Question 1

In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is

Accepted Answer

A)  -25. 
B)  -0.25. 
C)  4. 
D)  0.25. 
A)  -25. 
B)  -0.25. 
C)  4. 
D)  0.25.

Question 2

An economic model is

Accepted Answer

A)  a collection of facts that describe the real world. 
B)  a statement that describes how the world should be. 
C)  a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. 
D)  a generalization that summarizes all the normative assumptions we make about a particular issue. 
A)  a collection of facts that describe the real world. 
B)  a statement that describes how the world should be. 
C)  a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. 
D)  a generalization that summarizes all the normative assumptions we make about a particular issue.

Question 3

-In the above figure, the curveʹs slope is

Accepted Answer

A)  negative and is becoming less steep. 
B)  negative and is becoming steeper. 
C)  positive and is becoming less steep. 
D)  positive and is becoming steeper. 
A)  negative and is becoming less steep. 
B)  negative and is becoming steeper. 
C)  positive and is becoming less steep. 
D)  positive and is becoming steeper.

Question 4

Which of the following is a microeconomic topic?

Accepted Answer

A)  How rent ceilings impact the supply of apartments. 
B)  Comparing inflation rates across countries. 
C)  How a trade agreement between the United States and Mexico affects both nationsʹ unemployment rates. 
D)  How a tax rate increase will impact total production. 
A)  How rent ceilings impact the supply of apartments. 
B)  Comparing inflation rates across countries. 
C)  How a trade agreement between the United States and Mexico affects both nationsʹ unemployment rates. 
D)  How a tax rate increase will impact total production.

Question 5

The United States produces more services than goods.)

Accepted Answer

A) True 
 B)False

Question 6

In which of the following cases is the slope of a line positive?

Accepted Answer

A)  As x increases, y remains the same. 
B)  As x increases, y increases. 
C)  As x increases, y decreases. 
D)  As x increases, y equals a positive number. 
A)  As x increases, y remains the same. 
B)  As x increases, y increases. 
C)  As x increases, y decreases. 
D)  As x increases, y equals a positive number.

Question 7

After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal -Mart for
$38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

Accepted Answer

A)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
D)  the $38,000 you would have been paid working for Wal -Mart 
A)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
D)  the $38,000 you would have been paid working for Wal -Mart

Question 8

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

Accepted Answer

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

Question 9

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour. The studentʹs marginal benefit

Accepted Answer

A)  is greater than the studentʹs marginal cost. 
B)  is the benefit the student receives from studying all 3 hours. 
C)  is the benefit the student receives from studying the extra hour. 
D)  depends on the grade the student earns on the exam. 
A)  is greater than the studentʹs marginal cost. 
B)  is the benefit the student receives from studying all 3 hours. 
C)  is the benefit the student receives from studying the extra hour. 
D)  depends on the grade the student earns on the exam.

Question 10

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

Accepted Answer

A)  negative relationship, also called an inverse relationship. 
B)  positive relationship, also called a direct relationship. 
C)  positive relationship, also called an inverse relationship. 
D)  negative relationship, also called a direct relationship. 
A)  negative relationship, also called an inverse relationship. 
B)  positive relationship, also called a direct relationship. 
C)  positive relationship, also called an inverse relationship. 
D)  negative relationship, also called a direct relationship.

Question 11

If the slope of the relationship between savings and interest rates is 0.5, then

Accepted Answer

A)  savings and interest rates have a negative relationship. 
B)  savings and interest rates have no relationship. 
C)  savings and interest rates have an inverse relationship. 
D)  savings and interest rates have a positive relationship. 
A)  savings and interest rates have a negative relationship. 
B)  savings and interest rates have no relationship. 
C)  savings and interest rates have an inverse relationship. 
D)  savings and interest rates have a positive relationship.

Question 12

Which of the following is NOT an example of an opportunity cost?

Accepted Answer

A)  Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. 
B)  By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college. 
C)  Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. 
D)  By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. 
A)  Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. 
B)  By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college. 
C)  Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. 
D)  By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class.

