Question 1

What kind of information is conveyed in a time-series graph?

Accepted Answer

A time series graph reveals four types o

Question 2

A slope is measured as the

Accepted Answer

A)  value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B)  value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C)  change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D)  value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E)  value of the variable measured on the x-axis minus the value of the variable measured on the y-axis. 
A)  value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B)  value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C)  change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D)  value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E)  value of the variable measured on the x-axis minus the value of the variable measured on the y-axis.

Question 3

Which of the following is NOT a normative economic statement?

Accepted Answer

A)  States should reduce the tax on heating fuel oil during the winter. 
B)  People over the age of 75 should not be allowed to drive cars. 
C)  Teenagers are responsible for most driving fatalities. 
D)  We don't spend enough money on anti-smoking campaigns. 
E)  The price of gasoline is too high. 
A)  States should reduce the tax on heating fuel oil during the winter. 
B)  People over the age of 75 should not be allowed to drive cars. 
C)  Teenagers are responsible for most driving fatalities. 
D)  We don't spend enough money on anti-smoking campaigns. 
E)  The price of gasoline is too high.

Question 4

"The change in the value of the variable measured on the y-axis divided by the change in the value of the variable measured on the x-axis" is the definition of

Accepted Answer

A)  a graph. 
B)  slope. 
C)  a curve. 
D)  a relationship. 
E)  a trend. 
A)  a graph. 
B)  slope. 
C)  a curve. 
D)  a relationship. 
E)  a trend.

Question 5

The question "Should we produce houses using bricks or wood?" is an example of a ________ question.

Accepted Answer

A)  what 
B)  how 
C)  for whom 
D)  where 
E)  why 
A)  what 
B)  how 
C)  for whom 
D)  where 
E)  why

Question 6

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

Accepted Answer

A)  His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
B)  The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
C)  He loses a total of $120 per day, so his decision is irrational. 
D)  Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
E)  Adam is definitely making a decision that is in the social interest. 
A)  His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
B)  The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
C)  He loses a total of $120 per day, so his decision is irrational. 
D)  Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
E)  Adam is definitely making a decision that is in the social interest.

Question 7

-In the diagram above,which figure(s)show(s)a direct relationship between the variables?

Accepted Answer

A)  both B and C 
B)  both A and C 
C)  only A 
D)  only D 
E)  only B 
A)  both B and C 
B)  both A and C 
C)  only A 
D)  only D 
E)  only B

Question 8

A scatter diagram can be used to see

Accepted Answer

A)  if the value of a variable is rising or falling. 
B)  the value of a variable for different groups in a population. 
C)  if a relationship exists between two variables. 
D)  how a variable behaves over time. 
E)  whether a variable is positively or negatively related to itself. 
A)  if the value of a variable is rising or falling. 
B)  the value of a variable for different groups in a population. 
C)  if a relationship exists between two variables. 
D)  how a variable behaves over time. 
E)  whether a variable is positively or negatively related to itself.

Question 9

To graph a relationship that involves more than two variables,we use

Accepted Answer

A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  ceteris paribus. 
E)  movement up along one of the lines showing the relationship between x and y. 
A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  ceteris paribus. 
E)  movement up along one of the lines showing the relationship between x and y.

Question 10

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

Accepted Answer

A)  normative statement. 
B)  positive statement. 
C)  macroeconomic statement. 
D)  rational-decision statement. 
E)  marginal statement. 
A)  normative statement. 
B)  positive statement. 
C)  macroeconomic statement. 
D)  rational-decision statement. 
E)  marginal statement.

Question 11

What is an opportunity cost? Give an example.

Accepted Answer

An opportunity cost of something is the

Question 12

-The graph shows a

Accepted Answer

A)  positive relationship that becomes steeper. 
B)  negative relationship that becomes steeper. 
C)  positive relationship that becomes less steep. 
D)  negative relationship that become less steep. 
E)  negative trend between the total cost of a cake and the output of cakes. 
A)  positive relationship that becomes steeper. 
B)  negative relationship that becomes steeper. 
C)  positive relationship that becomes less steep. 
D)  negative relationship that become less steep. 
E)  negative trend between the total cost of a cake and the output of cakes.

