Question 1

When an economist talks of scarcity, the economist is referring to the

Accepted Answer

A)  ability of society to employ all of its resources. 
B)  ability of society to consume all that it produces. 
C)  inability of society to satisfy all human wants because of limited resources. 
D)  ability of society to continually make technological breakthroughs and increase production. 
A)  ability of society to employ all of its resources. 
B)  ability of society to consume all that it produces. 
C)  inability of society to satisfy all human wants because of limited resources. 
D)  ability of society to continually make technological breakthroughs and increase production.

Question 2

Scarcity requires that people must

Accepted Answer

A)  cooperate. 
B)  compete. 
C)  trade. 
D)  make choices. 
A)  cooperate. 
B)  compete. 
C)  trade. 
D)  make choices.

Question 3

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

Accepted Answer

A)  is the benefit the owner receives from staying open from 8 a.m. to 5 p.m. 
B)  depends on the revenues the owner makes during the day. 
C)  must be greater than or equal to the owner's marginal cost if the owner decides to stay open. 
D)  is the benefit the owner receives from staying open from 8 a.m. to 6 p.m. 
A)  is the benefit the owner receives from staying open from 8 a.m. to 5 p.m. 
B)  depends on the revenues the owner makes during the day. 
C)  must be greater than or equal to the owner's marginal cost if the owner decides to stay open. 
D)  is the benefit the owner receives from staying open from 8 a.m. to 6 p.m.

Question 4

Microeconomics is the study of topics such as national production and unemployment.

Accepted Answer

A) True 
 B)False

Question 5

A cross-section graph can show how economic variables for different groups of people vary over time.

Accepted Answer

A) True 
 B)False

Question 6

-Which of the following CORRECTLY describes the above figure? I) There is no relationship between the price of an avocado and a student's grade in economics.
II) The value of variable measured on the y-axis is constant as the variable measured on the x-axis increases.
III) As a student's grade in economics increases, the price of an avocado increases.

Accepted Answer

A)  I 
B)  I and II 
C)  II and III 
D)  I, II, and III 
A)  I 
B)  I and II 
C)  II and III 
D)  I, II, and III

Question 7

Which of the following is a positive statement?

Accepted Answer

A)  Our planet is warming because of an increased carbon dioxide buildup in the atmosphere. 
B)  A minimum wage of $7.50 per hour is a shame for a rich country like the United States. 
C)  Both these statements are positive. 
D)  Neither of these statements is positive. 
A)  Our planet is warming because of an increased carbon dioxide buildup in the atmosphere. 
B)  A minimum wage of $7.50 per hour is a shame for a rich country like the United States. 
C)  Both these statements are positive. 
D)  Neither of these statements is positive.

Question 8

Which of the following is NOT a factor of production?

Accepted Answer

A)  vans used by a bakery company for deliveries 
B)  a person developing a production schedule for a new product 
C)  175 shares of Microsoft stock 
D)  wilderness areas that have yet to be developed 
A)  vans used by a bakery company for deliveries 
B)  a person developing a production schedule for a new product 
C)  175 shares of Microsoft stock 
D)  wilderness areas that have yet to be developed

Question 9

The analysis of the behavior of individual decision-making units is the definition of

Accepted Answer

A)  microeconomics. 
B)  positive economics. 
C)  macroeconomics. 
D)  normative economics. 
A)  microeconomics. 
B)  positive economics. 
C)  macroeconomics. 
D)  normative economics.

Question 10

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

Accepted Answer

A)  making a normative statement. 
B)  making a positive statement. 
C)  testing an economic model. 
D)  facing the standard of living tradeoff. 
A)  making a normative statement. 
B)  making a positive statement. 
C)  testing an economic model. 
D)  facing the standard of living tradeoff.

Question 11

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

Accepted Answer

A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
C)  means that changes in either variable must cause changes in the other variable. 
D)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis. 
A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
C)  means that changes in either variable must cause changes in the other variable. 
D)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis.

Question 12

-In the above figure, the slope at point b

Accepted Answer

A)  lies between 1/3 and 1. 
B)  equals 1. 
C)  lies between 1 and 2. 
D)  exceeds 2. 
A)  lies between 1/3 and 1. 
B)  equals 1. 
C)  lies between 1 and 2. 
D)  exceeds 2.

