Question 1

Which of the following is NOT a factor of production?

Accepted Answer

A)  a university professor 
B)  100 shares of Microsoft stock 
C)  mineral resources 
D)  an apartment building 
A)  a university professor 
B)  100 shares of Microsoft stock 
C)  mineral resources 
D)  an apartment building

Question 2

-The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

Accepted Answer

A)  related via an indirect relationship. 
B)  strongly negatively related. 
C)  not related. 
D)  strongly positively related. 
A)  related via an indirect relationship. 
B)  strongly negatively related. 
C)  not related. 
D)  strongly positively related.

Question 3

As you devote more hours to studying, your snowboarding skills decrease. A graph of this relationship would show

Accepted Answer

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

Question 4

Which of the following creates an incentive to increase the amount of an activity?

Accepted Answer

A)  an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity 
B)  constant marginal cost and constant marginal benefit of the activity 
C)  a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity 
D)  None of the above create an incentive to increase the amount of an activity. 
A)  an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity 
B)  constant marginal cost and constant marginal benefit of the activity 
C)  a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity 
D)  None of the above create an incentive to increase the amount of an activity.

Question 5

When the government chooses to spend the tax dollars that it collects on homeland security, its choice .

Accepted Answer

A)  illustrates that scarcity does not always exist 
B)  primarily affects who gets the goods and services produced. 
C)  involves a tradeoff of other goods and services such as education for more homeland security 
D)  involves no tradeoff because the defense is necessary 
A)  illustrates that scarcity does not always exist 
B)  primarily affects who gets the goods and services produced. 
C)  involves a tradeoff of other goods and services such as education for more homeland security 
D)  involves no tradeoff because the defense is necessary

Question 6

Which of the following questions is a macroeconomic issue?

Accepted Answer

A)  What is the future growth prospect for an economy? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
D)  How many workers should the owner of a business hire? 
A)  What is the future growth prospect for an economy? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
D)  How many workers should the owner of a business hire?

Question 7

-In the figure above, the relationship between the x variable and the y variable

Accepted Answer

A)  starts by being positive and then becomes negative. 
B)  is negative. 
C)  starts by being negative and then becomes positive. 
D)  is positive. 
A)  starts by being positive and then becomes negative. 
B)  is negative. 
C)  starts by being negative and then becomes positive. 
D)  is positive.

Question 8

Macroeconomic topics include

Accepted Answer

A)  studying what factors influence the price and quantity of automobiles. 
B)  total, nationwide employment. 
C)  the impact of government regulation of markets. 
D)  studying the determination of wages and production costs in the software industry. 
A)  studying what factors influence the price and quantity of automobiles. 
B)  total, nationwide employment. 
C)  the impact of government regulation of markets. 
D)  studying the determination of wages and production costs in the software industry.

Question 9

Economics is best defined as the study of how people, businesses, governments, and societies

Accepted Answer

A)  use their infinite resources. 
B)  choose abundance over scarcity. 
C)  make choices to cope with scarcity. 
D)  attain wealth. 
A)  use their infinite resources. 
B)  choose abundance over scarcity. 
C)  make choices to cope with scarcity. 
D)  attain wealth.

Question 10

-In the above figure, the curve's slope is

Accepted Answer

A)  negative and is becoming less steep. 
B)  negative and is becoming steeper. 
C)  positive and is becoming less steep. 
D)  positive and is becoming steeper. 
A)  negative and is becoming less steep. 
B)  negative and is becoming steeper. 
C)  positive and is becoming less steep. 
D)  positive and is becoming steeper.

Question 11

Which of the following is a positive statement?

Accepted Answer

A)  Our planet is warming because of an increased carbon dioxide buildup in the atmosphere. 
B)  A minimum wage of $5.50 per hour is a shame for a rich country like the United States. 
C)  Both these statements are positive. 
D)  Neither of these statements is positive. 
A)  Our planet is warming because of an increased carbon dioxide buildup in the atmosphere. 
B)  A minimum wage of $5.50 per hour is a shame for a rich country like the United States. 
C)  Both these statements are positive. 
D)  Neither of these statements is positive.

Question 12

Which of the following best defines the subject of economics?

Accepted Answer

A)  the study of choices that businesses make to maximize profit 
B)  the art of making money 
C)  the science that studies unemployment, inflation, and economic stability 
D)  the study of choices made to cope with scarcity 
A)  the study of choices that businesses make to maximize profit 
B)  the art of making money 
C)  the science that studies unemployment, inflation, and economic stability 
D)  the study of choices made to cope with scarcity

Question 13

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

Accepted Answer

A)  6/5. 
B)  5/3. 
C)  1/2. 
D)  1/3. 
A)  6/5. 
B)  5/3. 
C)  1/2. 
D)  1/3.

