Question 1

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

Accepted Answer

A)  origin. 
B)  x-axis. 
C)  y-axis. 
D)  scalar. 
A)  origin. 
B)  x-axis. 
C)  y-axis. 
D)  scalar.

Question 2

-The relationship between x and y in the above figure is

Accepted Answer

A)  positive with a decreasing slope. 
B)  positive with an increasing slope. 
C)  negative with an increasing slope. 
D)  negative with a decreasing slope. 
A)  positive with a decreasing slope. 
B)  positive with an increasing slope. 
C)  negative with an increasing slope. 
D)  negative with a decreasing slope.

Question 3

The opportunity cost of any action is

Accepted Answer

A)  the benefit from the action minus the cost of the action. 
B)  the dollars the action cost. 
C)  all the possible alternatives given up. 
D)  the highest-valued alternative given up. 
A)  the benefit from the action minus the cost of the action. 
B)  the dollars the action cost. 
C)  all the possible alternatives given up. 
D)  the highest-valued alternative given up.

Question 4

-Using the above figure, which of the following is true?

Accepted Answer

A)  Axis 1 is typically called the y-axis. 
B)  Axis 2 is typically called the x-axis. 
C)  Axis 1 is also known as the origin. 
D)  Point b is known as the origin. 
A)  Axis 1 is typically called the y-axis. 
B)  Axis 2 is typically called the x-axis. 
C)  Axis 1 is also known as the origin. 
D)  Point b is known as the origin.

Question 5

When Al makes the statement, ʺThe cost of living has increased 10 percent over the past 10 years,ʺ he is

Accepted Answer

A)  making a normative statement. 
B)  facing the standard of living tradeoff. 
C)  making a positive statement. 
D)  testing an economic model. 
A)  making a normative statement. 
B)  facing the standard of living tradeoff. 
C)  making a positive statement. 
D)  testing an economic model.

Question 6

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

Question 7

Which of the following best defines capital as a factor of production?

Accepted Answer

A)  The knowledge and skills that people obtain from education and use in production of goods and services. 
B)  The gifts of nature that businesses use to produce goods and services. 
C)  Instruments, machines, and buildings used in production. 
D)  Financial assets used by businesses. 
A)  The knowledge and skills that people obtain from education and use in production of goods and services. 
B)  The gifts of nature that businesses use to produce goods and services. 
C)  Instruments, machines, and buildings used in production. 
D)  Financial assets used by businesses.

Question 8

Which of the following is a positive statement?

Accepted Answer

A)  Increased prison sentences are the best way to reduce the crime rate. 
B)  State lotteries are good methods to use for raising revenues. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation. 
A)  Increased prison sentences are the best way to reduce the crime rate. 
B)  State lotteries are good methods to use for raising revenues. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation.

Question 9

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

Accepted Answer

A)  perpendicular line. 
B)  line that has positive slope. 
C)  line that has a negative slope. 
D)  line with slope equal to zero. 
A)  perpendicular line. 
B)  line that has positive slope. 
C)  line that has a negative slope. 
D)  line with slope equal to zero.

Question 10

Differences in income are most directly related to which of the following economic question?

Accepted Answer

A)  In what quantities are various goods and services produced? 
B)  What goods and services are produced? 
C)  How are goods and services produced? 
D)  Who consumes the goods and services that are produced? 
A)  In what quantities are various goods and services produced? 
B)  What goods and services are produced? 
C)  How are goods and services produced? 
D)  Who consumes the goods and services that are produced?

Question 11

-In the above figure, the slope at point b is

Accepted Answer

A)  5/2. 
B)  1. 
C)  greater than 5/2. 
D)  between 1 and 5/2. 
A)  5/2. 
B)  1. 
C)  greater than 5/2. 
D)  between 1 and 5/2.

Question 12

The opportunity cost of something you decide to get is

Accepted Answer

A)  all the possible alternatives that you give up to get it. 
B)  the value of the item minus the cost you paid for it. 
C)  the amount of money you pay to get it. 
D)  the highest valued alternative you give up to get it. 
A)  all the possible alternatives that you give up to get it. 
B)  the value of the item minus the cost you paid for it. 
C)  the amount of money you pay to get it. 
D)  the highest valued alternative you give up to get it.

Question 13

The slope of a positive relationship is

Accepted Answer

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

Question 14

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

Accepted Answer

A) True 
 B)False

Question 15

What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?

Accepted Answer

Variables can have two relationships: po

Question 16

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

Accepted Answer

A)  showing a positive relationship. 
B)  that is a horizontal line. 
C)  that is a vertical line. 
D)  None of the above answers are correct. 
A)  showing a positive relationship. 
B)  that is a horizontal line. 
C)  that is a vertical line. 
D)  None of the above answers are correct.

Question 17

The problem of ʺscarcityʺ applies

Accepted Answer

A)  only in underdeveloped countries because there are few productive resources in these countries. 
B)  to all economic systems, regardless of their level of development. 
C)  only in economic systems that are just beginning to develop because specialized resources are scarce. 
D)  only in industrially developed countries because resources are scarce in these countries. 
A)  only in underdeveloped countries because there are few productive resources in these countries. 
B)  to all economic systems, regardless of their level of development. 
C)  only in economic systems that are just beginning to develop because specialized resources are scarce. 
D)  only in industrially developed countries because resources are scarce in these countries.

Question 18

The term used to emphasize that making choices in the face of scarcity involves a cost is

Accepted Answer

A)  accounting cost. 
B)  utility cost. 
C)  opportunity cost. 
D)  substitution cost. 
A)  accounting cost. 
B)  utility cost. 
C)  opportunity cost. 
D)  substitution cost.

Question 19

Which of the following questions is a macroeconomic issue?

Accepted Answer

A)  What is the future growth prospect for an economy? 
B)  How many workers should the owner of a business hire? 
C)  What effect would a cure for Mad Cow Disease have on the market for beef? 
D)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
A)  What is the future growth prospect for an economy? 
B)  How many workers should the owner of a business hire? 
C)  What effect would a cure for Mad Cow Disease have on the market for beef? 
D)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases?

Question 20

What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

-The relationship between x and y in the above figure is

The opportunity cost of any action is

-Using the above figure, which of the following is true?

When Al makes the statement, ʺThe cost of living has increased 10 percent over the past 10 years,ʺ he is

What is a normative statement? Give an example.

Which of the following best defines capital as a factor of production?

Which of the following is a positive statement?

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

Differences in income are most directly related to which of the following economic question?

-In the above figure, the slope at point b is

The opportunity cost of something you decide to get is

The slope of a positive relationship is

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

The problem of ʺscarcityʺ applies

The term used to emphasize that making choices in the face of scarcity involves a cost is

Which of the following questions is a macroeconomic issue?

What does the slope of the line shown in the above figure equal?

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

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Exam 1: What Is Economics

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

-The relationship between x and y in the above figure is

The opportunity cost of any action is

-Using the above figure, which of the following is true?

When Al makes the statement, ʺThe cost of living has increased 10 percent over the past 10 years,ʺ he is

What is a normative statement? Give an example.

Which of the following best defines capital as a factor of production?

Which of the following is a positive statement?

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

Differences in income are most directly related to which of the following economic question?

-In the above figure, the slope at point b is

The opportunity cost of something you decide to get is

The slope of a positive relationship is

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

The problem of ʺscarcityʺ applies

The term used to emphasize that making choices in the face of scarcity involves a cost is

Which of the following questions is a macroeconomic issue?

What does the slope of the line shown in the above figure equal?

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