Question 1

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.

Question 2

When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 3

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

Accepted Answer

A)  perpendicular line. 
B)  line with slope equal to zero. 
C)  line that has positive slope. 
D)  line that has a negative slope. 
A)  perpendicular line. 
B)  line with slope equal to zero. 
C)  line that has positive slope. 
D)  line that has a negative slope.

Question 4

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

Accepted Answer

A)  the change in price multiplied by the change in quantity. 
B)  the change in price divided by the change in quantity. 
C)  the change in quantity divided by the change in price. 
D)  price divided by quantity. 
A)  the change in price multiplied by the change in quantity. 
B)  the change in price divided by the change in quantity. 
C)  the change in quantity divided by the change in price. 
D)  price divided by quantity.

Question 5

What is the difference between positive and normative statements?

Accepted Answer

Positive statements tell what is and nor

Question 6

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

Accepted Answer

A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class. 
A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class.

Question 7

Which of the following are considered factors of production used to produce goods and services? I. Land
II) Labor
III) Capital
IV) Entrepreneurship

Accepted Answer

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

Question 8

-In the above table, when x increases from 4 units to 6 units, y changes by ________ units.

Accepted Answer

A)  2 
B)  -2 
C)  6 
D)  -6 
A)  2 
B)  -2 
C)  6 
D)  -6

Question 9

In economics, normative statements are about

Accepted Answer

A)  the way things ought to be. 
B)  the way things are. 
C)  marginal benefits, not marginal costs. 
D)  marginal costs, not marginal benefits. 
A)  the way things ought to be. 
B)  the way things are. 
C)  marginal benefits, not marginal costs. 
D)  marginal costs, not marginal benefits.

Question 10

Which of the following are TRUE regarding "positive" statements? I. They describe what "ought to be."
II) They describe what is believed about how the world appears.
III) They can be tested as to their accuracy.

Accepted Answer

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

Question 11

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

Accepted Answer

A)  -1 3/8. 
B)  -1 2/3. 
C)  5/8. 
D)  -0.625. 
A)  -1 3/8. 
B)  -1 2/3. 
C)  5/8. 
D)  -0.625.

Question 12

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 13

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

Accepted Answer

A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5. 
A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5.

Question 14

The United States produces more services than goods.

Accepted Answer

A) True 
 B)False

Question 15

If the x-axis variable increases while the y-axis variable decreases, the variables x and y are negatively related.

Accepted Answer

A) True 
 B)False

Question 16

The relationship between two variables, x and y, is a vertical line. Thus x and y are

Accepted Answer

A)  positively correlated. 
B)  negatively correlated. 
C)  not related. 
D)  falsely related. 
A)  positively correlated. 
B)  negatively correlated. 
C)  not related. 
D)  falsely related.

Question 17

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 18

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 19

Differences in income are most directly related to which of the following economic question?

Accepted Answer

A)  What goods and services are produced? 
B)  In what quantities are various goods and services produced? 
C)  How are goods and services produced? 
D)  Who consumes the goods and services that are produced? 
A)  What goods and services are produced? 
B)  In what quantities are various goods and services produced? 
C)  How are goods and services produced? 
D)  Who consumes the goods and services that are produced?

Question 20

The job that involves studying trends and fluctuations in interest rates and stock and bond prices and trying to predict the cost of borrowing and the returns on investments is a

Accepted Answer

A)  market research analyst. 
B)  financial analyst. 
C)  budget analyst. 
D)  government analyst. 
A)  market research analyst. 
B)  financial analyst. 
C)  budget analyst. 
D)  government analyst.

Market research analysts

When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the ________ part of one of the two big economic questions.

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

What is the difference between positive and normative statements?

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

Which of the following are considered factors of production used to produce goods and services? I. Land II) Labor III) Capital IV) Entrepreneurship

-In the above table, when x increases from 4 units to 6 units, y changes by ________ units.

In economics, normative statements are about

Which of the following are TRUE regarding "positive" statements? I. They describe what "ought to be." II) They describe what is believed about how the world appears. III) They can be tested as to their accuracy.

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

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

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

The United States produces more services than goods.

If the x-axis variable increases while the y-axis variable decreases, the variables x and y are negatively related.

The relationship between two variables, x and y, is a vertical line. Thus x and y are

Positive economic statements

Macroeconomic topics include

Differences in income are most directly related to which of the following economic question?

The job that involves studying trends and fluctuations in interest rates and stock and bond prices and trying to predict the cost of borrowing and the returns on investments is a

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 1: What Is Economics

Market research analysts

When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the ________ part of one of the two big economic questions.

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

What is the difference between positive and normative statements?

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

Which of the following are considered factors of production used to produce goods and services? I. Land II) Labor III) Capital IV) Entrepreneurship

-In the above table, when x increases from 4 units to 6 units, y changes by ________ units.

In economics, normative statements are about

Which of the following are TRUE regarding "positive" statements? I. They describe what "ought to be." II) They describe what is believed about how the world appears. III) They can be tested as to their accuracy.

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

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

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

The United States produces more services than goods.

If the x-axis variable increases while the y-axis variable decreases, the variables x and y are negatively related.

The relationship between two variables, x and y, is a vertical line. Thus x and y are

Positive economic statements

Macroeconomic topics include

Differences in income are most directly related to which of the following economic question?

The job that involves studying trends and fluctuations in interest rates and stock and bond prices and trying to predict the cost of borrowing and the returns on investments is a

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters