Question 1

-A slope is measured as the

Accepted Answer

A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E) value of the variable measured on the x-axis minus the value of the variable measured on the y-axis. 
A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E) value of the variable measured on the x-axis minus the value of the variable measured on the y-axis.

Question 2

Matt pays a $50 a month membership fee at Bruno's Gym.He can exercise at the gym as many times as he wishes.If the membership fee is measured along the vertical axis and the number of times he exercises is measured along the horizontal axis, the graph between his membership fee and the number of times he exercises will

Accepted Answer

A) be a horizontal line. 
B) be positively sloped. 
C) be negatively sloped. 
D) be a vertical line. 
E) start out positively sloped and then, as Matt loses interest, become negatively sloped. 
A) be a horizontal line. 
B) be positively sloped. 
C) be negatively sloped. 
D) be a vertical line. 
E) start out positively sloped and then, as Matt loses interest, become negatively sloped.

Question 3

Which of the following is an example of a normative statement?

Accepted Answer

A) If cars become more expensive, fewer people will buy them. 
B) Car prices should be affordable. 
C) If wages increase, firms will fire some workers. 
D) Fewer people die in larger cars than in smaller cars. 
E) Cars emit pollution. 
A) If cars become more expensive, fewer people will buy them. 
B) Car prices should be affordable. 
C) If wages increase, firms will fire some workers. 
D) Fewer people die in larger cars than in smaller cars. 
E) Cars emit pollution.

Question 4

What are the two different types of relationships that variables can have? Explain each.What do these relationships look like when they are graphed?

Accepted Answer

Variables can have two relationships: po

Question 5

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates.Your roommates applaud your decision.Your roommates tell you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry.Is this comment correct?

Accepted Answer

Your roommates' comment is incorrect.The

Question 6

Different nations answer the what, how, and for whom questions differently.China, for instance, builds dams using many workers and only a little capital equipment.The United States builds dams using a few workers and a lot of capital equipment.Which economic question are these two nations answering and why do the answers differ?

Accepted Answer

The nations are answering the "how" ques

Question 7

When a third string NFL quarterback earns more than a police officer, society answers the ________ question.

Accepted Answer

A) for whom 
B) what 
C) how 
D) why 
E) social interest vs. self-interest 
A) for whom 
B) what 
C) how 
D) why 
E) social interest vs. self-interest

Question 8

-A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

Accepted Answer

A) falling. 
B) rising. 
C) high and not changing. 
D) low and falling. 
E) high and falling. 
A) falling. 
B) rising. 
C) high and not changing. 
D) low and falling. 
E) high and falling.

Question 9

An independent relationship between two variables is shown in a graph by

Accepted Answer

A) an upward-sloping line. 
B) a horizontal or a vertical line. 
C) a downward-sloping line. 
D) a steeply sloped line. 
E) any straight line curve. 
A) an upward-sloping line. 
B) a horizontal or a vertical line. 
C) a downward-sloping line. 
D) a steeply sloped line. 
E) any straight line curve.

Question 10

In the diagram below, draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

Question 11

What is the reason that all economic issues and problems occur?

Accepted Answer

A) All nations use some form of money to buy and sell goods and services. 
B) Humans are always wasteful and inefficient in production and consumption. 
C) Powerful governments are able to control production and consumption. 
D) Human wants exceed the resources available to satisfy them. 
E) People seek only their own self-interest. 
A) All nations use some form of money to buy and sell goods and services. 
B) Humans are always wasteful and inefficient in production and consumption. 
C) Powerful governments are able to control production and consumption. 
D) Human wants exceed the resources available to satisfy them. 
E) People seek only their own self-interest.

Question 12

The question "Should we produce houses using bricks or wood?" is an example of a ________ question.

Accepted Answer

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

Question 13

A normative statement

Accepted Answer

A) depends on someone's values. 
B) cannot use the word "should." 
C) says what is currently believed about the way the world operates. 
D) must be tested to determine if it is correct. 
E) can be tested to determine if it is correct. 
A) depends on someone's values. 
B) cannot use the word "should." 
C) says what is currently believed about the way the world operates. 
D) must be tested to determine if it is correct. 
E) can be tested to determine if it is correct.

Question 14

Why do economists use graphs?

