Question 1

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

Accepted Answer

A)  0.25. 
B)  2. 
C)  0.75. 
D)  1 1/3. 
A)  0.25. 
B)  2. 
C)  0.75. 
D)  1 1/3.

Question 2

Explain whether the statement ʺThe government should increase tariffs on Japanese cars to protect the American car industry from competition,ʺ is a normative or positive statement.

Accepted Answer

The statement is normative. Th

Question 3

A normative statement is

Accepted Answer

A)  one that does not use marginal concepts. 
B)  about what is. 
C)  always true. 
D)  about what ought to be. 
A)  one that does not use marginal concepts. 
B)  about what is. 
C)  always true. 
D)  about what ought to be.

Question 4

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

Accepted Answer

Essentially microeconomics studies indiv

Question 5

Jamie is preparing to take his SAT tests. The table above shows how Jamieʹs score depends on the number of hours a week Jamie studies.
a) Plot the relationship in the figure, putting the hours studied on the horizontal axis.
b) Is the relationship you plotted positive or negative?
c) What happens to the slope of the relationship as hours studied increase?
d) Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he studies, his score will be 100 points higher. Plot the new relationship between the number of hours studied and Jamieʹs SAT score in the figure.
e) How many variables are involved in the figure you just completed?

Accepted Answer

The figure above plots the relationship

Question 6

The statement ʺAn increase in the price of gasoline will lead to a decrease in the amount purchasedʺ is

Accepted Answer

A)  a positive statement. 
B)  a normative statement. 
C)  a scientific statement. 
D)  a political statement. 
A)  a positive statement. 
B)  a normative statement. 
C)  a scientific statement. 
D)  a political statement.

Question 7

$\begin{array}{|l|l|}
\hline X & Y \
\hline 2 & 20 \
\hline 4 & 16 \
\hline 6 & 12 \
\hline 8 & 8 \
\hline
\end{array}$
-Graph the data in the table above in the figure. Label the axes.
a) Is the relationship between X and Y positive or negative?
b) What is the slope when X = 4?
c) What is the slope when X = 8?

Accepted Answer

The relationship bet

Question 8

The term human capital refers to

Accepted Answer

A)  entrepreneurship and risk-taking. 
B)  peopleʹs knowledge and skill. 
C)  labor resources used to make capital equipment. 
D)  buildings and machinery. 
A)  entrepreneurship and risk-taking. 
B)  peopleʹs knowledge and skill. 
C)  labor resources used to make capital equipment. 
D)  buildings and machinery.

Question 9

When China builds a dam using few machines and a great deal of labor, it is answering the
Part of one of the two big economic questions.

Accepted Answer

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

Question 10

-The relationship between income and consumption illustrated in the figure above is

Accepted Answer

A)  negative and nonlinear. 
B)  positive and nonlinear. 
C)  negative and linear. 
D)  positive and linear. 
A)  negative and nonlinear. 
B)  positive and nonlinear. 
C)  negative and linear. 
D)  positive and linear.

Question 11

The income earned by the people who sell the services of the factor of production is called .

Accepted Answer

A)  capital; rent 
B)  land; profit 
C)  entrepreneurship; wages 
D)  entrepreneurship; profit 
A)  capital; rent 
B)  land; profit 
C)  entrepreneurship; wages 
D)  entrepreneurship; profit

Question 12

$$\begin{array} { | l | l | } 
\hline \begin{array} { l } 
x \text {-variable } \
\text { (on the horizont al } \
\text { axis) }
\end{array} & \begin{array} { l } 
y \text {-variable } \
\text { (on the vertical axis) }
\end{array} \
\hline 100 & 50 \
\hline 200 & 125 \
\hline 300 & 200 \
\hline
\end{array}$$
-The above table shows data on two variables. If these data were graphed, the slope of the line would be

Accepted Answer

A)  4/3. 
B)  1/2. 
C)  2/3. 
D)  3/4. 
A)  4/3. 
B)  1/2. 
C)  2/3. 
D)  3/4.

Question 13

Which of the following is a positive statement?

Accepted Answer

A)  Low rents are good because they make apartments more affordable. 
B)  Low rents decrease the amount of housing landlords make available for rent. 
C)  Owners of apartment buildings ought to be free to charge whatever rent they want. 
D)  Housing costs too much. 
A)  Low rents are good because they make apartments more affordable. 
B)  Low rents decrease the amount of housing landlords make available for rent. 
C)  Owners of apartment buildings ought to be free to charge whatever rent they want. 
D)  Housing costs too much.

