Question 1

Which of the following is a microeconomic topic?

Accepted Answer

A)  how a trade agreement between the United States and Mexico affects both nations' unemployment rates 
B)  comparing inflation rates across countries 
C)  how rent ceilings impact the supply of apartments 
D)  how a tax rate increase will impact total production 
A)  how a trade agreement between the United States and Mexico affects both nations' unemployment rates 
B)  comparing inflation rates across countries 
C)  how rent ceilings impact the supply of apartments 
D)  how a tax rate increase will impact total production

Question 2

If two variables are unrelated, a scatter diagram of those variables will

Accepted Answer

A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope. 
A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope.

Question 3

Factors of production include all of the following EXCEPT

Accepted Answer

A)  machines made in past years. 
B)  money. 
C)  entrepreneurship. 
D)  a wheat field that is not irrigated. 
A)  machines made in past years. 
B)  money. 
C)  entrepreneurship. 
D)  a wheat field that is not irrigated.

Question 4

-In the above figure, the y-coordinate of point b is

Accepted Answer

A)  1. 
B)  2. 
C)  3. 
D)  14. 
A)  1. 
B)  2. 
C)  3. 
D)  14.

Question 5

A scatter diagram will be most useful

Accepted Answer

A)  in discerning a possible relationship between height and weight for individuals. 
B)  in resolving a dispute over two normative assertions. 
C)  in predicting next year's rate of unemployment. 
D)  All of the above are correct. 
A)  in discerning a possible relationship between height and weight for individuals. 
B)  in resolving a dispute over two normative assertions. 
C)  in predicting next year's rate of unemployment. 
D)  All of the above are correct.

Question 6

Statements about what ought to be are called

Accepted Answer

A)  positive statements. 
B)  normative statements. 
C)  assumptions. 
D)  implications. 
A)  positive statements. 
B)  normative statements. 
C)  assumptions. 
D)  implications.

Question 7

Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500. If you didn't go to school, you'd live in your parents' house for free, but your other living expenses would be about the same. Also, if you didn't go to school you'd work full time and could earn $8,000. You can still work part time while attending the summer school, but you will earn only $3,000.
a) What will the summer school cost you in terms of money explicitly paid?
b) What are the opportunity costs of going to summer school that you don't pay explicitly? Explain.
c) What is your total opportunity costs of going to school this summer? Explain your answer.

Accepted Answer

a) You explicitly pay the cost of tuitio

Question 8

-The above table indicates that variables x and y are

Accepted Answer

A)  positively related. 
B)  inversely related. 
C)  negatively related. 
D)  not related. 
A)  positively related. 
B)  inversely related. 
C)  negatively related. 
D)  not related.

Question 9

-In the figure above, an increase in z leads to a

Accepted Answer

A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y.

Question 10

When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "when" 
B)  "for whom" 
C)  "what" 
D)  "where" 
A)  "when" 
B)  "for whom" 
C)  "what" 
D)  "where"

Question 11

Marginal cost is the cost

Accepted Answer

A)  that your activity imposes on someone else. 
B)  that arises from an increase in an activity. 
C)  of an activity that exceeds its benefit. 
D)  that arises from the secondary effects of an activity. 
A)  that your activity imposes on someone else. 
B)  that arises from an increase in an activity. 
C)  of an activity that exceeds its benefit. 
D)  that arises from the secondary effects of an activity.

Question 12

"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant.

Accepted Answer

A) True 
 B)False

Question 13

As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced

Accepted Answer

A)  would be positively and then negatively sloped. 
B)  would be positively sloped. 
C)  would be horizontal. 
D)  would be negatively sloped. 
A)  would be positively and then negatively sloped. 
B)  would be positively sloped. 
C)  would be horizontal. 
D)  would be negatively sloped.

Question 14

-Using the information in the table above, what does the slope of the line between x and y equal?

