Question 1

If the slope of the relationship between savings and interest rates is 0.5, then

Accepted Answer

A)  savings and interest rates have a positive relationship. 
B)  savings and interest rates have a negative relationship. 
C)  savings and interest rates have no relationship. 
D)  savings and interest rates have an inverse relationship. 
A)  savings and interest rates have a positive relationship. 
B)  savings and interest rates have a negative relationship. 
C)  savings and interest rates have no relationship. 
D)  savings and interest rates have an inverse relationship.

Question 2

The Occupy Wall Street movement advocates

Accepted Answer

A)  a shift away from market capitalism. 
B)  a shift towards more market capitalism. 
C)  centrally planned socialism. 
D)  following the teachings of Adam Smith. 
A)  a shift away from market capitalism. 
B)  a shift towards more market capitalism. 
C)  centrally planned socialism. 
D)  following the teachings of Adam Smith.

Question 3

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

Accepted Answer

A) True 
 B)False

Question 4

In economics, the term "capital" refers to

Accepted Answer

A)  the money in one's pocket. 
B)  buildings and equipment. 
C)  mineral resources. 
D)  consumer goods. 
A)  the money in one's pocket. 
B)  buildings and equipment. 
C)  mineral resources. 
D)  consumer goods.

Question 5

Mark Zuckerberg believes everyone in the world should have Internet access.

Accepted Answer

A)  This is a positive statement and is not in the social interest if the marginal benefit of Internet access exceeds the marginal cost. 
B)  This is a positive statement and is not in the social interest if the marginal cost of Internet access exceeds the marginal benefit. 
C)  This is a normative statement and is not in the social interest if the marginal benefit of Internet access exceeds the marginal cost. 
D)  This is a normative statement and is not in the social interest if the marginal cost of Internet access exceeds the marginal benefit. 
A)  This is a positive statement and is not in the social interest if the marginal benefit of Internet access exceeds the marginal cost. 
B)  This is a positive statement and is not in the social interest if the marginal cost of Internet access exceeds the marginal benefit. 
C)  This is a normative statement and is not in the social interest if the marginal benefit of Internet access exceeds the marginal cost. 
D)  This is a normative statement and is not in the social interest if the marginal cost of Internet access exceeds the marginal benefit.

Question 6

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

Accepted Answer

A)  negative relationship 
B)  positive relationship 
C)  no relationship 
D)  maximum relationship 
A)  negative relationship 
B)  positive relationship 
C)  no relationship 
D)  maximum relationship

Question 7

Which of the following is a positive statement?

Accepted Answer

A)  An unemployment rate of 9 percent is a national disgrace. 
B)  Unemployment is a more important problem than inflation. 
C)  When the national unemployment rate is 9 percent, the unemployment rate for inner-city youth is often close to 40 percent. 
D)  Unemployment and inflation are equally important problems. 
A)  An unemployment rate of 9 percent is a national disgrace. 
B)  Unemployment is a more important problem than inflation. 
C)  When the national unemployment rate is 9 percent, the unemployment rate for inner-city youth is often close to 40 percent. 
D)  Unemployment and inflation are equally important problems.

Question 8

A positive statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts. 
A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts.

Question 9

If a curve falls and then rises, it shows

Accepted Answer

A)  a maximum. 
B)  a minimum. 
C)  a linear relationship. 
D)  a constant slope relationship. 
A)  a maximum. 
B)  a minimum. 
C)  a linear relationship. 
D)  a constant slope relationship.

Question 10

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is positive and is less than 1. This slope means that a change in x is associated with

Accepted Answer

A)  a bigger change in y. 
B)  a smaller change in y. 
C)  no change in y. 
D)  an equal change in y. 
A)  a bigger change in y. 
B)  a smaller change in y. 
C)  no change in y. 
D)  an equal change in y.

Question 11

-The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

Accepted Answer

A)  strongly positively related. 
B)  strongly negatively related. 
C)  not related. 
D)  related via an indirect relationship. 
A)  strongly positively related. 
B)  strongly negatively related. 
C)  not related. 
D)  related via an indirect relationship.

