Question 1

Which of the following statements is the best example of the term ceteris paribus?

Accepted Answer

A)  An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B)  More money should be spent on cleaning up the environment. 
C)  The government budget surplus was $200 billion in 2000 because the economy was growing. 
D)  An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E)  When studying the effects of a budget deficit, an economist must take account of all the factors involved. 
A)  An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B)  More money should be spent on cleaning up the environment. 
C)  The government budget surplus was $200 billion in 2000 because the economy was growing. 
D)  An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E)  When studying the effects of a budget deficit, an economist must take account of all the factors involved.

Question 2

What is the difference between a positive and a negative relationship?

Accepted Answer

Two variables are positively related whe

Question 3

The tendency for the values of two variables to move in a predictable and related way is known as

Accepted Answer

A)  a natural experiment. 
B)  a normative relationship. 
C)  an economic model. 
D)  correlation. 
E)  a policy relationship. 
A)  a natural experiment. 
B)  a normative relationship. 
C)  an economic model. 
D)  correlation. 
E)  a policy relationship.

Question 4

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

Accepted Answer

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

Question 5

On a graph showing the relationship between x and y,the ceteris paribus condition implies that

Accepted Answer

A)  no other variables are related to x and y. 
B)  the value of x is held constant. 
C)  the value of y is held constant. 
D)  other variables not shown are held constant. 
E)  the value of x and the value of y are held constant. 
A)  no other variables are related to x and y. 
B)  the value of x is held constant. 
C)  the value of y is held constant. 
D)  other variables not shown are held constant. 
E)  the value of x and the value of y are held constant.

Question 6

Which of the following statements is a positive statement?

Accepted Answer

A)  Our country must increase military spending. 
B)  There should be a computer in every elementary school classroom. 
C)  We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. 
D)  Online shopping increased by 50 percent this Christmas season. 
E)  Too many people are unemployed. 
A)  Our country must increase military spending. 
B)  There should be a computer in every elementary school classroom. 
C)  We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. 
D)  Online shopping increased by 50 percent this Christmas season. 
E)  Too many people are unemployed.

Question 7

________ shows the values of a variable for different groups in the population at a certain point in time.

Accepted Answer

A)  A time-series graph 
B)  The origin 
C)  A cross-section graph 
D)  A scatter plot 
E)  A trend-line graph 
A)  A time-series graph 
B)  The origin 
C)  A cross-section graph 
D)  A scatter plot 
E)  A trend-line graph

Question 8

A curve with a positive but decreasing slope represents a relationship where,every time the variable measured along the horizontal axis increases by one unit,the variable measured along the vertical axis

Accepted Answer

A)  increases by a constant amount. 
B)  increases by an increasing amount. 
C)  increases by a decreasing amount. 
D)  decreases. 
E)  does not change by much. 
A)  increases by a constant amount. 
B)  increases by an increasing amount. 
C)  increases by a decreasing amount. 
D)  decreases. 
E)  does not change by much.

Question 9

Pumpkins are grown in New Mexico with the aid of fertilizer.Hence,fertilizer is a partial answer to which of the three economic questions?

Accepted Answer

Fertilizer is used to help pro

Question 10

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

Accepted Answer

A)  by a cross-section graph. 
B)  by a time-series graph. 
C)  as a trend. 
D)  by a scatter diagram. 
E)  by a trend-section graph. 
A)  by a cross-section graph. 
B)  by a time-series graph. 
C)  as a trend. 
D)  by a scatter diagram. 
E)  by a trend-section graph.

Question 11

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours,Kiki could have played tennis or watched a movie.Therefore,the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

Accepted Answer

Your friend's analysis is incorrect.The

Question 12

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

Accepted Answer

A)  a positive but not linear 
B)  a negative 
C)  no 
D)  a positive, linear 
E)  cross-sectionally trended 
A)  a positive but not linear 
B)  a negative 
C)  no 
D)  a positive, linear 
E)  cross-sectionally trended

Question 13

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

Question 14

As the number of days without rain increases,the amount of wheat grown per acre declines.A graph showing this relationship shows

Accepted Answer

A)  a horizontal line. 
B)  a vertical line. 
C)  a positive relationship. 
D)  a line with a positive slope. 
E)  None of the above answers is correct. 
A)  a horizontal line. 
B)  a vertical line. 
C)  a positive relationship. 
D)  a line with a positive slope. 
E)  None of the above answers is correct.

