Question 1

Microeconomics is the study of .

Accepted Answer

A)  the national economy 
B)  all aspects of scarcity 
C)  the global economy 
D)  the choices that individuals and businesses make 
A)  the national economy 
B)  all aspects of scarcity 
C)  the global economy 
D)  the choices that individuals and businesses make

Question 2

Statements about what ought to be are called

Accepted Answer

A)  implications. 
B)  normative statements. 
C)  assumptions. 
D)  positive statements. 
A)  implications. 
B)  normative statements. 
C)  assumptions. 
D)  positive statements.

Question 3

The faster an automobile is driven speed), the lower the miles per gallon mpg) for that automobile. Given this information, we say that an automobileʹs speed and mpg have

Accepted Answer

A)  a maximum relationship. 
B)  a linear relationship. 
C)  a direct relationship. 
D)  an inverse relationship. 
A)  a maximum relationship. 
B)  a linear relationship. 
C)  a direct relationship. 
D)  an inverse relationship.

Question 4

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

Accepted Answer

A)  2 
B)  -1 
C)  3 
D)  1 
A)  2 
B)  -1 
C)  3 
D)  1

Question 5

$\begin{array}{|l|l|}
\hline \begin{array}{l}
\text { Katie's income } \
\text { (dollars per year) }
\end{array} & \begin{array}{l}
\text { Katie's purchases } \
\text { (books peryear) }
\end{array} \
\hline 50,000 & 14 \
\hline 70,000 & 16 \
\hline 90,000 & 18 \
\hline 110,000 & 20 \
\hline
\end{array}$
-The table above shows how the number of books Katie buys each year depends on her income.
a) What kind of relationship exists between Katieʹs income and the number of books she purchases?
b) Plot the relationship between Katieʹs income and the number of books she purchases in the above figure. Measure income along the vertical axis and the number of books along the horizontal axis. Be sure to label the axes.
c) What is the slope of the relationship between $50,000 and $70,000 of income?
d) What is the slope of the relationship between $90,000 and $110,000 of income?
e) Comment on the similarity or dissimilarity of your answers to parts c) and d).

Accepted Answer

a) There is a positive relationship. Whe

Question 6

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is

Accepted Answer

A)  a curve with a maximum. 
B)  a vertical line. 
C)  a positively-sloped line. 
D)  a horizontal line. 
A)  a curve with a maximum. 
B)  a vertical line. 
C)  a positively-sloped line. 
D)  a horizontal line.

Question 7

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the part of one of the two big economic questions.

Accepted Answer

A)  ʺhowʺ 
B)  ʺfor whomʺ 
C)  ʺwhenʺ 
D)  ʺwhyʺ 
A)  ʺhowʺ 
B)  ʺfor whomʺ 
C)  ʺwhenʺ 
D)  ʺwhyʺ

Question 8

-In the above figure, x is

Accepted Answer

A)  positively related to y and negatively related to z. 
B)  negatively related to y and positively related to z. 
C)  positively related to both y and z. 
D)  negatively related to both y and z. 
A)  positively related to y and negatively related to z. 
B)  negatively related to y and positively related to z. 
C)  positively related to both y and z. 
D)  negatively related to both y and z.

Question 9

As an economic concept, scarcity applies to

Accepted Answer

A)  money but not time. 
B)  time but not money. 
C)  both money and time. 
D)  neither time nor money. 
A)  money but not time. 
B)  time but not money. 
C)  both money and time. 
D)  neither time nor money.

Question 10

$$\begin{array} { | l | l | } 
\hline \begin{array} { l } 
x \text {-variable } \
\text { (on the horizontal } \
\text { axis) }
\end{array} & \begin{array} { l } 
y \text {-variable } \
\text { (on the vertic al axis) }
\end{array} \
\hline 8 & 14 \
\hline 10 & 18 \
\hline 12 & 22 \
\hline
\end{array}$$
-The above table gives data on two variables. If these data were graphed, the slope of the line would be

Accepted Answer

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

Question 11

ʺIt is impossible to represent a three variable relationship in a two-dimensional graph.ʺ Is this statement true or false? Explain your answer.

Accepted Answer

The statement is false because it is pos

Question 12

Normative statements are statements about

Accepted Answer

A)  what ought to be. 
B)  prices. 
C)  what is. 
D)  quantities. 
A)  what ought to be. 
B)  prices. 
C)  what is. 
D)  quantities.

