Question 1

A positive relationship exists between two variables if

Accepted Answer

A)  one variable has "positively" no effect on the other variable. 
B)  a reduction in one variable is associated with an increase in the other variable. 
C)  a reduction in one variable is associated with a decrease in the other variable. 
D)  both variables are inflation-distorted. 
A)  one variable has "positively" no effect on the other variable. 
B)  a reduction in one variable is associated with an increase in the other variable. 
C)  a reduction in one variable is associated with a decrease in the other variable. 
D)  both variables are inflation-distorted.

Question 2

The slope of a line equals the

Accepted Answer

A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis. 
A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis.

Question 3

A graph cannot be used to show that two variables are unrelated.

Accepted Answer

A) True 
 B)False

Question 4

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

Accepted Answer

A)  -1. 
B)  0. 
C)  1. 
D)  infinite. 
A)  -1. 
B)  0. 
C)  1. 
D)  infinite.

Question 5

Which of the following is a macroeconomic issue?

Accepted Answer

A)  the purchasing decisions that an individual consumer makes 
B)  the effect of increasing the money supply on inflation 
C)  the hiring decisions that a business makes 
D)  the effect of an increase in the tax on cigarettes on cigarette sales 
A)  the purchasing decisions that an individual consumer makes 
B)  the effect of increasing the money supply on inflation 
C)  the hiring decisions that a business makes 
D)  the effect of an increase in the tax on cigarettes on cigarette sales

Question 6

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

Accepted Answer

A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive.

Question 7

-"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

Accepted Answer

A)  a negative slope. 
B)  a positive relationship. 
C)  a direct relationship. 
D)  a horizontal line. 
A)  a negative slope. 
B)  a positive relationship. 
C)  a direct relationship. 
D)  a horizontal line.

Question 8

Which of the following is CORRECT? Factors of production are

Accepted Answer

A)  land, labor, the price system, and capital. 
B)  the inputs used to produce goods and services. 
C)  the fundamental source of abundance. 
D)  only land and labor. 
A)  land, labor, the price system, and capital. 
B)  the inputs used to produce goods and services. 
C)  the fundamental source of abundance. 
D)  only land and labor.

Question 9

If a curve rises and then falls, it shows a

Accepted Answer

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

Question 10

-In the figure above, what can you deduce about the slope of the curve?

Accepted Answer

The slope is positiv

Question 11

When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy.

Accepted Answer

A) True 
 B)False

Question 12

-In the above figure, the curve has a slope that is

Accepted Answer

A)  positive and becoming larger in magnitude. 
B)  positive and becoming smaller in magnitude. 
C)  negative and becoming larger in magnitude. 
D)  negative and becoming smaller in magnitude. 
A)  positive and becoming larger in magnitude. 
B)  positive and becoming smaller in magnitude. 
C)  negative and becoming larger in magnitude. 
D)  negative and becoming smaller in magnitude.

Question 13

-Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

Accepted Answer

A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope. 
A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope.

Question 14

-In the above figure, the relationship between costs and quantity is negative

Accepted Answer

A)  between point A and point B. 
B)  between point B and point C. 
C)  along the entire curve. 
D)  nowhere along the curve. 
A)  between point A and point B. 
B)  between point B and point C. 
C)  along the entire curve. 
D)  nowhere along the curve.

Question 15

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 16

The opportunity cost of something you decide to get is

Accepted Answer

A)  all the possible alternatives that you give up to get it. 
B)  the highest valued alternative you give up to get it. 
C)  the value of the item minus the cost you paid for it. 
D)  the amount of money you pay to get it. 
A)  all the possible alternatives that you give up to get it. 
B)  the highest valued alternative you give up to get it. 
C)  the value of the item minus the cost you paid for it. 
D)  the amount of money you pay to get it.

Question 17

-As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

Accepted Answer

A)  that is a horizontal line. 
B)  that is a vertical line. 
C)  showing a positive relationship. 
D)  None of the above answers are correct. 
A)  that is a horizontal line. 
B)  that is a vertical line. 
C)  showing a positive relationship. 
D)  None of the above answers are correct.

Question 18

Which of the following is NOT a factor of production?

Accepted Answer

A)  vans used by a bakery company for deliveries 
B)  a person developing a production schedule for a new product 
C)  175 shares of Microsoft stock 
D)  wilderness areas that have yet to be developed 
A)  vans used by a bakery company for deliveries 
B)  a person developing a production schedule for a new product 
C)  175 shares of Microsoft stock 
D)  wilderness areas that have yet to be developed

Question 19

-In the above figure, the relationship between income and expenditures is

Accepted Answer

A)  positive. 
B)  negative. 
C)  independent. 
D)  random. 
A)  positive. 
B)  negative. 
C)  independent. 
D)  random.

Question 20

The term human capital refers to

Accepted Answer

A)  labor resources used to make capital equipment. 
B)  buildings and machinery. 
C)  people's knowledge and skill. 
D)  entrepreneurship and risk-taking. 
A)  labor resources used to make capital equipment. 
B)  buildings and machinery. 
C)  people's knowledge and skill. 
D)  entrepreneurship and risk-taking.

A positive relationship exists between two variables if

The slope of a line equals the

A graph cannot be used to show that two variables are unrelated.

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

Which of the following is a macroeconomic issue?

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

-"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

Which of the following is CORRECT? Factors of production are

If a curve rises and then falls, it shows a

-In the figure above, what can you deduce about the slope of the curve?

When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy.

-In the above figure, the curve has a slope that is

-Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

-In the above figure, the relationship between costs and quantity is negative

Define economics and describe its branches of study.

The opportunity cost of something you decide to get is

-As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

Which of the following is NOT a factor of production?

-In the above figure, the relationship between income and expenditures is

The term human capital refers to

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 positive relationship exists between two variables if

The slope of a line equals the

A graph cannot be used to show that two variables are unrelated.

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

Which of the following is a macroeconomic issue?

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

-"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

Which of the following is CORRECT? Factors of production are

If a curve rises and then falls, it shows a

-In the figure above, what can you deduce about the slope of the curve?

When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy.

-In the above figure, the curve has a slope that is

-Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

-In the above figure, the relationship between costs and quantity is negative

Define economics and describe its branches of study.

The opportunity cost of something you decide to get is

-As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

Which of the following is NOT a factor of production?

-In the above figure, the relationship between income and expenditures is

The term human capital refers to

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