Question 15

If a curve falls and then rises,it

Accepted Answer

A)  has a maximum. 
B)  has a minimum. 
C)  has a linear relationship. 
D)  has a constant slope relationship. 
E)  shows no relationship between the two variables. 
A)  has a maximum. 
B)  has a minimum. 
C)  has a linear relationship. 
D)  has a constant slope relationship. 
E)  shows no relationship between the two variables.

Question 16

The additional benefit of increasing some activity by one-unit is called the

Accepted Answer

A)  marginal benefit. 
B)  opportunity cost. 
C)  total benefit. 
D)  scarcity. 
E)  unit cost/benefit. 
A)  marginal benefit. 
B)  opportunity cost. 
C)  total benefit. 
D)  scarcity. 
E)  unit cost/benefit.

Question 17

The cost of a one-unit increase in an activity

Accepted Answer

A)  is called the total one-unit cost. 
B)  is called the marginal cost. 
C)  decreases as more of the activity is done. 
D)  is called the marginal benefit/cost. 
E)  is called the unit cost. 
A)  is called the total one-unit cost. 
B)  is called the marginal cost. 
C)  decreases as more of the activity is done. 
D)  is called the marginal benefit/cost. 
E)  is called the unit cost.

Question 18

-In the figure above,what is the slope of the curve at point A?

Accepted Answer

A)  0.75 
B)  -0.75 
C)  1.33 
D)  -1.33 
E)  zero 
A)  0.75 
B)  -0.75 
C)  1.33 
D)  -1.33 
E)  zero

Question 19

Which of the following is a positive statement?

Accepted Answer

A)  Taxes should be lower because then people get to keep more of what they earn, so they will work more. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions. 
E)  The class average on this test should be more than 80 percent. 
A)  Taxes should be lower because then people get to keep more of what they earn, so they will work more. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions. 
E)  The class average on this test should be more than 80 percent.

Question 20

When analyzing graphically the relationship between more than two variables,which of the following must be used?

Accepted Answer

A)  positive slope assumption 
B)  assumption of little change 
C)  ceteris paribus 
D)  negative slope assumption 
E)  the assumption that only relevant factors change 
A)  positive slope assumption 
B)  assumption of little change 
C)  ceteris paribus 
D)  negative slope assumption 
E)  the assumption that only relevant factors change

Which of the following statements is the best example of the term ceteris paribus?

What is the difference between a positive and a negative relationship?

The tendency for the values of two variables to move in a predictable and related way is known as

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

On a graph showing the relationship between x and y,the ceteris paribus condition implies that

Which of the following statements is a positive statement?

________ shows the values of a variable for different groups in the population at a certain point in time.

A curve with a positive but decreasing slope represents a relationship where,every time the variable measured along the horizontal axis increases by one unit,the variable measured along the vertical axis

Pumpkins are grown in New Mexico with the aid of fertilizer.Hence,fertilizer is a partial answer to which of the three economic questions?

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

What is a normative statement? Give an example.

As the number of days without rain increases,the amount of wheat grown per acre declines.A graph showing this relationship shows

If a curve falls and then rises,it

The additional benefit of increasing some activity by one-unit is called the

The cost of a one-unit increase in an activity

-In the figure above,what is the slope of the curve at point A?

Which of the following is a positive statement?

When analyzing graphically the relationship between more than two variables,which of the following must be used?

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

Which of the following statements is the best example of the term ceteris paribus?

What is the difference between a positive and a negative relationship?

The tendency for the values of two variables to move in a predictable and related way is known as

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

On a graph showing the relationship between x and y,the ceteris paribus condition implies that

Which of the following statements is a positive statement?

________ shows the values of a variable for different groups in the population at a certain point in time.

A curve with a positive but decreasing slope represents a relationship where,every time the variable measured along the horizontal axis increases by one unit,the variable measured along the vertical axis

Pumpkins are grown in New Mexico with the aid of fertilizer.Hence,fertilizer is a partial answer to which of the three economic questions?

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

What is a normative statement? Give an example.

As the number of days without rain increases,the amount of wheat grown per acre declines.A graph showing this relationship shows

If a curve falls and then rises,it

The additional benefit of increasing some activity by one-unit is called the

The cost of a one-unit increase in an activity

-In the figure above,what is the slope of the curve at point A?

Which of the following is a positive statement?

When analyzing graphically the relationship between more than two variables,which of the following must be used?

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