Question 13

-In the figure above, the relationship between the x variable and the y variable

Accepted Answer

A)  is positive. 
B)  starts by being positive and then becomes negative. 
C)  starts by being negative and then becomes positive. 
D)  is negative. 
A)  is positive. 
B)  starts by being positive and then becomes negative. 
C)  starts by being negative and then becomes positive. 
D)  is negative.

Question 14

-In the figure above, ceteris paribus, an increase in x is associated with

Accepted Answer

A)  a decrease in z. 
B)  an increase in y. 
C)  a decrease in y. 
D)  None of the above answers is correct. 
A)  a decrease in z. 
B)  an increase in y. 
C)  a decrease in y. 
D)  None of the above answers is correct.

Question 15

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

Accepted Answer

A)  have a slope of zero. 
B)  be negatively sloped. 
C)  be a vertical line. 
D)  be none of the above. 
A)  have a slope of zero. 
B)  be negatively sloped. 
C)  be a vertical line. 
D)  be none of the above.

Question 16

-In the above figure,

Accepted Answer

A)  consumption expenditures are positively related to labor income. 
B)  the slope of the function depicted is 0.9. 
C)  consumption expenditures are a linear function of labor income. 
D)  All of the above answers are correct. 
A)  consumption expenditures are positively related to labor income. 
B)  the slope of the function depicted is 0.9. 
C)  consumption expenditures are a linear function of labor income. 
D)  All of the above answers are correct.

Question 17

The horizontal axis in a graph

Accepted Answer

A)  is named the x-axis. 
B)  measures time in a scatter diagram. 
C)  is named the y-axis. 
D)  measures the quality of a variable. 
A)  is named the x-axis. 
B)  measures time in a scatter diagram. 
C)  is named the y-axis. 
D)  measures the quality of a variable.

Question 18

-The slope of the line in the above figure is

Accepted Answer

A)  direct. 
B)  positive. 
C)  negative. 
D)  independent. 
A)  direct. 
B)  positive. 
C)  negative. 
D)  independent.

Question 19

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is equal to 1. This slope means that

Accepted Answer

A)  a change in x is associated with no change in y. 
B)  a change in x is associated with an equal change in y. 
C)  a change in x is associated with a smaller change in y. 
D)  a change in x is associated with a bigger change in y. 
A)  a change in x is associated with no change in y. 
B)  a change in x is associated with an equal change in y. 
C)  a change in x is associated with a smaller change in y. 
D)  a change in x is associated with a bigger change in y.

Question 20

Marginal cost is the

Accepted Answer

A)  cost of an activity minus the benefits of the activity. 
B)  cost of all forgone alternatives. 
C)  cost of an increase in an activity. 
D)  total cost of an activity. 
A)  cost of an activity minus the benefits of the activity. 
B)  cost of all forgone alternatives. 
C)  cost of an increase in an activity. 
D)  total cost of an activity.

Microeconomics is the study of .

Statements about what ought to be are called

The faster an automobile is driven speed), the lower the miles per gallon mpg) for that automobile. Given this information, we say that an automobileʹs speed and mpg have

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the part of one of the two big economic questions.

-In the above figure, x is

As an economic concept, scarcity applies to

x -variable (on the horizontal axis) y -variable (on the vertic al axis) 8 14 10 18 12 22 -The above table gives data on two variables. If these data were graphed, the slope of the line would be

ʺIt is impossible to represent a three variable relationship in a two-dimensional graph.ʺ Is this statement true or false? Explain your answer.

Normative statements are statements about

-In the figure above, the relationship between the x variable and the y variable

-In the figure above, ceteris paribus, an increase in x is associated with

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

-In the above figure,

The horizontal axis in a graph

-The slope of the line in the above figure is

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is equal to 1. This slope means that

Marginal cost is the

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

Microeconomics is the study of .

Statements about what ought to be are called

The faster an automobile is driven speed), the lower the miles per gallon mpg) for that automobile. Given this information, we say that an automobileʹs speed and mpg have

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the part of one of the two big economic questions.

-In the above figure, x is

As an economic concept, scarcity applies to

x -variable (on the horizontal axis) y -variable (on the vertic al axis) 8 14 10 18 12 22 -The above table gives data on two variables. If these data were graphed, the slope of the line would be

ʺIt is impossible to represent a three variable relationship in a two-dimensional graph.ʺ Is this statement true or false? Explain your answer.

Normative statements are statements about

-In the figure above, the relationship between the x variable and the y variable

-In the figure above, ceteris paribus, an increase in x is associated with

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

-In the above figure,

The horizontal axis in a graph

-The slope of the line in the above figure is

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is equal to 1. This slope means that

Marginal cost is the

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