Question 1

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

Accepted Answer

The slope equals the change in

Question 2

Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement.

Accepted Answer

The statement is normative. Th

Question 3

Economics is best defined as

Accepted Answer

A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household. 
A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household.

Question 4

Consider the following events:
I. Samsung hires associates to market their HDTV sets to Best Buy.
II. The Dallas Cowboys build a new football stadium.
III. eBay fires 10 percent of its workforce.
IV. Ten million stocks were traded on the New York Stock Exchange in one day.
V. Pennsylvania builds a new state park.
Which of the events describe use of factors of production?

Accepted Answer

A)  i, II, III, and v 
B)  II, iv, and v 
C)  i and III only 
D)  iv only 
A)  i, II, III, and v 
B)  II, iv, and v 
C)  i and III only 
D)  iv only

Question 5

-In the figure above, ceteris paribus, an increase in x is associated with

Accepted Answer

A)  an increase in y. 
B)  a decrease in y. 
C)  a decrease in z. 
D)  None of the above answers is correct. 
A)  an increase in y. 
B)  a decrease in y. 
C)  a decrease in z. 
D)  None of the above answers is correct.

Question 6

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

Accepted Answer

A)  a negative slope. 
B)  a positive relationship. 
C)  a direct relationship. 
D)  a horizontal line. 
A)  a negative slope. 
B)  a positive relationship. 
C)  a direct relationship. 
D)  a horizontal line.

Question 7

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

Accepted Answer

A)  y/x. 
B)  x/y. 
C)  (change in y)/ (change in x). 
D)  (change in x)/ (change in y). 
A)  y/x. 
B)  x/y. 
C)  (change in y)/ (change in x). 
D)  (change in x)/ (change in y).

Question 8

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

Accepted Answer

A)  1/3. 
B)  1. 
C)  3. 
D)  6. 
A)  1/3. 
B)  1. 
C)  3. 
D)  6.

Question 9

-In the figure above, point B is

Accepted Answer

A)  on the x-axis. 
B)  on the y-axis. 
C)  at the origin. 
D)  a coordinate. 
A)  on the x-axis. 
B)  on the y-axis. 
C)  at the origin. 
D)  a coordinate.

Question 10

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

Question 11

Which of the following is a macroeconomic issue?

Accepted Answer

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

Question 12

If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

Accepted Answer

A)  always be an upward-sloping line. 
B)  have a minimum point. 
C)  have a maximum point. 
D)  always be a downward-sloping line. 
A)  always be an upward-sloping line. 
B)  have a minimum point. 
C)  have a maximum point. 
D)  always be a downward-sloping line.

Question 13

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  both Figure A and Figure C 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  both Figure A and Figure C

Question 14

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

Accepted Answer

A)  the value of x does not change when the value of y changes. 
B)  the value of y is constant. 
C)  the ratio of x to y is constant. 
D)  the ratio of y to x is constant. 
A)  the value of x does not change when the value of y changes. 
B)  the value of y is constant. 
C)  the ratio of x to y is constant. 
D)  the ratio of y to x is constant.

Question 15

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

Accepted Answer

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

Question 16

What is the difference between a positive and a negative relationship?

Accepted Answer

Two variables are positively related whe

Question 17

If an increase in x (the variable on the horizontal axis) from 6 to 8 units causes a decrease in y (the variable on the vertical axis) from 4 to 3 units, the slope equals

Accepted Answer

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

Question 18

Along a curved line, the slope at the maximum

Accepted Answer

A)  is greater than zero. 
B)  is zero. 
C)  is less than zero. 
D)  may be greater than, less than, or equal to zero. 
A)  is greater than zero. 
B)  is zero. 
C)  is less than zero. 
D)  may be greater than, less than, or equal to zero.

Question 19

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

Accepted Answer

A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3. 
A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3.

Question 20

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this roommate's comment correct?

Accepted Answer

Your first roommate's comment is incorre

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

Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement.

Economics is best defined as

-In the figure above, ceteris paribus, an increase in x is associated with

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

-In the figure above, point B is

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

Which of the following is a macroeconomic issue?

If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

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

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

What is the difference between a positive and a negative relationship?

If an increase in x (the variable on the horizontal axis) from 6 to 8 units causes a decrease in y (the variable on the vertical axis) from 4 to 3 units, the slope equals

Along a curved line, the slope at the maximum

-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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 1: What Is Economics

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

Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement.

Economics is best defined as

-In the figure above, ceteris paribus, an increase in x is associated with

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

-In the figure above, point B is

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

Which of the following is a macroeconomic issue?

If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

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

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

What is the difference between a positive and a negative relationship?

If an increase in x (the variable on the horizontal axis) from 6 to 8 units causes a decrease in y (the variable on the vertical axis) from 4 to 3 units, the slope equals

Along a curved line, the slope at the maximum

-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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

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