Question 1

Use the figure below to answer the following questions.
   
Figure 1A.3.5
-Refer to Figure 1A.3.5. In Figure 1A.3.5, the slope across arc CD is

Accepted Answer

A) 1/2. 
B) 1. 
C) -1/2. 
D) -1. 
E) -5/8. 
A) 1/2. 
B) 1. 
C) -1/2. 
D) -1. 
E) -5/8.

Question 2

Use the figure below to answer the following questions.
   
Figure 1A.2.3
-Refer to Figure 1A.2.3. Which of the graphs shows a positive relationship between x and y?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) both (b)and (d) 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) both (b)and (d)

Question 3

Complete the following sentence. Microeconomics is

Accepted Answer

A) not concerned with factors of production. 
B) concerned with normative issues only. 
C) concerned with the size of the total amount of income earned by all households in an economy. 
D) the branch of economics that studies the choices of individuals and businesses. 
E) concerned exclusively with the role of the government in the economy. 
A) not concerned with factors of production. 
B) concerned with normative issues only. 
C) concerned with the size of the total amount of income earned by all households in an economy. 
D) the branch of economics that studies the choices of individuals and businesses. 
E) concerned exclusively with the role of the government in the economy.

Question 4

Use the figure below to answer the following questions.
   
Figure 1A.2.1
-Refer to Figure 1A.2.1. When y increases from 5 to 6, x

Accepted Answer

A) increases from 5 to 6. 
B) increases from 7 to 8. 
C) increases from 7 to 9. 
D) decreases from 9 to 7. 
E) increases from 7 to 7 1/2. 
A) increases from 5 to 6. 
B) increases from 7 to 8. 
C) increases from 7 to 9. 
D) decreases from 9 to 7. 
E) increases from 7 to 7 1/2.

Question 5

The equation of a line is y = 4 + 2x. What is the y-intercept of this line?

Accepted Answer

A) 4 
B) -2 
C) -1/2 
D) 1/4 
E) 0 
A) 4 
B) -2 
C) -1/2 
D) 1/4 
E) 0

Question 6

Use the figure below to answer the following questions.
   
Figure 1A.1.5
-Refer to Figure 1A.1.5. Which graph or graphs indicates no relationship between x and y?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (c)and (d) 
E) (a)and (b) 
A) (a) 
B) (b) 
C) (c) 
D) (c)and (d) 
E) (a)and (b)

Question 7

Use the figure below to answer the following questions.
   
Figure 1A.2.1
-Refer to Figure 1A.2.1. The variables x and y

Accepted Answer

A) are negatively related. 
B) have a nonlinear relationship. 
C) have a negative linear relationship. 
D) are unrelated. 
E) are positively related. 
A) are negatively related. 
B) have a nonlinear relationship. 
C) have a negative linear relationship. 
D) are unrelated. 
E) are positively related.

Question 8

Complete the following sentence. Financial capital is

Accepted Answer

A) one of the "gifts of nature." 
B) the tools and machines that are used to produce goods and services. 
C) money, stocks, and bonds. 
D) used in the production of goods and services. 
E) land. 
A) one of the "gifts of nature." 
B) the tools and machines that are used to produce goods and services. 
C) money, stocks, and bonds. 
D) used in the production of goods and services. 
E) land.

Question 9

The branch of economics that studies the performance of the national economy and the global economy is

Accepted Answer

A) macroeconomics. 
B) microeconomics. 
C) Keynesian economics. 
D) positive economics. 
E) normative economics. 
A) macroeconomics. 
B) microeconomics. 
C) Keynesian economics. 
D) positive economics. 
E) normative economics.

Question 10

The relationship between two variables that move in opposite directions is shown graphically by a line that is

Accepted Answer

A) positively sloped. 
B) relatively steep. 
C) relatively flat. 
D) negatively sloped. 
E) curved. 
A) positively sloped. 
B) relatively steep. 
C) relatively flat. 
D) negatively sloped. 
E) curved.

Question 11

An outcome is considered efficient if

Accepted Answer

A) it is the best available choice for an individual. 
B) as many people as possible are happy about the outcome. 
C) it is not possible to make someone better off without making anyone else worse off. 
D) everyone makes the same income. 
E) there is the smallest difference possible between the highest income earned and the lowest income earned. 
A) it is the best available choice for an individual. 
B) as many people as possible are happy about the outcome. 
C) it is not possible to make someone better off without making anyone else worse off. 
D) everyone makes the same income. 
E) there is the smallest difference possible between the highest income earned and the lowest income earned.

Question 12

The relationship between two variables that are positively related is shown graphically by a line that

Accepted Answer

A) slopes upward to the right. 
B) is horizontal. 
C) slopes downward to the right. 
D) is vertical. 
E) is above the x-axis and to the right of the y-axis. 
A) slopes upward to the right. 
B) is horizontal. 
C) slopes downward to the right. 
D) is vertical. 
E) is above the x-axis and to the right of the y-axis.

Question 13

When a firm decides to produce more hybrid cars and fewer gas guzzlers, it is answering the ________ question.

