Question 1

You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

Accepted Answer

A)  there must be false causality between interest rates and housing prices. 
B)  a scatter diagram between interest rates and housing prices will show a negative relationship. 
C)  a cross- section graph between interest rates and housing prices will show a negative relationship. 
D)  higher interest rates must cause low housing prices. 
A)  there must be false causality between interest rates and housing prices. 
B)  a scatter diagram between interest rates and housing prices will show a negative relationship. 
C)  a cross- section graph between interest rates and housing prices will show a negative relationship. 
D)  higher interest rates must cause low housing prices.

Question 2

If you hire 1 worker, he can produce 10 pretzels a day. If you hire a 2nd worker, she can produce 8 more pretzels. If you hire a 3rd worker, she can produce 6 more pretzels a day. A graph displaying this relationship between the number of employees on the horizontal axis and total pretzel output per day on the vertical axis shows

Accepted Answer

A)  an upward- sloping curve that becomes less steep as employment increases. 
B)  a positive linear relationship. 
C)  a negative linear relationship. 
D)  a negatively- sloped curve that becomes less steep as employment as increases. 
A)  an upward- sloping curve that becomes less steep as employment increases. 
B)  a positive linear relationship. 
C)  a negative linear relationship. 
D)  a negatively- sloped curve that becomes less steep as employment as increases.

Question 3

Which of the following is a macroeconomic issue?

Accepted Answer

A)  The hiring decisions that a business makes. 
B)  The effect of an increase in the tax on cigarettes on cigarette sales. 
C)  The purchasing decisions that an individual consumer makes. 
D)  The effect of increasing the money supply on inflation. 
A)  The hiring decisions that a business makes. 
B)  The effect of an increase in the tax on cigarettes on cigarette sales. 
C)  The purchasing decisions that an individual consumer makes. 
D)  The effect of increasing the money supply on inflation.

Question 4

One topic of study for a microeconomist would be the

Accepted Answer

A)  effects of an increase in government spending on the nation's production. 
B)  effects an increase in the price of gasoline has on an individual. 
C)  factors that lead to inflation. 
D)  factors that affect aggregate unemployment. 
A)  effects of an increase in government spending on the nation's production. 
B)  effects an increase in the price of gasoline has on an individual. 
C)  factors that lead to inflation. 
D)  factors that affect aggregate unemployment.

Question 5

When CBS decides to produce another season of a reality show instead of a new drama series, CBS

Accepted Answer

A)  answers the how question. 
B)  answers the what question. 
C)  doesn't face a trade off because there is unlimited air time. 
D)  doesn't face scarcity because there are plenty of actors looking for work. 
A)  answers the how question. 
B)  answers the what question. 
C)  doesn't face a trade off because there is unlimited air time. 
D)  doesn't face scarcity because there are plenty of actors looking for work.

Question 6

The fact that wants cannot be fully satisfied with available resources reflects the definition of

Accepted Answer

A)  the big tradeoff. 
B)  the what tradeoff. 
C)  for whom to produce. 
D)  scarcity. 
A)  the big tradeoff. 
B)  the what tradeoff. 
C)  for whom to produce. 
D)  scarcity.

Question 7

In a graph, a line has a negative slope if

Accepted Answer

A)  the line is horizontal. 
B)  the line rises from right to left. 
C)  the line is vertical. 
D)  the line rises from left to right. 
A)  the line is horizontal. 
B)  the line rises from right to left. 
C)  the line is vertical. 
D)  the line rises from left to right.

Question 8

A cross- section graph can show how economic variables for different groups of people vary over time.

Accepted Answer

A) True 
 B)False

Question 9

The slope of a line equals the

Accepted Answer

A)  change in the variable measured along the y- axis divided by the change in the variable measured along the x- axis. 
B)  change in the variable measured along the x- axis multiplied by the change in the variable measured along the y- axis. 
C)  change in the variable measured along the x- axis divided by the change in the variable measured along the y- axis. 
D)  change in the variable measured along the x- axis minus the change in the variable measured along the y- axis. 
A)  change in the variable measured along the y- axis divided by the change in the variable measured along the x- axis. 
B)  change in the variable measured along the x- axis multiplied by the change in the variable measured along the y- axis. 
C)  change in the variable measured along the x- axis divided by the change in the variable measured along the y- axis. 
D)  change in the variable measured along the x- axis minus the change in the variable measured along the y- axis.

Question 10

Positive economic statements

Accepted Answer

A)  can be tested against the facts. 
B)  prescribe what should be. 
C)  cannot be tested against the facts. 
D)  are related only to microeconomics. 
A)  can be tested against the facts. 
B)  prescribe what should be. 
C)  cannot be tested against the facts. 
D)  are related only to microeconomics.