Question 12

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

Accepted Answer

A)  a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. 
B)  an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. 
C)  the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. 
D)  the variable measured along the x-axis and the variable measured along the y-axis move in the same direction. 
A)  a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. 
B)  an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. 
C)  the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. 
D)  the variable measured along the x-axis and the variable measured along the y-axis move in the same direction.

Question 13

When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "when" 
B)  "for whom" 
C)  "what" 
D)  "where" 
A)  "when" 
B)  "for whom" 
C)  "what" 
D)  "where"

Question 14

An outcome is considered efficient if

Accepted Answer

A)  it is not possible to make someone better off without making anyone else worse off. 
B)  it is the best available choice for an individual. 
C)  it results in fair shares for everyone involved. 
D)  it is possible to make someone better off without making anyone else worse off. 
A)  it is not possible to make someone better off without making anyone else worse off. 
B)  it is the best available choice for an individual. 
C)  it results in fair shares for everyone involved. 
D)  it is possible to make someone better off without making anyone else worse off.

Question 15

-Based on the information in the table above, what is the relationship between x and y?

Accepted Answer

A)  direct 
B)  inverse 
C)  positive 
D)  No relationship exists between x and y. 
A)  direct 
B)  inverse 
C)  positive 
D)  No relationship exists between x and y.

Question 16

-The figure above shows that in 1996, unemployment was equal to about ________ and the inflation rate was equal to about ________.

Accepted Answer

A)  7.0 percent; 3.0 percent 
B)  3.0 percent; 5.5 percent 
C)  5.5 percent; 3.0 percent 
D)  6.0 percent; 4.0 percent 
A)  7.0 percent; 3.0 percent 
B)  3.0 percent; 5.5 percent 
C)  5.5 percent; 3.0 percent 
D)  6.0 percent; 4.0 percent

Question 17

Which of the following best defines capital as a factor of production?

Accepted Answer

A)  the gifts of nature that businesses use to produce goods and services 
B)  the knowledge and skills that people obtain from education and use in production of goods and services 
C)  financial assets used by businesses 
D)  instruments, machines, and buildings used in production 
A)  the gifts of nature that businesses use to produce goods and services 
B)  the knowledge and skills that people obtain from education and use in production of goods and services 
C)  financial assets used by businesses 
D)  instruments, machines, and buildings used in production

Question 18

-In the above figure, a negative relationship is demonstrated in which of the graphs?

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 19

-In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue

Accepted Answer

A)  decreases. 
B)  is constant. 
C)  increases. 
D)  may increase or decrease. 
A)  decreases. 
B)  is constant. 
C)  increases. 
D)  may increase or decrease.

Question 20

If two variables are unrelated, a scatter diagram of those variables will

Accepted Answer

A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope. 
A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope.

If the slope of the relationship between savings and interest rates is 0.5, then

The Occupy Wall Street movement advocates

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

In economics, the term "capital" refers to

Mark Zuckerberg believes everyone in the world should have Internet access.

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

Which of the following is a positive statement?

A positive statement is

If a curve falls and then rises, it shows

-The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions.

An outcome is considered efficient if

-Based on the information in the table above, what is the relationship between x and y?

-The figure above shows that in 1996, unemployment was equal to about and the inflation rate was equal to about .

Which of the following best defines capital as a factor of production?

-In the above figure, a negative relationship is demonstrated in which of the graphs?

-In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue

If two variables are unrelated, a scatter diagram of those variables will

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

If the slope of the relationship between savings and interest rates is 0.5, then

The Occupy Wall Street movement advocates

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

In economics, the term "capital" refers to

Mark Zuckerberg believes everyone in the world should have Internet access.

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

Which of the following is a positive statement?

A positive statement is

If a curve falls and then rises, it shows

-The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions.

An outcome is considered efficient if

-Based on the information in the table above, what is the relationship between x and y?

-The figure above shows that in 1996, unemployment was equal to about ________ and the inflation rate was equal to about ________.

Which of the following best defines capital as a factor of production?

-In the above figure, a negative relationship is demonstrated in which of the graphs?

-In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue

If two variables are unrelated, a scatter diagram of those variables will

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

-The figure above shows that in 1996, unemployment was equal to about and the inflation rate was equal to about .