Question 1

The slope of a straight line increases as the numbers on the x-axis become larger.

Accepted Answer

A) True 
 B)False

Question 2

Entrepreneurs directly do all of the following except

Accepted Answer

A)  create new ideas about what and how to produce. 
B)  make business decisions. 
C)  face risks that arise from making business decisions. 
D)  decide for whom goods and services are produced. 
A)  create new ideas about what and how to produce. 
B)  make business decisions. 
C)  face risks that arise from making business decisions. 
D)  decide for whom goods and services are produced.

Question 3

Which of the following is NOT a factor of production?

Accepted Answer

A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock 
A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock

Question 4

U.S. producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises. Producers are answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "what" 
B)  "how" 
C)  "when" 
D)  "how many" 
A)  "what" 
B)  "how" 
C)  "when" 
D)  "how many"

Question 5

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

Accepted Answer

A)  a normative statement. 
B)  the failure of opportunity cost to determine prices. 
C)  a positive statement. 
D)  a macroeconomic statement. 
A)  a normative statement. 
B)  the failure of opportunity cost to determine prices. 
C)  a positive statement. 
D)  a macroeconomic statement.

Question 6

A scatter diagram with the price of vacations to Mexico on the vertical axis and the price of vacations to California on the horizontal axis shows a positive relationship. If the price of vacations to Mexico were placed on the horizontal axis, and the price of vacations to California on the vertical axis, the relationship would be

Accepted Answer

A)  negative relationship, also called a direct relationship. 
B)  negative relationship, also called an inverse relationship. 
C)  positive relationship, also called a direct relationship. 
D)  positive relationship, also called an inverse relationship. 
A)  negative relationship, also called a direct relationship. 
B)  negative relationship, also called an inverse relationship. 
C)  positive relationship, also called a direct relationship. 
D)  positive relationship, also called an inverse relationship.

Question 7

Most people with jobs in economics are

Accepted Answer

A)  market research analysts. 
B)  financial analysts. 
C)  budget analysts. 
D)  economists. 
A)  market research analysts. 
B)  financial analysts. 
C)  budget analysts. 
D)  economists.

Question 8

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions.

Accepted Answer

A)  "for whom" 
B)  "when" 
C)  "how" 
D)  "why" 
A)  "for whom" 
B)  "when" 
C)  "how" 
D)  "why"

Question 9

-In the above figure, when income is zero, household expenditures equal

Accepted Answer

A)  0. 
B)  $1,000. 
C)  $4,000. 
D)  $8,000. 
A)  0. 
B)  $1,000. 
C)  $4,000. 
D)  $8,000.

Question 10

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

Accepted Answer

A)  is the benefit she gets from all the hours she's worked out all week. 
B)  is the benefit she receives from exercising the additional hour. 
C)  is less than the marginal cost of the additional hour. 
D)  depends on the cost of the workout. 
A)  is the benefit she gets from all the hours she's worked out all week. 
B)  is the benefit she receives from exercising the additional hour. 
C)  is less than the marginal cost of the additional hour. 
D)  depends on the cost of the workout.

Question 11

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

Accepted Answer

A)  no other variables are related to x and y. 
B)  the value of x is held constant. 
C)  the value of y is held constant. 
D)  other variables not shown are held constant. 
A)  no other variables are related to x and y. 
B)  the value of x is held constant. 
C)  the value of y is held constant. 
D)  other variables not shown are held constant.

Question 12

Your employer has asked you to start working overtime and has offered to pay $18 per hour for every hour you work beyond forty hours a week. The wage rate for each of the first forty hours will continue to be the usual $15 per hour. In terms of dollars, what is the marginal benefit of working each hour of overtime?

Accepted Answer

A)  zero 
B)  $3.00 
C)  $15.00 
D)  $18.00 
A)  zero 
B)  $3.00 
C)  $15.00 
D)  $18.00

Question 13

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie. Therefore, the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

Accepted Answer

Your friend's analysis is incorrect. The

Question 14

A scatter diagram shows the

Accepted Answer

A)  level of one variable over time. 
B)  change in one variable over time. 
C)  relationship between two variables. 
D)  evolution of a variable. 
A)  level of one variable over time. 
B)  change in one variable over time. 
C)  relationship between two variables. 
D)  evolution of a variable.

Question 15

In part, microeconomics is concerned with

Accepted Answer

A)  how a business firm decides upon the amount it produces and the price it sets. 
B)  changes in the economy's total output of goods and services over long periods of time. 
C)  factors that explain changes in the unemployment rate over time. 
D)  the Federal Reserve's policy decisions. 
A)  how a business firm decides upon the amount it produces and the price it sets. 
B)  changes in the economy's total output of goods and services over long periods of time. 
C)  factors that explain changes in the unemployment rate over time. 
D)  the Federal Reserve's policy decisions.

Question 16

Which of the following is a normative statement?

Accepted Answer

A)  Low rents will restrict the supply of housing. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs are rising. 
D)  Owners of apartment buildings are free to charge whatever rent they want. 
A)  Low rents will restrict the supply of housing. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs are rising. 
D)  Owners of apartment buildings are free to charge whatever rent they want.

Question 17

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 18

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour. The student's marginal benefit

Accepted Answer

A)  depends on the grade the student earns on the exam. 
B)  is the benefit the student receives from studying all 3 hours. 
C)  is the benefit the student receives from studying the extra hour. 
D)  is greater than the student's marginal cost. 
A)  depends on the grade the student earns on the exam. 
B)  is the benefit the student receives from studying all 3 hours. 
C)  is the benefit the student receives from studying the extra hour. 
D)  is greater than the student's marginal cost.

Question 19

-In the above figure, while moving along the line showing the relationship between household income and expenditure

Accepted Answer

A)  household expenditures are held constant. 
B)  household income is held constant. 
C)  the interest rate is held constant. 
D)  no variable is held constant. 
A)  household expenditures are held constant. 
B)  household income is held constant. 
C)  the interest rate is held constant. 
D)  no variable is held constant.

Question 20

The slope of a line equals the

Accepted Answer

A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis. 
A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis.

The slope of a straight line increases as the numbers on the x-axis become larger.

Entrepreneurs directly do all of the following except

Which of the following is NOT a factor of production?

U.S. producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises. Producers are answering the ________ part of one of the two big economic questions.

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

Most people with jobs in economics are

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions.

-In the above figure, when income is zero, household expenditures equal

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

A scatter diagram shows the

In part, microeconomics is concerned with

Which of the following is a normative statement?

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour. The student's marginal benefit

-In the above figure, while moving along the line showing the relationship between household income and expenditure

The slope of a line equals the

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 slope of a straight line increases as the numbers on the x-axis become larger.

Entrepreneurs directly do all of the following except

Which of the following is NOT a factor of production?

U.S. producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises. Producers are answering the ________ part of one of the two big economic questions.

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

Most people with jobs in economics are

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions.

-In the above figure, when income is zero, household expenditures equal

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

A scatter diagram shows the

In part, microeconomics is concerned with

Which of the following is a normative statement?

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour. The student's marginal benefit

-In the above figure, while moving along the line showing the relationship between household income and expenditure

The slope of a line equals the

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