Question 1

-In the above figure, the slope across the arc between c and d is

Accepted Answer

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

Question 2

As an economic concept, scarcity applies to

Accepted Answer

A)  neither time nor money. 
B)  money but not time. 
C)  time but not money. 
D)  both money and time. 
A)  neither time nor money. 
B)  money but not time. 
C)  time but not money. 
D)  both money and time.

Question 3

What do economists mean when they discuss "scarcity"?

Accepted Answer

Scarcity occurs whenever people's wants

Question 4

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

Question 5

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

Accepted Answer

A)  - 25. 
B)  4. 
C)  - 0.25. 
D)  0.25. 
A)  - 25. 
B)  4. 
C)  - 0.25. 
D)  0.25.

Question 6

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a vertical line. From this fact we know that

Accepted Answer

A)  the value of x does not change when the value of y changes. 
B)  the value of y is constant. 
C)  the ratio of y to x is constant. 
D)  the ratio of x to y is constant. 
A)  the value of x does not change when the value of y changes. 
B)  the value of y is constant. 
C)  the ratio of y to x is constant. 
D)  the ratio of x to y is constant.

Question 7

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship shows

Accepted Answer

A)  a positive relationship. 
B)  a horizontal line. 
C)  a vertical line. 
D)  none of the above 
A)  a positive relationship. 
B)  a horizontal line. 
C)  a vertical line. 
D)  none of the above

Question 8

Monthly precipitation and monthly cable TV bills

Accepted Answer

A)  are positively related. 
B)  are unrelated. 
C)  are linearly related. 
D)  Both answers A and B are correct. 
A)  are positively related. 
B)  are unrelated. 
C)  are linearly related. 
D)  Both answers A and B are correct.

Question 9

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

Accepted Answer

A)  the big tradeoff. 
B)  opportunity costs. 
C)  a normative statement. 
D)  a positive statement. 
A)  the big tradeoff. 
B)  opportunity costs. 
C)  a normative statement. 
D)  a positive statement.

Question 10

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

Question 11

When firms in an economy start producing more computers and fewer televisions, they are answering the question.

Accepted Answer

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

Question 12

To show how a variable , we typically use a _.

Accepted Answer

A)  relates to another variable; pie chart 
B)  evolves over time; cross- section graph 
C)  evolves over time; time- series graph 
D)  relates to another variable; time- series graph 
A)  relates to another variable; pie chart 
B)  evolves over time; cross- section graph 
C)  evolves over time; time- series graph 
D)  relates to another variable; time- series graph

Question 13

Economic models

Accepted Answer

A)  simplify reality. 
B)  include all relevant facts. 
C)  are essentially different from those used in other sciences. 
D)  always use graphs. 
A)  simplify reality. 
B)  include all relevant facts. 
C)  are essentially different from those used in other sciences. 
D)  always use graphs.

Question 14

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

Accepted Answer

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

Question 15

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating
Y to x is

Accepted Answer

A)  1. 
B)  3. 
C)  1/3. 
D)  6. 
A)  1. 
B)  3. 
C)  1/3. 
D)  6.

Question 16

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

Question 17

"The rich should pay higher income tax rates than the poor" is an example of a

Accepted Answer

A)  normative statement. 
B)  descriptive statement. 
C)  theoretical statement. 
D)  positive statement. 
A)  normative statement. 
B)  descriptive statement. 
C)  theoretical statement. 
D)  positive statement.

Question 18

If the government raises the tax on cigarettes, what is the effect on people's incentives and choices?

Accepted Answer

The government raises the tax on cigaret

Question 19

If there is an inverse relationship between two variables, the

Accepted Answer

A)  graph of this relationship will be downward- sloping. 
B)  graph of this relationship will be upward- sloping. 
C)  graph of this relationship will be a horizontal line. 
D)  slope of the line (or the slope of a tangent line to the curve) will be positive. 
A)  graph of this relationship will be downward- sloping. 
B)  graph of this relationship will be upward- sloping. 
C)  graph of this relationship will be a horizontal line. 
D)  slope of the line (or the slope of a tangent line to the curve) will be positive.

Question 20

Most income in the United States is earned by business owners as profit.

Accepted Answer

A) True 
 B)False

-In the above figure, the slope across the arc between c and d is

As an economic concept, scarcity applies to

What do economists mean when they discuss "scarcity"?

Why do economists say that even very rich people face scarcity?

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

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a vertical line. From this fact we know that

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship shows

Monthly precipitation and monthly cable TV bills

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

What is a normative statement? Give an example.

When firms in an economy start producing more computers and fewer televisions, they are answering the question.

To show how a variable , we typically use a _.

Economic models

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

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating Y to x is

-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?

"The rich should pay higher income tax rates than the poor" is an example of a

If the government raises the tax on cigarettes, what is the effect on people's incentives and choices?

If there is an inverse relationship between two variables, the

Most income in the United States is earned by business owners as profit.

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

-In the above figure, the slope across the arc between c and d is

As an economic concept, scarcity applies to

What do economists mean when they discuss "scarcity"?

Why do economists say that even very rich people face scarcity?

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

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a vertical line. From this fact we know that

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship shows

Monthly precipitation and monthly cable TV bills

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

What is a normative statement? Give an example.

When firms in an economy start producing more computers and fewer televisions, they are answering the question.

To show how a variable , we typically use a _.

Economic models

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

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating Y to x is

-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?

"The rich should pay higher income tax rates than the poor" is an example of a

If the government raises the tax on cigarettes, what is the effect on people's incentives and choices?

If there is an inverse relationship between two variables, the

Most income in the United States is earned by business owners as profit.

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