Question 1

ʺAs you devote more hours to studying, your GPA increases.ʺ A graph of this relationship would show

Accepted Answer

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

Question 2

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

Accepted Answer

The slope equals the change in

Question 3

-Which of the following correctly describes the above figure?

Accepted Answer

A)  There is a negative relationship between x and y. 
B)  There is a positive relationship between x and y. 
C)  There is no relationship between x and y. 
D)  None of the above answers are correct. 
A)  There is a negative relationship between x and y. 
B)  There is a positive relationship between x and y. 
C)  There is no relationship between x and y. 
D)  None of the above answers are correct.

Question 4

Which of the following is a normative statement?

Accepted Answer

A)  Owners of apartment buildings are free to charge whatever rent they want. 
B)  Low rents are good because they make apartments more affordable. 
C)  Low rents will restrict the supply of housing. 
D)  Housing costs are rising. 
A)  Owners of apartment buildings are free to charge whatever rent they want. 
B)  Low rents are good because they make apartments more affordable. 
C)  Low rents will restrict the supply of housing. 
D)  Housing costs are rising.

Question 5

Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5. Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerryʹs marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?

Accepted Answer

Marginal benefit is the benefit that ari

Question 6

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by incentives.

Accepted Answer

Policy makers know that people making ch

Question 7

All economic questions are about

Accepted Answer

A)  what to produce. 
B)  how to cope with scarcity. 
C)  how to satisfy all our wants. 
D)  how to make money. 
A)  what to produce. 
B)  how to cope with scarcity. 
C)  how to satisfy all our wants. 
D)  how to make money.

Question 8

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 positive and is less than 1. This slope means that a change in x is associated with

Accepted Answer

A)  a bigger change in y. 
B)  an equal change in y. 
C)  no change in y. 
D)  a smaller change in y. 
A)  a bigger change in y. 
B)  an equal change in y. 
C)  no change in y. 
D)  a smaller change in y.

Question 9

-In the above figure, the relationship between income and expenditures is

Accepted Answer

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

Question 10

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

Accepted Answer

A)  a fallacy of composition. 
B)  a market mechanism. 
C)  opportunity cost. 
D)  macroeconomics. 
A)  a fallacy of composition. 
B)  a market mechanism. 
C)  opportunity cost. 
D)  macroeconomics.

Question 11

The slope of a straight line is

Accepted Answer

A)  constant. 
B)  calculated as y/x at any point. 
C)  always equal to zero. 
D)  always greater than zero. 
A)  constant. 
B)  calculated as y/x at any point. 
C)  always equal to zero. 
D)  always greater than zero.

Question 12

Which of the following is an example of a positive statement?

Accepted Answer

A)  We should cut back on our use of carbon-based fuels such as coal and oil. 
B)  Every American should have equal access to health care. 
C)  The Federal Reserve ought to cut the interest rate. 
D)  Increasing the minimum wage results in more unemployment. 
A)  We should cut back on our use of carbon-based fuels such as coal and oil. 
B)  Every American should have equal access to health care. 
C)  The Federal Reserve ought to cut the interest rate. 
D)  Increasing the minimum wage results in more unemployment.

Question 13

Which of the following is a normative statement?

Accepted Answer

A)  Studying more hours leads to an increase in your GPA. 
B)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed. 
C)  Taking extra vitamin C prevents catching a cold. 
D)  An increase in tax rates means people work fewer hours. 
A)  Studying more hours leads to an increase in your GPA. 
B)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed. 
C)  Taking extra vitamin C prevents catching a cold. 
D)  An increase in tax rates means people work fewer hours.

Question 14

You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is

Accepted Answer

A)  working, because you would be giving up a weekʹs pay. 
B)  the value of working or skiing, depending on which you would have done rather than go to Hawaii. 
C)  the value of working and skiing. 
D)  None of the above if you enjoy the time spent in Hawaii. 
A)  working, because you would be giving up a weekʹs pay. 
B)  the value of working or skiing, depending on which you would have done rather than go to Hawaii. 
C)  the value of working and skiing. 
D)  None of the above if you enjoy the time spent in Hawaii.

