Question 1

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

Accepted Answer

A) True 
 B)False

Question 2

Your employer has asked you to start working overtime and has offered to pay $18 per hour for every hour you work beyond forty hours a week. The wage rate for each of the first forty hours will continue to be the usual $15 per hour. In terms of dollars, what is the marginal benefit of working each hour of overtime?

Accepted Answer

A)  $3.00 
B)  $18.00 
C)  $15.00 
D)  zero 
A)  $3.00 
B)  $18.00 
C)  $15.00 
D)  zero

Question 3

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

Accepted Answer

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

Question 4

Household consumption depends on both income and interest rates. In the above figure

Accepted Answer

A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  no variable is held constant. 
D)  household income is held constant. 
A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  no variable is held constant. 
D)  household income is held constant.

Question 5

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

Accepted Answer

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

Question 6

ʺAs the price of gasoline increases, fewer people buy cars that are gas guzzlers.ʺ A graph showing this relationship would have

Accepted Answer

A)  a negative slope. 
B)  a direct relationship. 
C)  a horizontal line. 
D)  a positive relationship. 
A)  a negative slope. 
B)  a direct relationship. 
C)  a horizontal line. 
D)  a positive relationship.

Question 7

-In the above figure, a negative relationship is demonstrated in which of the graphs?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 8

What is the difference between a positive and a negative relationship?

Accepted Answer

Two variables are positively related whe

Question 9

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the
Part of one of the two big economic questions.

Accepted Answer

A)  ʺwhenʺ 
B)  ʺwhatʺ 
C)  ʺscarcityʺ 
D)  ʺwhyʺ 
A)  ʺwhenʺ 
B)  ʺwhatʺ 
C)  ʺscarcityʺ 
D)  ʺwhyʺ

Question 10

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

Accepted Answer

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

Question 11

$$\begin{array} { | l | l | } 
\hline \text { Quantity } & \text { Price } \
\hline & 50 \
\hline & 40 \
\hline 16 & 30 \
\hline 24 & 20 \
\hline 32 & 10 \
\hline 36 & 5 \
\hline
\end{array}$$
-If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the line relating price and quantity has a slope of

Accepted Answer

A)  8.0. 
B)  0.8. 
C)  -8.0. 
D)  -1.25. 
A)  8.0. 
B)  0.8. 
C)  -8.0. 
D)  -1.25.

Question 12

Below is a studentʹs answer to the question ʺWhat is microeconomics?ʺ If you were the instructor, how would you correct the studentʹs answer?
ʺMicroeconomics is the study of how government influences the choices made by individuals and businesses and of the performance of the whole national economy.ʺ

Accepted Answer

The answer is partially correct. Microec

Question 13

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Accepted Answer

A)  HPʹs printers to printers from competing companies, such as Lexmark. 
B)  the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
C)  the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
D)  the total revenue from sales of printers to the total cost of producing all the printers. 
A)  HPʹs printers to printers from competing companies, such as Lexmark. 
B)  the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
C)  the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
D)  the total revenue from sales of printers to the total cost of producing all the printers.

Question 14

What do economists mean when they discuss ʺscarcityʺ?

Accepted Answer

Scarcity occurs whenever peopleʹs wants

Question 15

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

Accepted Answer

A)  the wages received for 4 days of work. 
B)  the wages received for the fifth day of work. 
C)  the wages received for 5 days of work. 
D)  None of the above answers is correct. 
A)  the wages received for 4 days of work. 
B)  the wages received for the fifth day of work. 
C)  the wages received for 5 days of work. 
D)  None of the above answers is correct.

Question 16

When a firm decides to produce more electric cars and fewer gas guzzlers, it is most directly answering the part of one of the two big economic questions.

Accepted Answer

A)  ʺhowʺ 
B)  ʺfor whomʺ 
C)  ʺwhatʺ 
D)  ʺscarcityʺ 
A)  ʺhowʺ 
B)  ʺfor whomʺ 
C)  ʺwhatʺ 
D)  ʺscarcityʺ

Question 17

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

Accepted Answer

A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables have an inverse relationship. 
D)  the two variables are unrelated. 
A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables have an inverse relationship. 
D)  the two variables are unrelated.

Question 18

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

Accepted Answer

A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis. 
C)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
D)  means that changes in either variable must cause changes in the other variable. 
A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis. 
C)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
D)  means that changes in either variable must cause changes in the other variable.

Question 19

A benefit from an increase in activity is called the

Accepted Answer

A)  marginal benefit. 
B)  total benefit. 
C)  economic benefit. 
D)  opportunity benefit. 
A)  marginal benefit. 
B)  total benefit. 
C)  economic benefit. 
D)  opportunity benefit.

Question 20

-The slope of the line in the above figure is

Accepted Answer

A)  5/2 = 2.5. 
B)  -2/5 = -0.4. 
C)  -5/2 = -2.5. 
D)  2/5 = 0.4. 
A)  5/2 = 2.5. 
B)  -2/5 = -0.4. 
C)  -5/2 = -2.5. 
D)  2/5 = 0.4.

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

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

Household consumption depends on both income and interest rates. In the above figure

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

ʺAs the price of gasoline increases, fewer people buy cars that are gas guzzlers.ʺ A graph showing this relationship would have

-In the above figure, a negative relationship is demonstrated in which of the graphs?

What is the difference between a positive and a negative relationship?

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the Part of one of the two big economic questions.

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

Quantity Price 50 40 16 30 24 20 32 10 36 5 -If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the line relating price and quantity has a slope of

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

What do economists mean when they discuss ʺscarcityʺ?

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

When a firm decides to produce more electric cars and fewer gas guzzlers, it is most directly answering the part of one of the two big economic questions.

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

A benefit from an increase in activity is called the

-The slope of the line in the above figure 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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 1: What Is Economics

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

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

Household consumption depends on both income and interest rates. In the above figure

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

ʺAs the price of gasoline increases, fewer people buy cars that are gas guzzlers.ʺ A graph showing this relationship would have

-In the above figure, a negative relationship is demonstrated in which of the graphs?

What is the difference between a positive and a negative relationship?

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the Part of one of the two big economic questions.

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

Quantity Price 50 40 16 30 24 20 32 10 36 5 -If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the line relating price and quantity has a slope of

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

What do economists mean when they discuss ʺscarcityʺ?

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

When a firm decides to produce more electric cars and fewer gas guzzlers, it is most directly answering the part of one of the two big economic questions.

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

A benefit from an increase in activity is called the

-The slope of the line in the above figure 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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters