Question 1

A natural resource, such as fishing territories, is considered an example of

Accepted Answer

A)  only capital. 
B)  both land and labor. 
C)  land only. 
D)  land, labor, capital and entrepreneurship. 
A)  only capital. 
B)  both land and labor. 
C)  land only. 
D)  land, labor, capital and entrepreneurship.

Question 2

$$\begin{array} { | l | l | } 
\hline x & y \
\hline 10 & 50 \
\hline 9 & 70 \
\hline 8 & 100 \
\hline 7 & 130 \
\hline 6 & 170 \
\hline 5 & 220 \
\hline
\end{array}$$
-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

Accepted Answer

A)  70 
B)  -35 
C)  -0.057 
D)  -19.28 
A)  70 
B)  -35 
C)  -0.057 
D)  -19.28

Question 3

Economists point out that scarcity confronts

Accepted Answer

A)  the rich but not the poor. 
B)  the poor but not the rich. 
C)  neither the poor nor the rich. 
D)  both the poor and the rich. 
A)  the rich but not the poor. 
B)  the poor but not the rich. 
C)  neither the poor nor the rich. 
D)  both the poor and the rich.

Question 4

The slope of a curved line can be approximated by

Accepted Answer

A)  the average of the variable measured along the y-axis divided by the average of the variable measured along the x-axis. 
B)  the slope across an arc from one point on the curve to another point on the curve. 
C)  the inverse of the straight-line method. 
D)  the average of the variable measured along the x-axis divided by the average of the variable measured along the y-axis. 
A)  the average of the variable measured along the y-axis divided by the average of the variable measured along the x-axis. 
B)  the slope across an arc from one point on the curve to another point on the curve. 
C)  the inverse of the straight-line method. 
D)  the average of the variable measured along the x-axis divided by the average of the variable measured along the y-axis.

Question 5

Today, Julie attended her 12:30 Economics class. If she hadnʹt gone to class, Julie would have gone out to lunch with friends. She had other options; she could have worked or slept in. Julieʹs opportunity cost of going to class is the

Accepted Answer

A)  lunch she gave up. 
B)  income she gave up. 
C)  income, pleasure, and sleep she gave up. 
D)  sleep she gave up. 
A)  lunch she gave up. 
B)  income she gave up. 
C)  income, pleasure, and sleep she gave up. 
D)  sleep she gave up.

Question 6

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 7

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

Accepted Answer

A)  twenty dollars. 
B)  Brand B plus Brand C. 
C)  Brand A. 
D)  Brand B or Brand C, depending on which is considered the highest -value alternative forgone. 
A)  twenty dollars. 
B)  Brand B plus Brand C. 
C)  Brand A. 
D)  Brand B or Brand C, depending on which is considered the highest -value alternative forgone.

Question 8

A cost due to an increase in activity is called

Accepted Answer

A)  the total cost. 
B)  a marginal cost. 
C)  a negative marginal benefit. 
D)  an incentive loss. 
A)  the total cost. 
B)  a marginal cost. 
C)  a negative marginal benefit. 
D)  an incentive loss.

Question 9

Your student association is looking for an auditorium to rent for an all-day conference. The universityʹs Performing Arts Center is vacant on that day, so the association wants to rent it. The physical plant manager tells you that the daily rent is $660, which includes $400 to cover part of the cost paid to build the Center, $40 to cover part of its regular maintenance cost, $50 to help pay for the buildingʹs insurance, $100 to cover the extra cost of electricity that the university would incur because of the conference, and $70 to pay for additional janitorial services for the conference. You know that no one else wants to rent the Center on that day and you think that the price that the manager charges is too high. But how much should you pay? Use the economic way of thinking to answer this question and to convince the manager to accept your offer:
a) If you rent the Center, what will be the universityʹs marginal cost of renting the center to you?
b) If you rent the Center, what will be the universityʹs marginal benefit of renting the center to you?
c) What amount of rent should you offer? Convince the manager to accept your offer.

Accepted Answer

a) The universityʹs marginal cost is $17

Question 10

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

Accepted Answer

A)  the opportunity cost of seeing the movie is zero because the tickets were free. 
B)  both bear the same opportunity cost of seeing the movie because they are doing the same thing. 
C)  both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie. 
D)  it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free. 
A)  the opportunity cost of seeing the movie is zero because the tickets were free. 
B)  both bear the same opportunity cost of seeing the movie because they are doing the same thing. 
C)  both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie. 
D)  it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free.

Question 11

A positive statement is

Accepted Answer

A)  about what is. 
B)  about what ought to be. 
C)  valid only in the context of a model with simple assumptions. 
D)  the result of a modelʹs normative assumptions. 
A)  about what is. 
B)  about what ought to be. 
C)  valid only in the context of a model with simple assumptions. 
D)  the result of a modelʹs normative assumptions.

