Question 1

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

Accepted Answer

A)  the value of y is held constant. 
B)  other variables not shown are held constant. 
C)  the value of x is held constant. 
D)  no other variables are related to x and y. 
A)  the value of y is held constant. 
B)  other variables not shown are held constant. 
C)  the value of x is held constant. 
D)  no other variables are related to x and y.

Question 2

-In the above figure, the axis breaks are used

Accepted Answer

A)  to indicate that there are not enough data to be included in the graph. 
B)  to show that there are no data available for the omitted ranges. 
C)  to create a misleading graph. 
D)  to indicate that there are jumps from the origin, 0, to the first values recorded along the axes. 
A)  to indicate that there are not enough data to be included in the graph. 
B)  to show that there are no data available for the omitted ranges. 
C)  to create a misleading graph. 
D)  to indicate that there are jumps from the origin, 0, to the first values recorded along the axes.

Question 3

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

Accepted Answer

A)  5/8. 
B)  -0.625. 
C)  -1 3/8. 
D)  -1 2/3. 
A)  5/8. 
B)  -0.625. 
C)  -1 3/8. 
D)  -1 2/3.

Question 4

-In the figure above, what can you deduce about the slope of the curve?

Accepted Answer

The slope is positiv

Question 5

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 ownerʹs marginal benefit

Accepted Answer

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

Question 6

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

Accepted Answer

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

Question 7

-Which of the following correctly describes the above figure?
I. There is no relationship between the price of an avocado and a studentʹs grade in economics.
II. The value of variable measured on the y-axis is constant as the variable measured on the
X-axis increases.
III. As a studentʹs grade in economics increases, the price of an avocado increases.

Accepted Answer

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

Question 8

The statement ʺThe unemployment rate for teens is higher than that for adultsʺ is

Accepted Answer

A)  a political statement. 
B)  an ethical statement. 
C)  a normative statement. 
D)  a positive statement. 
A)  a political statement. 
B)  an ethical statement. 
C)  a normative statement. 
D)  a positive statement.

Question 9

Which of the following questions is a topic that would be studied by microeconomics?

Accepted Answer

A)  How will a lower price of digital cameras affect the quantity of cameras sold? 
B)  What is the current unemployment rate in the United States? 
C)  Why did production and the number of jobs shrink in 2009? 
D)  Will the current budget deficit affect the well-being of the next generation? 
A)  How will a lower price of digital cameras affect the quantity of cameras sold? 
B)  What is the current unemployment rate in the United States? 
C)  Why did production and the number of jobs shrink in 2009? 
D)  Will the current budget deficit affect the well-being of the next generation?

Question 10

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  both Figure A and Figure C 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  both Figure A and Figure C

Question 11

Why do economists use graphs?

Accepted Answer

Graphs help economists, and others, to v

Question 12

In economics, the term ʺcapitalʺ refers to

Accepted Answer

A)  the money in oneʹs pocket. 
B)  buildings and equipment. 
C)  consumer goods. 
D)  mineral resources. 
A)  the money in oneʹs pocket. 
B)  buildings and equipment. 
C)  consumer goods. 
D)  mineral resources.

Question 13

What is the difference between positive and normative statements?

Accepted Answer

Positive statements tell what is and nor

Question 14

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

Accepted Answer

A)  the curve will be unaffected. 
B)  there is a movement along the curve. 
C)  the curve will shift leftward. 
D)  the curve will shift rightward. 
A)  the curve will be unaffected. 
B)  there is a movement along the curve. 
C)  the curve will shift leftward. 
D)  the curve will shift rightward.

Question 15

The term ʺdirect relationshipʺ means the same as

Accepted Answer

A)  trend. 
B)  positive relationship. 
C)  negative relationship. 
D)  correlation. 
A)  trend. 
B)  positive relationship. 
C)  negative relationship. 
D)  correlation.

Question 16

In a graph, a line has a negative slope if

Accepted Answer

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

Question 17

-The figure above shows

Accepted Answer

A)  a direct relationship. 
B)  a positive relationship. 
C)  a negative relationship. 
D)  no relationship between the variables. 
A)  a direct relationship. 
B)  a positive relationship. 
C)  a negative relationship. 
D)  no relationship between the variables.

Question 18

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

Accepted Answer

A)  2. 
B)  5. 
C)  1. 
D)  4. 
A)  2. 
B)  5. 
C)  1. 
D)  4.

Question 19

ʺOPEC should supply more oil so that the worldʹs economies can grow more rapidly.ʺ This is an example of

Accepted Answer

A)  a positive statement. 
B)  a normative statement. 
C)  a decision at the margin. 
D)  OPEC overcoming scarcity 
A)  a positive statement. 
B)  a normative statement. 
C)  a decision at the margin. 
D)  OPEC overcoming scarcity

Question 20

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

-In the above figure, the axis breaks are used

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

-In the figure above, what can you deduce about the slope of the curve?

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 ownerʹs marginal benefit

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

The statement ʺThe unemployment rate for teens is higher than that for adultsʺ is

Which of the following questions is a topic that would be studied by microeconomics?

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

Why do economists use graphs?

In economics, the term ʺcapitalʺ refers to

What is the difference between positive and normative statements?

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

The term ʺdirect relationshipʺ means the same as

In a graph, a line has a negative slope if

-The figure above shows

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

ʺOPEC should supply more oil so that the worldʹs economies can grow more rapidly.ʺ This is an example of

Why do economists say that even very rich people face scarcity?

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

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

-In the above figure, the axis breaks are used

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

-In the figure above, what can you deduce about the slope of the curve?

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 ownerʹs marginal benefit

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

The statement ʺThe unemployment rate for teens is higher than that for adultsʺ is

Which of the following questions is a topic that would be studied by microeconomics?

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

Why do economists use graphs?

In economics, the term ʺcapitalʺ refers to

What is the difference between positive and normative statements?

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

The term ʺdirect relationshipʺ means the same as

In a graph, a line has a negative slope if

-The figure above shows

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

ʺOPEC should supply more oil so that the worldʹs economies can grow more rapidly.ʺ This is an example of

Why do economists say that even very rich people face scarcity?

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