Accepted Answer

A)  5 
B)  -0.5 
C)  2 
D)  -2 
A)  5 
B)  -0.5 
C)  2 
D)  -2

Question 15

Which of the following is an example of a positive statement?

Accepted Answer

A)  We should cut back on our use of carbon-based fuels such as coal and oil. 
B)  Increasing the minimum wage results in more unemployment. 
C)  Every American should have equal access to health care. 
D)  The Federal Reserve ought to cut the interest rate. 
A)  We should cut back on our use of carbon-based fuels such as coal and oil. 
B)  Increasing the minimum wage results in more unemployment. 
C)  Every American should have equal access to health care. 
D)  The Federal Reserve ought to cut the interest rate.

Question 16

The largest part of what the United States produces today is ________ such as ________.

Accepted Answer

A)  goods; food and electronic equipment 
B)  goods; education and entertainment 
C)  services; trade and health care 
D)  services; textbooks and computers 
A)  goods; food and electronic equipment 
B)  goods; education and entertainment 
C)  services; trade and health care 
D)  services; textbooks and computers

Question 17

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

Accepted Answer

A)  that is a horizontal line. 
B)  that is a vertical line. 
C)  showing a positive relationship. 
D)  None of the above answers are correct. 
A)  that is a horizontal line. 
B)  that is a vertical line. 
C)  showing a positive relationship. 
D)  None of the above answers are correct.

Question 18

In economics, positive statements are about

Accepted Answer

A)  the way things ought to be. 
B)  the way things are. 
C)  macroeconomics, not microeconomics. 
D)  microeconomics, not macroeconomics. 
A)  the way things ought to be. 
B)  the way things are. 
C)  macroeconomics, not microeconomics. 
D)  microeconomics, not macroeconomics.

Question 19

-Which of the following CORRECTLY describes the above figure?

Accepted Answer

A)  There is no relationship between x and y. 
B)  There is a positive relationship between x and y. 
C)  There is a negative relationship between x and y. 
D)  None of the above answers are correct. 
A)  There is no relationship between x and y. 
B)  There is a positive relationship between x and y. 
C)  There is a negative relationship between x and y. 
D)  None of the above answers are correct.

Question 20

Making a choice at the margin means

Accepted Answer

A)  letting someone else choose for you. 
B)  waiting until the last minute to make a choice. 
C)  deciding to do a little bit more or a little bit less of an activity. 
D)  making a choice by comparing the total benefit and the total cost. 
A)  letting someone else choose for you. 
B)  waiting until the last minute to make a choice. 
C)  deciding to do a little bit more or a little bit less of an activity. 
D)  making a choice by comparing the total benefit and the total cost.

Which of the following is a microeconomic topic?

If two variables are unrelated, a scatter diagram of those variables will

Factors of production include all of the following EXCEPT

-In the above figure, the y-coordinate of point b is

A scatter diagram will be most useful

Statements about what ought to be are called

-The above table indicates that variables x and y are

-In the figure above, an increase in z leads to a

When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions.

Marginal cost is the cost

"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant.

As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced

-Using the information in the table above, what does the slope of the line between x and y equal?

Which of the following is an example of a positive statement?

The largest part of what the United States produces today is such as .

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

In economics, positive statements are about

-Which of the following CORRECTLY describes the above figure?

Making a choice at the margin means

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

Which of the following is a microeconomic topic?

If two variables are unrelated, a scatter diagram of those variables will

Factors of production include all of the following EXCEPT

-In the above figure, the y-coordinate of point b is

A scatter diagram will be most useful

Statements about what ought to be are called

-The above table indicates that variables x and y are

-In the figure above, an increase in z leads to a

When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions.

Marginal cost is the cost

"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant.

As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced

-Using the information in the table above, what does the slope of the line between x and y equal?

Which of the following is an example of a positive statement?

The largest part of what the United States produces today is ________ such as ________.

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

In economics, positive statements are about

-Which of the following CORRECTLY describes the above figure?

Making a choice at the margin means

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 largest part of what the United States produces today is such as .