Question 1

U.S. producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises. Producers are answering the question.

Accepted Answer

A)  "how" 
B)  "what" 
C)  "how many" 
D)  "when" 
A)  "how" 
B)  "what" 
C)  "how many" 
D)  "when"

Question 2

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

Accepted Answer

A)  1. 
B)  infinite. 
C)  0. 
D)  - 1. 
A)  1. 
B)  infinite. 
C)  0. 
D)  - 1.

Question 3

From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the symphony. Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony. Then the opportunity cost of attending the hockey match is

Accepted Answer

A)  going to the symphony. 
B)  going to the symphony and the basketball game. 
C)  three hours of time. 
D)  going to the basketball game. 
A)  going to the symphony. 
B)  going to the symphony and the basketball game. 
C)  three hours of time. 
D)  going to the basketball game.

Question 4

In the U.S. economy, a recent trend has been that

Accepted Answer

A)  employment in both agriculture and the service industry has been decreasing. 
B)  employment in agriculture has been increasing. 
C)  employment in mining, construction, and manufacturing has been increasing. 
D)  employment in the service industry has been increasing. 
A)  employment in both agriculture and the service industry has been decreasing. 
B)  employment in agriculture has been increasing. 
C)  employment in mining, construction, and manufacturing has been increasing. 
D)  employment in the service industry has been increasing.

Question 5

Sue, who has a law degree, earns $200,000 a year while Chris, a high school dropout earns $7.60 an hour. This situation most directly reflects an example of an economy answering the question.

Accepted Answer

A)  "how" 
B)  "why" 
C)  "when" 
D)  "for whom" 
A)  "how" 
B)  "why" 
C)  "when" 
D)  "for whom"

Question 6

A time series graph can show both the level of a variable and the speed with which the variable changes over time.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an example of a positive statement?

Accepted Answer

A)  Government should not redistribute income. 
B)  The foreign sector should be more tightly controlled. 
C)  Business firms ought to contribute more to charities. 
D)  Households are the primary source of saving. 
A)  Government should not redistribute income. 
B)  The foreign sector should be more tightly controlled. 
C)  Business firms ought to contribute more to charities. 
D)  Households are the primary source of saving.

Question 8

-The above figure shows the relationship between the Joneses' total consumption and total household income. The figure illustrates that the Joneses' total consumption varies

Accepted Answer

A)  negatively with their income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  directly with their total household income. 
A)  negatively with their income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  directly with their total household income.

Question 9

-In the above figure, the relationship between costs and quantity is negative

Accepted Answer

A)  between point A and point B. 
B)  at nowhere along the curve. 
C)  between point B and point C. 
D)  along the entire curve. 
A)  between point A and point B. 
B)  at nowhere along the curve. 
C)  between point B and point C. 
D)  along the entire curve.

Question 10

Economics can be defined as the social science that explains the .

Accepted Answer

A)  choices made by households 
B)  choices we make when we trade in markets 
C)  choices that we make as we cope with scarcity 
D)  choices made by politicians 
A)  choices made by households 
B)  choices we make when we trade in markets 
C)  choices that we make as we cope with scarcity 
D)  choices made by politicians

Question 11

The slope of a straight line

Accepted Answer

A)  is constantly changing. 
B)  equals the angle the line makes with the x- axis. 
C)  is the change in the value of the variable measured on the y- axis divided by the change in the value of the variable measured along the x- axis. 
D)  is always positive. 
A)  is constantly changing. 
B)  equals the angle the line makes with the x- axis. 
C)  is the change in the value of the variable measured on the y- axis divided by the change in the value of the variable measured along the x- axis. 
D)  is always positive.

Question 12

A time- series graph displaying real GDP from 1950 to 2008 has a positive trend. It is likely that real GDP

Accepted Answer

A)  rose every year from 1950 to 2008. 
B)  was lower in 1950 than in 2008. 
C)  was higher in 1950 than in 2008. 
D)  fell every year from 1950 to 2008. 
A)  rose every year from 1950 to 2008. 
B)  was lower in 1950 than in 2008. 
C)  was higher in 1950 than in 2008. 
D)  fell every year from 1950 to 2008.

Question 13

The statement "The unemployment rate for teens is higher than that for adults" is

Accepted Answer

A)  a political statement. 
B)  a normative statement. 
C)  an ethical statement. 
D)  a positive statement. 
A)  a political statement. 
B)  a normative statement. 
C)  an ethical statement. 
D)  a positive statement.

Question 14

A positive statement is

Accepted Answer

A)  about what ought to be. 
B)  always true. 
C)  about what is. 
D)  one that does not use marginal concepts. 
A)  about what ought to be. 
B)  always true. 
C)  about what is. 
D)  one that does not use marginal concepts.

