Question 1

-The above figure depicts a

Accepted Answer

A)  positive non-linear relationship between age and the number of hamburgers purchased per year. 
B)  negative non-linear relationship between age and the number of hamburgers purchased per year. 
C)  positive linear relationship between age and the number of hamburgers purchased per year. 
D)  negative linear relationship between age and the number of hamburgers purchased per year. 
A)  positive non-linear relationship between age and the number of hamburgers purchased per year. 
B)  negative non-linear relationship between age and the number of hamburgers purchased per year. 
C)  positive linear relationship between age and the number of hamburgers purchased per year. 
D)  negative linear relationship between age and the number of hamburgers purchased per year. D

Question 2

An economic model includes

Accepted Answer

A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential. 
A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential. D

Question 3

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

Accepted Answer

The slope equals the change in variable on the y-axis divided by the change in the variable on the x-axis, or (150 - 300)/(600 - 800) = 0.75.

Question 4

If two variables both increase at the same time or decrease at the same time, they are

Accepted Answer

A)  unrelated to each other. 
B)  positively related. 
C)  negatively related. 
D)  conversely related. 
A)  unrelated to each other. 
B)  positively related. 
C)  negatively related. 
D)  conversely related.

Question 5

Which of the following is a microeconomic topic?

Accepted Answer

A)  the reasons why Kathy buys less orange juice 
B)  the reasons for a decline in average prices 
C)  the reasons why total employment decreases 
D)  the effect of the government budget deficit on inflation 
A)  the reasons why Kathy buys less orange juice 
B)  the reasons for a decline in average prices 
C)  the reasons why total employment decreases 
D)  the effect of the government budget deficit on inflation

Question 6

Fundamental economic problems basically arise from

Accepted Answer

A)  the fact that society has more than it needs. 
B)  turmoil in the stock market. 
C)  the unequal distribution of income. 
D)  our wants exceeding our scarce resources. 
A)  the fact that society has more than it needs. 
B)  turmoil in the stock market. 
C)  the unequal distribution of income. 
D)  our wants exceeding our scarce resources.

Question 7

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

Accepted Answer

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

Question 8

-Using the data in the above table

Accepted Answer

A)  the variables quantity and price are positively related. 
B)  the variables quantity and price are negatively related. 
C)  the variables quantity and price are neither positively nor negatively related. 
D)  an increase in price is likely to cause an increase in quantity. 
A)  the variables quantity and price are positively related. 
B)  the variables quantity and price are negatively related. 
C)  the variables quantity and price are neither positively nor negatively related. 
D)  an increase in price is likely to cause an increase in quantity.

Question 9

Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

Accepted Answer

A)  fact that Ms. Yellen faces scarcity. 
B)  concept of entrepreneurship. 
C)  fact that Ms. Yellen responds to incentives. 
D)  use of capital. 
A)  fact that Ms. Yellen faces scarcity. 
B)  concept of entrepreneurship. 
C)  fact that Ms. Yellen responds to incentives. 
D)  use of capital.

Question 10

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

Accepted Answer

A)  -3/5. 
B)  3/5. 
C)  5/3. 
D)  -5/3. 
A)  -3/5. 
B)  3/5. 
C)  5/3. 
D)  -5/3.

Question 11

Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

Accepted Answer

A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope. 
A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope.

Question 12

Entrepreneurs do all of the following EXCEPT

Accepted Answer

A)  organize labor, land, and capital. 
B)  come up with new ideas about what and how to produce. 
C)  bear risk from business decisions. 
D)  own all the other resources used in the production process. 
A)  organize labor, land, and capital. 
B)  come up with new ideas about what and how to produce. 
C)  bear risk from business decisions. 
D)  own all the other resources used in the production process.

Question 13

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

Accepted Answer

A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80. 
A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80.

Question 14

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 equal to 1. This slope means that

Accepted Answer

A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y. 
A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y.

Question 15

The loss of the highest-valued alternative defines the concept of

Accepted Answer

A)  marginal benefit. 
B)  scarcity. 
C)  entrepreneurship. 
D)  opportunity cost. 
A)  marginal benefit. 
B)  scarcity. 
C)  entrepreneurship. 
D)  opportunity cost.

Question 16

From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is

Accepted Answer

A)  talking with friends and studying. 
B)  studying. 
C)  talking with friends. 
D)  two hours of time. 
A)  talking with friends and studying. 
B)  studying. 
C)  talking with friends. 
D)  two hours of time.

Question 17

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

Accepted Answer

A) True 
 B)False

Question 18

What is the difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics studies the decisions of

Question 19

-Graphing the data in the above table with the number of workers on the horizontal axis and the average cost on the vertical axis, the graph would show

Accepted Answer

A)  first a negative and then a positive relationship. 
B)  a horizontal line. 
C)  no relationship. 
D)  a linear relationship. 
A)  first a negative and then a positive relationship. 
B)  a horizontal line. 
C)  no relationship. 
D)  a linear relationship.

Question 20

-In the above figure, a negative relationship is demonstrated in which of the graphs?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

-The above figure depicts a

An economic model includes

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

If two variables both increase at the same time or decrease at the same time, they are

Which of the following is a microeconomic topic?

Fundamental economic problems basically arise from

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

-Using the data in the above table

Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

Entrepreneurs do all of the following EXCEPT

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

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 equal to 1. This slope means that

The loss of the highest-valued alternative defines the concept of

From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

What is the difference between microeconomics and macroeconomics?

-Graphing the data in the above table with the number of workers on the horizontal axis and the average cost on the vertical axis, the graph would show

-In the above figure, a negative relationship is demonstrated in which of the graphs?

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 1: What Is Economics

-The above figure depicts a

An economic model includes

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

If two variables both increase at the same time or decrease at the same time, they are

Which of the following is a microeconomic topic?

Fundamental economic problems basically arise from

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

-Using the data in the above table

Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

Entrepreneurs do all of the following EXCEPT

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

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 equal to 1. This slope means that

The loss of the highest-valued alternative defines the concept of

From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

What is the difference between microeconomics and macroeconomics?

-Graphing the data in the above table with the number of workers on the horizontal axis and the average cost on the vertical axis, the graph would show

-In the above figure, a negative relationship is demonstrated in which of the graphs?

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters