Question 1

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

Accepted Answer

A)  the wages received for 5 days of work. 
B)  the wages received for 4 days of work. 
C)  the wages received for the fifth day of work. 
D)  None of the above answers is correct. 
A)  the wages received for 5 days of work. 
B)  the wages received for 4 days of work. 
C)  the wages received for the fifth day of work. 
D)  None of the above answers is correct.

Question 2

A trend is

Accepted Answer

A)  the maximum value of a variable. 
B)  a measure of closeness on a scatter diagram. 
C)  the minimum value of a variable. 
D)  a general tendency for a variable to rise or fall. 
A)  the maximum value of a variable. 
B)  a measure of closeness on a scatter diagram. 
C)  the minimum value of a variable. 
D)  a general tendency for a variable to rise or fall.

Question 3

Scarcity applies to both the rich and the poor.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  5/8. 
B)  - 0.625. 
C)  - 1 3/8. 
D)  - 1 2/3. 
A)  5/8. 
B)  - 0.625. 
C)  - 1 3/8. 
D)  - 1 2/3.

Question 5

If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the curve relating price and quantity has a slope of

Accepted Answer

A)  8.0. 
B)  - 8.0. 
C)  0.8. 
D)  - 1.25. 
A)  8.0. 
B)  - 8.0. 
C)  0.8. 
D)  - 1.25.

Question 6

-The above figure is a

Accepted Answer

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

Question 7

A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show

Accepted Answer

A)  an inverse relationship. 
B)  a negative relationship. 
C)  a direct relationship. 
D)  Both answers A and B are correct. 
A)  an inverse relationship. 
B)  a negative relationship. 
C)  a direct relationship. 
D)  Both answers A and B are correct.

Question 8

The slope of a straight line is 3/4. When x equals 20, y equals 14. When x equals 32, y equals

Accepted Answer

A)  23. 
B)  26. 
C)  9. 
D)  17. 
A)  23. 
B)  26. 
C)  9. 
D)  17.

Question 9

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie. Therefore, the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

Accepted Answer

Your friend's analysis is incorrect. The

Question 10

If the change in the y- axis variable is 4 and the change in the x- axis variable is 2, the slope of this line is 1/2.

Accepted Answer

A) True 
 B)False

Question 11

Trend refers to

Accepted Answer

A)  decreases but not increases of a variable. 
B)  the scale used on the x- and y- coordinates. 
C)  a general tendency for a variable to rise or fall. 
D)  increases but not decreases of a variable. 
A)  decreases but not increases of a variable. 
B)  the scale used on the x- and y- coordinates. 
C)  a general tendency for a variable to rise or fall. 
D)  increases but not decreases of a variable.

Question 12

Economics is best defined as

Accepted Answer

A)  making choices with unlimited wants but facing a scarcity of resources. 
B)  how people make money and profits in the stock market. 
C)  making choices from an unlimited supply of goods and services. 
D)  controlling a budget for a household. 
A)  making choices with unlimited wants but facing a scarcity of resources. 
B)  how people make money and profits in the stock market. 
C)  making choices from an unlimited supply of goods and services. 
D)  controlling a budget for a household.

Question 13

Which of the following are true regarding "positive" statements?
I. They describe what "ought to be."
II. They describe what is believed about how the world appears.
III. They can be tested as to their truthfulness.

Accepted Answer

A)  I, II and III. 
B)  I and III. 
C)  I and II. 
D)  II and III. 
A)  I, II and III. 
B)  I and III. 
C)  I and II. 
D)  II and III.

Question 14

The term "direct relationship" means the same as

Accepted Answer

A)  correlation. 
B)  negative relationship. 
C)  positive relationship. 
D)  trend. 
A)  correlation. 
B)  negative relationship. 
C)  positive relationship. 
D)  trend.

Question 15

A graph that shows the average income of different cities for a given year is considered to be:

Accepted Answer

A)  a time- series graph. 
B)  a trend graph. 
C)  the origin. 
D)  a cross- section graph. 
A)  a time- series graph. 
B)  a trend graph. 
C)  the origin. 
D)  a cross- section graph.

Question 16

-Jamie is preparing to take his SAT tests. The table above shows how Jamie's score depends on the number of hou week Jamie studies.
a) Plot the relationship in the figure, putting the hours studied on the horizontal axis.
b) Is the relationship you plotted positive or negative?
c) What happens to the slope of the relationship as hours studied increase?
d) Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he stu score will be 100 points higher. Plot the new relationship between the number of hours studied and Jamie's SAT the figure.
e) How many variables are involved in the figure you just completed?

Accepted Answer

@#IMG-DLM& a) The figure above plots the relations

Question 17

Copper falls into which factor of production category?

Accepted Answer

A)  land 
B)  labor 
C)  entrepreneurship 
D)  capital 
A)  land 
B)  labor 
C)  entrepreneurship 
D)  capital

Question 18

Which of the following is a normative statement?

Accepted Answer

A)  Studying more hours leads to an increase in your GPA. 
B)  Taking extra vitamin C prevents catching a cold. 
C)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed. 
D)  An increase in tax rates means people work fewer hours. 
A)  Studying more hours leads to an increase in your GPA. 
B)  Taking extra vitamin C prevents catching a cold. 
C)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed. 
D)  An increase in tax rates means people work fewer hours.

Question 19

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

Accepted Answer

A)  the ratio of x to y is constant. 
B)  the slope of the line is not defined because y never changes. 
C)  the value of x never changes. 
D)  the value of y does not depend on the value of x. 
A)  the ratio of x to y is constant. 
B)  the slope of the line is not defined because y never changes. 
C)  the value of x never changes. 
D)  the value of y does not depend on the value of x.

Question 20

-The figure above shows relationship between the two variables.

Accepted Answer

A)  a negative 
B)  no 
C)  a positive 
D)  an inverse 
A)  a negative 
B)  no 
C)  a positive 
D)  an inverse

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

A trend is

Scarcity applies to both the rich and the poor.

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

If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the curve relating price and quantity has a slope of

-The above figure is a

A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show

The slope of a straight line is 3/4. When x equals 20, y equals 14. When x equals 32, y equals

If the change in the y- axis variable is 4 and the change in the x- axis variable is 2, the slope of this line is 1/2.

Trend refers to

Economics is best defined as

Which of the following are true regarding "positive" statements? I. They describe what "ought to be." II. They describe what is believed about how the world appears. III. They can be tested as to their truthfulness.

The term "direct relationship" means the same as

A graph that shows the average income of different cities for a given year is considered to be:

Copper falls into which factor of production category?

Which of the following is a normative statement?

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

-The figure above shows relationship between the two variables.

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 terms of dollars, the marginal benefit of working five days a week instead of four days a week is

A trend is

Scarcity applies to both the rich and the poor.

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

If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the curve relating price and quantity has a slope of

-The above figure is a

A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show

The slope of a straight line is 3/4. When x equals 20, y equals 14. When x equals 32, y equals

If the change in the y- axis variable is 4 and the change in the x- axis variable is 2, the slope of this line is 1/2.

Trend refers to

Economics is best defined as

Which of the following are true regarding "positive" statements? I. They describe what "ought to be." II. They describe what is believed about how the world appears. III. They can be tested as to their truthfulness.

The term "direct relationship" means the same as

A graph that shows the average income of different cities for a given year is considered to be:

Copper falls into which factor of production category?

Which of the following is a normative statement?

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

-The figure above shows relationship between the two variables.

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