Question 1

In economics, the term "land" means

Accepted Answer

A)  only land that is used in agricultural production. 
B)  land, mineral resources, and nature's other bounties. 
C)  land that is devoted to economic pursuits. 
D)  land used for agricultural and urban purposes. 
A)  only land that is used in agricultural production. 
B)  land, mineral resources, and nature's other bounties. 
C)  land that is devoted to economic pursuits. 
D)  land used for agricultural and urban purposes.

Question 2

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "scarcity" 
B)  "what" 
C)  "why" 
D)  "how" 
A)  "scarcity" 
B)  "what" 
C)  "why" 
D)  "how"

Question 3

Economics is best defined as the science of choice and how people cope with

Accepted Answer

A)  differences in wants. 
B)  differences in needs. 
C)  scarcity. 
D)  different economic systems. 
A)  differences in wants. 
B)  differences in needs. 
C)  scarcity. 
D)  different economic systems.

Question 4

You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

Accepted Answer

A)  there must be false causality between interest rates and housing prices. 
B)  higher interest rates must cause low housing prices. 
C)  a scatter diagram between interest rates and housing prices will show a negative relationship. 
D)  a scatter diagram between interest rates and housing prices will show a direct relationship. 
A)  there must be false causality between interest rates and housing prices. 
B)  higher interest rates must cause low housing prices. 
C)  a scatter diagram between interest rates and housing prices will show a negative relationship. 
D)  a scatter diagram between interest rates and housing prices will show a direct relationship.

Question 5

Which of the following is a normative statement?

Accepted Answer

A)  Studying more hours leads to an increase in your GPA. 
B)  An increase in tax rates means people work fewer hours. 
C)  Taking extra vitamin C prevents catching a cold. 
D)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed. 
A)  Studying more hours leads to an increase in your GPA. 
B)  An increase in tax rates means people work fewer hours. 
C)  Taking extra vitamin C prevents catching a cold. 
D)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed.

Question 6

"As part of the financial crisis bailout plan in 2009, the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of

Accepted Answer

A)  a positive statement. 
B)  a normative statement. 
C)  a microeconomic statement. 
D)  an economic model. 
A)  a positive statement. 
B)  a normative statement. 
C)  a microeconomic statement. 
D)  an economic model.

Question 7

Which of the following statements is CORRECT?

Accepted Answer

A)  The United States produces more goods than services. 
B)  The United States produces more services than goods. 
C)  The United States produces more agricultural goods than manufactured goods. 
D)  The United States produces an equal amount of goods and services. 
A)  The United States produces more goods than services. 
B)  The United States produces more services than goods. 
C)  The United States produces more agricultural goods than manufactured goods. 
D)  The United States produces an equal amount of goods and services.

Question 8

Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5. Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?

Accepted Answer

Marginal benefit is the benefit that ari

Question 9

Macroeconomic topics include

Accepted Answer

A)  total, nationwide employment. 
B)  studying what factors influence the price and quantity of automobiles. 
C)  studying the determination of wages and production costs in the software industry. 
D)  the impact of government regulation of markets. 
A)  total, nationwide employment. 
B)  studying what factors influence the price and quantity of automobiles. 
C)  studying the determination of wages and production costs in the software industry. 
D)  the impact of government regulation of markets.

Question 10

Studying the determination of prices in individual markets is primarily a concern of

Accepted Answer

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

Question 11

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

Accepted Answer

A)  total amount paid to only the new worker. 
B)  total amount paid to all previously hired workers. 
C)  the total amount paid to all the workers, both the new one and the previously hired workers. 
D)  the additional revenue created by having an additional worker minus the cost of hiring the worker. 
A)  total amount paid to only the new worker. 
B)  total amount paid to all previously hired workers. 
C)  the total amount paid to all the workers, both the new one and the previously hired workers. 
D)  the additional revenue created by having an additional worker minus the cost of hiring the worker.

