Question 1

When Ben Bernanke, Chairman of the Federal Reserve, addresses Congress regarding the United States role in the world economy, he is discussing

Accepted Answer

A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  incentives. 
D)  scarcity. 
A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  incentives. 
D)  scarcity.

Question 2

An economic model includes

Accepted Answer

A)  only normative statements. 
B)  all known details in order to increase its accuracy. 
C)  only details considered essential. 
D)  no use of marginal concepts. 
A)  only normative statements. 
B)  all known details in order to increase its accuracy. 
C)  only details considered essential. 
D)  no use of marginal concepts.

Question 3

-In the above figure, the slope at point b

Accepted Answer

A)  exceeds 2. 
B)  lies between 1/3 and 1. 
C)  lies between 1 and 2. 
D)  equals 1. 
A)  exceeds 2. 
B)  lies between 1/3 and 1. 
C)  lies between 1 and 2. 
D)  equals 1.

Question 4

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

Accepted Answer

A)  negative relationship 
B)  no relationship 
C)  maximum relationship 
D)  positive relationship 
A)  negative relationship 
B)  no relationship 
C)  maximum relationship 
D)  positive relationship

Question 5

The slope of a negative relationship is

Accepted Answer

A)  constant as long as the relationship is nonlinear. 
B)  negative. 
C)  positive to the right of the maximum point and negative to the left. 
D)  undefined. 
A)  constant as long as the relationship is nonlinear. 
B)  negative. 
C)  positive to the right of the maximum point and negative to the left. 
D)  undefined.

Question 6

-In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

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 7

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumersʹ taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

Accepted Answer

A)  the price of pizza and quantity consumed of pizza are the only variables that are allowed to change. 
B)  consumersʹ taste for pizza and the income of pizza purchasers are the only variables that are allowed to change. 
C)  the price of a pizza and the income of pizza consumers are the only variables that are allowed to change. 
D)  None of the above answers are correct. 
A)  the price of pizza and quantity consumed of pizza are the only variables that are allowed to change. 
B)  consumersʹ taste for pizza and the income of pizza purchasers are the only variables that are allowed to change. 
C)  the price of a pizza and the income of pizza consumers are the only variables that are allowed to change. 
D)  None of the above answers are correct.

Question 8

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

Accepted Answer

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

Question 9

ʺThe rich should pay higher income tax rates than the poorʺ is an example of a

Accepted Answer

A)  descriptive statement. 
B)  normative statement. 
C)  theoretical statement. 
D)  positive statement. 
A)  descriptive statement. 
B)  normative statement. 
C)  theoretical statement. 
D)  positive statement.

Question 10

In economics, positive statements are about

Accepted Answer

A)  macroeconomics, not microeconomics. 
B)  the way things are. 
C)  microeconomics, not macroeconomics. 
D)  the way things ought to be. 
A)  macroeconomics, not microeconomics. 
B)  the way things are. 
C)  microeconomics, not macroeconomics. 
D)  the way things ought to be.

Question 11

A graph cannot be used to show that two variables are unrelated.

Accepted Answer

A) True 
 B)False

Question 12

Define marginal cost and marginal benefit.

Accepted Answer

Marginal cost is the opportuni

Question 13

The formula for the slope across an arc is used to approximate the slope for

Accepted Answer

A)  a positive relationship only. 
B)  a curved line. 
C)  linear relationships only. 
D)  a negative relationship only. 
A)  a positive relationship only. 
B)  a curved line. 
C)  linear relationships only. 
D)  a negative relationship only.

Question 14

Copper falls into which factor of production category?

Accepted Answer

A)  capital 
B)  entrepreneurship 
C)  labor 
D)  land 
A)  capital 
B)  entrepreneurship 
C)  labor 
D)  land

Question 15

-The slope of the line in the above figure is

Accepted Answer

A)  0.05. 
B)  8. 
C)  0.10. 
D)  0.125. 
A)  0.05. 
B)  8. 
C)  0.10. 
D)  0.125.

Question 16

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

Accepted Answer

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

Question 17

Which of the following is a positive statement?

Accepted Answer

A)  Because they decrease productivity, labor unions should be eliminated. 
B)  A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice. 
C)  The United States should fight inflation even if it raises unemployment. 
D)  What to do with Social Security is the most important economic issue today. 
A)  Because they decrease productivity, labor unions should be eliminated. 
B)  A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice. 
C)  The United States should fight inflation even if it raises unemployment. 
D)  What to do with Social Security is the most important economic issue today.

Question 18

-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

Accepted Answer

A)  0 percent and 100 percent. 
B)  0 percent and 30 percent. 
C)  30 percent and 100 percent. 
D)  None of the above answers are correct. 
A)  0 percent and 100 percent. 
B)  0 percent and 30 percent. 
C)  30 percent and 100 percent. 
D)  None of the above answers are correct.

Question 19

All economic questions arise because we

Accepted Answer

A)  want more than we can get. 
B)  want more than we need. 
C)  have limited wants that need to be satisfied. 
D)  have an abundance of resources. 
A)  want more than we can get. 
B)  want more than we need. 
C)  have limited wants that need to be satisfied. 
D)  have an abundance of resources.

Question 20

Whenever one variable increases, another variable decreases. The two variables are

Accepted Answer

A)  definitely related through a third variable. 
B)  negatively related. 
C)  unrelated to each other. 
D)  positively related. 
A)  definitely related through a third variable. 
B)  negatively related. 
C)  unrelated to each other. 
D)  positively related.

When Ben Bernanke, Chairman of the Federal Reserve, addresses Congress regarding the United States role in the world economy, he is discussing

An economic model includes

-In the above figure, the slope at point b

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

The slope of a negative relationship is

-In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumersʹ taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

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

ʺThe rich should pay higher income tax rates than the poorʺ is an example of a

In economics, positive statements are about

A graph cannot be used to show that two variables are unrelated.

Define marginal cost and marginal benefit.

The formula for the slope across an arc is used to approximate the slope for

Copper falls into which factor of production category?

-The slope of the line in the above figure is

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

Which of the following is a positive statement?

-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

All economic questions arise because we

Whenever one variable increases, another variable decreases. The two variables are

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 Ben Bernanke, Chairman of the Federal Reserve, addresses Congress regarding the United States role in the world economy, he is discussing

An economic model includes

-In the above figure, the slope at point b

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

The slope of a negative relationship is

-In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumersʹ taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

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

ʺThe rich should pay higher income tax rates than the poorʺ is an example of a

In economics, positive statements are about

A graph cannot be used to show that two variables are unrelated.

Define marginal cost and marginal benefit.

The formula for the slope across an arc is used to approximate the slope for

Copper falls into which factor of production category?

-The slope of the line in the above figure is

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

Which of the following is a positive statement?

-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

All economic questions arise because we

Whenever one variable increases, another variable decreases. The two variables are

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