Question 13

-In the above figure, the curve's slope is

Accepted Answer

A)  positive and is becoming steeper. 
B)  positive and is becoming less steep. 
C)  negative and is becoming steeper. 
D)  negative and is becoming less steep. 
A)  positive and is becoming steeper. 
B)  positive and is becoming less steep. 
C)  negative and is becoming steeper. 
D)  negative and is becoming less steep.

Question 14

Economic models

Accepted Answer

A)  are essentially different from those used in other sciences. 
B)  always use graphs. 
C)  simplify reality. 
D)  include all relevant facts. 
A)  are essentially different from those used in other sciences. 
B)  always use graphs. 
C)  simplify reality. 
D)  include all relevant facts.

Question 15

Which of the following statements are CORRECT?
I. The "highest-valued alternative given up to get something" is the opportunity cost.
II. Wealthy economies don't experience opportunity costs.
III. Scarcity creates opportunity costs.

Accepted Answer

A)  I only 
B)  I and II 
C)  I and III 
D)  I, II, and III 
A)  I only 
B)  I and II 
C)  I and III 
D)  I, II, and III

Question 16

If the marginal cost of an activity exceeds the marginal benefit, then

Accepted Answer

A)  the activity will occur because the high marginal cost means it must be highly valued. 
B)  the forgone alternatives' costs must be increased. 
C)  an alternative action will be selected. 
D)  the person must concentrate on the activity's total benefits. 
A)  the activity will occur because the high marginal cost means it must be highly valued. 
B)  the forgone alternatives' costs must be increased. 
C)  an alternative action will be selected. 
D)  the person must concentrate on the activity's total benefits.

Question 17

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

Accepted Answer

A)  3/5. 
B)  5/3. 
C)  -3/5. 
D)  -5/3. 
A)  3/5. 
B)  5/3. 
C)  -3/5. 
D)  -5/3.

Question 18

The branch of economics that deals with the analysis of the whole economy is called

Accepted Answer

A)  macroeconomics. 
B)  marginal analysis. 
C)  microeconomics. 
D)  metroanalysis. 
A)  macroeconomics. 
B)  marginal analysis. 
C)  microeconomics. 
D)  metroanalysis.

Question 19

-In the above figure, the slope across the arc between b and c is

Accepted Answer

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

Question 20

-In the above diagram, draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

When an economist talks of scarcity, the economist is referring to the

Scarcity requires that people must

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

Microeconomics is the study of topics such as national production and unemployment.

A cross-section graph can show how economic variables for different groups of people vary over time.

Which of the following is a positive statement?

Which of the following is NOT a factor of production?

The analysis of the behavior of individual decision-making units is the definition of

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

-In the above figure, the slope at point b

-In the above figure, the curve's slope is

Economic models

Which of the following statements are CORRECT? I. The "highest-valued alternative given up to get something" is the opportunity cost. II. Wealthy economies don't experience opportunity costs. III. Scarcity creates opportunity costs.

If the marginal cost of an activity exceeds the marginal benefit, then

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

The branch of economics that deals with the analysis of the whole economy is called

-In the above figure, the slope across the arc between b and c is

-In the above diagram, draw a straight line with a slope of zero.

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

When an economist talks of scarcity, the economist is referring to the

Scarcity requires that people must

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

Microeconomics is the study of topics such as national production and unemployment.

A cross-section graph can show how economic variables for different groups of people vary over time.

Which of the following is a positive statement?

Which of the following is NOT a factor of production?

The analysis of the behavior of individual decision-making units is the definition of

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

-In the above figure, the slope at point b

-In the above figure, the curve's slope is

Economic models

Which of the following statements are CORRECT? I. The "highest-valued alternative given up to get something" is the opportunity cost. II. Wealthy economies don't experience opportunity costs. III. Scarcity creates opportunity costs.

If the marginal cost of an activity exceeds the marginal benefit, then

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

The branch of economics that deals with the analysis of the whole economy is called

-In the above figure, the slope across the arc between b and c is

-In the above diagram, draw a straight line with a slope of zero.

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