Question 12

-The above table gives data on two variables. If these data were graphed, their relationship would

Accepted Answer

A)  be a straight line. 
B)  be a curved line. 
C)  show a negative relationship. 
D)  nonexistent. 
A)  be a straight line. 
B)  be a curved line. 
C)  show a negative relationship. 
D)  nonexistent.

Question 13

Opportunity cost means the

Accepted Answer

A)  accounting cost minus the marginal cost. 
B)  highest-valued alternative forgone. 
C)  accounting cost minus the marginal benefit. 
D)  monetary costs of an activity. 
A)  accounting cost minus the marginal cost. 
B)  highest-valued alternative forgone. 
C)  accounting cost minus the marginal benefit. 
D)  monetary costs of an activity.

Question 14

A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show

Accepted Answer

A)  an inverse relationship. 
B)  a negative relationship. 
C)  a direct relationship. 
D)  Both answers A and B are correct. 
A)  an inverse relationship. 
B)  a negative relationship. 
C)  a direct relationship. 
D)  Both answers A and B are correct.

Question 15

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is ________ and the slope is ________.

Accepted Answer

A)  downward-sloping; large 
B)  downward-sloping; small 
C)  upward-sloping; small 
D)  either downward or upward-sloping; small 
A)  downward-sloping; large 
B)  downward-sloping; small 
C)  upward-sloping; small 
D)  either downward or upward-sloping; small

Question 16

Along a straight line, when x equals 90, then y equals 30. When x equals 120, then y equals 40. The slope of the straight line is

Accepted Answer

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

Question 17

Which of the following is a positive statement?

Accepted Answer

A)  The United States should fight inflation even if it raises unemployment. 
B)  What to do with Social Security is the most important economic issue today. 
C)  A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice. 
D)  Because they decrease productivity, labor unions should be eliminated. 
A)  The United States should fight inflation even if it raises unemployment. 
B)  What to do with Social Security is the most important economic issue today. 
C)  A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice. 
D)  Because they decrease productivity, labor unions should be eliminated.

Question 18

The study of the decisions of individual units in the economy is known as

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  the study of incentives. 
D)  ceteris paribus study. 
A)  macroeconomics. 
B)  microeconomics. 
C)  the study of incentives. 
D)  ceteris paribus study.

Question 19

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

Accepted Answer

A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis. 
A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis.

Question 20

If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by

Accepted Answer

A)  an increase in the value of variable y. 
B)  a decrease in the value of variable y. 
C)  no change in the value of variable y. 
D)  variable y reaching its maximum value. 
A)  an increase in the value of variable y. 
B)  a decrease in the value of variable y. 
C)  no change in the value of variable y. 
D)  variable y reaching its maximum value.

In economics, the term "land" means

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

Economics is best defined as the science of choice and how people cope with

You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

Which of the following is a normative statement?

"As part of the financial crisis bailout plan in 2009, the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of

Which of the following statements is CORRECT?

Macroeconomic topics include

Studying the determination of prices in individual markets is primarily a concern of

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

-The above table gives data on two variables. If these data were graphed, their relationship would

Opportunity cost means the

A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is and the slope is .

Along a straight line, when x equals 90, then y equals 30. When x equals 120, then y equals 40. The slope of the straight line is

Which of the following is a positive statement?

The study of the decisions of individual units in the economy is known as

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by

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

In economics, the term "land" means

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

Economics is best defined as the science of choice and how people cope with

You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

Which of the following is a normative statement?

"As part of the financial crisis bailout plan in 2009, the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of

Which of the following statements is CORRECT?

Macroeconomic topics include

Studying the determination of prices in individual markets is primarily a concern of

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

-The above table gives data on two variables. If these data were graphed, their relationship would

Opportunity cost means the

A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is ________ and the slope is ________.

Along a straight line, when x equals 90, then y equals 30. When x equals 120, then y equals 40. The slope of the straight line is

Which of the following is a positive statement?

The study of the decisions of individual units in the economy is known as

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by

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

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is and the slope is .