Question 1

The primary focus of microeconomics is

Accepted Answer

A) to examine the operation of the entire (aggregate)economy. 
B) to examine the behavior and operation of the individual units or sectors that make up the economy. 
C) our government's monetary policy. 
D) the levels of employment and inflation. 
E) to study how we managed to eliminate scarcity. 
A) to examine the operation of the entire (aggregate)economy. 
B) to examine the behavior and operation of the individual units or sectors that make up the economy. 
C) our government's monetary policy. 
D) the levels of employment and inflation. 
E) to study how we managed to eliminate scarcity.

Question 2

Economics is the social science that studies

Accepted Answer

A) the real reasons people buy goods and services. 
B) the psychology of individuals and businesses. 
C) whether a nation has enough natural resources. 
D) how people make choices to cope with scarcity. 
E) how choices made in the social interest could eliminate scarcity. 
A) the real reasons people buy goods and services. 
B) the psychology of individuals and businesses. 
C) whether a nation has enough natural resources. 
D) how people make choices to cope with scarcity. 
E) how choices made in the social interest could eliminate scarcity.

Question 3

-In the figure above, an increase in z leads to a

Accepted Answer

A) movement up along one of the lines showing the relationship between x and y. 
B) movement down along one of the lines showing the relationship between x and y. 
C) rightward shift of the line showing the relationship between x and y. 
D) leftward shift of the line showing the relationship between x and y. 
E) trend change in both x and y. 
A) movement up along one of the lines showing the relationship between x and y. 
B) movement down along one of the lines showing the relationship between x and y. 
C) rightward shift of the line showing the relationship between x and y. 
D) leftward shift of the line showing the relationship between x and y. 
E) trend change in both x and y.

Question 4

Which of the following is a microeconomic issue?

Accepted Answer

A) Growth in the U.S. economy slowed. 
B) Increased federal government expenditures have lowered the unemployment rate. 
C) The inflation rate fell this year. 
D) The quantity of wheat grown in the United States increases this year. 
E) The U.S. government cuts taxes to combat a recession. 
A) Growth in the U.S. economy slowed. 
B) Increased federal government expenditures have lowered the unemployment rate. 
C) The inflation rate fell this year. 
D) The quantity of wheat grown in the United States increases this year. 
E) The U.S. government cuts taxes to combat a recession.

Question 5

-A time series graph

Accepted Answer

A) shows how a certain variable changes over time. 
B) uses bars rather than lines. 
C) shows points that are scattered. 
D) depicts a series of good economic times a nation had. 
E) is not useful if the goal is to determine a variable's trend. 
A) shows how a certain variable changes over time. 
B) uses bars rather than lines. 
C) shows points that are scattered. 
D) depicts a series of good economic times a nation had. 
E) is not useful if the goal is to determine a variable's trend.

Question 6

-In the diagram above, which figure(s)show(s)a direct relationship between the variables?

Accepted Answer

A) both B and C 
B) both A and C 
C) only A 
D) only D 
E) only B 
A) both B and C 
B) both A and C 
C) only A 
D) only D 
E) only B

Question 7

The benefit from a good or service that you purchase is measured by

Accepted Answer

A) the dollar amount that is paid for the good or service. 
B) the dollar amount you can get by selling the good or service. 
C) what you are willing to give up to obtain the good or service. 
D) how strong the incentives were that lead to buying the good or service. 
E) None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service. 
A) the dollar amount that is paid for the good or service. 
B) the dollar amount you can get by selling the good or service. 
C) what you are willing to give up to obtain the good or service. 
D) how strong the incentives were that lead to buying the good or service. 
E) None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service.

Question 8

Which of the following statements is true regarding scarcity?

Accepted Answer

A) Scarcity affects poorer countries only. 
B) An economy experiences scarcity only when the incomes of its citizens decline. 
C) Poor people experience scarcity more often than do rich people. 
D) All citizens in a wealthy economy experience scarcity. 
E) Scarcity could be overcome if people would make all choices in the social interest. 
A) Scarcity affects poorer countries only. 
B) An economy experiences scarcity only when the incomes of its citizens decline. 
C) Poor people experience scarcity more often than do rich people. 
D) All citizens in a wealthy economy experience scarcity. 
E) Scarcity could be overcome if people would make all choices in the social interest.

Question 9

Which of the following is true?
i. A rational choice is always made in the pursuit of social interest.
ii. Economics is a social science.
iii. Economists try to understand how the economic world works by testing positive statements.

Accepted Answer

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

Question 10

Which of the following is a microeconomic issue?

Accepted Answer

A) The price of gasoline increases in the United States this year. 
B) The Brazilian economy experiences rapid economic growth. 
C) The unemployment rate soars in Spain. 
D) Inflation skyrockets in Russia. 
E) The U.S. government cuts taxes to combat a recession. 
A) The price of gasoline increases in the United States this year. 
B) The Brazilian economy experiences rapid economic growth. 
C) The unemployment rate soars in Spain. 
D) Inflation skyrockets in Russia. 
E) The U.S. government cuts taxes to combat a recession.

