Question 1

Use the table below to answer the following questions.
Table 1A.3.3
  
-Refer to Table 1A.3.3. When x equals 5,

Accepted Answer

A) y is at a maximum. 
B) y is at a minimum. 
C) the slope is positive. 
D) the slope is negative. 
E) the slope is first positive and then becomes negative. 
A) y is at a maximum. 
B) y is at a minimum. 
C) the slope is positive. 
D) the slope is negative. 
E) the slope is first positive and then becomes negative.

Question 2

Which of the following sayings best describes opportunity cost?

Accepted Answer

A) "Make hay while the sun shines." 
B) "Love of money is the root of all evil." 
C) "Boldly go where no one has gone before." 
D) "There's no such thing as a free lunch." 
E) "Baseball has been very good to me." 
A) "Make hay while the sun shines." 
B) "Love of money is the root of all evil." 
C) "Boldly go where no one has gone before." 
D) "There's no such thing as a free lunch." 
E) "Baseball has been very good to me."

Question 3

If variables x and y move up and down together, they are

Accepted Answer

A) positively related. 
B) negatively related. 
C) conversely related. 
D) unrelated. 
E) trendy. 
A) positively related. 
B) negatively related. 
C) conversely related. 
D) unrelated. 
E) trendy.

Question 4

Use the figure below to answer the following questions.
   
Figure 1A.1.5
-Refer to Figure 1A.1.5. Which graph or graphs indicates a positive relationship between x and y?

Accepted Answer

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

Question 5

The expansion of international trade, borrowing and lending, and investment is

Accepted Answer

A) the big tradeoff. 
B) industrial revolution. 
C) corporate revolution. 
D) globalization. 
E) antiglobalization. 
A) the big tradeoff. 
B) industrial revolution. 
C) corporate revolution. 
D) globalization. 
E) antiglobalization.

Question 6

Use the figure below to answer the following questions.
   
Figure 1A.3.3
-Figure 1A.3.3 illustrates two variables, x and y, which are

Accepted Answer

A) negatively related, with a decreasing slope as x increases. 
B) negatively related, with an increasing slope as x increases. 
C) positively related, with a decreasing slope as x increases. 
D) positively related, with an increasing slope as x increases. 
E) positively related, with slope first increasing then decreasing. 
A) negatively related, with a decreasing slope as x increases. 
B) negatively related, with an increasing slope as x increases. 
C) positively related, with a decreasing slope as x increases. 
D) positively related, with an increasing slope as x increases. 
E) positively related, with slope first increasing then decreasing.

Question 7

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Accepted Answer

A) the total revenue from sales of printers to the total cost of producing all the printers. 
B) the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D) the revenue from selling HP's printers as compared to printers from competing companies, such as Lexmark. 
E) the cost of producing HP's printers as compared to printers from competing companies, such as Lexmark. 
A) the total revenue from sales of printers to the total cost of producing all the printers. 
B) the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D) the revenue from selling HP's printers as compared to printers from competing companies, such as Lexmark. 
E) the cost of producing HP's printers as compared to printers from competing companies, such as Lexmark.

Question 8

Which one of the following is an example of land?

Accepted Answer

A) Bono's singing voice 
B) a computer program 
C) Lake Erie 
D) a road 
E) a dam 
A) Bono's singing voice 
B) a computer program 
C) Lake Erie 
D) a road 
E) a dam

Question 9

Use the figure below to answer the following questions.
   
Figure 1A.3.9
-Refer to Figure 1A.3.9. Which one of the graphs shows a line with a zero slope?

Accepted Answer

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

Question 10

The fact that some people can afford to live in beautiful homes while others are homeless is an example of an economy facing the ________ question.

Accepted Answer

A) "what" 
B) "how" 
C) "for whom" 
D) "where" 
E) "when" 
A) "what" 
B) "how" 
C) "for whom" 
D) "where" 
E) "when"

Question 11

A star athlete can afford a garage full of exotic cars while other people can only afford to take a city bus for transportation. This is an example of an economy facing the ________ question.

Accepted Answer

A) "what" 
B) "how" 
C) "for whom" 
D) "where" 
E) "when" 
A) "what" 
B) "how" 
C) "for whom" 
D) "where" 
E) "when"

Question 12

Use the table below to answer the following question.
Table 1A.2.2
  
-Refer to Table 1A.2.2. What type of relationship exists between y and z?

Accepted Answer

A) negative 
B) positive 
C) inverse 
D) No consistent relationship exists. 
E) first a positive relationship, then a negative one 
A) negative 
B) positive 
C) inverse 
D) No consistent relationship exists. 
E) first a positive relationship, then a negative one

Question 13

Use the figure below to answer the following questions.
   
Figure 1A.4.5
-Consider the following information on cola sales by number of cases for a typical university residence floor: Temp. Price (dollars per case)
 
Refer to Figure 1A.4.5. Which line shows the relationship of cola sales and the temperature when the price of a case is $15.00?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) none of the above. 
A) A 
B) B 
C) C 
D) D 
E) none of the above.

