Question 1

-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 2

-Using the above figure, which of the following is TRUE?

Accepted Answer

A)  Axis 1 is typically called the y-axis. 
B)  Axis 1 is also known as the origin. 
C)  Axis 2 is typically called the x-axis. 
D)  Point b is known as the origin. 
A)  Axis 1 is typically called the y-axis. 
B)  Axis 1 is also known as the origin. 
C)  Axis 2 is typically called the x-axis. 
D)  Point b is known as the origin.

Question 3

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

Accepted Answer

A)  a positive statement. 
B)  the Federal Reserve taking actions that are not at the margin. 
C)  opportunity costs. 
D)  a normative statement. 
A)  a positive statement. 
B)  the Federal Reserve taking actions that are not at the margin. 
C)  opportunity costs. 
D)  a normative statement.

Question 4

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

Accepted Answer

Essentially microeconomics studies indiv

Question 5

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this roommate's comment correct?

Accepted Answer

Your first roommate's comment is incorre

Question 6

In broad terms the difference between microeconomics and macroeconomics is that

Accepted Answer

A)  they use different sets of tools and ideas. 
B)  microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. 
C)  macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. 
D)  microeconomics studies the effects of government taxes on the national unemployment rate. 
A)  they use different sets of tools and ideas. 
B)  microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. 
C)  macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. 
D)  microeconomics studies the effects of government taxes on the national unemployment rate.

Question 7

The slope of a straight line increases as the numbers on the x-axis become larger.

Accepted Answer

A) True 
 B)False

Question 8

In which of the following cases is the slope of a line positive and less than infinity?

Accepted Answer

A)  As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. 
B)  As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. 
C)  As the variable measured on the y-axis increases, the variable measured on the x-axis does not change. 
D)  As the variable measured on the y-axis increases, the variable measured on the x-axis decreases. 
A)  As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. 
B)  As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. 
C)  As the variable measured on the y-axis increases, the variable measured on the x-axis does not change. 
D)  As the variable measured on the y-axis increases, the variable measured on the x-axis decreases.

Question 9

Copper falls into which factor of production category?

Accepted Answer

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

Question 10

-In the figure above, the value on the y-axis decreases 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 11

Define marginal cost and marginal benefit.

Accepted Answer

Marginal cost is the opportuni

Question 12

-The relationship between income and consumption illustrated in the figure above is

Accepted Answer

A)  positive and linear. 
B)  positive and nonlinear. 
C)  negative and linear. 
D)  negative and nonlinear. 
A)  positive and linear. 
B)  positive and nonlinear. 
C)  negative and linear. 
D)  negative and nonlinear.

Question 13

The statement "Unemployment should be below 6 percent" is

Accepted Answer

A)  a positive statement. 
B)  a normative statement. 
C)  a prediction. 
D)  an assumption. 
A)  a positive statement. 
B)  a normative statement. 
C)  a prediction. 
D)  an assumption.

Question 14

A cross-section graph can show how economic variables for different groups of people vary over time.

Accepted Answer

A) True 
 B)False

Question 15

Economics is the study of

Accepted Answer

A)  the distribution of surplus goods to those in need. 
B)  affluence in a morally bankrupt world. 
C)  the choices we make because of scarcity. 
D)  ways to reduce wants to eliminate the problem of scarcity. 
A)  the distribution of surplus goods to those in need. 
B)  affluence in a morally bankrupt world. 
C)  the choices we make because of scarcity. 
D)  ways to reduce wants to eliminate the problem of scarcity.

Question 16

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

Accepted Answer

A)  1. 
B)  -4. 
C)  1/4. 
D)  -1/4. 
A)  1. 
B)  -4. 
C)  1/4. 
D)  -1/4.

Question 17

To graph a relationship among several variables, we hold all but ________ variable(s) constant and use the ________ assumption.

Accepted Answer

A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; marginal benefit 
D)  one; ceteris paribus 
A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; marginal benefit 
D)  one; ceteris paribus

Question 18

-What does the slope of the curved line at point A shown in the above figure equal?

Accepted Answer

The slope of a curved line equals the sl

Question 19

The statement that "peach ice cream is better than chocolate ice cream"

Accepted Answer

A)  can be tested using the scientific approach. 
B)  is a normative statement. 
C)  is a positive statement. 
D)  provides a basis for predicting which type of ice cream will exhibit the most sales. 
A)  can be tested using the scientific approach. 
B)  is a normative statement. 
C)  is a positive statement. 
D)  provides a basis for predicting which type of ice cream will exhibit the most sales.

Question 20

The largest part of what the United States produces today is ________ such as ________.

Accepted Answer

A)  goods; food and electronic equipment 
B)  goods; education and entertainment 
C)  services; trade and health care 
D)  services; textbooks and computers 
A)  goods; food and electronic equipment 
B)  goods; education and entertainment 
C)  services; trade and health care 
D)  services; textbooks and computers

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

-Using the above figure, which of the following is TRUE?

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

In broad terms the difference between microeconomics and macroeconomics is that

The slope of a straight line increases as the numbers on the x-axis become larger.

In which of the following cases is the slope of a line positive and less than infinity?

Copper falls into which factor of production category?

-In the figure above, the value on the y-axis decreases as we move from

Define marginal cost and marginal benefit.

-The relationship between income and consumption illustrated in the figure above is

The statement "Unemployment should be below 6 percent" is

A cross-section graph can show how economic variables for different groups of people vary over time.

Economics is the study of

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

To graph a relationship among several variables, we hold all but variable(s) constant and use the assumption.

-What does the slope of the curved line at point A shown in the above figure equal?

The statement that "peach ice cream is better than chocolate ice cream"

The largest part of what the United States produces today is such as .

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

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

-Using the above figure, which of the following is TRUE?

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

In broad terms the difference between microeconomics and macroeconomics is that

The slope of a straight line increases as the numbers on the x-axis become larger.

In which of the following cases is the slope of a line positive and less than infinity?

Copper falls into which factor of production category?

-In the figure above, the value on the y-axis decreases as we move from

Define marginal cost and marginal benefit.

-The relationship between income and consumption illustrated in the figure above is

The statement "Unemployment should be below 6 percent" is

A cross-section graph can show how economic variables for different groups of people vary over time.

Economics is the study of

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

To graph a relationship among several variables, we hold all but ________ variable(s) constant and use the ________ assumption.

-What does the slope of the curved line at point A shown in the above figure equal?

The statement that "peach ice cream is better than chocolate ice cream"

The largest part of what the United States produces today is ________ such as ________.

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

To graph a relationship among several variables, we hold all but variable(s) constant and use the assumption.

The largest part of what the United States produces today is such as .