Question 11

What is an opportunity cost? Give an example.

Accepted Answer

An opportunity cost of something is the

Question 12

-The graph shows

Accepted Answer

A) a relationship with a minimum. 
B) a relationship with a maximum. 
C) no relationship. 
D) a relationship that becomes less steep. 
E) a cross-section relationship. 
A) a relationship with a minimum. 
B) a relationship with a maximum. 
C) no relationship. 
D) a relationship that becomes less steep. 
E) a cross-section relationship.

Question 13

The cost of a one-unit increase in an activity

Accepted Answer

A) is called the total one-unit cost. 
B) is called the marginal cost. 
C) decreases as more of the activity is done. 
D) is called the marginal benefit/cost. 
E) is called the unit cost. 
A) is called the total one-unit cost. 
B) is called the marginal cost. 
C) decreases as more of the activity is done. 
D) is called the marginal benefit/cost. 
E) is called the unit cost.

Question 14

You have data for sales of pizza for each of the 50 states in 2011.The type of graph to best display these data would be a

Accepted Answer

A) cross-section graph. 
B) time-series graph. 
C) scatter diagram. 
D) multi-variable time-series graph. 
E) trend-line diagram. 
A) cross-section graph. 
B) time-series graph. 
C) scatter diagram. 
D) multi-variable time-series graph. 
E) trend-line diagram.

Question 15

-In the above figure, no relationship between x and y is shown in Figure

Accepted Answer

A) A. 
B) B. 
C) C. 
D) D. 
E) A and Figure B. 
A) A. 
B) B. 
C) C. 
D) D. 
E) A and Figure B.

Question 16

If a curve rises and then falls, it has a

Accepted Answer

A) maximum. 
B) minimum. 
C) linear relationship. 
D) constant slope relationship. 
E) slope that is negative and then positive. 
A) maximum. 
B) minimum. 
C) linear relationship. 
D) constant slope relationship. 
E) slope that is negative and then positive.

Question 17

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 18

Which of the following statements is correct?

Accepted Answer

A) The slope of a straight line changes depending where on the line it is calculated. 
B) The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line. 
C) A straight line that slopes upward moving to the right has a positive slope. 
D) Answers A and B are correct. 
E) Answers A and C are correct. 
A) The slope of a straight line changes depending where on the line it is calculated. 
B) The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line. 
C) A straight line that slopes upward moving to the right has a positive slope. 
D) Answers A and B are correct. 
E) Answers A and C are correct.

Question 19

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 20

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

Accepted Answer

A) direct 
B) benefit's 
C) opportunity 
D) explicit 
E) sunk 
A) direct 
B) benefit's 
C) opportunity 
D) explicit 
E) sunk

The primary focus of microeconomics is

Economics is the social science that studies

-In the figure above, an increase in z leads to a

Which of the following is a microeconomic issue?

-A time series graph

-In the diagram above, which figure(s)show(s)a direct relationship between the variables?

The benefit from a good or service that you purchase is measured by

Which of the following statements is true regarding scarcity?

Which of the following is true? i. A rational choice is always made in the pursuit of social interest. ii. Economics is a social science. iii. Economists try to understand how the economic world works by testing positive statements.

Which of the following is a microeconomic issue?

What is an opportunity cost? Give an example.

-The graph shows

The cost of a one-unit increase in an activity

You have data for sales of pizza for each of the 50 states in 2011.The type of graph to best display these data would be a

-In the above figure, no relationship between x and y is shown in Figure

If a curve rises and then falls, it has a

-What does the slope of the line shown in the above figure equal?

Which of the following statements is correct?

Define economics and describe its branches of study.

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

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

The primary focus of microeconomics is

Economics is the social science that studies

-In the figure above, an increase in z leads to a

Which of the following is a microeconomic issue?

-A time series graph

-In the diagram above, which figure(s)show(s)a direct relationship between the variables?

The benefit from a good or service that you purchase is measured by

Which of the following statements is true regarding scarcity?

Which of the following is true? i. A rational choice is always made in the pursuit of social interest. ii. Economics is a social science. iii. Economists try to understand how the economic world works by testing positive statements.

Which of the following is a microeconomic issue?

What is an opportunity cost? Give an example.

-The graph shows

The cost of a one-unit increase in an activity

You have data for sales of pizza for each of the 50 states in 2011.The type of graph to best display these data would be a

-In the above figure, no relationship between x and y is shown in Figure

If a curve rises and then falls, it has a

-What does the slope of the line shown in the above figure equal?

Which of the following statements is correct?

Define economics and describe its branches of study.

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

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