Question 1

Samantha goes to college to become an engineer. This is an example of an

Accepted Answer

A)  investment in physical capital. 
B)  investment in human capital. 
C)  increase in entrepreneurship. 
D)  increase in labor. 
A)  investment in physical capital. 
B)  investment in human capital. 
C)  increase in entrepreneurship. 
D)  increase in labor.

Question 2

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

Accepted Answer

A) True 
 B)False

Question 3

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

Accepted Answer

A)  -0.057 
B)  -19.28 
C)  -35 
D)  70 
A)  -0.057 
B)  -19.28 
C)  -35 
D)  70

Question 4

As a curve approaches a maximum point, the slope will

Accepted Answer

A)  be positive, then negative after the maximum point. 
B)  be negative, then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
A)  be positive, then negative after the maximum point. 
B)  be negative, then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point.

Question 5

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

Accepted Answer

A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  an ethical statement. 
A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  an ethical statement.

Question 8

-In the above figure, the slope across the arc between b and d is

Accepted Answer

A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5. 
A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5.

Question 9

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

Accepted Answer

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

Question 10

When the president of the Bank of America addresses Congress regarding lending standards in that industry, he is discussing

Accepted Answer

A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  incentives. 
D)  the big tradeoff. 
A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  incentives. 
D)  the big tradeoff.

Question 11

-The figure above shows that in 1996, unemployment was equal to about ________ and the inflation rate was equal to about ________.

Accepted Answer

A)  7.0 percent; 3.0 percent 
B)  3.0 percent; 5.5 percent 
C)  5.5 percent; 3.0 percent 
D)  6.0 percent; 4.0 percent 
A)  7.0 percent; 3.0 percent 
B)  3.0 percent; 5.5 percent 
C)  5.5 percent; 3.0 percent 
D)  6.0 percent; 4.0 percent

Question 12

Which of the following is a positive statement?

Accepted Answer

A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want. 
A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want.

Question 13

-In the figure above, what can you deduce about the slope of the curve?

Accepted Answer

The slope is positiv

Question 14

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Accepted Answer

Positive statements are statements that

Question 15

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

Accepted Answer

The statement is a positive statement be

Question 16

Suppose Company A's profits increase by $10 million and nobody is made worse off. The CEO of Company A keeps all $10 million for herself. This situation

Accepted Answer

A)  is definitely efficient. 
B)  is definitely not in the self-interest of Company A. 
C)  is definitely not in the social interest. 
D)  is definitely fair. 
A)  is definitely efficient. 
B)  is definitely not in the self-interest of Company A. 
C)  is definitely not in the social interest. 
D)  is definitely fair.

Question 17

A graph of two variables is a vertical line. What is the interpretation of this result?

Accepted Answer

When the graph of two variables is a ver

Question 18

-In the above figure, which curve shows a positive relationship between x and y?

Accepted Answer

A)  only curve A 
B)  only curve B 
C)  only curve C 
D)  All the curves show a positive relationship. 
A)  only curve A 
B)  only curve B 
C)  only curve C 
D)  All the curves show a positive relationship.

Question 19

As an economic concept, scarcity applies to

Accepted Answer

A)  both money and time. 
B)  money but not time. 
C)  time but not money. 
D)  neither time nor money. 
A)  both money and time. 
B)  money but not time. 
C)  time but not money. 
D)  neither time nor money.

Question 20

The study of the choices made by individuals is part of the definition of

Accepted Answer

A)  microeconomics. 
B)  positive economics. 
C)  macroeconomics. 
D)  normative economics. 
A)  microeconomics. 
B)  positive economics. 
C)  macroeconomics. 
D)  normative economics.

Samantha goes to college to become an engineer. This is an example of an

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

As a curve approaches a maximum point, the slope will

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

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

The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

-In the above figure, the slope across the arc between b and d is

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

When the president of the Bank of America addresses Congress regarding lending standards in that industry, he is discussing

-The figure above shows that in 1996, unemployment was equal to about and the inflation rate was equal to about .

Which of the following is a positive statement?

-In the figure above, what can you deduce about the slope of the curve?

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

Suppose Company A's profits increase by $10 million and nobody is made worse off. The CEO of Company A keeps all $10 million for herself. This situation

A graph of two variables is a vertical line. What is the interpretation of this result?

-In the above figure, which curve shows a positive relationship between x and y?

As an economic concept, scarcity applies to

The study of the choices made by individuals is part of the definition of

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

Samantha goes to college to become an engineer. This is an example of an

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

As a curve approaches a maximum point, the slope will

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

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

The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

-In the above figure, the slope across the arc between b and d is

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

When the president of the Bank of America addresses Congress regarding lending standards in that industry, he is discussing

-The figure above shows that in 1996, unemployment was equal to about ________ and the inflation rate was equal to about ________.

Which of the following is a positive statement?

-In the figure above, what can you deduce about the slope of the curve?

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

Suppose Company A's profits increase by $10 million and nobody is made worse off. The CEO of Company A keeps all $10 million for herself. This situation

A graph of two variables is a vertical line. What is the interpretation of this result?

-In the above figure, which curve shows a positive relationship between x and y?

As an economic concept, scarcity applies to

The study of the choices made by individuals is part of the definition of

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

-The figure above shows that in 1996, unemployment was equal to about and the inflation rate was equal to about .