Question 1

The relationship in the above figure indicates that

Accepted Answer

A)  a decrease in household income will lead household consumption to increase. 
B)  a decrease in the interest rate leads to a decrease in household income. 
C)  a decrease in household consumption leads to a decrease in interest rates. 
D)  none of the above 
A)  a decrease in household income will lead household consumption to increase. 
B)  a decrease in the interest rate leads to a decrease in household income. 
C)  a decrease in household consumption leads to a decrease in interest rates. 
D)  none of the above

Question 2

What are three main kinds of graphs?

Accepted Answer

The three main types

Question 3

The variable measured on the y- axis increases whenever the variable measured on the x- axis increases. As a result, the relationship between the variables will

Accepted Answer

A)  have a slope of zero. 
B)  be negatively sloped. 
C)  be a vertical line. 
D)  be none of the above. 
A)  have a slope of zero. 
B)  be negatively sloped. 
C)  be a vertical line. 
D)  be none of the above.

Question 4

Ben Bernanke, Chairman of the Federal Reserve, must choose whether to meet with the Secretary of the Treasury or Congress regarding the financial crisis. This reflects the

Accepted Answer

A)  fact that Bernanke responds to incentives 
B)  fact that Bernanke faces scarcity. 
C)  use of capital. 
D)  concept of entrepreneurship. 
A)  fact that Bernanke responds to incentives 
B)  fact that Bernanke faces scarcity. 
C)  use of capital. 
D)  concept of entrepreneurship.

Question 5

Marginal cost is the cost

Accepted Answer

A)  that arises from the secondary effects of an activity. 
B)  that your activity imposes on someone else. 
C)  that arises from an increase in an activity. 
D)  of an activity that exceeds its benefit. 
A)  that arises from the secondary effects of an activity. 
B)  that your activity imposes on someone else. 
C)  that arises from an increase in an activity. 
D)  of an activity that exceeds its benefit.

Question 6

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

Accepted Answer

A)  marginal benefit. 
B)  opportunity cost. 
C)  a social interest/private interest conflict. 
D)  an incentive. 
A)  marginal benefit. 
B)  opportunity cost. 
C)  a social interest/private interest conflict. 
D)  an incentive.

Question 7

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the _ question.

Accepted Answer

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

Question 8

Joy is training to become a chef. The skills she is obtaining from her training and education will increase what type of resource?

Accepted Answer

A)  land 
B)  human capital 
C)  physical capital 
D)  entrepreneurship 
A)  land 
B)  human capital 
C)  physical capital 
D)  entrepreneurship

Question 9

Rich people don't have to deal with scarcity.

Accepted Answer

A) True 
 B)False

Question 10

Define marginal cost and marginal benefit.

Accepted Answer

Marginal cost is the opportuni

Question 11

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

Accepted Answer

A)  must be greater than or equal to the owner's marginal cost if the owner decides to stay open. 
B)  is the benefit the owner receives from staying open from 8 a.m. to 5 pm. 
C)  is the benefit the owner receives from staying open from 8 a.m. to 6 pm. 
D)  depends on the revenues the owner makes during the day. 
A)  must be greater than or equal to the owner's marginal cost if the owner decides to stay open. 
B)  is the benefit the owner receives from staying open from 8 a.m. to 5 pm. 
C)  is the benefit the owner receives from staying open from 8 a.m. to 6 pm. 
D)  depends on the revenues the owner makes during the day.

Question 12

Opportunity cost means the

Accepted Answer

A)  accounting cost minus the marginal benefit. 
B)  highest- valued alternative forgone. 
C)  accounting cost minus the marginal cost. 
D)  monetary costs of an activity. 
A)  accounting cost minus the marginal benefit. 
B)  highest- valued alternative forgone. 
C)  accounting cost minus the marginal cost. 
D)  monetary costs of an activity.

Question 13

In the U.S. economy, which of the following statements is true?

Accepted Answer

A)  The economy is too complex to determine the proportion of production that is devoted to producing services. 
B)  More goods are produced than services. 
C)  More services are produced than goods. 
D)  Production is divided evenly between goods and services. 
A)  The economy is too complex to determine the proportion of production that is devoted to producing services. 
B)  More goods are produced than services. 
C)  More services are produced than goods. 
D)  Production is divided evenly between goods and services.

