Question 1

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

Accepted Answer

A) you must ignore the problem of scarcity. 
B) you considered the marginal cost and marginal benefit of your choice. 
C) you have used the ceteris paribus assumption. 
D) you have made a positive statement. 
E) you must have considered the social interest. 
A) you must ignore the problem of scarcity. 
B) you considered the marginal cost and marginal benefit of your choice. 
C) you have used the ceteris paribus assumption. 
D) you have made a positive statement. 
E) you must have considered the social interest.

Question 2

In a graph, a straight line has a negative slope if the line

Accepted Answer

A) is vertical. 
B) is horizontal. 
C) falls from left to right. 
D) rises from left to right. 
E) shows a trend. 
A) is vertical. 
B) is horizontal. 
C) falls from left to right. 
D) rises from left to right. 
E) shows a trend.

Question 3

Rational choice

Accepted Answer

A) is a choice that uses the available resources to best achieve the objective of the person making the choice. 
B) is always efficient. 
C) is what you must give up to get what you want. 
D) is made by comparing different incentives. 
E) provides the answer to only the "how" question. 
A) is a choice that uses the available resources to best achieve the objective of the person making the choice. 
B) is always efficient. 
C) is what you must give up to get what you want. 
D) is made by comparing different incentives. 
E) provides the answer to only the "how" question.

Question 4

If a decision is made and it is the best choice for society, the decision is said to be

Accepted Answer

A) a valid economic choice. 
B) made in self-interest. 
C) made in social interest. 
D) consist with scarcity. 
E) a want-maximizing choice. 
A) a valid economic choice. 
B) made in self-interest. 
C) made in social interest. 
D) consist with scarcity. 
E) a want-maximizing choice.

Question 5

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

Accepted Answer

A) origin. 
B) y-axis. 
C) x-axis. 
D) variable. 
E) time axis. 
A) origin. 
B) y-axis. 
C) x-axis. 
D) variable. 
E) time axis.

Question 6

The opportunity cost of a decision is measured in terms of

Accepted Answer

A) time. 
B) the price of the alternative we choose. 
C) the next best thing given up. 
D) the price of a new opportunity that arises. 
E) sunk cost. 
A) time. 
B) the price of the alternative we choose. 
C) the next best thing given up. 
D) the price of a new opportunity that arises. 
E) sunk cost.

Question 7

-In the figure above, what is the slope of the curve at point A?

Accepted Answer

A) 0.75 
B) -0.75 
C) 1.33 
D) -1.33 
E) Zero 
A) 0.75 
B) -0.75 
C) 1.33 
D) -1.33 
E) Zero

Question 8

-What does the slope of the curved line at point A shown in the above figure equal?

Accepted Answer

The slope of a curved line equals the sl

Question 9

Which of the following best defines economics?

Accepted Answer

A) Economics teaches how to limit our wants. 
B) Economics studies how to choose the best alternative when coping with scarcity. 
C) Economics helps you earn as much money as possible. 
D) Economics analyzes all aspects of human behavior in general. 
E) Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level. 
A) Economics teaches how to limit our wants. 
B) Economics studies how to choose the best alternative when coping with scarcity. 
C) Economics helps you earn as much money as possible. 
D) Economics analyzes all aspects of human behavior in general. 
E) Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.

Question 10

The benefit of a one-unit increase in an activity

Accepted Answer

A) is called marginal cost. 
B) is always greater than the opportunity cost of that activity. 
C) decreases as you do more of it. 
D) is measured by what you must give up. 
E) is called rational-choice benefit. 
A) is called marginal cost. 
B) is always greater than the opportunity cost of that activity. 
C) decreases as you do more of it. 
D) is measured by what you must give up. 
E) is called rational-choice benefit.

Question 11

In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

Accepted Answer

A) marginal benefit and marginal cost 
B) opportunity cost and the sunk cost 
C) positive benefits and normative costs 
D) normative benefits and positive costs 
E) self-interest and social-interest 
A) marginal benefit and marginal cost 
B) opportunity cost and the sunk cost 
C) positive benefits and normative costs 
D) normative benefits and positive costs 
E) self-interest and social-interest

Question 12

A statement that argues that "if taxes on gasoline increase, gasoline consumption will decrease" is an example of what kind of statement?

Accepted Answer

A) a marginal statement 
B) a macroeconomic statement 
C) a normative statement 
D) a positive statement 
E) a statement that violates rational choice 
A) a marginal statement 
B) a macroeconomic statement 
C) a normative statement 
D) a positive statement 
E) a statement that violates rational choice

Question 13

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost, marginal cost, and marginal benefit.

