
A)  the direction of change in the value of a variable over time. 
B)  the level of a variable at any point in time. 
C)  whether there is a trend in the variable over time. 
D)  All of the above answers are correct.

Question 14

Macroeconomics is the study of aggregate variables such as national production and unemployment.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

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

Question 16

Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500. If you didn't go to school, you'd live in your parents' house for free, but your other living expenses would be about the same. Also, if you didn't go to school you'd work full time and could earn $8,000. You can still work part time while attending the summer school, but you will earn only $3,000
a) What will the summer school cost you in terms of money explicitly paid?
b) What are the opportunity costs of going to summer school that you don't pay explicitly? Explain.
c) What is your total opportunity costs of going to school this summer? Explain your answer.

Accepted Answer

a) You explicitly pay the cost of tuitio

Question 17

Macroeconomics differs from microeconomics in that:

Accepted Answer

A)  macroeconomics studies the behavior of government while microeconomics looks at private corporations. 
B)  macroeconomics focuses on the national economy and the global economy. 
C)  macroeconomics studies the decisions of individuals. 
D)  microeconomics looks at the economy as a whole. 
A)  macroeconomics studies the behavior of government while microeconomics looks at private corporations. 
B)  macroeconomics focuses on the national economy and the global economy. 
C)  macroeconomics studies the decisions of individuals. 
D)  microeconomics looks at the economy as a whole.

Question 18

-The slope of the line in the above figure is

Accepted Answer

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

Question 19

Which of the following is a positive statement?

Accepted Answer

A)  A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice. 
B)  The United States should fight inflation even if it raises unemployment. 
C)  What to do with Social Security is the most important economic issue today. 
D)  Because they decrease productivity, labor unions should be eliminated. 
A)  A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice. 
B)  The United States should fight inflation even if it raises unemployment. 
C)  What to do with Social Security is the most important economic issue today. 
D)  Because they decrease productivity, labor unions should be eliminated.

Question 20

What is opportunity cost?

Accepted Answer

Opportunity cost is the highest- valued

Using the data in the above table, if income is on the x- axis and the amount spent on restaurant meals is on the y- axis, the slope of the straight line graph equals

-Using the above figure, during which month was the price for crude oil the highest?

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

What is the difference between a positive and a negative relationship?

Which term best describes the study of the decisions of people and businesses and the interaction of these decisions?

-In the table above, Y is measured along the y- axis and X along the x- axis. The slope between points c and d is

A time- series graph reveals whether there is a which represents .

In 2008, China chose to allow its peasant farmers to have right to rent out their land. China hopes that these farmers will

The benefit that arises from an increase in an activity is called

The largest part of what the United States produces today is _ such as .

-In the above figure, a negative relationship between price and quantity is shown in

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts. If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

Time- series graphs can quickly convey information about

Macroeconomics is the study of aggregate variables such as national production and unemployment.

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

Macroeconomics differs from microeconomics in that:

-The slope of the line in the above figure is

Which of the following is a positive statement?

What is opportunity cost?

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

Using the data in the above table, if income is on the x- axis and the amount spent on restaurant meals is on the y- axis, the slope of the straight line graph equals

-Using the above figure, during which month was the price for crude oil the highest?

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

What is the difference between a positive and a negative relationship?

Which term best describes the study of the decisions of people and businesses and the interaction of these decisions?

-In the table above, Y is measured along the y- axis and X along the x- axis. The slope between points c and d is

A time- series graph reveals whether there is a which represents .

In 2008, China chose to allow its peasant farmers to have right to rent out their land. China hopes that these farmers will

The benefit that arises from an increase in an activity is called

The largest part of what the United States produces today is _ such as .

-In the above figure, a negative relationship between price and quantity is shown in

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts. If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

Time- series graphs can quickly convey information about

Macroeconomics is the study of aggregate variables such as national production and unemployment.

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

Macroeconomics differs from microeconomics in that:

-The slope of the line in the above figure is

Which of the following is a positive statement?

What is opportunity cost?

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