Question 1

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

Accepted Answer

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

Question 2

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

Accepted Answer

A)  working and doing fix-up projects. 
B)  working or doing fix-up projects, depending on which you would have done otherwise. 
C)  working, because you would be giving up income. 
D)  nothing because you will enjoy the trip to Florida. 
A)  working and doing fix-up projects. 
B)  working or doing fix-up projects, depending on which you would have done otherwise. 
C)  working, because you would be giving up income. 
D)  nothing because you will enjoy the trip to Florida.

Question 3

"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is NOT a normative statement?

Accepted Answer

A)  People buy more of a good or service when its price falls. 
B)  The distribution of income is fair. 
C)  The government ought to provide health care to everyone. 
D)  Corporations should be more socially responsible. 
A)  People buy more of a good or service when its price falls. 
B)  The distribution of income is fair. 
C)  The government ought to provide health care to everyone. 
D)  Corporations should be more socially responsible.

Question 5

Entrepreneurs directly do all of the following except

Accepted Answer

A)  create new ideas about what and how to produce. 
B)  make business decisions. 
C)  face risks that arise from making business decisions. 
D)  decide for whom goods and services are produced. 
A)  create new ideas about what and how to produce. 
B)  make business decisions. 
C)  face risks that arise from making business decisions. 
D)  decide for whom goods and services are produced.

Question 6

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Accepted Answer

Positive statements are statements that

Question 7

Making a choice at the margin means

Accepted Answer

A)  letting someone else choose for you. 
B)  waiting until the last minute to make a choice. 
C)  deciding to do a little bit more or a little bit less of an activity. 
D)  making a choice by comparing the total benefit and the total cost. 
A)  letting someone else choose for you. 
B)  waiting until the last minute to make a choice. 
C)  deciding to do a little bit more or a little bit less of an activity. 
D)  making a choice by comparing the total benefit and the total cost.

Question 8

-In the above, which figure shows a line with a slope of 1.0?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B 
A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B

Question 9

-In the figure above, the value on the x-axis increases as we move from

Accepted Answer

A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A. 
A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A.

Question 10

The slope of a line

Accepted Answer

A)  can never equal zero. 
B)  is always a constant. 
C)  measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. 
D)  measures the value of the y-axis variable relative to the value of the x-axis variable. 
A)  can never equal zero. 
B)  is always a constant. 
C)  measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. 
D)  measures the value of the y-axis variable relative to the value of the x-axis variable.

Question 11

Scarcity affects only those who are in need.

Accepted Answer

A) True 
 B)False

Question 12

-In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 13

-If you study 3 hours for an exam, you can raise your score by 30 points. If you study for another 3 hours your score increases by 10 points. And if you study for another 3 hours, your score will increase by 5 more points. A graph displaying this relationship between the number of hours studied and your total exam score would show

Accepted Answer

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

Question 14

On the horizontal axis of a graph, generally

Accepted Answer

A)  values increase from left to right. 
B)  values increase from right to left. 
C)  values can be positive and/or negative. 
D)  Both answers A and C are correct. 
A)  values increase from left to right. 
B)  values increase from right to left. 
C)  values can be positive and/or negative. 
D)  Both answers A and C are correct.

Question 15

-If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

Accepted Answer

A)  always be an upward-sloping line. 
B)  have a minimum point. 
C)  have a maximum point. 
D)  always be a downward-sloping line. 
A)  always be an upward-sloping line. 
B)  have a minimum point. 
C)  have a maximum point. 
D)  always be a downward-sloping line.

Question 16

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

Accepted Answer

A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct. 
A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct.

Question 17

A natural resource, such as fishing territories, is considered an example of

Accepted Answer

A)  both land and labor. 
B)  land, labor, capital and entrepreneurship. 
C)  land only. 
D)  only capital. 
A)  both land and labor. 
B)  land, labor, capital and entrepreneurship. 
C)  land only. 
D)  only capital.

Question 18

Studying the effects choices have on the individual markets within the economy is part of

Accepted Answer

A)  scarcity. 
B)  microeconomics. 
C)  macroeconomics. 
D)  incentives. 
A)  scarcity. 
B)  microeconomics. 
C)  macroeconomics. 
D)  incentives.

Question 19

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment if he values the

Accepted Answer

A)  20 percentage points more than the 10 hours of his time. 
B)  10 hours of his time more than the 20 percentage points. 
C)  70 percentage points more than the 10 hours of his time. 
D)  higher score. 
A)  20 percentage points more than the 10 hours of his time. 
B)  10 hours of his time more than the 20 percentage points. 
C)  70 percentage points more than the 10 hours of his time. 
D)  higher score.

Question 20

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

Accepted Answer

A)  -3/5. 
B)  3/5. 
C)  5/3. 
D)  -5/3. 
A)  -3/5. 
B)  3/5. 
C)  5/3. 
D)  -5/3.

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

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant.

Which of the following is NOT a normative statement?

Entrepreneurs directly do all of the following except

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Making a choice at the margin means

-In the above, which figure shows a line with a slope of 1.0?

-In the figure above, the value on the x-axis increases as we move from

The slope of a line

Scarcity affects only those who are in need.

-In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

On the horizontal axis of a graph, generally

-If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

A natural resource, such as fishing territories, is considered an example of

Studying the effects choices have on the individual markets within the economy is part of

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment if he values the

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

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

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

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant.

Which of the following is NOT a normative statement?

Entrepreneurs directly do all of the following except

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Making a choice at the margin means

-In the above, which figure shows a line with a slope of 1.0?

-In the figure above, the value on the x-axis increases as we move from

The slope of a line

Scarcity affects only those who are in need.

-In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

On the horizontal axis of a graph, generally

-If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

A natural resource, such as fishing territories, is considered an example of

Studying the effects choices have on the individual markets within the economy is part of

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment if he values the

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

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