Question 1

Scarcity can be eliminated through

Accepted Answer

A)  the use of market mechanisms. 
B)  exploration that helps us find new resources. 
C)  wise use of our resources. 
D)  None of the above because scarcity cannot be eliminated. 
A)  the use of market mechanisms. 
B)  exploration that helps us find new resources. 
C)  wise use of our resources. 
D)  None of the above because scarcity cannot be eliminated.

Question 2

When y changes, x stays the same. The line depicting this relationship would be

Accepted Answer

A)  vertical. 
B)  horizontal. 
C)  linear with a negative slope. 
D)  linear with a positive slope. 
A)  vertical. 
B)  horizontal. 
C)  linear with a negative slope. 
D)  linear with a positive slope.

Question 3

Which of the following is NOT a factor of production?

Accepted Answer

A)  the water used to cool a nuclear power plant 
B)  the effort of farmers raising cattle 
C)  the wages paid to workers 
D)  the management skill of a small business owner 
A)  the water used to cool a nuclear power plant 
B)  the effort of farmers raising cattle 
C)  the wages paid to workers 
D)  the management skill of a small business owner

Question 4

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

Accepted Answer

A)  3/4. 
B)  2/3. 
C)  1 1/3. 
D)  1 3/4. 
A)  3/4. 
B)  2/3. 
C)  1 1/3. 
D)  1 3/4.

Question 5

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

Accepted Answer

A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement. 
A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement.

Question 6

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

Accepted Answer

The figure shows that there is a negativ

Question 7

The marginal benefit is the

Accepted Answer

A)  additional gain from one more unit of an activity. 
B)  additional cost from one more unit of an activity. 
C)  loss of the highest-valued alternative. 
D)  additional gain from one more unit of an activity minus the additional cost from one more unit of the activity. 
A)  additional gain from one more unit of an activity. 
B)  additional cost from one more unit of an activity. 
C)  loss of the highest-valued alternative. 
D)  additional gain from one more unit of an activity minus the additional cost from one more unit of the activity.

Question 8

Which of the following is a normative statement?

Accepted Answer

A)  The unemployment rate is too high. 
B)  Forty percent of the public believes that the unemployment rate is too high. 
C)  The unemployment rate rose last month. 
D)  None of the above are normative statements. 
A)  The unemployment rate is too high. 
B)  Forty percent of the public believes that the unemployment rate is too high. 
C)  The unemployment rate rose last month. 
D)  None of the above are normative statements.

Question 9

-In the above figure, which curve shows a negative relationship between x and y?

Accepted Answer

A)  only curve A 
B)  only curve B 
C)  only curve C 
D)  None of the curves show a negative relationship. 
A)  only curve A 
B)  only curve B 
C)  only curve C 
D)  None of the curves show a negative relationship.

Question 10

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

Accepted Answer

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

Question 11

-In the above figure, the slope at point b is

Accepted Answer

A)  1. 
B)  5/2. 
C)  between 1 and 5/2. 
D)  greater than 5/2. 
A)  1. 
B)  5/2. 
C)  between 1 and 5/2. 
D)  greater than 5/2.

Question 12

-The above table gives data on two variables. If these data were graphed, the slope of the line would be

Accepted Answer

A)  1. 
B)  -2. 
C)  2. 
D)  -4. 
A)  1. 
B)  -2. 
C)  2. 
D)  -4.

Question 13

Marginal cost is the

Accepted Answer

A)  cost of an increase in an activity. 
B)  total cost of an activity. 
C)  cost of an activity minus the benefits of the activity. 
D)  cost of all forgone alternatives. 
A)  cost of an increase in an activity. 
B)  total cost of an activity. 
C)  cost of an activity minus the benefits of the activity. 
D)  cost of all forgone alternatives.

Question 14

Positive economic statements

Accepted Answer

A)  prescribe what should be. 
B)  are related only to microeconomics. 
C)  can be tested against the facts. 
D)  cannot be tested against the facts. 
A)  prescribe what should be. 
B)  are related only to microeconomics. 
C)  can be tested against the facts. 
D)  cannot be tested against the facts.