Question 13

A straight line falls when moving rightward along it.Hence the slope of the line is

Accepted Answer

A)  positive. 
B)  negative. 
C)  undefined. 
D)  zero because it is a straight line. 
E)  perhaps positive, negative, or zero, but without more information it is impossible to determine. 
A)  positive. 
B)  negative. 
C)  undefined. 
D)  zero because it is a straight line. 
E)  perhaps positive, negative, or zero, but without more information it is impossible to determine.

Question 14

A choice made by comparing all relevant alternatives systematically and incrementally is

Accepted Answer

A)  an opportunity cost. 
B)  a choice on the margin. 
C)  a benefit. 
D)  a sunk cost. 
E)  a choice made in the social interest. 
A)  an opportunity cost. 
B)  a choice on the margin. 
C)  a benefit. 
D)  a sunk cost. 
E)  a choice made in the social interest.

Question 15

When the power company decides to use manpower to bury its lines,it directly answers the ________ question.

Accepted Answer

A)  what 
B)  for whom 
C)  how 
D)  why 
E)  when 
A)  what 
B)  for whom 
C)  how 
D)  why 
E)  when

Question 16

-In the above,which figure(s)show(s)both a positive and a negative relationship between the variables?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A, B, and D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A, B, and D

Question 17

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

Accepted Answer

A)  horizontal line. 
B)  vertical line. 
C)  curve with a maximum. 
D)  positively sloped line. 
E)  negatively sloped line. 
A)  horizontal line. 
B)  vertical line. 
C)  curve with a maximum. 
D)  positively sloped line. 
E)  negatively sloped line.

Question 18

-In the figure above,an increase in z leads to a

Accepted Answer

A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
E)  trend change in both x and y. 
A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
E)  trend change in both x and y.

Question 19

Decision making on the margin involves

Accepted Answer

A)  comparing the marginal cost and marginal benefits when making a decision. 
B)  comparing the total cost and the total benefit when making a decision. 
C)  eliminating the additional cost when making a decision. 
D)  determining the total benefits of a decision. 
E)  comparing the benefits from the social interest to the benefits from the person's self-interest. 
A)  comparing the marginal cost and marginal benefits when making a decision. 
B)  comparing the total cost and the total benefit when making a decision. 
C)  eliminating the additional cost when making a decision. 
D)  determining the total benefits of a decision. 
E)  comparing the benefits from the social interest to the benefits from the person's self-interest.

Question 20

In the diagram below,draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

What kind of information is conveyed in a time-series graph?

A slope is measured as the

Which of the following is NOT a normative economic statement?

"The change in the value of the variable measured on the y-axis divided by the change in the value of the variable measured on the x-axis" is the definition of

The question "Should we produce houses using bricks or wood?" is an example of a ________ question.

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

-In the diagram above,which figure(s)show(s)a direct relationship between the variables?

A scatter diagram can be used to see

To graph a relationship that involves more than two variables,we use

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

What is an opportunity cost? Give an example.

-The graph shows a

A straight line falls when moving rightward along it.Hence the slope of the line is

A choice made by comparing all relevant alternatives systematically and incrementally is

When the power company decides to use manpower to bury its lines,it directly answers the ________ question.

-In the above,which figure(s)show(s)both a positive and a negative relationship between the variables?

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

-In the figure above,an increase in z leads to a

Decision making on the margin involves

In the diagram below,draw a straight line with a slope of zero.

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: Getting Started

What kind of information is conveyed in a time-series graph?

A slope is measured as the

Which of the following is NOT a normative economic statement?

"The change in the value of the variable measured on the y-axis divided by the change in the value of the variable measured on the x-axis" is the definition of

The question "Should we produce houses using bricks or wood?" is an example of a ________ question.

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

-In the diagram above,which figure(s)show(s)a direct relationship between the variables?

A scatter diagram can be used to see

To graph a relationship that involves more than two variables,we use

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

What is an opportunity cost? Give an example.

-The graph shows a

A straight line falls when moving rightward along it.Hence the slope of the line is

A choice made by comparing all relevant alternatives systematically and incrementally is

When the power company decides to use manpower to bury its lines,it directly answers the ________ question.

-In the above,which figure(s)show(s)both a positive and a negative relationship between the variables?

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

-In the figure above,an increase in z leads to a

Decision making on the margin involves

In the diagram below,draw a straight line with a slope of zero.

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters