Question 1

-In the figure above, the value on the x- axis increases as we move from

Accepted Answer

A)  point G to point A. 
B)  point F to point A. 
C)  point C to point A. 
D)  point E to point A. 
A)  point G to point A. 
B)  point F to point A. 
C)  point C to point A. 
D)  point E to point A.

Question 2

Which of the following is a macroeconomic decision or concept?

Accepted Answer

A)  how many television sets to produce 
B)  the unemployment rate for each firm 
C)  the price of oil 
D)  the unemployment rate for the entire economy 
A)  how many television sets to produce 
B)  the unemployment rate for each firm 
C)  the price of oil 
D)  the unemployment rate for the entire economy

Question 3

When an economy produces more houses and fewer typewriters, it is answering the question.

Accepted Answer

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

Question 4

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

Accepted Answer

A)  (change in x)/ (change in y). 
B)  (change in y)/ (change in x). 
C)  y/x. 
D)  x/y. 
A)  (change in x)/ (change in y). 
B)  (change in y)/ (change in x). 
C)  y/x. 
D)  x/y.

Question 5

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

Accepted Answer

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

Question 6

Economists point out that scarcity confronts

Accepted Answer

A)  the rich but not the poor. 
B)  both the poor and the rich. 
C)  neither the poor nor the rich. 
D)  the poor but not the rich. 
A)  the rich but not the poor. 
B)  both the poor and the rich. 
C)  neither the poor nor the rich. 
D)  the poor but not the rich.

Question 7

The horizontal axis in a graph

Accepted Answer

A)  measures time on a scatter diagram. 
B)  is named the y- axis. 
C)  is named the x- axis. 
D)  measures the quality of a variable. 
A)  measures time on a scatter diagram. 
B)  is named the y- axis. 
C)  is named the x- axis. 
D)  measures the quality of a variable.

Question 8

What is the difference between a total benefit and a marginal benefit?

Accepted Answer

The total benefit is all the b

Question 9

-Using the above figure, the origin is at which point?

Accepted Answer

A)  Point a 
B)  Point b 
C)  Point c 
D)  None of the points in the figure is the origin. 
A)  Point a 
B)  Point b 
C)  Point c 
D)  None of the points in the figure is the origin.

Question 10

Which of the following is NOT an example of an opportunity cost?

Accepted Answer

A)  Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. 
B)  Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. 
C)  By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college. 
D)  By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. 
A)  Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. 
B)  Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. 
C)  By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college. 
D)  By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class.

Question 11

In the United States, the percentage of people employed in over the last 60 years.

Accepted Answer

A)  farming has increased 
B)  manufacturing has increased 
C)  services has decreased 
D)  construction has increased 
A)  farming has increased 
B)  manufacturing has increased 
C)  services has decreased 
D)  construction has increased

Question 12

-The slope of the line in the above figure is

Accepted Answer

A)  0.10. 
B)  0.05. 
C)  0.125. 
D)  8. 
A)  0.10. 
B)  0.05. 
C)  0.125. 
D)  8.

Question 13

What is a tradeoff? Give an example.

Accepted Answer

A tradeoff occurs when one thing must be

Question 14

Which of the following is a macroeconomic issue?

Accepted Answer

A)  What determines the amount a firm will produce. 
B)  How federal government budget deficits affect interest rates. 
C)  How a rise in the price of sugar affects the market for sodas. 
D)  The cause of a decline in the price of peanut butter. 
A)  What determines the amount a firm will produce. 
B)  How federal government budget deficits affect interest rates. 
C)  How a rise in the price of sugar affects the market for sodas. 
D)  The cause of a decline in the price of peanut butter.

Question 15

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this roommate's comment correct?

Accepted Answer

Your first roommate's comment is incorre

Question 16

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 17

-The slope of the line shown in the above figure is

Accepted Answer

A)  0.75. 
B)  2. 
C)  1 1/3. 
D)  0.25. 
A)  0.75. 
B)  2. 
C)  1 1/3. 
D)  0.25.

Question 18

Jane is deciding whether to go to school for 8 weeks this summer. The cost of tuition and textbooks is $1,700 and housing and other expenses will cost her $600. If she does not go to school, she will live in her parents' house for free and they will cover her food and other expenses for her. Also, if Jane does not go to summer school she could work fulltime. But the best job she can get pays only $600 per week, and Jane would only agree to give up free time for no less than $750 per week. However, if she goes to summer school, she'll have to spend 40 hours a attending classes and studying.
a) What will the summer school cost Jane in terms of money spent?
b) What are the opportunity costs of going to summer school that Jane does not pay explicitly? Explain.
c) What is Jane's total opportunity cost of going to school this summer? Explain your answer.
d) Suppose that if Jane does not go to summer school, she will eventually take the classes anyway. What is Jane marginal benefit of going to summer school?
e) Suppose Jane decides to go to school in the summer. Explain her decision using the concepts of marginal cos marginal benefit.

Accepted Answer

a) Jane explicitly pays the cost of tuit

Question 19

-In the above table, when x increases from 4 units to 6 units, y changes by _ units.

Accepted Answer

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

Question 20

You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not report to work where you could have earned $750. The opportunity cost of the vacation is

Accepted Answer

A)  $750. 
B)  $2,750. 
C)  $2,000. 
D)  $1,250 
A)  $750. 
B)  $2,750. 
C)  $2,000. 
D)  $1,250

-In the figure above, the value on the x- axis increases as we move from

Which of the following is a macroeconomic decision or concept?

When an economy produces more houses and fewer typewriters, it is answering the question.

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

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

Economists point out that scarcity confronts

The horizontal axis in a graph

What is the difference between a total benefit and a marginal benefit?

-Using the above figure, the origin is at which point?

Which of the following is NOT an example of an opportunity cost?

^In the United States, the percentage of people employed in over the last 60 years.

-The slope of the line in the above figure is

What is a tradeoff? Give an example.

Which of the following is a macroeconomic issue?

-The slope of the line shown in the above figure is

-In the above table, when x increases from 4 units to 6 units, y changes by _ units.

You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not report to work where you could have earned $750. The opportunity cost of the vacation is

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 figure above, the value on the x- axis increases as we move from

Which of the following is a macroeconomic decision or concept?

When an economy produces more houses and fewer typewriters, it is answering the question.

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

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

Economists point out that scarcity confronts

The horizontal axis in a graph

What is the difference between a total benefit and a marginal benefit?

-Using the above figure, the origin is at which point?

Which of the following is NOT an example of an opportunity cost?

In the United States, the percentage of people employed in over the last 60 years.

-The slope of the line in the above figure is

What is a tradeoff? Give an example.

Which of the following is a macroeconomic issue?

-The slope of the line shown in the above figure is

-In the above table, when x increases from 4 units to 6 units, y changes by _ units.

You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not report to work where you could have earned $750. The opportunity cost of the vacation is

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

^In the United States, the percentage of people employed in over the last 60 years.