Question 1

An outcome is considered efficient if

Accepted Answer

A)  it is not possible to make someone better off without making anyone else worse off. 
B)  it is the best available choice for an individual. 
C)  it results in fair shares for everyone involved. 
D)  it is possible to make someone better off without making anyone else worse off. 
A)  it is not possible to make someone better off without making anyone else worse off. 
B)  it is the best available choice for an individual. 
C)  it results in fair shares for everyone involved. 
D)  it is possible to make someone better off without making anyone else worse off.

Question 2

-Household consumption depends on both income and interest rates. In the above figure

Accepted Answer

A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant. 
A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant.

Question 3

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

Accepted Answer

A)  a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. 
B)  an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. 
C)  the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. 
D)  the variable measured along the x-axis and the variable measured along the y-axis move in the same direction. 
A)  a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. 
B)  an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. 
C)  the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. 
D)  the variable measured along the x-axis and the variable measured along the y-axis move in the same direction.

Question 4

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

Accepted Answer

The slope equals the change in

Question 5

In which of the following cases is the slope of a line positive and less than infinity?

Accepted Answer

A)  As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. 
B)  As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. 
C)  As the variable measured on the y-axis increases, the variable measured on the x-axis does not change. 
D)  As the variable measured on the y-axis increases, the variable measured on the x-axis decreases. 
A)  As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. 
B)  As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. 
C)  As the variable measured on the y-axis increases, the variable measured on the x-axis does not change. 
D)  As the variable measured on the y-axis increases, the variable measured on the x-axis decreases.

Question 6

-In the figure above, the relationship between the x variable and the y variable

Accepted Answer

A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive.

Question 7

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

Question 8

-The slope of a straight line is

Accepted Answer

A)  variable. 
B)  increasing. 
C)  decreasing. 
D)  constant. 
A)  variable. 
B)  increasing. 
C)  decreasing. 
D)  constant.

Question 9

-The above figure plots income and consumption in a nation. In 2007

Accepted Answer

A)  consumption was equal to $25,000 and income was equal to $28,000. 
B)  consumption was equal to $28,000 and income was equal to $25,000. 
C)  consumption was equal to $25,000 and income was equal to $25,000. 
D)  consumption was equal to $27,000 and income was equal to $31,000. 
A)  consumption was equal to $25,000 and income was equal to $28,000. 
B)  consumption was equal to $28,000 and income was equal to $25,000. 
C)  consumption was equal to $25,000 and income was equal to $25,000. 
D)  consumption was equal to $27,000 and income was equal to $31,000.

Question 10

-In the above table, the relationship between x and y is ________ and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to ________.

Accepted Answer

A)  negative; 8 
B)  negative; 6 
C)  positive; 5 
D)  positive; 3 
A)  negative; 8 
B)  negative; 6 
C)  positive; 5 
D)  positive; 3

Question 11

-The slope of a straight line is

Accepted Answer

A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero. 
A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero.

Question 12

The opportunity cost of something you decide to get is

Accepted Answer

A)  all the possible alternatives that you give up to get it. 
B)  the highest valued alternative you give up to get it. 
C)  the value of the item minus the cost you paid for it. 
D)  the amount of money you pay to get it. 
A)  all the possible alternatives that you give up to get it. 
B)  the highest valued alternative you give up to get it. 
C)  the value of the item minus the cost you paid for it. 
D)  the amount of money you pay to get it.

Question 13

-In the figure above, when income equals $20,000, what does consumption equal?

Accepted Answer

A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell 
A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell

Question 14

Macroeconomics is the study of aggregate variables such as national production and unemployment.

Accepted Answer

A) True 
 B)False

Question 15

On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a

Accepted Answer

A)  positive relationship with an increasing slope. 
B)  positive relationship with a decreasing slope. 
C)  negative relationship with an increasing slope. 
D)  negative relationship with a decreasing slope. 
A)  positive relationship with an increasing slope. 
B)  positive relationship with a decreasing slope. 
C)  negative relationship with an increasing slope. 
D)  negative relationship with a decreasing slope.

Question 16

According to economists

Accepted Answer

A)  market capitalism is the best system available and some government intervention and regulation can either help or harm the social interest. 
B)  market capitalism is the best system available and any government intervention and regulation will inevitably harm the social interest. 
C)  centrally planned socialism is the best system available since governments generally make decisions that are in social interest. 
D)  centrally planned socialism and pure market capitalism are equally capable of promoting social interest, but a mixed economy is an undesirable compromise between the two that will harm social interest. 
A)  market capitalism is the best system available and some government intervention and regulation can either help or harm the social interest. 
B)  market capitalism is the best system available and any government intervention and regulation will inevitably harm the social interest. 
C)  centrally planned socialism is the best system available since governments generally make decisions that are in social interest. 
D)  centrally planned socialism and pure market capitalism are equally capable of promoting social interest, but a mixed economy is an undesirable compromise between the two that will harm social interest.

Question 17

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

Accepted Answer

A person faces scarcity whenever his or

Question 18

-In the above figure, a negative 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 19

After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal-Mart for $38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

Accepted Answer

A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart 
A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart

Question 20

Differences in income are most directly related to which of the following economic question?

Accepted Answer

A)  What goods and services are produced? 
B)  In what quantities are various goods and services produced? 
C)  How are goods and services produced? 
D)  Who consumes the goods and services that are produced? 
A)  What goods and services are produced? 
B)  In what quantities are various goods and services produced? 
C)  How are goods and services produced? 
D)  Who consumes the goods and services that are produced?

An outcome is considered efficient if

-Household consumption depends on both income and interest rates. In the above figure

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

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

In which of the following cases is the slope of a line positive and less than infinity?

-In the figure above, the relationship between the x variable and the y variable

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

-The slope of a straight line is

-The above figure plots income and consumption in a nation. In 2007

-In the above table, the relationship between x and y is and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to .

-The slope of a straight line is

The opportunity cost of something you decide to get is

-In the figure above, when income equals $20,000, what does consumption equal?

Macroeconomics is the study of aggregate variables such as national production and unemployment.

On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a

According to economists

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

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

Differences in income are most directly related to which of the following economic question?

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

An outcome is considered efficient if

-Household consumption depends on both income and interest rates. In the above figure

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

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

In which of the following cases is the slope of a line positive and less than infinity?

-In the figure above, the relationship between the x variable and the y variable

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

-The slope of a straight line is

-The above figure plots income and consumption in a nation. In 2007

-In the above table, the relationship between x and y is ________ and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to ________.

-The slope of a straight line is

The opportunity cost of something you decide to get is

-In the figure above, when income equals $20,000, what does consumption equal?

Macroeconomics is the study of aggregate variables such as national production and unemployment.

On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a

According to economists

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

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

Differences in income are most directly related to which of the following economic question?

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 the above table, the relationship between x and y is and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to .