Accepted Answer

Graphs help economists, and others, to v

Question 15

The marginal benefit of an activity is
I∙the benefit from a one-unit increase in the activity.
Ii∙the benefit of a small, unimportant activity.
Iii∙measured by what the person is willing to give up to get one additional unit of the activity.

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) ii and iii 
A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) ii and iii

Question 16

-In the above, which figure(s)has at least one point at which the slope equals zero?

Accepted Answer

A) Figure B only 
B) Figures A and C 
C) Figure D only 
D) Figures A, C, and D 
E) Figures A and D 
A) Figure B only 
B) Figures A and C 
C) Figure D only 
D) Figures A, C, and D 
E) Figures A and D

Question 17

If the change in y = -4 and the change in x = 2, there is

Accepted Answer

A) an independent relationship between y and x. 
B) a positive relationship between y and x. 
C) a negative relationship between y and x. 
D) no relationship between y and x. 
E) a relationship between x and y but more information is needed to determine if it is a negative or positive relationship. 
A) an independent relationship between y and x. 
B) a positive relationship between y and x. 
C) a negative relationship between y and x. 
D) no relationship between y and x. 
E) a relationship between x and y but more information is needed to determine if it is a negative or positive relationship.

Question 18

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

Accepted Answer

A) y/x. 
B) x/y. 
C) (change in y)/(change in x). 
D) (change in x)/(change in y). 
E) y - x. 
A) y/x. 
B) x/y. 
C) (change in y)/(change in x). 
D) (change in x)/(change in y). 
E) y - x.

Question 19

Which of the following is a positive statement?

Accepted Answer

A) The rich should pay more in taxes. 
B) Everyone should have some knowledge of economics. 
C) Taxes on gasoline should be lower so that gasoline is more affordable to the poor. 
D) If we reduce welfare payments given to the poor, they will find jobs. 
E) Social Security must be reformed. 
A) The rich should pay more in taxes. 
B) Everyone should have some knowledge of economics. 
C) Taxes on gasoline should be lower so that gasoline is more affordable to the poor. 
D) If we reduce welfare payments given to the poor, they will find jobs. 
E) Social Security must be reformed.

Question 20

If x increases whenever y decreases, then x and y are

Accepted Answer

A) not related. 
B) positively related. 
C) directly related. 
D) negatively related. 
E) related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis. 
A) not related. 
B) positively related. 
C) directly related. 
D) negatively related. 
E) related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.

-A slope is measured as the

Which of the following is an example of a normative statement?

What are the two different types of relationships that variables can have? Explain each.What do these relationships look like when they are graphed?

When a third string NFL quarterback earns more than a police officer, society answers the ________ question.

-A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

An independent relationship between two variables is shown in a graph by

In the diagram below, draw a straight line with a slope of zero.

What is the reason that all economic issues and problems occur?

The question "Should we produce houses using bricks or wood?" is an example of a ________ question.

A normative statement

Why do economists use graphs?

The marginal benefit of an activity is I∙the benefit from a one-unit increase in the activity. Ii∙the benefit of a small, unimportant activity. Iii∙measured by what the person is willing to give up to get one additional unit of the activity.

-In the above, which figure(s)has at least one point at which the slope equals zero?

If the change in y = -4 and the change in x = 2, there is

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

Which of the following is a positive statement?

If x increases whenever y decreases, then x and y are

The Usand 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

-A slope is measured as the

Which of the following is an example of a normative statement?

What are the two different types of relationships that variables can have? Explain each.What do these relationships look like when they are graphed?

When a third string NFL quarterback earns more than a police officer, society answers the ________ question.

-A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

An independent relationship between two variables is shown in a graph by

In the diagram below, draw a straight line with a slope of zero.

What is the reason that all economic issues and problems occur?

The question "Should we produce houses using bricks or wood?" is an example of a ________ question.

A normative statement

Why do economists use graphs?

The marginal benefit of an activity is I∙the benefit from a one-unit increase in the activity. Ii∙the benefit of a small, unimportant activity. Iii∙measured by what the person is willing to give up to get one additional unit of the activity.

-In the above, which figure(s)has at least one point at which the slope equals zero?

If the change in y = -4 and the change in x = 2, there is

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

Which of the following is a positive statement?

If x increases whenever y decreases, then x and y are

The Usand 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