Question 1

If a curve rises and then falls, it shows a

Accepted Answer

A)  maximum. 
B)  minimum. 
C)  linear relationship. 
D)  constant slope relationship. 
A)  maximum. 
B)  minimum. 
C)  linear relationship. 
D)  constant slope relationship.

Question 2

Define marginal cost and marginal benefit.

Accepted Answer

Marginal cost is the opportuni

Question 3

-The slope of the line shown in the above figure is

Accepted Answer

A)  0.90. 
B)  1.5. 
C)  1.11. 
D)  2. 
A)  0.90. 
B)  1.5. 
C)  1.11. 
D)  2.

Question 4

"As interest rates rise, people save more money." A graph displaying this relationship would show

Accepted Answer

A)  an inverse relationship. 
B)  a positive relationship. 
C)  a cross-section graph. 
D)  a positive then a negative relationship. 
A)  an inverse relationship. 
B)  a positive relationship. 
C)  a cross-section graph. 
D)  a positive then a negative relationship.

Question 5

A scatter diagram plots the value of one economic variable against time.

Accepted Answer

A) True 
 B)False

Question 6

-Graph the data in the table above in the figure. Label the axes.
a) Is the relationship between X and Y positive or negative?
b) What is the slope when X = 4?
c) What is the slope when X = 8?

Accepted Answer

@#IMG-DLM& The figure labels the axes an

Question 7

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

Accepted Answer

A)  Government should not redistribute income. 
B)  Business firms ought to contribute more to charities. 
C)  Households are the primary source of saving. 
D)  The foreign sector should be more tightly controlled. 
A)  Government should not redistribute income. 
B)  Business firms ought to contribute more to charities. 
C)  Households are the primary source of saving. 
D)  The foreign sector should be more tightly controlled.

Question 8

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

Accepted Answer

A) True 
 B)False

Question 9

Scarcity exists because

Accepted Answer

A)  society and people are greedy and wasteful. 
B)  our wants exceed the resources available to satisfy them. 
C)  of the inefficient choices we make. 
D)  poor people need more food and other goods. 
A)  society and people are greedy and wasteful. 
B)  our wants exceed the resources available to satisfy them. 
C)  of the inefficient choices we make. 
D)  poor people need more food and other goods.

Question 10

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

Accepted Answer

The statement is false because it is pos

Question 11

-A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative. Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Accepted Answer

@#IMG-DLM& The point is a maximum point. Examine t

Question 12

-Jamie is preparing to take his SAT tests. The table above shows how Jamie's score depends on the number of hours a week Jamie studies.
a) Plot the relationship in the figure, putting the hours studied on the horizontal axis.
b) Is the relationship you plotted positive or negative?
c) What happens to the slope of the relationship as hours studied increase?
d) Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he studies, his score will be 100 points higher. Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure.
e) How many variables are involved in the figure you just completed?

Accepted Answer

@#IMG-DLM& a) The figure above plots the relations

Question 13

-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

Accepted Answer

A)  0 percent and 30 percent. 
B)  30 percent and 100 percent. 
C)  0 percent and 100 percent. 
D)  None of the above answers are correct. 
A)  0 percent and 30 percent. 
B)  30 percent and 100 percent. 
C)  0 percent and 100 percent. 
D)  None of the above answers are correct.

Question 14

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

Accepted Answer

A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct. 
A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct.

Question 15

In the U.S. economy, which of the following statements is TRUE?

Accepted Answer

A)  More goods are produced than services. 
B)  More services are produced than goods. 
C)  Production is divided evenly between goods and services. 
D)  The economy is too complex to determine the proportion of production that is devoted to producing services. 
A)  More goods are produced than services. 
B)  More services are produced than goods. 
C)  Production is divided evenly between goods and services. 
D)  The economy is too complex to determine the proportion of production that is devoted to producing services.

Question 16

-Based on the information in the table above, what is the relationship between x and y?

Accepted Answer

A)  direct 
B)  inverse 
C)  positive 
D)  No relationship exists between x and y. 
A)  direct 
B)  inverse 
C)  positive 
D)  No relationship exists between x and y.

Question 17

When China builds a dam using few machines and a great deal of labor, it is answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 18

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

Accepted Answer

A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables are unrelated. 
D)  the two variables have an inverse relationship. 
A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables are unrelated. 
D)  the two variables have an inverse relationship.

Question 19

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

Accepted Answer

A)  a normative statement. 
B)  a positive statement. 
C)  a decision at the margin. 
D)  OPEC overcoming scarcity. 
A)  a normative statement. 
B)  a positive statement. 
C)  a decision at the margin. 
D)  OPEC overcoming scarcity.

Question 20

A graph cannot be used to show that two variables are unrelated.

Accepted Answer

A) True 
 B)False

If a curve rises and then falls, it shows a

Define marginal cost and marginal benefit.

-The slope of the line shown in the above figure is

"As interest rates rise, people save more money." A graph displaying this relationship would show

A scatter diagram plots the value of one economic variable against time.

-Graph the data in the table above in the figure. Label the axes. a) Is the relationship between X and Y positive or negative? b) What is the slope when X = 4? c) What is the slope when X = 8?

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

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

Scarcity exists because

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

-A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative. Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

In the U.S. economy, which of the following statements is TRUE?

-Based on the information in the table above, what is the relationship between x and y?

When China builds a dam using few machines and a great deal of labor, it is answering the ________ part of one of the two big economic questions.

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

A graph cannot be used to show that two variables are unrelated.

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

If a curve rises and then falls, it shows a

Define marginal cost and marginal benefit.

-The slope of the line shown in the above figure is

"As interest rates rise, people save more money." A graph displaying this relationship would show

A scatter diagram plots the value of one economic variable against time.

-Graph the data in the table above in the figure. Label the axes. a) Is the relationship between X and Y positive or negative? b) What is the slope when X = 4? c) What is the slope when X = 8?

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

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

Scarcity exists because

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

-A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative. Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

In the U.S. economy, which of the following statements is TRUE?

-Based on the information in the table above, what is the relationship between x and y?

When China builds a dam using few machines and a great deal of labor, it is answering the ________ part of one of the two big economic questions.

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

A graph cannot be used to show that two variables are unrelated.

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