Question 1

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 2

-"If you hire 1 worker, the worker can produce 20 pizzas a day. If you hire a 2nd worker, that worker can produce 10 more pizzas. If you hire a 3rd worker, that worker can produce 2 more pizzas a day." A graph displaying this relationship between the number of employees and total pizza output per day would show

Accepted Answer

A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  a negatively-sloped curve that becomes less steep. 
A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  a negatively-sloped curve that becomes less steep.

Question 3

-In the figure above, when income equals $20,000, what does consumption equal?

Accepted Answer

A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell 
A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell

Question 4

-The figure above shows

Accepted Answer

A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  no relationship between the variables. 
A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  no relationship between the variables.

Question 5

-In the figure above, ceteris paribus, an increase in x is associated with

Accepted Answer

A)  an increase in y. 
B)  a decrease in y. 
C)  a decrease in z. 
D)  None of the above answers is correct. 
A)  an increase in y. 
B)  a decrease in y. 
C)  a decrease in z. 
D)  None of the above answers is correct.

Question 6

-The slope in the above figure is

Accepted Answer

A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing. 
A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing.

Question 7

Overtime worked by a JCPenney associate is considered ________ and earns ________.

Accepted Answer

A)  labor; wages 
B)  entrepreneurship; profit 
C)  human capital; interest 
D)  labor; profit 
A)  labor; wages 
B)  entrepreneurship; profit 
C)  human capital; interest 
D)  labor; profit

Question 8

Which of the following is NOT a factor of production?

Accepted Answer

A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock 
A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock

Question 9

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

Accepted Answer

A)  a horizontal line. 
B)  a vertical line. 
C)  a positively sloped line. 
D)  a negatively sloped line. 
A)  a horizontal line. 
B)  a vertical line. 
C)  a positively sloped line. 
D)  a negatively sloped line.

Question 10

If the change in the y-axis variable is 4 and the change in the x-axis variable is 2, the slope of this line is 1/2.

Accepted Answer

A) True 
 B)False

Question 11

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

Accepted Answer

A)  1 
B)  -1 
C)  2 
D)  3 
A)  1 
B)  -1 
C)  2 
D)  3

Question 12

The problem of "scarcity" applies

Accepted Answer

A)  only in industrially developed countries because resources are scarce in these countries. 
B)  only in underdeveloped countries because there are few productive resources in these countries. 
C)  only in economic systems that are just beginning to develop because specialized resources are scarce. 
D)  to all economic systems, regardless of their level of development. 
A)  only in industrially developed countries because resources are scarce in these countries. 
B)  only in underdeveloped countries because there are few productive resources in these countries. 
C)  only in economic systems that are just beginning to develop because specialized resources are scarce. 
D)  to all economic systems, regardless of their level of development.

Question 13

Economics is best defined as the study of how people, businesses, governments, and societies

Accepted Answer

A)  choose abundance over scarcity. 
B)  make choices to cope with scarcity. 
C)  use their infinite resources. 
D)  attain wealth. 
A)  choose abundance over scarcity. 
B)  make choices to cope with scarcity. 
C)  use their infinite resources. 
D)  attain wealth.

Question 14

-Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

Accepted Answer

A)  0.2. 
B)  0.4. 
C)  0.5. 
D)  2.5. 
A)  0.2. 
B)  0.4. 
C)  0.5. 
D)  2.5.

Question 15

If two points on a line are x = 2, y = 5 and x = 7, y = 10, what is the slope of this line?

Accepted Answer

The slope equals the change in

Question 16

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is

Accepted Answer

A)  a horizontal line. 
B)  a vertical line. 
C)  a curve with a maximum. 
D)  a positively-sloped line. 
A)  a horizontal line. 
B)  a vertical line. 
C)  a curve with a maximum. 
D)  a positively-sloped line.

Question 17

-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 18

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

Accepted Answer

A) True 
 B)False

Question 19

During the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000 and books and supplies cost $1,300. In terms of dollars, the opportunity cost of attending summer school is

Accepted Answer

A)  $10,300. 
B)  $6,000. 
C)  $4,300. 
D)  $3,300. 
A)  $10,300. 
B)  $6,000. 
C)  $4,300. 
D)  $3,300.

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

Marginal cost is the

-In the figure above, when income equals $20,000, what does consumption equal?

-The figure above shows

-In the figure above, ceteris paribus, an increase in x is associated with

-The slope in the above figure is

Overtime worked by a JCPenney associate is considered and earns .

Which of the following is NOT a factor of production?

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

If the change in the y-axis variable is 4 and the change in the x-axis variable is 2, the slope of this line is 1/2.

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

The problem of "scarcity" applies

Economics is best defined as the study of how people, businesses, governments, and societies

-Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

If two points on a line are x = 2, y = 5 and x = 7, y = 10, what is the slope of this line?

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is

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

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

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

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

Marginal cost is the

-In the figure above, when income equals $20,000, what does consumption equal?

-The figure above shows

-In the figure above, ceteris paribus, an increase in x is associated with

-The slope in the above figure is

Overtime worked by a JCPenney associate is considered ________ and earns ________.

Which of the following is NOT a factor of production?

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

If the change in the y-axis variable is 4 and the change in the x-axis variable is 2, the slope of this line is 1/2.

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

The problem of "scarcity" applies

Economics is best defined as the study of how people, businesses, governments, and societies

-Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

If two points on a line are x = 2, y = 5 and x = 7, y = 10, what is the slope of this line?

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is

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

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

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

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

Overtime worked by a JCPenney associate is considered and earns .