Question 1

-The relationship in the above figure indicates that

Accepted Answer

A)  a decrease in the interest rate leads to a decrease in household income. 
B)  a decrease in household consumption leads to a decrease in interest rates. 
C)  a decrease in household income will lead household consumption to increase. 
D)  none of the above. 
A)  a decrease in the interest rate leads to a decrease in household income. 
B)  a decrease in household consumption leads to a decrease in interest rates. 
C)  a decrease in household income will lead household consumption to increase. 
D)  none of the above.

Question 2

-Using the above figure, the origin is at which point?

Accepted Answer

A)  point a 
B)  point b 
C)  point c 
D)  None of the points in the figure is the origin. 
A)  point a 
B)  point b 
C)  point c 
D)  None of the points in the figure is the origin.

Question 3

A normative statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that is based on an economic experiment. 
A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that is based on an economic experiment.

Question 4

-The table above shows how the number of books Katie buys each year depends on her income.
a) What kind of relationship exists between Katie's income and the number of books she purchases?
b) Plot the relationship between Katie's income and the number of books she purchases in the above figure. Measure income along the vertical axis and the number of books along the horizontal axis. Be sure to label the axes.
c) What is the slope of the relationship between $50,000 and $70,000 of income?
d) What is the slope of the relationship between $90,000 and $110,000 of income?
e) Comment on the similarity or dissimilarity of your answers to parts (c) and (d).

Accepted Answer

a) There is a positive relationship. Whe

Question 5

Scarcity is a situation in which

Accepted Answer

A)  people cannot satisfy all their wants. 
B)  most people can get only bare necessities. 
C)  people can satisfy all their wants. 
D)  some people can get all they want and some cannot. 
A)  people cannot satisfy all their wants. 
B)  most people can get only bare necessities. 
C)  people can satisfy all their wants. 
D)  some people can get all they want and some cannot.

Question 6

When a firm decides to produce more electric cars and conventional gas powered cars, it is most directly answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 7

In part, microeconomics is concerned with the study of

Accepted Answer

A)  unemployment and economic growth. 
B)  the Federal Reserve's policies. 
C)  the effect government regulation has on the price of a product. 
D)  national output of goods and services. 
A)  unemployment and economic growth. 
B)  the Federal Reserve's policies. 
C)  the effect government regulation has on the price of a product. 
D)  national output of goods and services.

Question 8

-The slope of the line in the above figure is

Accepted Answer

A)  positive. 
B)  negative. 
C)  direct. 
D)  independent. 
A)  positive. 
B)  negative. 
C)  direct. 
D)  independent.

Question 9

An incentive

Accepted Answer

A)  could be a reward but could not be a penalty. 
B)  could be a penalty but could not be a reward. 
C)  could be either a reward or a penalty. 
D)  is the opposite of a tradeoff. 
A)  could be a reward but could not be a penalty. 
B)  could be a penalty but could not be a reward. 
C)  could be either a reward or a penalty. 
D)  is the opposite of a tradeoff.

Question 10

The horizontal axis in a graph

Accepted Answer

A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis. 
A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis.

Question 11

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

Accepted Answer

A)  both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie. 
B)  both bear the same opportunity cost of seeing the movie because they are doing the same thing. 
C)  it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free. 
D)  the opportunity cost of seeing the movie is zero because the tickets were free. 
A)  both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie. 
B)  both bear the same opportunity cost of seeing the movie because they are doing the same thing. 
C)  it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free. 
D)  the opportunity cost of seeing the movie is zero because the tickets were free.

Question 12

Which of the following questions is a topic that would be studied by microeconomics?

Accepted Answer

A)  Why did production and the number of jobs shrink in 2009? 
B)  Will the current budget deficit affect the well-being of the next generation? 
C)  How will a lower price of digital cameras affect the quantity of cameras sold? 
D)  What is the current unemployment rate in the United States? 
A)  Why did production and the number of jobs shrink in 2009? 
B)  Will the current budget deficit affect the well-being of the next generation? 
C)  How will a lower price of digital cameras affect the quantity of cameras sold? 
D)  What is the current unemployment rate in the United States?

Question 13

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

Accepted Answer

A)  an incentive. 
B)  a social interest/private interest conflict. 
C)  opportunity cost. 
D)  marginal benefit. 
A)  an incentive. 
B)  a social interest/private interest conflict. 
C)  opportunity cost. 
D)  marginal benefit.

Question 14

The term used to emphasize that making choices in the face of scarcity involves a cost is

Accepted Answer

A)  substitution cost. 
B)  opportunity cost. 
C)  utility cost. 
D)  accounting cost. 
A)  substitution cost. 
B)  opportunity cost. 
C)  utility cost. 
D)  accounting cost.

Question 15

A normative statement concerns

Accepted Answer

A)  what is provable. 
B)  what is correct. 
C)  what is incorrect. 
D)  a value judgment. 
A)  what is provable. 
B)  what is correct. 
C)  what is incorrect. 
D)  a value judgment.

Question 16

-In the above figure, the relationship between x and y is

Accepted Answer

A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases. 
A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases.

Question 17

The Occupy Wall Street movement advocates

Accepted Answer

A)  a shift away from market capitalism. 
B)  a shift towards more market capitalism. 
C)  centrally planned socialism. 
D)  following the teachings of Adam Smith. 
A)  a shift away from market capitalism. 
B)  a shift towards more market capitalism. 
C)  centrally planned socialism. 
D)  following the teachings of Adam Smith.

Question 18

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 19

Which of the following is NOT part of the first big economic question?

Accepted Answer

A)  What goods and services are produced? 
B)  How are goods and services produced? 
C)  For whom are goods and services produced? 
D)  Why do incentives affect only marginal costs? 
A)  What goods and services are produced? 
B)  How are goods and services produced? 
C)  For whom are goods and services produced? 
D)  Why do incentives affect only marginal costs?

Question 20

When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions.

Accepted Answer

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

-The relationship in the above figure indicates that

-Using the above figure, the origin is at which point?

A normative statement is

Scarcity is a situation in which

When a firm decides to produce more electric cars and conventional gas powered cars, it is most directly answering the ________ part of one of the two big economic questions.

In part, microeconomics is concerned with the study of

-The slope of the line in the above figure is

An incentive

The horizontal axis in a graph

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

Which of the following questions is a topic that would be studied by microeconomics?

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

The term used to emphasize that making choices in the face of scarcity involves a cost is

A normative statement concerns

-In the above figure, the relationship between x and y is

The Occupy Wall Street movement advocates

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

Which of the following is NOT part of the first big economic question?

When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions.

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 relationship in the above figure indicates that

-Using the above figure, the origin is at which point?

A normative statement is

Scarcity is a situation in which

When a firm decides to produce more electric cars and conventional gas powered cars, it is most directly answering the ________ part of one of the two big economic questions.

In part, microeconomics is concerned with the study of

-The slope of the line in the above figure is

An incentive

The horizontal axis in a graph

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

Which of the following questions is a topic that would be studied by microeconomics?

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

The term used to emphasize that making choices in the face of scarcity involves a cost is

A normative statement concerns

-In the above figure, the relationship between x and y is

The Occupy Wall Street movement advocates

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

Which of the following is NOT part of the first big economic question?

When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions.

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