Question 1

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 2

In choosing among alternative models, economists generally have the strongest preference for models that

Accepted Answer

A) have assumptions that are close to exact replicas of reality. 
B) are detailed and complex, with every available fact and figure included. 
C) have few assumptions and are as simple as possible, even if they cannot predict very well. 
D) predict better than any other that is available. 
E) have assumptions that are complicated. 
A) have assumptions that are close to exact replicas of reality. 
B) are detailed and complex, with every available fact and figure included. 
C) have few assumptions and are as simple as possible, even if they cannot predict very well. 
D) predict better than any other that is available. 
E) have assumptions that are complicated.

Question 3

Statements about "what ought to be" 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 4

The two big economic questions

Accepted Answer

A) involve self-interest only. 
B) involve only social interest. 
C) involve neither self-interest nor social interest. 
D) do not arise from scarcity. 
E) involve both self-interest and social interest. 
A) involve self-interest only. 
B) involve only social interest. 
C) involve neither self-interest nor social interest. 
D) do not arise from scarcity. 
E) involve both self-interest and social interest.

Question 5

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 6

Use the figure below to answer the following question.
   
Figure 1A.4.4
-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

Question 7

Use the figure below to answer the following questions.
   
Figure 1A.2.3
-Refer to Figure 1A.2.3.If your theory predicted that a rise in the wage rate (x)leads to a rise in the amount of labour supplied in the economy (y), which graph would you use to represent this relationship?

Accepted Answer

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

Question 8

Use the figure below to answer the following question.
   
Figure 1A.2.2
-In Figure 1A.2.2, the variables x and y

Accepted Answer

A) move in the same direction. 
B) are negatively related. 
C) are always equal. 
D) are unrelated 
E) are positively related. 
A) move in the same direction. 
B) are negatively related. 
C) are always equal. 
D) are unrelated 
E) are positively related.

Question 9

What choices are best for the entire society?

Accepted Answer

A) self-interest choices 
B) minority group choices 
C) social interest choices 
D) ethnic group choices 
E) regional interest choices 
A) self-interest choices 
B) minority group choices 
C) social interest choices 
D) ethnic group choices 
E) regional interest choices

Question 10

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 11

Use the figure below to answer the following questions.
   
Figure 1A.3.5
-Refer to Figure 1A.3.5.Which one of the following statements is true?

Accepted Answer

A) The slope is less between points A and B than between points B and C. 
B) The slope is greater between points B and C than between points A and B. 
C) The slope at C is 0. 
D) The slope at C is 1. 
E) The slope at C is negative. 
A) The slope is less between points A and B than between points B and C. 
B) The slope is greater between points B and C than between points A and B. 
C) The slope at C is 0. 
D) The slope at C is 1. 
E) The slope at C is negative.

Question 12

Use the figure below to answer the following question.
   
Figure 1A.3.7
-The slope of the line in Figure 1A.3.7 is

Accepted Answer

A) 1. 
B) -1. 
C) 1/2. 
D) 2. 
E) dependent on where you measure it. 
A) 1. 
B) -1. 
C) 1/2. 
D) 2. 
E) dependent on where you measure it.

Question 13

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 14

Select the best statement about economic models.

Accepted Answer

A) An economic model must always be correct in its predictions or it must be discarded. 
B) An economic model is evaluated based on the realism of its assumptions. 
C) An economic model should not generate predictions about actual events in the real world, since it discusses only abstract events. 
D) An economic model will be discarded if its predictions are often in conflict with the facts. 
E) Economic models are all false. 
A) An economic model must always be correct in its predictions or it must be discarded. 
B) An economic model is evaluated based on the realism of its assumptions. 
C) An economic model should not generate predictions about actual events in the real world, since it discusses only abstract events. 
D) An economic model will be discarded if its predictions are often in conflict with the facts. 
E) Economic models are all false.

Question 15

Use the figure below to answer the following question.
   
Figure 1A.4.4
-Complete the following sentence.In Figure 1A.4.4, z is

Accepted Answer

A) positively related to x and negatively related to y. 
B) negatively related to x and positively related to y. 
C) positively related to both x and y. 
D) negatively related to both x and y. 
E) related to y but not related to x. 
A) positively related to x and negatively related to y. 
B) negatively related to x and positively related to y. 
C) positively related to both x and y. 
D) negatively related to both x and y. 
E) related to y but not related to x.