Question 13

The relationship in the above figure indicates that

Accepted Answer

A)  a decrease in household consumption leads to a decrease in interest rates. 
B)  a decrease in household income will lead household consumption to increase. 
C)  a decrease in the interest rate leads to a decrease in household income. 
D)  none of the above 
A)  a decrease in household consumption leads to a decrease in interest rates. 
B)  a decrease in household income will lead household consumption to increase. 
C)  a decrease in the interest rate leads to a decrease in household income. 
D)  none of the above

Question 14

-In the above figure, how does the slope of the line between x = 4 and x = 5 compare with the slope between x = 2 and x = 3?

Accepted Answer

A)  The slope is the same. 
B)  The slope is greater between x = 2 and x = 3. 
C)  The slope is greater between x = 4 and x = 5. 
D)  The slope is not comparable. 
A)  The slope is the same. 
B)  The slope is greater between x = 2 and x = 3. 
C)  The slope is greater between x = 4 and x = 5. 
D)  The slope is not comparable.

Question 15

-A scatter diagram with the price of vacations to Mexico on the vertical axis and the price of vacations to California on the horizontal axis shows a positive relationship. If the price of vacations to Mexico were placed on the horizontal axis, and the price of vacations to California on the vertical axis, the relationship would be

Accepted Answer

A)  positive relationship, also called a direct relationship. 
B)  negative relationship, also called a direct relationship. 
C)  positive relationship, also called an inverse relationship. 
D)  negative relationship, also called an inverse relationship. 
A)  positive relationship, also called a direct relationship. 
B)  negative relationship, also called a direct relationship. 
C)  positive relationship, also called an inverse relationship. 
D)  negative relationship, also called an inverse relationship.

Question 16

In which of the following cases is the slope of a line positive and less than infinity?

Accepted Answer

A)  As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. 
B)  As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. 
C)  As the variable measured on the y-axis increases, the variable measured on the x-axis decreases. 
D)  As the variable measured on the y-axis increases, the variable measured on the x-axis does not change. 
A)  As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. 
B)  As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. 
C)  As the variable measured on the y-axis increases, the variable measured on the x-axis decreases. 
D)  As the variable measured on the y-axis increases, the variable measured on the x-axis does not change.

Question 17

-In the above diagram, draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

Question 18

Which of the following is NOT a factor of production?

Accepted Answer

A)  the effort of farmers raising cattle. 
B)  the management skill of a small business owner. 
C)  the water used to cool a nuclear power plant. 
D)  the wages paid to workers. 
A)  the effort of farmers raising cattle. 
B)  the management skill of a small business owner. 
C)  the water used to cool a nuclear power plant. 
D)  the wages paid to workers.

Question 19

Explain why both rich and poor people experience scarcity.

Accepted Answer

Scarcity exists when peopleʹs wants exce

Question 20

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

Accepted Answer

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

In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is

An economic model is

-In the above figure, the curveʹs slope is

Which of the following is a microeconomic topic?

The United States produces more services than goods.)

In which of the following cases is the slope of a line positive?

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

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour. The studentʹs marginal benefit

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

If the slope of the relationship between savings and interest rates is 0.5, then

Which of the following is NOT an example of an opportunity cost?

The relationship in the above figure indicates that

-In the above figure, how does the slope of the line between x = 4 and x = 5 compare with the slope between x = 2 and x = 3?

In which of the following cases is the slope of a line positive and less than infinity?

-In the above diagram, draw a straight line with a slope of zero.

Which of the following is NOT a factor of production?

Explain why both rich and poor people experience scarcity.

-The slope of the line shown in the above figure 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

In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is

An economic model is

-In the above figure, the curveʹs slope is

Which of the following is a microeconomic topic?

The United States produces more services than goods.)

In which of the following cases is the slope of a line positive?

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

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour. The studentʹs marginal benefit

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

If the slope of the relationship between savings and interest rates is 0.5, then

Which of the following is NOT an example of an opportunity cost?

The relationship in the above figure indicates that

-In the above figure, how does the slope of the line between x = 4 and x = 5 compare with the slope between x = 2 and x = 3?

In which of the following cases is the slope of a line positive and less than infinity?

-In the above diagram, draw a straight line with a slope of zero.

Which of the following is NOT a factor of production?

Explain why both rich and poor people experience scarcity.

-The slope of the line shown in the above figure 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