Question 15

Marginal benefit is the benefit

Accepted Answer

A)  of an activity that exceeds its cost. 
B)  that arises from the secondary effects of an activity. 
C)  that arises from an increase in an activity. 
D)  that your activity provides to someone else. 
A)  of an activity that exceeds its cost. 
B)  that arises from the secondary effects of an activity. 
C)  that arises from an increase in an activity. 
D)  that your activity provides to someone else.

Question 16

From a time- series graph showing sales of shoes in dollars on the vertical axis, it is not possible to tell

Accepted Answer

A)  the changes in sales over time. 
B)  the level of sales at a given time. 
C)  the speed of change in sales over time. 
D)  None of the above answers is correct because it is possible to tell all of the above from the time- series graph described. 
A)  the changes in sales over time. 
B)  the level of sales at a given time. 
C)  the speed of change in sales over time. 
D)  None of the above answers is correct because it is possible to tell all of the above from the time- series graph described.

Question 17

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

Accepted Answer

A)  the two variables have an inverse relationship. 
B)  the two variables are unrelated. 
C)  when the value of variable x increases, then the value of variable y decreases. 
D)  when the value of variable x decreases, then the value of variable y decreases. 
A)  the two variables have an inverse relationship. 
B)  the two variables are unrelated. 
C)  when the value of variable x increases, then the value of variable y decreases. 
D)  when the value of variable x decreases, then the value of variable y decreases.

Question 18

If there is a direct relationship between two variables,

Accepted Answer

A)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
B)  the graph of the relationship will be downward- sloping. 
C)  the graph of the relationship will be upward- sloping. 
D)  Both answers A and C are correct. 
A)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
B)  the graph of the relationship will be downward- sloping. 
C)  the graph of the relationship will be upward- sloping. 
D)  Both answers A and C are correct.

Question 19

Which of the following is a positive statement?

Accepted Answer

A)  An increase in the price of pizza will lead fewer students to buy pizza. 
B)  The government should spend more on education. 
C)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
D)  My favorite dinner is pizza and soda. 
A)  An increase in the price of pizza will lead fewer students to buy pizza. 
B)  The government should spend more on education. 
C)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
D)  My favorite dinner is pizza and soda.

Question 20

All economic questions arise because

Accepted Answer

A)  we want more than we can get. 
B)  production possibilities are unlimited. 
C)  people are greedy. 
D)  people are irrational. 
A)  we want more than we can get. 
B)  production possibilities are unlimited. 
C)  people are greedy. 
D)  people are irrational.

U.S. producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises. Producers are answering the question.

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the symphony. Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony. Then the opportunity cost of attending the hockey match is

In the U.S. economy, a recent trend has been that

Sue, who has a law degree, earns $200,000 a year while Chris, a high school dropout earns $7.60 an hour. This situation most directly reflects an example of an economy answering the question.

A time series graph can show both the level of a variable and the speed with which the variable changes over time.

Which of the following is an example of a positive statement?

-The above figure shows the relationship between the Joneses' total consumption and total household income. The figure illustrates that the Joneses' total consumption varies

-In the above figure, the relationship between costs and quantity is negative

Economics can be defined as the social science that explains the .

The slope of a straight line

A time- series graph displaying real GDP from 1950 to 2008 has a positive trend. It is likely that real GDP

The statement "The unemployment rate for teens is higher than that for adults" is

A positive statement is

Marginal benefit is the benefit

From a time- series graph showing sales of shoes in dollars on the vertical axis, it is not possible to tell

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

If there is a direct relationship between two variables,

Which of the following is a positive statement?

All economic questions arise because

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

U.S. producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises. Producers are answering the question.

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the symphony. Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony. Then the opportunity cost of attending the hockey match is

In the U.S. economy, a recent trend has been that

Sue, who has a law degree, earns $200,000 a year while Chris, a high school dropout earns $7.60 an hour. This situation most directly reflects an example of an economy answering the question.

A time series graph can show both the level of a variable and the speed with which the variable changes over time.

Which of the following is an example of a positive statement?

-The above figure shows the relationship between the Joneses' total consumption and total household income. The figure illustrates that the Joneses' total consumption varies

-In the above figure, the relationship between costs and quantity is negative

Economics can be defined as the social science that explains the .

The slope of a straight line

A time- series graph displaying real GDP from 1950 to 2008 has a positive trend. It is likely that real GDP

The statement "The unemployment rate for teens is higher than that for adults" is

A positive statement is

Marginal benefit is the benefit

From a time- series graph showing sales of shoes in dollars on the vertical axis, it is not possible to tell

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

If there is a direct relationship between two variables,

Which of the following is a positive statement?

All economic questions arise because

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