Question 12

$$\begin{array} { | c | c | } 
\hline \begin{array} { l } 
\text { Income } \
\text { (dollars per } \
\text { month) }
\end{array} & \begin{array} { c } 
\text { Amount spent on } \
\text { restaurant meals } \
\text { (dollars per month) }
\end{array} \
\hline 50 & 20 \
\hline 100 & 40 \
\hline 150 & 60 \
\hline 200 & 80 \
\hline
\end{array}$$
-Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

Accepted Answer

A)  0.5. 
B)  0.2. 
C)  0.4. 
D)  2.5. 
A)  0.5. 
B)  0.2. 
C)  0.4. 
D)  2.5.

Question 13

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 greater than 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 bigger change in y. 
D)  a change in x is associated with a smaller 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 bigger change in y. 
D)  a change in x is associated with a smaller change in y.

Question 14

If the government raises the tax on cigarettes, what is the effect on peopleʹs incentives and choices?

Accepted Answer

The government raises the tax on cigaret

Question 15

-The slope of the line in the above figure is

Accepted Answer

A)  -2. 
B)  -1/2 = -0.5. 
C)  2. 
D)  1/2 = 0.5. 
A)  -2. 
B)  -1/2 = -0.5. 
C)  2. 
D)  1/2 = 0.5.

Question 16

Which of the following is a macroeconomic issue?

Accepted Answer

A)  How federal government budget deficits affect interest rates. 
B)  What determines the amount a firm will produce. 
C)  The cause of a decline in the price of peanut butter. 
D)  How a rise in the price of sugar affects the market for sodas. 
A)  How federal government budget deficits affect interest rates. 
B)  What determines the amount a firm will produce. 
C)  The cause of a decline in the price of peanut butter. 
D)  How a rise in the price of sugar affects the market for sodas.

Question 17

ʺThe difference between positive and normative statements is that a positive statement is always true while a normative statement might or might not be true.ʺ True or false? Explain.

Accepted Answer

A) True 
 B)False

Question 18

When firms in an economy start producing more computers and fewer televisions, they are answering the part of one of the two big economic questions.

Accepted Answer

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

Question 19

A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show

Accepted Answer

A)  an inverse relationship. 
B)  a negative relationship. 
C)  a direct relationship. 
D)  Both answers A and B are correct. 
A)  an inverse relationship. 
B)  a negative relationship. 
C)  a direct relationship. 
D)  Both answers A and B are correct.

Question 20

-In the above figure, the x-coordinate of point b is

Accepted Answer

A)  3. 
B)  14. 
C)  1. 
D)  2. 
A)  3. 
B)  14. 
C)  1. 
D)  2.

A natural resource, such as fishing territories, is considered an example of

x y 10 50 9 70 8 100 7 130 6 170 5 220 -In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

Economists point out that scarcity confronts

The slope of a curved line can be approximated by

Today, Julie attended her 12:30 Economics class. If she hadnʹt gone to class, Julie would have gone out to lunch with friends. She had other options; she could have worked or slept in. Julieʹs opportunity cost of going to class is the

Define economics and describe its branches of study.

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

A cost due to an increase in activity is called

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

A positive statement is

Income (dollars per month) Amount spent on restaurant meals (dollars per month) 50 20 100 40 150 60 200 80 -Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

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 greater than 1. This slope means that

If the government raises the tax on cigarettes, what is the effect on peopleʹs incentives and choices?

-The slope of the line in the above figure is

Which of the following is a macroeconomic issue?

ʺThe difference between positive and normative statements is that a positive statement is always true while a normative statement might or might not be true.ʺ True or false? Explain.

When firms in an economy start producing more computers and fewer televisions, they are answering the part of one of the two big economic questions.

A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show

-In the above figure, the x-coordinate of point b is

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

A natural resource, such as fishing territories, is considered an example of

x y 10 50 9 70 8 100 7 130 6 170 5 220 -In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

Economists point out that scarcity confronts

The slope of a curved line can be approximated by

Today, Julie attended her 12:30 Economics class. If she hadnʹt gone to class, Julie would have gone out to lunch with friends. She had other options; she could have worked or slept in. Julieʹs opportunity cost of going to class is the

Define economics and describe its branches of study.

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

A cost due to an increase in activity is called

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

A positive statement is

Income (dollars per month) Amount spent on restaurant meals (dollars per month) 50 20 100 40 150 60 200 80 -Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

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 greater than 1. This slope means that

If the government raises the tax on cigarettes, what is the effect on peopleʹs incentives and choices?

-The slope of the line in the above figure is

Which of the following is a macroeconomic issue?

ʺThe difference between positive and normative statements is that a positive statement is always true while a normative statement might or might not be true.ʺ True or false? Explain.

When firms in an economy start producing more computers and fewer televisions, they are answering the part of one of the two big economic questions.

A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show

-In the above figure, the x-coordinate of point b is

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