Question 14

Scarcity requires that people must

Accepted Answer

A)  trade. 
B)  cooperate. 
C)  make choices. 
D)  compete. 
A)  trade. 
B)  cooperate. 
C)  make choices. 
D)  compete.

Question 15

Which of the following is a positive statement?

Accepted Answer

A)  The best level of taxation is zero percent because then people get to keep everything they earn. 
B)  The government must lower the price of a pizza so that more students can afford to buy it. 
C)  My economics class should last for two terms because it is my favorite class. 
D)  An increase in tuition means fewer students will apply to college. 
A)  The best level of taxation is zero percent because then people get to keep everything they earn. 
B)  The government must lower the price of a pizza so that more students can afford to buy it. 
C)  My economics class should last for two terms because it is my favorite class. 
D)  An increase in tuition means fewer students will apply to college.

Question 16

Congress votes for more national defense but cuts back on educational programs. This choice involves

Accepted Answer

A)  no tradeoff. 
B)  a "how" tradeoff. 
C)  a "for whom" tradeoff. 
D)  a "what" tradeoff. 
A)  no tradeoff. 
B)  a "how" tradeoff. 
C)  a "for whom" tradeoff. 
D)  a "what" tradeoff.

Question 17

What is the difference between positive and normative statements?

Accepted Answer

Positive statements tell what is and nor

Question 18

-In the table above, Y is measured along the y- axis and X along the x- axis. The slope between points a and b is

Accepted Answer

A)  - 0.25. 
B)  0.25. 
C)  4. 
D)  25. 
A)  - 0.25. 
B)  0.25. 
C)  4. 
D)  25.

Question 19

What is the difference between scarcity and poverty?

Accepted Answer

Scarcity exists when availabil

Question 20

Which of the following are considered factors of production used to produce goods and services?
I. Land
II. Labor
III. Capital
IV. Entrepreneurship

Accepted Answer

A)  I and III only 
B)  I and II only 
C)  I, II and III only 
D)  I, II, III and IV 
A)  I and III only 
B)  I and II only 
C)  I, II and III only 
D)  I, II, III and IV

The relationship in the above figure indicates that

What are three main kinds of graphs?

The variable measured on the y- axis increases whenever the variable measured on the x- axis increases. As a result, the relationship between the variables will

Ben Bernanke, Chairman of the Federal Reserve, must choose whether to meet with the Secretary of the Treasury or Congress regarding the financial crisis. This reflects the

Marginal cost is the cost

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the _ question.

Joy is training to become a chef. The skills she is obtaining from her training and education will increase what type of resource?

Rich people don't have to deal with scarcity.

Define marginal cost and marginal benefit.

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

Opportunity cost means the

In the U.S. economy, which of the following statements is true?

Scarcity requires that people must

Which of the following is a positive statement?

Congress votes for more national defense but cuts back on educational programs. This choice involves

What is the difference between positive and normative statements?

-In the table above, Y is measured along the y- axis and X along the x- axis. The slope between points a and b is

What is the difference between scarcity and poverty?

Which of the following are considered factors of production used to produce goods and services? I. Land II. Labor III. Capital IV. Entrepreneurship

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 relationship in the above figure indicates that

What are three main kinds of graphs?

The variable measured on the y- axis increases whenever the variable measured on the x- axis increases. As a result, the relationship between the variables will

Ben Bernanke, Chairman of the Federal Reserve, must choose whether to meet with the Secretary of the Treasury or Congress regarding the financial crisis. This reflects the

Marginal cost is the cost

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the _ question.

Joy is training to become a chef. The skills she is obtaining from her training and education will increase what type of resource?

Rich people don't have to deal with scarcity.

Define marginal cost and marginal benefit.

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

Opportunity cost means the

In the U.S. economy, which of the following statements is true?

Scarcity requires that people must

Which of the following is a positive statement?

Congress votes for more national defense but cuts back on educational programs. This choice involves

What is the difference between positive and normative statements?

-In the table above, Y is measured along the y- axis and X along the x- axis. The slope between points a and b is

What is the difference between scarcity and poverty?

Which of the following are considered factors of production used to produce goods and services? I. Land II. Labor III. Capital IV. Entrepreneurship

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