Question 1

-The data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies

Accepted Answer

A)  directly with their total household income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  negatively with their income. 
A)  directly with their total household income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  negatively with their income.

Question 2

As a firm expands its output, cost per unit of output (average cost) decreases and then increases. Average cost and output have

Accepted Answer

A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear positive relationship. 
A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear positive relationship.

Question 3

Macroeconomics is the study of aggregate variables such as national production and unemployment.

Accepted Answer

A) True 
 B)False

Question 4

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

Accepted Answer

A)  1/3. 
B)  1. 
C)  3. 
D)  6. 
A)  1/3. 
B)  1. 
C)  3. 
D)  6.

Question 5

Which of the following is an example of a positive statement?

Accepted Answer

A)  We should cut back on our use of carbon-based fuels such as coal and oil. 
B)  Increasing the minimum wage results in more unemployment. 
C)  Every American should have equal access to health care. 
D)  The Federal Reserve ought to cut the interest rate. 
A)  We should cut back on our use of carbon-based fuels such as coal and oil. 
B)  Increasing the minimum wage results in more unemployment. 
C)  Every American should have equal access to health care. 
D)  The Federal Reserve ought to cut the interest rate.

Question 6

When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "how" 
B)  "what" 
C)  "defense" 
D)  "for whom" 
A)  "how" 
B)  "what" 
C)  "defense" 
D)  "for whom"

Question 7

The formula for the slope across an arc is used to approximate the slope for

Accepted Answer

A)  linear relationships only. 
B)  a curved line. 
C)  a positive relationship only. 
D)  a negative relationship only. 
A)  linear relationships only. 
B)  a curved line. 
C)  a positive relationship only. 
D)  a negative relationship only.

Question 8

-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 9

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 greater than 1. This slope means that

Accepted Answer

A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y. 
A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y.

Question 10

Economists point out that scarcity confronts

Accepted Answer

A)  neither the poor nor the rich. 
B)  the poor but not the rich. 
C)  the rich but not the poor. 
D)  both the poor and the rich. 
A)  neither the poor nor the rich. 
B)  the poor but not the rich. 
C)  the rich but not the poor. 
D)  both the poor and the rich.

Question 11

When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing

Accepted Answer

A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  scarcity. 
D)  incentives. 
A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  scarcity. 
D)  incentives.

Question 12

All economic questions are about

Accepted Answer

A)  how to make money. 
B)  what to produce. 
C)  how to cope with scarcity. 
D)  how to satisfy all our wants. 
A)  how to make money. 
B)  what to produce. 
C)  how to cope with scarcity. 
D)  how to satisfy all our wants.

Question 13

What is the difference between scarcity and poverty?

Accepted Answer

Scarcity exists when availabil

Question 14

Which of the following is a normative statement?

Accepted Answer

A)  The unemployment rate is too high. 
B)  Forty percent of the public believes that the unemployment rate is too high. 
C)  The unemployment rate rose last month. 
D)  None of the above are normative statements. 
A)  The unemployment rate is too high. 
B)  Forty percent of the public believes that the unemployment rate is too high. 
C)  The unemployment rate rose last month. 
D)  None of the above are normative statements.

Question 15

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

Accepted Answer

The figure shows that there is a negativ

Question 16

A linear relationship

Accepted Answer

A)  always has a maximum. 
B)  always has a constant slope. 
C)  always slopes up to the right. 
D)  never has a constant slope. 
A)  always has a maximum. 
B)  always has a constant slope. 
C)  always slopes up to the right. 
D)  never has a constant slope.

Question 17

You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not go to work where you could have earned $750. In terms of dollars, the opportunity cost of the vacation is

Accepted Answer

A)  $2,000. 
B)  $750. 
C)  $2,750. 
D)  $1,250. 
A)  $2,000. 
B)  $750. 
C)  $2,750. 
D)  $1,250.

Question 18

As a curve approaches a maximum point, the slope will

Accepted Answer

A)  be positive, then negative after the maximum point. 
B)  be negative, then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
A)  be positive, then negative after the maximum point. 
B)  be negative, then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point.

Question 19

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "scarcity" 
B)  "what" 
C)  "why" 
D)  "how" 
A)  "scarcity" 
B)  "what" 
C)  "why" 
D)  "how"

Question 20

-The above table indicates that variables x and y are

Accepted Answer

A)  positively related. 
B)  inversely related. 
C)  negatively related. 
D)  not related. 
A)  positively related. 
B)  inversely related. 
C)  negatively related. 
D)  not related.

-The data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies

As a firm expands its output, cost per unit of output (average cost) decreases and then increases. Average cost and output have

Macroeconomics is the study of aggregate variables such as national production and unemployment.

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

Which of the following is an example of a positive statement?

When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions.

The formula for the slope across an arc is used to approximate the slope for

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

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 greater than 1. This slope means that

Economists point out that scarcity confronts

When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing

All economic questions are about

What is the difference between scarcity and poverty?

Which of the following is a normative statement?

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

A linear relationship

You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not go to work where you could have earned $750. In terms of dollars, the opportunity cost of the vacation is

As a curve approaches a maximum point, the slope will

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

-The above table indicates that variables x and y are

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 data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies

As a firm expands its output, cost per unit of output (average cost) decreases and then increases. Average cost and output have

Macroeconomics is the study of aggregate variables such as national production and unemployment.

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

Which of the following is an example of a positive statement?

When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions.

The formula for the slope across an arc is used to approximate the slope for

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

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 greater than 1. This slope means that

Economists point out that scarcity confronts

When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing

All economic questions are about

What is the difference between scarcity and poverty?

Which of the following is a normative statement?

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

A linear relationship

You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not go to work where you could have earned $750. In terms of dollars, the opportunity cost of the vacation is

As a curve approaches a maximum point, the slope will

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

-The above table indicates that variables x and y are

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