Question 1

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 2

Model A is superior to model B if

Accepted Answer

A) it contains more real world detail than model B. 
B) it contains fewer unrealistic assumptions than model B. 
C) its predictions correspond more closely to the facts than the predictions of model B. 
D) it is preferred by a majority of researchers in a public opinion poll. 
E) it is scientifically "elegant." 
A) it contains more real world detail than model B. 
B) it contains fewer unrealistic assumptions than model B. 
C) its predictions correspond more closely to the facts than the predictions of model B. 
D) it is preferred by a majority of researchers in a public opinion poll. 
E) it is scientifically "elegant."

Question 3

Which of the following is a normative statement?

Accepted Answer

A) Next year's inflation rate will be under 4 percent. 
B) Consumers will buy more gasoline over the December holiday period than they bought during the summer holiday period even if the price of gas is 10 cents a litre higher than it was during the summer. 
C) Government cuts in welfare spending impose an unfair hardship on the poor. 
D) A wheat shortage or surplus is always the result of federal government policies. 
E) Hurricane Irene caused more damage in the United States than Hurricane Katrina. 
A) Next year's inflation rate will be under 4 percent. 
B) Consumers will buy more gasoline over the December holiday period than they bought during the summer holiday period even if the price of gas is 10 cents a litre higher than it was during the summer. 
C) Government cuts in welfare spending impose an unfair hardship on the poor. 
D) A wheat shortage or surplus is always the result of federal government policies. 
E) Hurricane Irene caused more damage in the United States than Hurricane Katrina.

Question 4

Use the figure below to answer the following question.
   
Figure 1A.5.2
-If the equation of a straight line is y = 8 - 2x, then the slope is

Accepted Answer

A) -2 and the x-intercept is -4. 
B) -2 and the x-intercept is 4. 
C) -2 and the x-intercept is 8. 
D) 2 and the x-intercept is -4. 
E) 2 and the x-intercept is 4. 
A) -2 and the x-intercept is -4. 
B) -2 and the x-intercept is 4. 
C) -2 and the x-intercept is 8. 
D) 2 and the x-intercept is -4. 
E) 2 and the x-intercept is 4.

Question 5

Use the figure below to answer the following question.
   
Figure 1A.4.4
-Consider the following information on cola sales by number of cases for a typical university residence floor:  
60
Cola sales and temperature are

Accepted Answer

A) inversely related. 
B) positively related. 
C) not affected by the price. 
D) unrelated. 
E) negatively related at low prices, but positively related at high prices. 
A) inversely related. 
B) positively related. 
C) not affected by the price. 
D) unrelated. 
E) negatively related at low prices, but positively related at high prices.

Question 6

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:  
Refer to Figure 1A.4.5.Which one of the following represents what happens when the temperature rises from 20°C to 25°C?

Accepted Answer

A) The curve shifts from A to B. 
B) The curve shifts from C to B. 
C) The curve shifts from B to C. 
D) The curve shifts along line B. 
E) The curve shifts along line C. 
A) The curve shifts from A to B. 
B) The curve shifts from C to B. 
C) The curve shifts from B to C. 
D) The curve shifts along line B. 
E) The curve shifts along line C.

Question 7

To meet increased demand for its good, a firm decides to hire a few high-skilled workers, rather than hire many low-skilled workers.The firm is answering the ________ question.

Accepted Answer

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

Question 8

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 9

The Latin term ceteris paribus means

Accepted Answer

A) "Innocent until proven guilty." 
B) "Fallacies are composed." 
C) "Compositions are fallacious." 
D) "The whole is not the sum of the parts." 
E) "If all other relevant things remain the same." 
A) "Innocent until proven guilty." 
B) "Fallacies are composed." 
C) "Compositions are fallacious." 
D) "The whole is not the sum of the parts." 
E) "If all other relevant things remain the same."

Question 10

Use the table below to answer the following questions.
Table 1A.4.1
  
-Given the data in Table 1A.4.1, holding z constant, the graph of x and y

Accepted Answer

A) is a negatively sloped line. 
B) is a positively sloped line. 
C) reaches a maximum. 
D) reaches a minimum. 
E) does not have a constant slope. 
A) is a negatively sloped line. 
B) is a positively sloped line. 
C) reaches a maximum. 
D) reaches a minimum. 
E) does not have a constant slope.

Question 11

Which of the following is a positive statement?

Accepted Answer

A) Low rents restrict the supply of housing. 
B) Low rents are better for a city than high rents. 
C) Housing costs too much. 
D) Owners of apartment buildings ought to be free to charge whatever rent they want. 
E) Government should control the rents that apartment owners charge. 
A) Low rents restrict the supply of housing. 
B) Low rents are better for a city than high rents. 
C) Housing costs too much. 
D) Owners of apartment buildings ought to be free to charge whatever rent they want. 
E) Government should control the rents that apartment owners charge.

Question 12

The problem of scarcity exists

Accepted Answer

A) only in economies that lack incentives. 
B) only in economies that have incentives. 
C) in all economies. 
D) only when people are unemployed. 
E) now but will be eliminated with economic growth. 
A) only in economies that lack incentives. 
B) only in economies that have incentives. 
C) in all economies. 
D) only when people are unemployed. 
E) now but will be eliminated with economic growth.

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

Model A is superior to model B if

Which of the following is a normative statement?

Use the figure below to answer the following question. Figure 1A.5.2 -If the equation of a straight line is y = 8 - 2x, then the slope is

Use the figure below to answer the following question. Figure 1A.4.4 -Consider the following information on cola sales by number of cases for a typical university residence floor: 60 Cola sales and temperature are

To meet increased demand for its good, a firm decides to hire a few high-skilled workers, rather than hire many low-skilled workers.The firm is answering the ________ question.

An outcome is considered efficient if

The Latin term ceteris paribus means

Use the table below to answer the following questions. Table 1A.4.1 -Given the data in Table 1A.4.1, holding z constant, the graph of x and y

Which of the following is a positive statement?

The problem of scarcity exists

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government 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

Filters

Exam 1: What Is Economics

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

Model A is superior to model B if

Which of the following is a normative statement?

Use the figure below to answer the following question. Figure 1A.5.2 -If the equation of a straight line is y = 8 - 2x, then the slope is

Use the figure below to answer the following question. Figure 1A.4.4 -Consider the following information on cola sales by number of cases for a typical university residence floor: 60 Cola sales and temperature are

To meet increased demand for its good, a firm decides to hire a few high-skilled workers, rather than hire many low-skilled workers.The firm is answering the ________ question.

An outcome is considered efficient if

The Latin term ceteris paribus means

Use the table below to answer the following questions. Table 1A.4.1 -Given the data in Table 1A.4.1, holding z constant, the graph of x and y

Which of the following is a positive statement?

The problem of scarcity exists

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government 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

Filters