Question 1

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

Accepted Answer

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

Question 2

Which type of graph shows the values of an economic variable for different groups in a population at a point in time?

Accepted Answer

A)  cross- section 
B)  scatter 
C)  time- series 
D)  None of the above answers is correct. 
A)  cross- section 
B)  scatter 
C)  time- series 
D)  None of the above answers is correct.

Question 3

-In the above figure, the relationship between income and expenditures is

Accepted Answer

A)  negative. 
B)  positive. 
C)  random. 
D)  independent. 
A)  negative. 
B)  positive. 
C)  random. 
D)  independent.

Question 4

Macroeconomics is the branch of economics that studies

Accepted Answer

A)  the economy as a whole. 
B)  important, as opposed to trivial, issues. 
C)  prices of individual goods. 
D)  the way individual markets work. 
A)  the economy as a whole. 
B)  important, as opposed to trivial, issues. 
C)  prices of individual goods. 
D)  the way individual markets work.

Question 5

You have data for average tax rates for each of the 50 states for 2002. The type of graph to best display these data would be a

Accepted Answer

A)  time- series graph. 
B)  scatter diagram. 
C)  multi- variable time- series graph. 
D)  cross- section graph. 
A)  time- series graph. 
B)  scatter diagram. 
C)  multi- variable time- series graph. 
D)  cross- section graph.

Question 6

Scarcity is a situation in which

Accepted Answer

A)  most people can get only bare necessities. 
B)  people can satisfy all their wants. 
C)  some people can get all they want and some cannot. 
D)  people cannot satisfy all their wants. 
A)  most people can get only bare necessities. 
B)  people can satisfy all their wants. 
C)  some people can get all they want and some cannot. 
D)  people cannot satisfy all their wants.

Question 7

"All children should have health insurance" is a

Accepted Answer

A)  fallacy of composition 
B)  positive statement 
C)  post hoc fallacy 
D)  normative statement 
A)  fallacy of composition 
B)  positive statement 
C)  post hoc fallacy 
D)  normative statement

Question 8

-In the above figure, the x- coordinate of point b is

Accepted Answer

A)  3. 
B)  14. 
C)  2. 
D)  1. 
A)  3. 
B)  14. 
C)  2. 
D)  1.

Question 9

-In the above figure, the slope across the arc between points a and b equals

Accepted Answer

A)  2. 
B)  4. 
C)  1. 
D)  5. 
A)  2. 
B)  4. 
C)  1. 
D)  5.

Question 10

Marginal cost is the

Accepted Answer

A)  cost of a small increase in an activity. 
B)  cost of all forgone alternatives. 
C)  cost of an activity minus the benefits of the activity. 
D)  total cost of an activity. 
A)  cost of a small increase in an activity. 
B)  cost of all forgone alternatives. 
C)  cost of an activity minus the benefits of the activity. 
D)  total cost of an activity.

Question 11

-In the above figure, the slope across the arc between a and b is

Accepted Answer

A)  5/2. 
B)  3/2. 
C)  2/5. 
D)  1. 
A)  5/2. 
B)  3/2. 
C)  2/5. 
D)  1.

Question 12

-In the above figure, the slope across the arc between a and b is

Accepted Answer

A)  1/3. 
B)  3. 
C)  1. 
D)  3/5. 
A)  1/3. 
B)  3. 
C)  1. 
D)  3/5.

Question 13

The concept of tradeoffs concerns all of the following questions EXCEPT:

Accepted Answer

A)  Why should goods and services be produced? 
B)  How should goods and services be produced? 
C)  For whom should goods and services be produced? 
D)  What goods and services should be produced? 
A)  Why should goods and services be produced? 
B)  How should goods and services be produced? 
C)  For whom should goods and services be produced? 
D)  What goods and services should be produced?

Question 14

-The table above gives productivity growth rate data for the nation of Alachua. The year when the growth rate was definitely at a maximum was

Accepted Answer

A)  1994. 
B)  1990. 
C)  1997. 
D)  2000. 
A)  1994. 
B)  1990. 
C)  1997. 
D)  2000.

Question 15

-The slope of a negative relationship is

Accepted Answer

A)  undefined. 
B)  constant as long as the relationship is nonlinear. 
C)  negative. 
D)  positive to the right of the maximum point and negative to the left. 
A)  undefined. 
B)  constant as long as the relationship is nonlinear. 
C)  negative. 
D)  positive to the right of the maximum point and negative to the left.

