Question 1

The slope of a straight line increases as the numbers on the x-axis become larger.

Accepted Answer

A) True 
 B)False

Question 2

$$\begin{array} { | l | l | } 
\hline x & y \
\hline 0 & 0 \
\hline 2 & 6 \
\hline 4 & 12 \
\hline 6 & 18 \
\hline 8 & 24 \
\hline 10 & 30 \
\hline
\end{array}$$
-In the above table, when x increases from 4 units to 6 units, y changes by units.

Accepted Answer

A)  2 
B)  6 
C)  -2 
D)  -6 
A)  2 
B)  6 
C)  -2 
D)  -6

Question 3

If two points on a line are x = 2, y = 5 and x = 7, y= 10, what is the slope of this line?
 $$\begin{array} { | l | l | } 
\hline \begin{array} { l } 
\text { Katie's income } \
\text { (dollars per year) }
\end{array} & \begin{array} { l } 
\text { Katie's purchases } \
\text { (books peryear) }
\end{array} \
\hline 50,000 & 14 \
\hline 70,000 & 16 \
\hline 90,000 & 18 \
\hline 110,000 & 20 \
\hline
\end{array}$$

Accepted Answer

The slope equals the change in

Question 4

What is the difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics studies the decisions of

Question 5

When an economist talks of scarcity, the economist is referring to the

Accepted Answer

A)  ability of society to continually make technological breakthroughs and increase production. 
B)  inability of society to satisfy all human wants because of limited resources. 
C)  ability of society to consume all that it produces. 
D)  ability of society to employ all of its resources. 
A)  ability of society to continually make technological breakthroughs and increase production. 
B)  inability of society to satisfy all human wants because of limited resources. 
C)  ability of society to consume all that it produces. 
D)  ability of society to employ all of its resources.

Question 6

-In the figure above, the value on the x-axis increases as we move from

Accepted Answer

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

Question 7

If there is a direct relationship between two variables,

Accepted Answer

A)  the slope of the line or the slope of a tangent line to the curve) will be negative. 
B)  the graph of the relationship will be upward-sloping. 
C)  the graph of the relationship will be downward-sloping. 
D)  Both answers A and C are correct. 
A)  the slope of the line or the slope of a tangent line to the curve) will be negative. 
B)  the graph of the relationship will be upward-sloping. 
C)  the graph of the relationship will be downward-sloping. 
D)  Both answers A and C are correct.

Question 8

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is and the slope is .

Accepted Answer

A)  either downward or upward-sloping; small 
B)  upward-sloping; small 
C)  downward-sloping; large 
D)  downward-sloping; small 
A)  either downward or upward-sloping; small 
B)  upward-sloping; small 
C)  downward-sloping; large 
D)  downward-sloping; small

Question 9

Scarcity is a situation in which .

Accepted Answer

A)  some people are poor and others are rich 
B)  something is being wasted 
C)  long lines form at gas stations 
D)  we are unable to satisfy all our wants 
A)  some people are poor and others are rich 
B)  something is being wasted 
C)  long lines form at gas stations 
D)  we are unable to satisfy all our wants

Question 10

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that

Accepted Answer

A)  the ratio of x to y is constant. 
B)  the value of y does not depend on the value of x. 
C)  the value of x never changes. 
D)  the slope of the line is not defined because y never changes. 
A)  the ratio of x to y is constant. 
B)  the value of y does not depend on the value of x. 
C)  the value of x never changes. 
D)  the slope of the line is not defined because y never changes.

Question 11

The relationship between two variables, x and y, is a vertical line. Thus x and y are

Accepted Answer

A)  not related. 
B)  positively correlated. 
C)  negatively correlated. 
D)  falsely related. 
A)  not related. 
B)  positively correlated. 
C)  negatively correlated. 
D)  falsely related.

Question 12

-In the above, a positive relationship between price and quantity is shown in

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  neither Figure A nor Figure B 
D)  both Figure A and Figure B 
A)  Figure A 
B)  Figure B 
C)  neither Figure A nor Figure B 
D)  both Figure A and Figure B

Question 13

-In the above figure, if the interest rate is negatively related to household expenditures for any given level of household income, an increase in the interest rate will

Accepted Answer

A)  make the line negatively sloped. 
B)  shift the line vertically downward. 
C)  cause no change in the lineʹs position. 
D)  shift the line vertically upward. 
A)  make the line negatively sloped. 
B)  shift the line vertically downward. 
C)  cause no change in the lineʹs position. 
D)  shift the line vertically upward.

