Question 1

Opportunity cost is defined as

Accepted Answer

A)  all the possible alternatives given up. 
B)  the highest- valued alternative given up. 
C)  the amount of money spent to take part in the activity chosen. 
D)  the top two alternatives given up. 
A)  all the possible alternatives given up. 
B)  the highest- valued alternative given up. 
C)  the amount of money spent to take part in the activity chosen. 
D)  the top two alternatives given up.

Question 2

Panasonic sends its HDTV salespeople to training sessions. This is an example of

Accepted Answer

A)  a macroeconomic decision. 
B)  scarcity. 
C)  entrepreneurship. 
D)  a firm investing in workers' human capital 
A)  a macroeconomic decision. 
B)  scarcity. 
C)  entrepreneurship. 
D)  a firm investing in workers' human capital

Question 3

During the next hour John can play basketball, watch television, or read a book. The opportunity cost of reading a book

Accepted Answer

A)  equals how much John enjoys the book. 
B)  is how much the book cost when it was purchased. 
C)  is the value of playing basketball if John prefers that to watching television. 
D)  is the value of playing basketball and the value of watching television. 
A)  equals how much John enjoys the book. 
B)  is how much the book cost when it was purchased. 
C)  is the value of playing basketball if John prefers that to watching television. 
D)  is the value of playing basketball and the value of watching television.

Question 4

If the change in y = - 4, and the change in x = 2, there is

Accepted Answer

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

Question 5

-In the above table, the relationship between x and y is and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to .

Accepted Answer

A)  negative; 6 
B)  positive; 5 
C)  positive; 3 
D)  negative; 8 
A)  negative; 6 
B)  positive; 5 
C)  positive; 3 
D)  negative; 8

Question 6

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Accepted Answer

Positive statements are statements that

Question 7

In economics, the term "capital" refers to

Accepted Answer

A)  mineral resources. 
B)  buildings and equipment. 
C)  consumer goods. 
D)  the money in one's pocket. 
A)  mineral resources. 
B)  buildings and equipment. 
C)  consumer goods. 
D)  the money in one's pocket.

Question 8

"As you devote more hours to studying, your GPA increases." A graph of this relationship would show

Accepted Answer

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

Question 9

Jon works in an automobile factory. He operates a machine that makes the fenders for automobiles. The machine Jon operates is what type of resource?

Accepted Answer

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

Question 10

The economic resource that organizes the use of other economic resources is

Accepted Answer

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

Question 11

Factors of production are grouped into four categories:

Accepted Answer

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

Question 12

Positive and normative statements differ in that

Accepted Answer

A)  positive statements can be tested, whereas normative statements cannot. 
B)  normative statements can be tested, whereas positive statements cannot. 
C)  normative statements never use the word "should." 
D)  normative statements depict "what is" and positive statements depict "what ought to be." 
A)  positive statements can be tested, whereas normative statements cannot. 
B)  normative statements can be tested, whereas positive statements cannot. 
C)  normative statements never use the word "should." 
D)  normative statements depict "what is" and positive statements depict "what ought to be."

Question 13

Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is

Accepted Answer

A)  $1.75. 
B)  $ .25. 
C)  $1.50. 
D)  $3.25. 
A)  $1.75. 
B)  $ .25. 
C)  $1.50. 
D)  $3.25.

Question 14

To see how variables evolve over time we use

Accepted Answer

A)  a scatter graph. 
B)  a cross- section plot. 
C)  a time- series graph. 
D)  an evolution plot. 
A)  a scatter graph. 
B)  a cross- section plot. 
C)  a time- series graph. 
D)  an evolution plot.

Question 15

The slope of a straight line is 3. When x equals 10, y equals 33. When x equals 11, y equals

Accepted Answer

A)  39. 
B)  30. 
C)  36. 
D)  27. 
A)  39. 
B)  30. 
C)  36. 
D)  27.

Question 16

At least 7 out of every 10 economists agree with the following propositions. Which of these propositions is normative?

