Question 1

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

Accepted Answer

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

Question 2

Economics is the study of

Accepted Answer

A)  the distribution of surplus goods to those in need. 
B)  affluence in a morally bankrupt world. 
C)  the choices we make because of scarcity. 
D)  ways to reduce wants to eliminate the problem of scarcity. 
A)  the distribution of surplus goods to those in need. 
B)  affluence in a morally bankrupt world. 
C)  the choices we make because of scarcity. 
D)  ways to reduce wants to eliminate the problem of scarcity.

Question 3

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

Accepted Answer

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

Question 4

In evaluating a relationship between x and y, ceteris paribus means other variables

Accepted Answer

A)  are not relevant to x and y. 
B)  move in opposite directions to x and y. 
C)  are not changing while x and y change. 
D)  move in the same direction as x and y. 
A)  are not relevant to x and y. 
B)  move in opposite directions to x and y. 
C)  are not changing while x and y change. 
D)  move in the same direction as x and y.

Question 5

Normative statements are statements about

Accepted Answer

A)  prices. 
B)  quantities. 
C)  what is. 
D)  what ought to be. 
A)  prices. 
B)  quantities. 
C)  what is. 
D)  what ought to be.

Question 6

The job that involves studying trends and fluctuations in interest rates and stock and bond prices and trying to predict the cost of borrowing and the returns on investments is a

Accepted Answer

A)  market research analyst. 
B)  financial analyst. 
C)  budget analyst. 
D)  government analyst. 
A)  market research analyst. 
B)  financial analyst. 
C)  budget analyst. 
D)  government analyst.

Question 7

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Accepted Answer

A)  the total revenue from sales of printers to the total cost of producing all the printers. 
B)  the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C)  the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D)  HP's printers to printers from competing companies, such as Lexmark. 
A)  the total revenue from sales of printers to the total cost of producing all the printers. 
B)  the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C)  the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D)  HP's printers to printers from competing companies, such as Lexmark.

Question 8

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

Accepted Answer

A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected. 
A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected.

Question 9

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

Question 10

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

Accepted Answer

A)  3/5. 
B)  3. 
C)  5/3. 
D)  impossible to determine from the information given. 
A)  3/5. 
B)  3. 
C)  5/3. 
D)  impossible to determine from the information given.

Question 11

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

Accepted Answer

A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail 
A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail

Question 12

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self-interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Accepted Answer

You should disagree. The recent corporat

Question 13

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment because he values the

Accepted Answer

A)  20 percentage points more than the 10 hours of his time. 
B)  10 hours of his time more than the 20 percentage points. 
C)  70 percentage points more than the 10 hours of his time. 
D)  higher score. 
A)  20 percentage points more than the 10 hours of his time. 
B)  10 hours of his time more than the 20 percentage points. 
C)  70 percentage points more than the 10 hours of his time. 
D)  higher score.

Question 14

Suppose that you are spending two hours a day studying economics, and your grade is 85 percent. You want a higher grade and decide to study for an extra hour a day. As a result, your grade rises to 90 percent. Your marginal benefit is the

Accepted Answer

A)  5 point increase in your grade minus the opportunity cost to you of spending the hour studying. 
B)  extra hour per day you spend on studying. 
C)  5 point increase in your grade. 
D)  three hours per day you spend on studying. 
A)  5 point increase in your grade minus the opportunity cost to you of spending the hour studying. 
B)  extra hour per day you spend on studying. 
C)  5 point increase in your grade. 
D)  three hours per day you spend on studying.

Question 15

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

Accepted Answer

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

Question 16

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

Accepted Answer

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

Question 17

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

Accepted Answer

A)  the price of a pizza and the income of pizza consumers are the only variables that are allowed to change. 
B)  the price of pizza and quantity consumed of pizza are the only variables that are allowed to change. 
C)  consumers' taste for pizza and the income of pizza purchasers are the only variables that are allowed to change. 
D)  None of the above answers are correct. 
A)  the price of a pizza and the income of pizza consumers are the only variables that are allowed to change. 
B)  the price of pizza and quantity consumed of pizza are the only variables that are allowed to change. 
C)  consumers' taste for pizza and the income of pizza purchasers are the only variables that are allowed to change. 
D)  None of the above answers are correct.

Question 18

Which of the following is a positive statement?

Accepted Answer

A)  State lotteries are good methods to use for raising revenues. 
B)  Increased prison sentences are the best way to reduce the crime rate. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation. 
A)  State lotteries are good methods to use for raising revenues. 
B)  Increased prison sentences are the best way to reduce the crime rate. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation.

Question 19

Which of the following questions is a macroeconomic issue?

Accepted Answer

A)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  What is the future growth prospect for an economy? 
D)  How many workers should the owner of a business hire? 
A)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  What is the future growth prospect for an economy? 
D)  How many workers should the owner of a business hire?

Question 20

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

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

Economics is the study of

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

In evaluating a relationship between x and y, ceteris paribus means other variables

Normative statements are statements about

The job that involves studying trends and fluctuations in interest rates and stock and bond prices and trying to predict the cost of borrowing and the returns on investments is a

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

-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

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self-interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment because he values the

Suppose that you are spending two hours a day studying economics, and your grade is 85 percent. You want a higher grade and decide to study for an extra hour a day. As a result, your grade rises to 90 percent. Your marginal benefit is the

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

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

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

Which of the following is a positive statement?

Which of the following questions is a macroeconomic issue?

Why do economists say that even very rich people face scarcity?

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

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

Economics is the study of

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

In evaluating a relationship between x and y, ceteris paribus means other variables

Normative statements are statements about

The job that involves studying trends and fluctuations in interest rates and stock and bond prices and trying to predict the cost of borrowing and the returns on investments is a

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

-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

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self-interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment because he values the

Suppose that you are spending two hours a day studying economics, and your grade is 85 percent. You want a higher grade and decide to study for an extra hour a day. As a result, your grade rises to 90 percent. Your marginal benefit is the

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

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

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

Which of the following is a positive statement?

Which of the following questions is a macroeconomic issue?

Why do economists say that even very rich people face scarcity?

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