Question 14

A positive statement is

Accepted Answer

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

Question 15

Panasonic sends its HDTV salespeople to training sessions. This is an example of

Accepted Answer

A)  entrepreneurship. 
B)  a firm investing in workersʹ human capital 
C)  scarcity. 
D)  a macroeconomic decision. 
A)  entrepreneurship. 
B)  a firm investing in workersʹ human capital 
C)  scarcity. 
D)  a macroeconomic decision.

Question 16

The statement that is a positive statement.

Accepted Answer

A)  too many people in the United States have no health care insurance 
B)  the price of sugar in the United States is higher than the price in Australia 
C)  more students should study economics 
D)  the price of gasoline is too high 
A)  too many people in the United States have no health care insurance 
B)  the price of sugar in the United States is higher than the price in Australia 
C)  more students should study economics 
D)  the price of gasoline is too high

Question 17

As a firm expands its output, cost per unit of output average cost) decreases and then increases. Average cost and output have

Accepted Answer

A)  a relationship with a maximum. 
B)  no relationship. 
C)  a relationship with a minimum. 
D)  a linear positive relationship. 
A)  a relationship with a maximum. 
B)  no relationship. 
C)  a relationship with a minimum. 
D)  a linear positive relationship.

Question 18

Which of the following is a positive statement?

Accepted Answer

A)  An unemployment rate of 9 percent is a national disgrace. 
B)  When the national unemployment rate is 9 percent, the unemployment rate for inner -city youth is often close to 40 percent. 
C)  Unemployment and inflation are equally important problems. 
D)  Unemployment is a more important problem than inflation. 
A)  An unemployment rate of 9 percent is a national disgrace. 
B)  When the national unemployment rate is 9 percent, the unemployment rate for inner -city youth is often close to 40 percent. 
C)  Unemployment and inflation are equally important problems. 
D)  Unemployment is a more important problem than inflation.

Question 19

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

Accepted Answer

A)  scarcity. 
B)  ceteris paribus. 
C)  productivity. 
D)  choosing at the margin. 
A)  scarcity. 
B)  ceteris paribus. 
C)  productivity. 
D)  choosing at the margin.

Question 20

The branch of economics that deals with the analysis of the whole economy is called

Accepted Answer

A)  metroanalysis. 
B)  microeconomics. 
C)  macroeconomics. 
D)  marginal analysis. 
A)  metroanalysis. 
B)  microeconomics. 
C)  macroeconomics. 
D)  marginal analysis.

The slope of a straight line increases as the numbers on the x-axis become larger.

x y 0 0 2 6 4 12 6 18 8 24 10 30 -In the above table, when x increases from 4 units to 6 units, y changes by units.

What is the difference between microeconomics and macroeconomics?

When an economist talks of scarcity, the economist is referring to the

-In the figure above, the value on the x-axis increases as we move from

If there is a direct relationship between two variables,

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is and the slope is .

Scarcity is a situation in which .

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that

The relationship between two variables, x and y, is a vertical line. Thus x and y are

-In the above, a positive relationship between price and quantity is shown in

-In the above figure, if the interest rate is negatively related to household expenditures for any given level of household income, an increase in the interest rate will

A positive statement is

Panasonic sends its HDTV salespeople to training sessions. This is an example of

The statement that is a positive statement.

As a firm expands its output, cost per unit of output average cost) decreases and then increases. Average cost and output have

Which of the following is a positive statement?

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

The branch of economics that deals with the analysis of the whole economy is called

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 a straight line increases as the numbers on the x-axis become larger.

x y 0 0 2 6 4 12 6 18 8 24 10 30 -In the above table, when x increases from 4 units to 6 units, y changes by units.

If two points on a line are x = 2, y = 5 and x = 7, y= 10, what is the slope of this line? Katie's income (dollars per year) Katie's purchases (books peryear) 50,000 14 70,000 16 90,000 18 110,000 20

What is the difference between microeconomics and macroeconomics?

When an economist talks of scarcity, the economist is referring to the

-In the figure above, the value on the x-axis increases as we move from

If there is a direct relationship between two variables,

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is and the slope is .

Scarcity is a situation in which .

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that

The relationship between two variables, x and y, is a vertical line. Thus x and y are

-In the above, a positive relationship between price and quantity is shown in

-In the above figure, if the interest rate is negatively related to household expenditures for any given level of household income, an increase in the interest rate will

A positive statement is

Panasonic sends its HDTV salespeople to training sessions. This is an example of

The statement that is a positive statement.

As a firm expands its output, cost per unit of output average cost) decreases and then increases. Average cost and output have

Which of the following is a positive statement?

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

The branch of economics that deals with the analysis of the whole economy is called

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