Question 1

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the question.

Accepted Answer

A)  "scarcity" 
B)  "why" 
C)  "when" 
D)  "what" 
A)  "scarcity" 
B)  "why" 
C)  "when" 
D)  "what"

Question 2

To graph a relationship among several variables, we hold all but variable(s) constant and use the assumption.

Accepted Answer

A)  one; scarcity 
B)  one; ceteris paribus 
C)  two; ceteris paribus 
D)  three; marginal benefit 
A)  one; scarcity 
B)  one; ceteris paribus 
C)  two; ceteris paribus 
D)  three; marginal benefit

Question 3

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e- mail. What is the opportunity cost of attending the concert for John?

Accepted Answer

A)  attending a movie, studying for an economics exam, and answering his e- mail 
B)  answering his e- mail 
C)  attending a movie 
D)  studying for an economics exam 
A)  attending a movie, studying for an economics exam, and answering his e- mail 
B)  answering his e- mail 
C)  attending a movie 
D)  studying for an economics exam

Question 4

The slope of a straight line is

Accepted Answer

A)  variable. 
B)  increasing. 
C)  constant. 
D)  decreasing. 
A)  variable. 
B)  increasing. 
C)  constant. 
D)  decreasing.

Question 5

When a textile firm decides to produce more cotton fabric and less synthetic fabric, it is most directly answering the question.

Accepted Answer

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

Question 6

Overtime worked by a JCPenney associate is considered and earns _.

Accepted Answer

A)  entrepreneurship; profit. 
B)  human capital; interest. 
C)  labor; wages. 
D)  labor; profit. 
A)  entrepreneurship; profit. 
B)  human capital; interest. 
C)  labor; wages. 
D)  labor; profit.

Question 7

The most fundamental economic problem is

Accepted Answer

A)  scarcity. 
B)  security. 
C)  health. 
D)  the fact the United States buys more goods from foreigners than we sell to foreigners. 
A)  scarcity. 
B)  security. 
C)  health. 
D)  the fact the United States buys more goods from foreigners than we sell to foreigners.

Question 8

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

Accepted Answer

A)  - 1 1/3. 
B)  - 1.25. 
C)  - 0.80. 
D)  - 1 2/3. 
A)  - 1 1/3. 
B)  - 1.25. 
C)  - 0.80. 
D)  - 1 2/3.

Question 9

Opportunity cost is best defined as

Accepted Answer

A)  the value of the next best alternative that is given up in making a choice. 
B)  the total of all other alternatives that are given up in making a choice. 
C)  how much money and time it takes to consume something. 
D)  how much money is paid for something. 
A)  the value of the next best alternative that is given up in making a choice. 
B)  the total of all other alternatives that are given up in making a choice. 
C)  how much money and time it takes to consume something. 
D)  how much money is paid for something.

Question 10

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

Accepted Answer

A)  - 4. 
B)  1. 
C)  1/4. 
D)  - 1/4. 
A)  - 4. 
B)  1. 
C)  1/4. 
D)  - 1/4.

Question 11

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

Accepted Answer

A)  Households should save more. 
B)  Household consumption is the largest component of spending. 
C)  Government spending rose in the 1990s. 
D)  The business sector is the primary source of jobs. 
A)  Households should save more. 
B)  Household consumption is the largest component of spending. 
C)  Government spending rose in the 1990s. 
D)  The business sector is the primary source of jobs.

Question 12

-The relationship depicted in the above figure is

Accepted Answer

A)  a negative linear relationship. 
B)  a positive becoming less steep relationship. 
C)  a positive linear relationship. 
D)  a positive becoming steeper relationship. 
A)  a negative linear relationship. 
B)  a positive becoming less steep relationship. 
C)  a positive linear relationship. 
D)  a positive becoming steeper relationship.