Accepted Answer

Economists assume that people act ration

Question 14

-A graph that shows the value of an economic variable for different groups in a population at a given time is called a

Accepted Answer

A) scatter diagram. 
B) times-series graph. 
C) pie chart. 
D) cross-section graph. 
E) fixed-time diagram. 
A) scatter diagram. 
B) times-series graph. 
C) pie chart. 
D) cross-section graph. 
E) fixed-time diagram.

Question 15

What is NOT true about rational choice?

Accepted Answer

A) It can result in different decisions for different individuals. 
B) It involves comparing costs and benefits. 
C) It might turn out not to have been the best choice after the event. 
D) It is a choice that uses the available resources to best achieve the objective of the person making the choice. 
E) It is the same for all individuals. 
A) It can result in different decisions for different individuals. 
B) It involves comparing costs and benefits. 
C) It might turn out not to have been the best choice after the event. 
D) It is a choice that uses the available resources to best achieve the objective of the person making the choice. 
E) It is the same for all individuals.

Question 16

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

Accepted Answer

A) study time becomes less effective. 
B) study time becomes more effective. 
C) the number of problems worked increases. 
D) the number of problems worked decreases. 
E) the relationship between study time and the number of problems worked changes from direct to inverse. 
A) study time becomes less effective. 
B) study time becomes more effective. 
C) the number of problems worked increases. 
D) the number of problems worked decreases. 
E) the relationship between study time and the number of problems worked changes from direct to inverse.

Question 17

Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour, the opportunity cost of the hour spent studying is

Accepted Answer

A) definitely going to sleep. 
B) studying since this is the choice she opted for. 
C) sleeping or going out for dinner, whichever she would have preferred the most. 
D) sleeping and going out for dinner. 
E) definitely going out to dinner because she must eat at some time. 
A) definitely going to sleep. 
B) studying since this is the choice she opted for. 
C) sleeping or going out for dinner, whichever she would have preferred the most. 
D) sleeping and going out for dinner. 
E) definitely going out to dinner because she must eat at some time.

Question 18

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.

Accepted Answer

A) how 
B) what 
C) for whom 
D) opportunity cost 
E) why 
A) how 
B) what 
C) for whom 
D) opportunity cost 
E) why

Question 19

Which of the following is a microeconomic topic?
I∙Gas prices increase after a hurricane hits the gulf coast.
Ii∙Xavier starts a new business designing web pages.
Iii Abby decides to practice an extra hour of soccer instead of studying.

Accepted Answer

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

Question 20

Must a rational choice always work out well? In other words, is it possible for someone to regret a rational decision?

Accepted Answer

It is not necessarily the case that a ra

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

In a graph, a straight line has a negative slope if the line

Rational choice

If a decision is made and it is the best choice for society, the decision is said to be

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

The opportunity cost of a decision is measured in terms of

-In the figure above, what is the slope of the curve at point A?

-What does the slope of the curved line at point A shown in the above figure equal?

Which of the following best defines economics?

The benefit of a one-unit increase in an activity

In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

A statement that argues that "if taxes on gasoline increase, gasoline consumption will decrease" is an example of what kind of statement?

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost, marginal cost, and marginal benefit.

-A graph that shows the value of an economic variable for different groups in a population at a given time is called a

What is NOT true about rational choice?

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour, the opportunity cost of the hour spent studying is

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.

Which of the following is a microeconomic topic? I∙Gas prices increase after a hurricane hits the gulf coast. Ii∙Xavier starts a new business designing web pages. Iii Abby decides to practice an extra hour of soccer instead of studying.

Must a rational choice always work out well? In other words, is it possible for someone to regret a rational decision?

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

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

In a graph, a straight line has a negative slope if the line

Rational choice

If a decision is made and it is the best choice for society, the decision is said to be

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

The opportunity cost of a decision is measured in terms of

-In the figure above, what is the slope of the curve at point A?

-What does the slope of the curved line at point A shown in the above figure equal?

Which of the following best defines economics?

The benefit of a one-unit increase in an activity

In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

A statement that argues that "if taxes on gasoline increase, gasoline consumption will decrease" is an example of what kind of statement?

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost, marginal cost, and marginal benefit.

-A graph that shows the value of an economic variable for different groups in a population at a given time is called a

What is NOT true about rational choice?

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour, the opportunity cost of the hour spent studying is

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.

Which of the following is a microeconomic topic? I∙Gas prices increase after a hurricane hits the gulf coast. Ii∙Xavier starts a new business designing web pages. Iii Abby decides to practice an extra hour of soccer instead of studying.

Must a rational choice always work out well? In other words, is it possible for someone to regret a rational decision?

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