Question 11

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

Accepted Answer

A)  nothing because he is paying for his class. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  an hour of tennis given up. 
A)  nothing because he is paying for his class. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  an hour of tennis given up.

Question 12

When Target decides to hire another sales clerk to handle the holiday rush, Target assumes that the clerk's extra sales are greater than the costs of hiring the new clerk. This is an example of

Accepted Answer

A)  the big tradeoff. 
B)  answering the how question. 
C)  answering the what question. 
D)  making a decision at the margin. 
A)  the big tradeoff. 
B)  answering the how question. 
C)  answering the what question. 
D)  making a decision at the margin.

Question 13

In every economic system, choices must be made because resources are _ and our wants are

Accepted Answer

A)  limited; limited 
B)  unlimited; unlimited 
C)  unlimited; limited 
D)  limited; unlimited 
A)  limited; limited 
B)  unlimited; unlimited 
C)  unlimited; limited 
D)  limited; unlimited

Question 14

-The slope of the line in the above figure is

Accepted Answer

A)  5. 
B)  - 5. 
C)  - 10. 
D)  10. 
A)  5. 
B)  - 5. 
C)  - 10. 
D)  10.

Question 15

The slope of a straight line is

Accepted Answer

A)  always equal to zero. 
B)  constant. 
C)  calculated as y/x at any point. 
D)  always greater than zero. 
A)  always equal to zero. 
B)  constant. 
C)  calculated as y/x at any point. 
D)  always greater than zero.

Question 16

When a California farmer decides to harvest lettuce by the use of machines instead of by migrant workers, the farmer is answering the question.

Accepted Answer

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

Question 17

-The table above gives productivity growth rate data for the nation of Alachua. The year when the growth rate was definitely at a minimum was

Accepted Answer

A)  1990. 
B)  2000. 
C)  1996. 
D)  1992. 
A)  1990. 
B)  2000. 
C)  1996. 
D)  1992.

Question 18

When China builds a dam using few machines and a great deal of labor, it is answering the
Question.

Accepted Answer

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

Question 19

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 20

Factors of production include all of the following EXCEPT

Accepted Answer

A)  labor. 
B)  capital. 
C)  land. 
D)  None of the above answers are correct because all are factors of production. 
A)  labor. 
B)  capital. 
C)  land. 
D)  None of the above answers are correct because all are factors of production.

You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

Which of the following is a macroeconomic issue?

One topic of study for a microeconomist would be the

When CBS decides to produce another season of a reality show instead of a new drama series, CBS

The fact that wants cannot be fully satisfied with available resources reflects the definition of

In a graph, a line has a negative slope if

A cross- section graph can show how economic variables for different groups of people vary over time.

The slope of a line equals the

Positive economic statements

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

When Target decides to hire another sales clerk to handle the holiday rush, Target assumes that the clerk's extra sales are greater than the costs of hiring the new clerk. This is an example of

In every economic system, choices must be made because resources are _ and our wants are

-The slope of the line in the above figure is

The slope of a straight line is

When a California farmer decides to harvest lettuce by the use of machines instead of by migrant workers, the farmer is answering the question.

-The table above gives productivity growth rate data for the nation of Alachua. The year when the growth rate was definitely at a minimum was

When China builds a dam using few machines and a great deal of labor, it is answering the Question.

-What does the slope of the line shown in the above figure equal?

Factors of production include all of the following EXCEPT

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

You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

Which of the following is a macroeconomic issue?

One topic of study for a microeconomist would be the

When CBS decides to produce another season of a reality show instead of a new drama series, CBS

The fact that wants cannot be fully satisfied with available resources reflects the definition of

In a graph, a line has a negative slope if

A cross- section graph can show how economic variables for different groups of people vary over time.

The slope of a line equals the

Positive economic statements

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

When Target decides to hire another sales clerk to handle the holiday rush, Target assumes that the clerk's extra sales are greater than the costs of hiring the new clerk. This is an example of

In every economic system, choices must be made because resources are _ and our wants are

-The slope of the line in the above figure is

The slope of a straight line is

When a California farmer decides to harvest lettuce by the use of machines instead of by migrant workers, the farmer is answering the question.

-The table above gives productivity growth rate data for the nation of Alachua. The year when the growth rate was definitely at a minimum was

When China builds a dam using few machines and a great deal of labor, it is answering the Question.

-What does the slope of the line shown in the above figure equal?

Factors of production include all of the following EXCEPT

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