Question 14

The night before a history test, you decide to go to the movies instead of reviewing your notes. You get 60 percent on your test compared with the 75 percent that you normally score. You ________ a tradeoff and the opportunity cost of your evening at the movies was ________.

Accepted Answer

A) faced; the 15 percent fall in your grade 
B) did not face; zero 
C) did not face; the 15 percent fall in your grade 
D) faced; the mark of 60 percent on your test 
E) did not face; the mark of 60 percent on your test 
A) faced; the 15 percent fall in your grade 
B) did not face; zero 
C) did not face; the 15 percent fall in your grade 
D) faced; the mark of 60 percent on your test 
E) did not face; the mark of 60 percent on your test

Question 15

When asked in an interview what she missed the most because of the time she spent training for the Olympics, a rower, who lived on her own, answered "a normal social life." She also revealed that she had given up a job that paid $30,000 per year to train fulltime. She received a grant of $8,000 per year from Sport Canada, but this failed to cover all her training expenses. Her food and rent were $5,000 per year and training expenses were $12,000 per year. Aside from the value of a normal social life, what is the annual opportunity cost, expressed in dollars, to this rower of "Going for Gold"?

Accepted Answer

A) $25,000 
B) $4,000 
C) $30,000 
D) $39,000 
E) $34,000 
A) $25,000 
B) $4,000 
C) $30,000 
D) $39,000 
E) $34,000

Question 16

The determination of prices in individual markets is primarily a concern of

Accepted Answer

A) positive economics. 
B) negative economics. 
C) macroeconomics. 
D) microeconomics. 
E) descriptive economics. 
A) positive economics. 
B) negative economics. 
C) macroeconomics. 
D) microeconomics. 
E) descriptive economics.

Question 17

Use the table below to answer the following question.
Table 1A.2.3
  
-Refer to Table 1A.2.3. What type of relationship exists between w and u?

Accepted Answer

A) positive 
B) negative 
C) direct 
D) No consistent relationship exists. 
E) first a positive relationship, then a negative one 
A) positive 
B) negative 
C) direct 
D) No consistent relationship exists. 
E) first a positive relationship, then a negative one

Question 18

Complete the following sentence. Entrepreneurship is

Accepted Answer

A) defined as money. 
B) traded on the stock market. 
C) categorized as capital. 
D) the human resource that organizes labour, land and capital. 
E) categorized as the factor of production labour. 
A) defined as money. 
B) traded on the stock market. 
C) categorized as capital. 
D) the human resource that organizes labour, land and capital. 
E) categorized as the factor of production labour.

Question 19

Statements about "what is" are called

Accepted Answer

A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses. 
A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses.

Question 20

To graph a relationship among more than two variables, what assumption is necessary?

Accepted Answer

A) normative 
B) positive 
C) linear 
D) independence of variables 
E) ceteris paribus 
A) normative 
B) positive 
C) linear 
D) independence of variables 
E) ceteris paribus

Exam 1: What Is Economics

Use the table below to answer the following questions. Table 1A.3.3 -Refer to Table 1A.3.3. When x equals 5,

Which of the following sayings best describes opportunity cost?

If variables x and y move up and down together, they are

Use the figure below to answer the following questions. Figure 1A.1.5 -Refer to Figure 1A.1.5. Which graph or graphs indicates a positive relationship between x and y?

The expansion of international trade, borrowing and lending, and investment is

Use the figure below to answer the following questions. Figure 1A.3.3 -Figure 1A.3.3 illustrates two variables, x and y, which are

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Which one of the following is an example of land?

Use the figure below to answer the following questions. Figure 1A.3.9 -Refer to Figure 1A.3.9. Which one of the graphs shows a line with a zero slope?

The fact that some people can afford to live in beautiful homes while others are homeless is an example of an economy facing the ________ question.

A star athlete can afford a garage full of exotic cars while other people can only afford to take a city bus for transportation. This is an example of an economy facing the ________ question.

Use the table below to answer the following question. Table 1A.2.2 -Refer to Table 1A.2.2. What type of relationship exists between y and z?

The night before a history test, you decide to go to the movies instead of reviewing your notes. You get 60 percent on your test compared with the 75 percent that you normally score. You ________ a tradeoff and the opportunity cost of your evening at the movies was ________.

The determination of prices in individual markets is primarily a concern of

Use the table below to answer the following question. Table 1A.2.3 -Refer to Table 1A.2.3. What type of relationship exists between w and u?

Complete the following sentence. Entrepreneurship is

Statements about "what is" are called

To graph a relationship among more than two variables, what assumption is necessary?

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

The night before a history test, you decide to go to the movies instead of reviewing your notes. You get 60 percent on your test compared with the 75 percent that you normally score. You a tradeoff and the opportunity cost of your evening at the movies was .