Question 15

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

Accepted Answer

A)  100. 
B)  0. 
C)  0.25. 
D)  -4. 
A)  100. 
B)  0. 
C)  0.25. 
D)  -4.

Question 16

-In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue

Accepted Answer

A)  decreases. 
B)  is constant. 
C)  increases. 
D)  may increase or decrease. 
A)  decreases. 
B)  is constant. 
C)  increases. 
D)  may increase or decrease.

Question 17

Which of the following creates an incentive to increase the amount of an activity?

Accepted Answer

A)  an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity 
B)  a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity 
C)  constant marginal cost and constant marginal benefit of the activity 
D)  None of the above create an incentive to increase the amount of an activity. 
A)  an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity 
B)  a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity 
C)  constant marginal cost and constant marginal benefit of the activity 
D)  None of the above create an incentive to increase the amount of an activity.

Question 18

The relationship in the above figure suggests that when the interest rate is 5 percent

Accepted Answer

A)  a decrease in income will be associated with a decrease in expenditures. 
B)  a decrease in income will be associated with an increase in expenditures. 
C)  an increase in income will be associated with a decrease in expenditures. 
D)  there is no relationship between expenditures and income. 
A)  a decrease in income will be associated with a decrease in expenditures. 
B)  a decrease in income will be associated with an increase in expenditures. 
C)  an increase in income will be associated with a decrease in expenditures. 
D)  there is no relationship between expenditures and income.

Question 19

-The slope of the line in the above figure is

Accepted Answer

A)  -1/2. 
B)  -3. 
C)  -4. 
D)  -1/3. 
A)  -1/2. 
B)  -3. 
C)  -4. 
D)  -1/3.

Question 20

Market research analysts

Accepted Answer

A)  study trends and fluctuations in interest rates and stock and bond prices and try to predict the cost of borrowing and the returns on investments. 
B)  work with data on buying patterns and try to forecast the likely success of a product and the price that buyers are willing to pay for it. 
C)  keep track of an organization's cash flow and prepare budget plans that incorporate predictions of future cash flows. 
D)  are anticipated to experience the slowest job growth for economics jobs over the next decade. 
A)  study trends and fluctuations in interest rates and stock and bond prices and try to predict the cost of borrowing and the returns on investments. 
B)  work with data on buying patterns and try to forecast the likely success of a product and the price that buyers are willing to pay for it. 
C)  keep track of an organization's cash flow and prepare budget plans that incorporate predictions of future cash flows. 
D)  are anticipated to experience the slowest job growth for economics jobs over the next decade.

Scarcity can be eliminated through

When y changes, x stays the same. The line depicting this relationship would be

Which of the following is NOT a factor of production?

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

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

The marginal benefit is the

Which of the following is a normative statement?

-In the above figure, which curve shows a negative relationship between x and y?

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

-In the above figure, the slope at point b is

-The above table gives data on two variables. If these data were graphed, the slope of the line would be

Marginal cost is the

Positive economic statements

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

-In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue

Which of the following creates an incentive to increase the amount of an activity?

The relationship in the above figure suggests that when the interest rate is 5 percent

-The slope of the line in the above figure is

Market research analysts

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

Scarcity can be eliminated through

When y changes, x stays the same. The line depicting this relationship would be

Which of the following is NOT a factor of production?

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

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

The marginal benefit is the

Which of the following is a normative statement?

-In the above figure, which curve shows a negative relationship between x and y?

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

-In the above figure, the slope at point b is

-The above table gives data on two variables. If these data were graphed, the slope of the line would be

Marginal cost is the

Positive economic statements

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

-In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue

Which of the following creates an incentive to increase the amount of an activity?

The relationship in the above figure suggests that when the interest rate is 5 percent

-The slope of the line in the above figure is

Market research analysts

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