Question 14

To answer the "for whom" question, we study

Accepted Answer

A)  business cycles. 
B)  technological change. 
C)  the global economy. 
D)  income differences. 
A)  business cycles. 
B)  technological change. 
C)  the global economy. 
D)  income differences.

Question 15

A time- series graph showing total production in Japan from 1960 to 2002 shows a positive trend. It is the case that total production

Accepted Answer

A)  was higher in 2002 than in 1960. 
B)  was lower in 2002 than in 1960. 
C)  fell every year between 1960 and 2002. 
D)  rose every year between 1960 and 2002. 
A)  was higher in 2002 than in 1960. 
B)  was lower in 2002 than in 1960. 
C)  fell every year between 1960 and 2002. 
D)  rose every year between 1960 and 2002.

Question 16

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

Accepted Answer

A)  a negatively sloped line 
B)  a positively sloped line. 
C)  a horizontal line. 
D)  a vertical line. 
A)  a negatively sloped line 
B)  a positively sloped line. 
C)  a horizontal line. 
D)  a vertical line.

Question 17

In evaluating a relationship between x and y, ceteris paribus means other variables

Accepted Answer

A)  move in opposite directions to x and y. 
B)  move with x and y. 
C)  are not relevant to x and y. 
D)  are not changing while x and y change. 
A)  move in opposite directions to x and y. 
B)  move with x and y. 
C)  are not relevant to x and y. 
D)  are not changing while x and y change.

Question 18

A person goes to college to become an engineer. This is an example of an

Accepted Answer

A)  increase in entrepreneurship. 
B)  investment in physical capital. 
C)  investment in human capital. 
D)  increase in labor. 
A)  increase in entrepreneurship. 
B)  investment in physical capital. 
C)  investment in human capital. 
D)  increase in labor.

Question 19

-In the above figure, the relationship between x and y is

Accepted Answer

A)  negative and linear. 
B)  positive, and the curve becomes flatter as x increases. 
C)  positive, and the curve becomes steeper as x increases. 
D)  positive and linear. 
A)  negative and linear. 
B)  positive, and the curve becomes flatter as x increases. 
C)  positive, and the curve becomes steeper as x increases. 
D)  positive and linear.

Question 20

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

Accepted Answer

A)  testing an economic model. 
B)  making a positive statement. 
C)  making a normative statement. 
D)  facing the standard of living tradeoff. 
A)  testing an economic model. 
B)  making a positive statement. 
C)  making a normative statement. 
D)  facing the standard of living tradeoff.

Which of the following is NOT a factor of production?

-The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

As you devote more hours to studying, your snowboarding skills decrease. A graph of this relationship would show

Which of the following creates an incentive to increase the amount of an activity?

When the government chooses to spend the tax dollars that it collects on homeland security, its choice .

Which of the following questions is a macroeconomic issue?

-In the figure above, the relationship between the x variable and the y variable

Macroeconomic topics include

Economics is best defined as the study of how people, businesses, governments, and societies

-In the above figure, the curve's slope is

Which of the following is a positive statement?

Which of the following best defines the subject of economics?

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

To answer the "for whom" question, we study

A time- series graph showing total production in Japan from 1960 to 2002 shows a positive trend. It is the case that total production

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

In evaluating a relationship between x and y, ceteris paribus means other variables

A person goes to college to become an engineer. This is an example of an

-In the above figure, the relationship between x and y is

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he 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

Which of the following is NOT a factor of production?

-The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

As you devote more hours to studying, your snowboarding skills decrease. A graph of this relationship would show

Which of the following creates an incentive to increase the amount of an activity?

When the government chooses to spend the tax dollars that it collects on homeland security, its choice .

Which of the following questions is a macroeconomic issue?

-In the figure above, the relationship between the x variable and the y variable

Macroeconomic topics include

Economics is best defined as the study of how people, businesses, governments, and societies

-In the above figure, the curve's slope is

Which of the following is a positive statement?

Which of the following best defines the subject of economics?

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

To answer the "for whom" question, we study

A time- series graph showing total production in Japan from 1960 to 2002 shows a positive trend. It is the case that total production

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

In evaluating a relationship between x and y, ceteris paribus means other variables

A person goes to college to become an engineer. This is an example of an

-In the above figure, the relationship between x and y is

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he 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