Question 1

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

Accepted Answer

A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
C)  means that changes in either variable must cause changes in the other variable. 
D)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis. 
A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
C)  means that changes in either variable must cause changes in the other variable. 
D)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis.

Question 2

Which of the following is a normative statement?

Accepted Answer

A)  Low rents will restrict the supply of housing. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs are rising. 
D)  Owners of apartment buildings are free to charge whatever rent they want. 
A)  Low rents will restrict the supply of housing. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs are rising. 
D)  Owners of apartment buildings are free to charge whatever rent they want.

Question 3

-In the above figure, the slope at point b is

Accepted Answer

A)  1. 
B)  5/2. 
C)  between 1 and 5/2. 
D)  greater than 5/2. 
A)  1. 
B)  5/2. 
C)  between 1 and 5/2. 
D)  greater than 5/2.

Question 4

In economics we learn that

Accepted Answer

A)  tradeoffs allow us to have more of everything we value. 
B)  tradeoffs allow us to avoid the problem of opportunity cost. 
C)  opportunity costs are all of the possible alternatives given up when we make a choice. 
D)  None of the above answers is correct. 
A)  tradeoffs allow us to have more of everything we value. 
B)  tradeoffs allow us to avoid the problem of opportunity cost. 
C)  opportunity costs are all of the possible alternatives given up when we make a choice. 
D)  None of the above answers is correct.

Question 5

The branch of economics that deals with the analysis of the whole economy is called

Accepted Answer

A)  macroeconomics. 
B)  marginal analysis. 
C)  microeconomics. 
D)  metroanalysis. 
A)  macroeconomics. 
B)  marginal analysis. 
C)  microeconomics. 
D)  metroanalysis.

Question 6

The "gifts of nature" are included as part of which factor of production?

Accepted Answer

A)  labor 
B)  land 
C)  capital 
D)  entrepreneurship 
A)  labor 
B)  land 
C)  capital 
D)  entrepreneurship

Question 7

An inducement to take a particular action is called

Accepted Answer

A)  the marginal benefit. 
B)  the marginal cost. 
C)  opportunity cost. 
D)  an incentive. 
A)  the marginal benefit. 
B)  the marginal cost. 
C)  opportunity cost. 
D)  an incentive.

Question 8

A curve is plotted with y measured on the vertical axis and x measured on the horizontal axis. The slope of the curve equals

Accepted Answer

A)  y divided by x. 
B)  the change in y divided by x. 
C)  the change in y divided by the change in x. 
D)  y divided by the change in x. 
A)  y divided by x. 
B)  the change in y divided by x. 
C)  the change in y divided by the change in x. 
D)  y divided by the change in x.

Question 9

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

Accepted Answer

A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above. 
A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above.

Question 10

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is

Accepted Answer

A)  -25. 
B)  4. 
C)  0.25. 
D)  -0.25. 
A)  -25. 
B)  4. 
C)  0.25. 
D)  -0.25.

Question 11

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 12

If there is an inverse relationship between two variables, the graph of this relationship

Accepted Answer

A)  will be a horizontal line. 
B)  will be downward-sloping. 
C)  might be horizontal. 
D)  will be upward-sloping. 
A)  will be a horizontal line. 
B)  will be downward-sloping. 
C)  might be horizontal. 
D)  will be upward-sloping.

Question 13

Opportunity cost is defined as the

Accepted Answer

A)  total value of all the alternatives given up. 
B)  highest-valued alternative given up. 
C)  cost of not doing all of the things you would like to do. 
D)  lowest-valued alternative given up. 
A)  total value of all the alternatives given up. 
B)  highest-valued alternative given up. 
C)  cost of not doing all of the things you would like to do. 
D)  lowest-valued alternative given up.

Question 14

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 15

-The slope of the line in the above figure is

Accepted Answer

A)  1/2 = 0.5. 
B)  2. 
C)  -1/2 = -0.5. 
D)  -2. 
A)  1/2 = 0.5. 
B)  2. 
C)  -1/2 = -0.5. 
D)  -2.

Question 16

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

Accepted Answer

A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected. 
A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected.

Question 17

-In the above figure, a negative relationship between price and quantity is shown in

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 18

-Using the information in the table above, what does the slope of the line between x and y equal?

Accepted Answer

A)  5 
B)  -0.5 
C)  2 
D)  -2 
A)  5 
B)  -0.5 
C)  2 
D)  -2

Question 19

Which of the following questions is NOT a microeconomic question?

Accepted Answer

A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services? 
A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services?

Question 20

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

Accepted Answer

A)  upward and be linear. 
B)  upward and may be linear or nonlinear. 
C)  downward and be linear. 
D)  downward and may be linear or nonlinear. 
A)  upward and be linear. 
B)  upward and may be linear or nonlinear. 
C)  downward and be linear. 
D)  downward and may be linear or nonlinear.

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

Which of the following is a normative statement?

-In the above figure, the slope at point b is

In economics we learn that

The branch of economics that deals with the analysis of the whole economy is called

The "gifts of nature" are included as part of which factor of production?

An inducement to take a particular action is called

A curve is plotted with y measured on the vertical axis and x measured on the horizontal axis. The slope of the curve equals

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is

-What does the slope of the line shown in the above figure equal?

If there is an inverse relationship between two variables, the graph of this relationship

Opportunity cost is defined as the

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions.

-The slope of the line in the above figure is

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

-In the above figure, a negative relationship between price and quantity is shown in

-Using the information in the table above, what does the slope of the line between x and y equal?

Which of the following questions is NOT a microeconomic question?

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

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

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

Which of the following is a normative statement?

-In the above figure, the slope at point b is

In economics we learn that

The branch of economics that deals with the analysis of the whole economy is called

The "gifts of nature" are included as part of which factor of production?

An inducement to take a particular action is called

A curve is plotted with y measured on the vertical axis and x measured on the horizontal axis. The slope of the curve equals

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is

-What does the slope of the line shown in the above figure equal?

If there is an inverse relationship between two variables, the graph of this relationship

Opportunity cost is defined as the

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions.

-The slope of the line in the above figure is

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

-In the above figure, a negative relationship between price and quantity is shown in

-Using the information in the table above, what does the slope of the line between x and y equal?

Which of the following questions is NOT a microeconomic question?

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

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