Question 16

Use the figure below to answer the following questions.
   
Figure 1A.2.3
-Refer to Figure 1A.2.3.Suppose our theory predicted that for low levels of quantity produced (x)a firm's profits (y)were low, for medium levels of output their profits were high, and for high levels of output their profits were low again.Which one of the graphs would represent this relationship?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) none of the graphs 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) none of the graphs

Question 17

"The rich face higher income tax rates than the poor, which is not good since it is the rich who provide jobs for the poor." This is an example of

Accepted Answer

A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) a theoretical statement. 
E) a descriptive statement. 
A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) a theoretical statement. 
E) a descriptive statement.

Question 18

Use the figure below to answer the following question.
   
Figure 1A.5.3
-The equation of a line is y = 4 + 2x.Which one of the graphs in Figure 1A.5.3 represents this line?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) none of the graphs 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) none of the graphs

Question 19

Two variables are positively related if

Accepted Answer

A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) decreases in one are associated with increases in the other. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other. 
A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) decreases in one are associated with increases in the other. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other.

Question 20

A tractor is an example of which of the following factors of production?

Accepted Answer

A) capital 
B) labour 
C) land 
D) entrepreneurship 
E) energy 
A) capital 
B) labour 
C) land 
D) entrepreneurship 
E) energy

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?

In choosing among alternative models, economists generally have the strongest preference for models that

Statements about "what ought to be" are called

The two big economic questions

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?

Use the figure below to answer the following question. Figure 1A.4.4 -To graph a relationship among more than two variables, what assumption is necessary?

Use the figure below to answer the following questions. Figure 1A.2.3 -Refer to Figure 1A.2.3.If your theory predicted that a rise in the wage rate (x)leads to a rise in the amount of labour supplied in the economy (y), which graph would you use to represent this relationship?

Use the figure below to answer the following question. Figure 1A.2.2 -In Figure 1A.2.2, the variables x and y

What choices are best for the entire society?

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?

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5.Which one of the following statements is true?

Use the figure below to answer the following question. Figure 1A.3.7 -The slope of the line in Figure 1A.3.7 is

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?

Select the best statement about economic models.

Use the figure below to answer the following question. Figure 1A.4.4 -Complete the following sentence.In Figure 1A.4.4, z is

"The rich face higher income tax rates than the poor, which is not good since it is the rich who provide jobs for the poor." This is an example of

Use the figure below to answer the following question. Figure 1A.5.3 -The equation of a line is y = 4 + 2x.Which one of the graphs in Figure 1A.5.3 represents this line?

Two variables are positively related if

A tractor is an example of which of the following factors of production?

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

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?

In choosing among alternative models, economists generally have the strongest preference for models that

Statements about "what ought to be" are called

The two big economic questions

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?

Use the figure below to answer the following question. Figure 1A.4.4 -To graph a relationship among more than two variables, what assumption is necessary?

Use the figure below to answer the following questions. Figure 1A.2.3 -Refer to Figure 1A.2.3.If your theory predicted that a rise in the wage rate (x)leads to a rise in the amount of labour supplied in the economy (y), which graph would you use to represent this relationship?

Use the figure below to answer the following question. Figure 1A.2.2 -In Figure 1A.2.2, the variables x and y

What choices are best for the entire society?

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?

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5.Which one of the following statements is true?

Use the figure below to answer the following question. Figure 1A.3.7 -The slope of the line in Figure 1A.3.7 is

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?

Select the best statement about economic models.

Use the figure below to answer the following question. Figure 1A.4.4 -Complete the following sentence.In Figure 1A.4.4, z is

"The rich face higher income tax rates than the poor, which is not good since it is the rich who provide jobs for the poor." This is an example of

Use the figure below to answer the following question. Figure 1A.5.3 -The equation of a line is y = 4 + 2x.Which one of the graphs in Figure 1A.5.3 represents this line?

Two variables are positively related if

A tractor is an example of which of the following factors of production?

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