Question 14

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

Accepted Answer

A)  depends on the cost of the workout. 
B)  is the benefit she gets from all the hours sheʹs worked out all week. 
C)  is less than the marginal cost of the additional hour. 
D)  is the benefit she receives from exercising the additional hour. 
A)  depends on the cost of the workout. 
B)  is the benefit she gets from all the hours sheʹs worked out all week. 
C)  is less than the marginal cost of the additional hour. 
D)  is the benefit she receives from exercising the additional hour.

Question 15

When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the part of one of the two big economic questions.

Accepted Answer

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

Question 16

When the government chooses to spend the tax dollars that it collects on homeland security, its choice .

Accepted Answer

A)  involves a tradeoff of other goods and services such as education for more homeland security 
B)  primarily affects who gets the goods and services produced. 
C)  illustrates that scarcity does not always exist 
D)  involves no tradeoff because the defense is necessary 
A)  involves a tradeoff of other goods and services such as education for more homeland security 
B)  primarily affects who gets the goods and services produced. 
C)  illustrates that scarcity does not always exist 
D)  involves no tradeoff because the defense is necessary

Question 17

A good economic model

Accepted Answer

A)  includes only those features of the world that are needed for the purpose at hand. 
B)  describes every aspect of the economic world, with no exception. 
C)  includes all those features of the world that can be described numerically. 
D)  should not include more than two variables. 
A)  includes only those features of the world that are needed for the purpose at hand. 
B)  describes every aspect of the economic world, with no exception. 
C)  includes all those features of the world that can be described numerically. 
D)  should not include more than two variables.

Question 18

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

Accepted Answer

A)  -1.25. 
B)  -1 2/3. 
C)  -1 1/3. 
D)  -0.80. 
A)  -1.25. 
B)  -1 2/3. 
C)  -1 1/3. 
D)  -0.80.

Question 19

Macroeconomics is the study of aggregate variables such as national production and unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Economics is the study of

Accepted Answer

A)  the distribution of surplus goods to those in need. 
B)  the choices we make because of scarcity. 
C)  ways to reduce wants to eliminate the problem of scarcity. 
D)  affluence in a morally bankrupt world. 
A)  the distribution of surplus goods to those in need. 
B)  the choices we make because of scarcity. 
C)  ways to reduce wants to eliminate the problem of scarcity. 
D)  affluence in a morally bankrupt world.

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

Explain whether the statement ʺThe government should increase tariffs on Japanese cars to protect the American car industry from competition,ʺ is a normative or positive statement.

A normative statement is

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

The statement ʺAn increase in the price of gasoline will lead to a decrease in the amount purchasedʺ is

The term human capital refers to

When China builds a dam using few machines and a great deal of labor, it is answering the Part of one of the two big economic questions.

-The relationship between income and consumption illustrated in the figure above is

The income earned by the people who sell the services of the factor of production is called .

x -variable (on the horizont al axis) y -variable (on the vertical axis) 100 50 200 125 300 200 -The above table shows data on two variables. If these data were graphed, the slope of the line would be

Which of the following is a positive statement?

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the part of one of the two big economic questions.

When the government chooses to spend the tax dollars that it collects on homeland security, its choice .

A good economic model

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

Macroeconomics is the study of aggregate variables such as national production and unemployment.

Economics is the study of

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

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

Explain whether the statement ʺThe government should increase tariffs on Japanese cars to protect the American car industry from competition,ʺ is a normative or positive statement.

A normative statement is

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

The statement ʺAn increase in the price of gasoline will lead to a decrease in the amount purchasedʺ is

X Y 2 20 4 16 6 12 8 8 -Graph the data in the table above in the figure. Label the axes. a) Is the relationship between X and Y positive or negative? b) What is the slope when X = 4? c) What is the slope when X = 8?

The term human capital refers to

When China builds a dam using few machines and a great deal of labor, it is answering the Part of one of the two big economic questions.

-The relationship between income and consumption illustrated in the figure above is

The income earned by the people who sell the services of the factor of production is called .

x -variable (on the horizont al axis) y -variable (on the vertical axis) 100 50 200 125 300 200 -The above table shows data on two variables. If these data were graphed, the slope of the line would be

Which of the following is a positive statement?

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the part of one of the two big economic questions.

When the government chooses to spend the tax dollars that it collects on homeland security, its choice .

A good economic model

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

Macroeconomics is the study of aggregate variables such as national production and unemployment.

Economics is the study of

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