Question 15

In every economic system, choices must be made because resources are and our wants are .

Accepted Answer

A)  unlimited; unlimited 
B)  unlimited; limited 
C)  limited; limited 
D)  limited; unlimited 
A)  unlimited; unlimited 
B)  unlimited; limited 
C)  limited; limited 
D)  limited; unlimited

Question 16

Marginal benefit is the benefit

Accepted Answer

A)  that arises from the secondary effects of an activity. 
B)  that your activity provides to someone else. 
C)  of an activity that exceeds its cost. 
D)  that arises from an increase in an activity. 
A)  that arises from the secondary effects of an activity. 
B)  that your activity provides to someone else. 
C)  of an activity that exceeds its cost. 
D)  that arises from an increase in an activity.

Question 17

$$\begin{array} { | l | l | } 
\hline x & y \
\hline 0 & 2 \
\hline 1 & 5 \
\hline 2 & 8 \
\hline 3 & 11 \
\hline 4 & 14 \
\hline 5 & 17 \
\hline
\end{array}$$
-Given the information in the above table, the relationship between x and y is

Accepted Answer

A)  negative and linear. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive, and the curve becomes flatter as x increases. 
D)  positive and linear. 
A)  negative and linear. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive, and the curve becomes flatter as x increases. 
D)  positive and linear.

Question 18

The term ʺopportunity costʺ points out that

Accepted Answer

A)  there may be such a thing as a free lunch. 
B)  not all individuals will make the most of lifeʹs opportunities because some will fail to achieve their goals. 
C)  any decision regarding the use of a resource involves a costly choice. 
D)  executives do not always recognize opportunities for profit as quickly as they should. 
A)  there may be such a thing as a free lunch. 
B)  not all individuals will make the most of lifeʹs opportunities because some will fail to achieve their goals. 
C)  any decision regarding the use of a resource involves a costly choice. 
D)  executives do not always recognize opportunities for profit as quickly as they should.

Question 19

Which factor of production earns most income in the United States?

Accepted Answer

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

Question 20

-In the figure above, the value on the y-axis decreases as we move from

Accepted Answer

A)  point E to point A. 
B)  point F to point A. 
C)  point C to point A. 
D)  point G to point A. 
A)  point E to point A. 
B)  point F to point A. 
C)  point C to point A. 
D)  point G to point A.

ʺAs you devote more hours to studying, your GPA increases.ʺ A graph of this relationship would show

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

-Which of the following correctly describes the above figure?

Which of the following is a normative statement?

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by incentives.

All economic questions are about

-In the above figure, the relationship between income and expenditures is

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

The slope of a straight line is

Which of the following is an example of a positive statement?

Which of the following is a normative statement?

You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is

In every economic system, choices must be made because resources are and our wants are .

Marginal benefit is the benefit

x y 0 2 1 5 2 8 3 11 4 14 5 17 -Given the information in the above table, the relationship between x and y is

The term ʺopportunity costʺ points out that

Which factor of production earns most income in the United States?

-In the figure above, the value on the y-axis decreases as we move from

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

ʺAs you devote more hours to studying, your GPA increases.ʺ A graph of this relationship would show

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

-Which of the following correctly describes the above figure?

Which of the following is a normative statement?

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by incentives.

All economic questions are about

-In the above figure, the relationship between income and expenditures is

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

The slope of a straight line is

Which of the following is an example of a positive statement?

Which of the following is a normative statement?

You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is

In every economic system, choices must be made because resources are and our wants are .

Marginal benefit is the benefit

x y 0 2 1 5 2 8 3 11 4 14 5 17 -Given the information in the above table, the relationship between x and y is

The term ʺopportunity costʺ points out that

Which factor of production earns most income in the United States?

-In the figure above, the value on the y-axis decreases as we move from

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