Question 13

Answer: A  
-The slope of the line shown in the above figure is

Accepted Answer

A)  1.11. 
B)  1.5. 
C)  2. 
D)  0.90. 
A)  1.11. 
B)  1.5. 
C)  2. 
D)  0.90.

Question 14

The graph of two variables, x and y, is a horizontal line. This result indicates that x and y are

Accepted Answer

A)  falsely related. 
B)  positively related. 
C)  negatively related. 
D)  not related. 
A)  falsely related. 
B)  positively related. 
C)  negatively related. 
D)  not related.

Question 15

If a large change in the variable measured on the x- axis is associated with a small change of the variable measured on the y- axis, the line is and the slope is _.

Accepted Answer

A)  upward- sloping; small 
B)  downward- sloping; small 
C)  downward- sloping; large 
D)  either downward or upward- sloping; small 
A)  upward- sloping; small 
B)  downward- sloping; small 
C)  downward- sloping; large 
D)  either downward or upward- sloping; small

Question 16

The ultimate cost of any choice is

Accepted Answer

A)  what someone else would be willing to pay. 
B)  the dollars expended. 
C)  the highest- valued alternative forgone. 
D)  the after- tax cost. 
A)  what someone else would be willing to pay. 
B)  the dollars expended. 
C)  the highest- valued alternative forgone. 
D)  the after- tax cost.

Question 17

A scatter diagram plots the value of one economic variable against time.

Accepted Answer

A) True 
 B)False

Question 18

If two points on a line are x = 2, y = 5 and x = 7, y= 10, what is the slope of this line?

Accepted Answer

The slope equals the change in

Question 19

The vertical axis in a graph

Accepted Answer

A)  has no origin. 
B)  measures time in a cross- section/time series graph. 
C)  is named the x- axis. 
D)  is named the y- axis. 
A)  has no origin. 
B)  measures time in a cross- section/time series graph. 
C)  is named the x- axis. 
D)  is named the y- axis.

Question 20

In the above, which figure shows a line with a slope of 1.0?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B 
A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the question.

To graph a relationship among several variables, we hold all but variable(s) constant and use the assumption.

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e- mail. What is the opportunity cost of attending the concert for John?

The slope of a straight line is

When a textile firm decides to produce more cotton fabric and less synthetic fabric, it is most directly answering the question.

Overtime worked by a JCPenney associate is considered and earns _.

The most fundamental economic problem is

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

Opportunity cost is best defined as

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

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

-The relationship depicted in the above figure is

Answer: A -The slope of the line shown in the above figure is

The graph of two variables, x and y, is a horizontal line. This result indicates that x and y are

If a large change in the variable measured on the x- axis is associated with a small change of the variable measured on the y- axis, the line is and the slope is _.

The ultimate cost of any choice is

A scatter diagram plots the value of one economic variable against time.

If two points on a line are x = 2, y = 5 and x = 7, y= 10, what is the slope of this line?

The vertical axis in a graph

In the above, which figure shows a line with a slope of 1.0?

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

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the question.

To graph a relationship among several variables, we hold all but variable(s) constant and use the assumption.

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e- mail. What is the opportunity cost of attending the concert for John?

The slope of a straight line is

When a textile firm decides to produce more cotton fabric and less synthetic fabric, it is most directly answering the question.

Overtime worked by a JCPenney associate is considered and earns _.

The most fundamental economic problem is

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

Opportunity cost is best defined as

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

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

-The relationship depicted in the above figure is

Answer: A -The slope of the line shown in the above figure is

The graph of two variables, x and y, is a horizontal line. This result indicates that x and y are

If a large change in the variable measured on the x- axis is associated with a small change of the variable measured on the y- axis, the line is and the slope is _.

The ultimate cost of any choice is

A scatter diagram plots the value of one economic variable against time.

If two points on a line are x = 2, y = 5 and x = 7, y= 10, what is the slope of this line?

The vertical axis in a graph

In the above, which figure shows a line with a slope of 1.0?

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