Accepted Answer

A)  The redistribution of income is a legitimate role for the U.S. government. 
B)  Cash payments to welfare recipients make them better off than do transfers- in- kind of equal cash value. 
C)  Tariffs and import restrictions make most people worse off. 
D)  Rent controls cut the availability of housing. 
A)  The redistribution of income is a legitimate role for the U.S. government. 
B)  Cash payments to welfare recipients make them better off than do transfers- in- kind of equal cash value. 
C)  Tariffs and import restrictions make most people worse off. 
D)  Rent controls cut the availability of housing.

Question 17

-In the above figure, which curve shows a negative relationship between x and y?

Accepted Answer

A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  None of the curves show a negative relationship. 
A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  None of the curves show a negative relationship.

Question 18

The branch of economics that deals with the analysis of the whole economy is called

Accepted Answer

A)  marginal analysis. 
B)  metroanalysis. 
C)  microeconomics. 
D)  macroeconomics. 
A)  marginal analysis. 
B)  metroanalysis. 
C)  microeconomics. 
D)  macroeconomics.

Question 19

-In the above figure, the curve has a slope that is .

Accepted Answer

A)  positive and becoming smaller in magnitude 
B)  positive and becoming larger in magnitude 
C)  negative and becoming smaller in magnitude 
D)  negative and becoming larger in magnitude 
A)  positive and becoming smaller in magnitude 
B)  positive and becoming larger in magnitude 
C)  negative and becoming smaller in magnitude 
D)  negative and becoming larger in magnitude

Question 20

Which of the following is NOT a factor of production?

Accepted Answer

A)  wilderness areas that have yet to be developed 
B)  175 shares of Microsoft stock 
C)  a person developing a production schedule for a new product 
D)  vans used by a bakery company for deliveries 
A)  wilderness areas that have yet to be developed 
B)  175 shares of Microsoft stock 
C)  a person developing a production schedule for a new product 
D)  vans used by a bakery company for deliveries

Opportunity cost is defined as

Panasonic sends its HDTV salespeople to training sessions. This is an example of

During the next hour John can play basketball, watch television, or read a book. The opportunity cost of reading a book

If the change in y = - 4, and the change in x = 2, there is

-In the above table, the relationship between x and y is and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to .

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

In economics, the term "capital" refers to

"As you devote more hours to studying, your GPA increases." A graph of this relationship would show

Jon works in an automobile factory. He operates a machine that makes the fenders for automobiles. The machine Jon operates is what type of resource?

The economic resource that organizes the use of other economic resources is

Factors of production are grouped into four categories:

Positive and normative statements differ in that

Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is

To see how variables evolve over time we use

The slope of a straight line is 3. When x equals 10, y equals 33. When x equals 11, y equals

At least 7 out of every 10 economists agree with the following propositions. Which of these propositions is normative?

-In the above figure, which curve shows a negative relationship between x and y?

The branch of economics that deals with the analysis of the whole economy is called

-In the above figure, the curve has a slope that is .

Which of the following is NOT a factor of production?

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

Opportunity cost is defined as

Panasonic sends its HDTV salespeople to training sessions. This is an example of

During the next hour John can play basketball, watch television, or read a book. The opportunity cost of reading a book

If the change in y = - 4, and the change in x = 2, there is

-In the above table, the relationship between x and y is and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to .

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

In economics, the term "capital" refers to

"As you devote more hours to studying, your GPA increases." A graph of this relationship would show

Jon works in an automobile factory. He operates a machine that makes the fenders for automobiles. The machine Jon operates is what type of resource?

The economic resource that organizes the use of other economic resources is

Factors of production are grouped into four categories:

Positive and normative statements differ in that

Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is

To see how variables evolve over time we use

The slope of a straight line is 3. When x equals 10, y equals 33. When x equals 11, y equals

At least 7 out of every 10 economists agree with the following propositions. Which of these propositions is normative?

-In the above figure, which curve shows a negative relationship between x and y?

The branch of economics that deals with the analysis of the whole economy is called

-In the above figure, the curve has a slope that is .

Which of the following is NOT a factor of production?

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