Question 16

By choosing to come to class, you know you are giving up the ability to watch television. In doing so, you are applying the concept of

Accepted Answer

A)  the post hoc fallacy. 
B)  opportunity cost. 
C)  involuntary exchange. 
D)  the fallacy of composition. 
A)  the post hoc fallacy. 
B)  opportunity cost. 
C)  involuntary exchange. 
D)  the fallacy of composition.

Question 17

Factors of production include

Accepted Answer

A)  land, labor, capital and entrepreneurship. 
B)  the economic system. 
C)  labor and capital (not land, which is fixed). 
D)  only capital, land, and labor. 
A)  land, labor, capital and entrepreneurship. 
B)  the economic system. 
C)  labor and capital (not land, which is fixed). 
D)  only capital, land, and labor.

Question 18

When a business increases its workers' wages, it is answering the "what" question.

Accepted Answer

A) True 
 B)False

Question 19

If the change in y = 10, and the change in x = 3, there is

Accepted Answer

A)  an independent relationship between y and x. 
B)  no relationship between y and x. 
C)  a negative relationship between y and x. 
D)  a positive relationship between y and x. 
A)  an independent relationship between y and x. 
B)  no relationship between y and x. 
C)  a negative relationship between y and x. 
D)  a positive relationship between y and x.

Question 20

Suppose Canon Inc. decided to invest 45 billion yen in developing and launching a new model of its digital camera, expecting that it will bring additional sales of 60 billion yen. The company has already invested 38 billion yen when the marketing department suddenly finds out that the introduction of a similar camera by Sony will reduce Canon's expected additional sales to 30 billion yen. The company's management is trying to decide whether to continue investing in the new product or close the project. Canon hires you as an economic consultant. So, think like an economist to help the company's management make their decision:
a) At this point in time, what is Canon's marginal cost of introducing the new product?
b) What is Canon's marginal benefit from introducing the new product?
c) Will you advise Canon to finish the project and introduce the new product? Why or why not? What principles of economic thinking will help you analyze the situation and make the right choice?

Accepted Answer

a) Canon's marginal cost is the addition

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

Which type of graph shows the values of an economic variable for different groups in a population at a point in time?

-In the above figure, the relationship between income and expenditures is

Macroeconomics is the branch of economics that studies

You have data for average tax rates for each of the 50 states for 2002. The type of graph to best display these data would be a

Scarcity is a situation in which

"All children should have health insurance" is a

-In the above figure, the x- coordinate of point b is

-In the above figure, the slope across the arc between points a and b equals

Marginal cost is the

-In the above figure, the slope across the arc between a and b is

-In the above figure, the slope across the arc between a and b is

The concept of tradeoffs concerns all of the following questions EXCEPT:

-The table above gives productivity growth rate data for the nation of Alachua. The year when the growth rate was definitely at a maximum was

-The slope of a negative relationship is

By choosing to come to class, you know you are giving up the ability to watch television. In doing so, you are applying the concept of

Factors of production include

When a business increases its workers' wages, it is answering the "what" question.

If the change in y = 10, and the change in x = 3, there 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

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

Which type of graph shows the values of an economic variable for different groups in a population at a point in time?

-In the above figure, the relationship between income and expenditures is

Macroeconomics is the branch of economics that studies

You have data for average tax rates for each of the 50 states for 2002. The type of graph to best display these data would be a

Scarcity is a situation in which

"All children should have health insurance" is a

-In the above figure, the x- coordinate of point b is

-In the above figure, the slope across the arc between points a and b equals

Marginal cost is the

-In the above figure, the slope across the arc between a and b is

-In the above figure, the slope across the arc between a and b is

The concept of tradeoffs concerns all of the following questions EXCEPT:

-The table above gives productivity growth rate data for the nation of Alachua. The year when the growth rate was definitely at a maximum was

-The slope of a negative relationship is

By choosing to come to class, you know you are giving up the ability to watch television. In doing so, you are applying the concept of

Factors of production include

When a business increases its workers' wages, it is answering the "what" question.

If the change in y = 10, and the change in x = 3, there 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