Question 1

The vertical axis in a graph

Accepted Answer

A)  is named the y-axis. 
B)  is named the x-axis. 
C)  is not used in a scatter diagram. 
D)  has no origin. 
A)  is named the y-axis. 
B)  is named the x-axis. 
C)  is not used in a scatter diagram. 
D)  has no origin.

Question 2

When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "how" 
B)  "what" 
C)  "defense" 
D)  "for whom" 
A)  "how" 
B)  "what" 
C)  "defense" 
D)  "for whom"

Question 3

The vertical axis of a graph shows only positive values.

Accepted Answer

A) True 
 B)False

Question 4

Macroeconomics is concerned with

Accepted Answer

A)  individual consumers. 
B)  government decision making concerning farm price supports. 
C)  economy-wide variables. 
D)  the effects on Ford Motor of a strike by the United Auto Workers. 
A)  individual consumers. 
B)  government decision making concerning farm price supports. 
C)  economy-wide variables. 
D)  the effects on Ford Motor of a strike by the United Auto Workers.

Question 5

If variables x and y move up and down together, they are

Accepted Answer

A)  positively related. 
B)  negative related. 
C)  unrelated. 
D)  trend related. 
A)  positively related. 
B)  negative related. 
C)  unrelated. 
D)  trend related.

Question 6

-In the table above, y is measured along the y-axis and x along the x-axis. The slope of the relationship between x = 0 and x = 2 is

Accepted Answer

A)  -6. 
B)  2. 
C)  3. 
D)  6. 
A)  -6. 
B)  2. 
C)  3. 
D)  6.

Question 7

-In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is

Accepted Answer

A)  $0. 
B)  $20,000. 
C)  $35.000. 
D)  $60,000. 
A)  $0. 
B)  $20,000. 
C)  $35.000. 
D)  $60,000.

Question 8

Which of the following questions is NOT a microeconomic question?

Accepted Answer

A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services? 
A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services?

Question 9

Which of the following best defines capital as a factor of production?

Accepted Answer

A)  the gifts of nature that businesses use to produce goods and services 
B)  the knowledge and skills that people obtain from education and use in production of goods and services 
C)  financial assets used by businesses 
D)  instruments, machines, and buildings used in production 
A)  the gifts of nature that businesses use to produce goods and services 
B)  the knowledge and skills that people obtain from education and use in production of goods and services 
C)  financial assets used by businesses 
D)  instruments, machines, and buildings used in production

Question 10

Macroeconomics differs from microeconomics in that

Accepted Answer

A)  macroeconomics studies the decisions of individuals. 
B)  microeconomics looks at the economy as a whole. 
C)  macroeconomics studies the behavior of government while microeconomics looks at private corporations. 
D)  macroeconomics focuses on the national economy and the global economy. 
A)  macroeconomics studies the decisions of individuals. 
B)  microeconomics looks at the economy as a whole. 
C)  macroeconomics studies the behavior of government while microeconomics looks at private corporations. 
D)  macroeconomics focuses on the national economy and the global economy.

Question 11

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

Accepted Answer

A)  1 
B)  -1 
C)  2 
D)  3 
A)  1 
B)  -1 
C)  2 
D)  3

Question 12

The problem of "scarcity" applies

Accepted Answer

A)  only in industrially developed countries because resources are scarce in these countries. 
B)  only in underdeveloped countries because there are few productive resources in these countries. 
C)  only in economic systems that are just beginning to develop because specialized resources are scarce. 
D)  to all economic systems, regardless of their level of development. 
A)  only in industrially developed countries because resources are scarce in these countries. 
B)  only in underdeveloped countries because there are few productive resources in these countries. 
C)  only in economic systems that are just beginning to develop because specialized resources are scarce. 
D)  to all economic systems, regardless of their level of development.

Question 13

The term "direct relationship" means the same as

Accepted Answer

A)  correlation. 
B)  trend. 
C)  positive relationship. 
D)  negative relationship. 
A)  correlation. 
B)  trend. 
C)  positive relationship. 
D)  negative relationship.

Question 14

-The relationship between x and y in the above figure is

Accepted Answer

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

Question 15

Studying the effects choices have on the individual markets within the economy is part of

Accepted Answer

A)  scarcity. 
B)  microeconomics. 
C)  macroeconomics. 
D)  incentives. 
A)  scarcity. 
B)  microeconomics. 
C)  macroeconomics. 
D)  incentives.

Question 16

-In the figure above, the value on the x-axis increases as we move from

Accepted Answer

A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A. 
A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A.

Question 17

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

Accepted Answer

A)  the change in price multiplied by the change in quantity. 
B)  the change in price divided by the change in quantity. 
C)  the change in quantity divided by the change in price. 
D)  price divided by quantity. 
A)  the change in price multiplied by the change in quantity. 
B)  the change in price divided by the change in quantity. 
C)  the change in quantity divided by the change in price. 
D)  price divided by quantity.

Question 18

The statement that ________ is a positive statement.

Accepted Answer

A)  more students should study economics 
B)  the price of gasoline is too high 
C)  too many people in the United States have no health care insurance 
D)  the price of sugar in the United States is higher than the price in Australia 
A)  more students should study economics 
B)  the price of gasoline is too high 
C)  too many people in the United States have no health care insurance 
D)  the price of sugar in the United States is higher than the price in Australia

Question 19

-In the above figure, the relationship between income and expenditures is

Accepted Answer

A)  positive. 
B)  negative. 
C)  independent. 
D)  random. 
A)  positive. 
B)  negative. 
C)  independent. 
D)  random.

Question 20

Opportunity cost is best defined as

Accepted Answer

A)  how much money is paid for something. 
B)  how much money is paid for something, taking inflation into account. 
C)  the highest-valued alternative that is given up to get something. 
D)  all the alternatives that are given up to get something. 
A)  how much money is paid for something. 
B)  how much money is paid for something, taking inflation into account. 
C)  the highest-valued alternative that is given up to get something. 
D)  all the alternatives that are given up to get something.

The vertical axis in a graph

When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions.

The vertical axis of a graph shows only positive values.

Macroeconomics is concerned with

If variables x and y move up and down together, they are

-In the table above, y is measured along the y-axis and x along the x-axis. The slope of the relationship between x = 0 and x = 2 is

-In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is

Which of the following questions is NOT a microeconomic question?

Which of the following best defines capital as a factor of production?

Macroeconomics differs from microeconomics in that

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

The problem of "scarcity" applies

The term "direct relationship" means the same as

-The relationship between x and y in the above figure is

Studying the effects choices have on the individual markets within the economy is part of

-In the figure above, the value on the x-axis increases as we move from

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

The statement that ________ is a positive statement.

-In the above figure, the relationship between income and expenditures is

Opportunity cost is best defined as

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 vertical axis in a graph

When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions.

The vertical axis of a graph shows only positive values.

Macroeconomics is concerned with

If variables x and y move up and down together, they are

-In the table above, y is measured along the y-axis and x along the x-axis. The slope of the relationship between x = 0 and x = 2 is

-In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is

Which of the following questions is NOT a microeconomic question?

Which of the following best defines capital as a factor of production?

Macroeconomics differs from microeconomics in that

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

The problem of "scarcity" applies

The term "direct relationship" means the same as

-The relationship between x and y in the above figure is

Studying the effects choices have on the individual markets within the economy is part of

-In the figure above, the value on the x-axis increases as we move from

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

The statement that ________ is a positive statement.

-In the above figure, the relationship between income and expenditures is

Opportunity cost is best defined as

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