Accepted Answer

A) "how" 
B) "what" 
C) "who" 
D) "where" 
E) "when" 
A) "how" 
B) "what" 
C) "who" 
D) "where" 
E) "when"

Question 14

The problem of scarcity applies

Accepted Answer

A) to all countries, regardless of their level of development. 
B) only in industrially developed countries because resources are scarce in these countries. 
C) only in developing countries because resources are scarce in these countries 
D) only in countries that are over-populated 
E) only in countries that use natural resources in most of their production processes 
A) to all countries, regardless of their level of development. 
B) only in industrially developed countries because resources are scarce in these countries. 
C) only in developing countries because resources are scarce in these countries 
D) only in countries that are over-populated 
E) only in countries that use natural resources in most of their production processes

Question 15

According to Adam Smith

Accepted Answer

A) government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest. 
B) in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can make a profit, but both buyers and sellers can't gain simultaneously. 
C) politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes. 
D) when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest. 
E) the self-interest and the social interest never conflict. 
A) government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest. 
B) in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can make a profit, but both buyers and sellers can't gain simultaneously. 
C) politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes. 
D) when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest. 
E) the self-interest and the social interest never conflict.

Question 16

Use the figure below to answer the following questions.
   
Figure 1A.3.3
-In Figure 1A.3.3 the relationship between x and y as x increases is

Accepted Answer

A) positive with decreasing slope. 
B) negative with decreasing slope. 
C) negative with increasing slope. 
D) positive with increasing slope. 
E) positive with slope first increasing then decreasing. 
A) positive with decreasing slope. 
B) negative with decreasing slope. 
C) negative with increasing slope. 
D) positive with increasing slope. 
E) positive with slope first increasing then decreasing.

Question 17

Which one of the following is an example of capital?

Accepted Answer

A) money 
B) a carpenter 
C) pasture 
D) a bread-slicing machine 
E) a university professor 
A) money 
B) a carpenter 
C) pasture 
D) a bread-slicing machine 
E) a university professor

Question 18

Scarcity confronts

Accepted Answer

A) neither the poor nor the rich. 
B) the rich but not the poor. 
C) the poor but not the rich. 
D) the rich and the poor. 
E) families with incomes less than $25,000 a year. 
A) neither the poor nor the rich. 
B) the rich but not the poor. 
C) the poor but not the rich. 
D) the rich and the poor. 
E) families with incomes less than $25,000 a year.

Question 19

Which of the following statements are positive?
1. The federal government should increase production of biofuels.
2. Air travel has increased since September 11.
3. The greatest number of accidents are caused by drunk drivers.
4. We ought to have a cure for cancer.

Accepted Answer

A) Statements 1 and 4 are positive. 
B) Statements 2 and 3 are positive. 
C) Statements 1 and 2 are positive. 
D) Statements 3 and 4 are positive. 
E) Statements 2 and 4 are positive. 
A) Statements 1 and 4 are positive. 
B) Statements 2 and 3 are positive. 
C) Statements 1 and 2 are positive. 
D) Statements 3 and 4 are positive. 
E) Statements 2 and 4 are positive.

Question 20

Use the figure below to answer the following questions.
   
Figure 1A.2.4
-Which curve or curves in Figure 1A.2.4 shows no relationship between unemployment and inflation?

Accepted Answer

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

Exam 1: What Is Economics

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5. In Figure 1A.3.5, the slope across arc CD is

Use the figure below to answer the following questions. Figure 1A.2.3 -Refer to Figure 1A.2.3. Which of the graphs shows a positive relationship between x and y?

Complete the following sentence. Microeconomics is

Use the figure below to answer the following questions. Figure 1A.2.1 -Refer to Figure 1A.2.1. When y increases from 5 to 6, x

The equation of a line is y = 4 + 2x. What is the y-intercept of this line?

Use the figure below to answer the following questions. Figure 1A.1.5 -Refer to Figure 1A.1.5. Which graph or graphs indicates no relationship between x and y?

Use the figure below to answer the following questions. Figure 1A.2.1 -Refer to Figure 1A.2.1. The variables x and y

Complete the following sentence. Financial capital is

The branch of economics that studies the performance of the national economy and the global economy is

The relationship between two variables that move in opposite directions is shown graphically by a line that is

An outcome is considered efficient if

The relationship between two variables that are positively related is shown graphically by a line that

When a firm decides to produce more hybrid cars and fewer gas guzzlers, it is answering the ________ question.

The problem of scarcity applies

According to Adam Smith

Use the figure below to answer the following questions. Figure 1A.3.3 -In Figure 1A.3.3 the relationship between x and y as x increases is

Which one of the following is an example of capital?

Scarcity confronts

Which of the following statements are positive? 1. The federal government should increase production of biofuels. 2. Air travel has increased since September 11. 3. The greatest number of accidents are caused by drunk drivers. 4. We ought to have a cure for cancer.

Use the figure below to answer the following questions. Figure 1A.2.4 -Which curve or curves in Figure 1A.2.4 shows no relationship between unemployment and inflation?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Governments Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Macro Only: International Trade Policy

Filters