Question 1

-A graph of the relationship between two variables is a line that slopes down to the right.These two variables are ________ related.

Accepted Answer

A) positively 
B) directly 
C) negatively 
D) not 
E) trend-line 
A) positively 
B) directly 
C) negatively 
D) not 
E) trend-line

Question 2

Making choices on the margin means

Accepted Answer

A) scribbling on the edges of your notebook paper. 
B) comparing all relevant alternatives systematically and incrementally. 
C) making a decision based on emotions. 
D) making decisions in the largest possible increments. 
E) taking account of all marginal benefits, all opportunity costs, and all sunk costs. 
A) scribbling on the edges of your notebook paper. 
B) comparing all relevant alternatives systematically and incrementally. 
C) making a decision based on emotions. 
D) making decisions in the largest possible increments. 
E) taking account of all marginal benefits, all opportunity costs, and all sunk costs.

Question 3

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

Accepted Answer

A) price of a pound of pecans does not change. 
B) price of a pound of peanuts does not change. 
C) the quantity of peanuts that farmers supply does not change. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct. 
A) price of a pound of pecans does not change. 
B) price of a pound of peanuts does not change. 
C) the quantity of peanuts that farmers supply does not change. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct.

Question 4

If a small change in the x variable results in a large change in the y variable, the curve will be

Accepted Answer

A) positively sloped. 
B) negatively sloped. 
C) steep. 
D) flat. 
E) trended. 
A) positively sloped. 
B) negatively sloped. 
C) steep. 
D) flat. 
E) trended.

Question 5

An opportunity cost is

Accepted Answer

A) the dollar amount that is paid. 
B) anything the decision maker believes costs to be. 
C) the benefits of the highest-valued alternative forgone. 
D) whatever is paid out and cannot be reduced or reversed. 
E) another term for all the sunk costs. 
A) the dollar amount that is paid. 
B) anything the decision maker believes costs to be. 
C) the benefits of the highest-valued alternative forgone. 
D) whatever is paid out and cannot be reduced or reversed. 
E) another term for all the sunk costs.

Question 6

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

Question 7

When you make the decision to spend your time attending class, which economic question are you answering?

Accepted Answer

A) What? 
B) How? 
C) For whom? 
D) Why? 
E) Social interest 
A) What? 
B) How? 
C) For whom? 
D) Why? 
E) Social interest

Question 8

-In the above figure, which of the figures shows a relationship between x and y with a negative slope?

Accepted Answer

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

Question 9

To help unscramble cause and effect, economists

Accepted Answer

A) use the concept of opportunity costs. 
B) must use the ceteris paribus assumption. 
C) answer the "what" question. 
D) answer the "how" question. 
E) must use normative statements. 
A) use the concept of opportunity costs. 
B) must use the ceteris paribus assumption. 
C) answer the "what" question. 
D) answer the "how" question. 
E) must use normative statements.

Question 10

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

Accepted Answer

A) no peanuts. 
B) 1000 pounds of peanuts. 
C) 2000 pounds of peanuts. 
D) 4000 pounds of peanuts. 
E) more than 4000 pounds of peanuts. 
A) no peanuts. 
B) 1000 pounds of peanuts. 
C) 2000 pounds of peanuts. 
D) 4000 pounds of peanuts. 
E) more than 4000 pounds of peanuts.

Question 11

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

Accepted Answer

A) for whom will goods be produced. 
B) when will the goods be produced. 
C) where will the goods be produced. 
D) how will the goods be produced. 
E) why will the goods be produced. 
A) for whom will goods be produced. 
B) when will the goods be produced. 
C) where will the goods be produced. 
D) how will the goods be produced. 
E) why will the goods be produced.

Question 12

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B, the slope of the line is ________ the slope of the line between points B and C.

Accepted Answer

A) greater than 
B) equal to 
C) less than 
D) unrelated to 
E) not comparable to 
A) greater than 
B) equal to 
C) less than 
D) unrelated to 
E) not comparable to

Question 13

If whenever one variable increases, another variable also increases, then these two variables are ________ related.

Accepted Answer

A) positively 
B) negatively 
C) inversely 
D) cross-sectionally 
E) trend-line 
A) positively 
B) negatively 
C) inversely 
D) cross-sectionally 
E) trend-line

Question 14

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care.Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

Accepted Answer

A) What type of health care will be produced and in what quantity? 
B) How will health care be produced? 
C) For whom will health care be produced? 
D) Why will we offer health care? 
E) Must we offer health care? 
A) What type of health care will be produced and in what quantity? 
B) How will health care be produced? 
C) For whom will health care be produced? 
D) Why will we offer health care? 
E) Must we offer health care?

Question 15

-In the above figure, a negative relationship between x and y is shown in Figure

Accepted Answer

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

Question 16

When the power company decides to use manpower to bury its lines, it directly answers the ________ question.

Accepted Answer

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

Question 17

Which of the following is a normative statement?

Accepted Answer

A) Flood victims should pay for their own rebuilding. 
B) When the price of kiwi fruit increases, fewer people eat kiwi fruit. 
C) An increase in the supply of computers has caused computer prices to fall. 
D) Recessions lead to increases in the unemployment rate. 
E) Hurricanes strike mainly Florida and North Carolina. 
A) Flood victims should pay for their own rebuilding. 
B) When the price of kiwi fruit increases, fewer people eat kiwi fruit. 
C) An increase in the supply of computers has caused computer prices to fall. 
D) Recessions lead to increases in the unemployment rate. 
E) Hurricanes strike mainly Florida and North Carolina.

Question 18

If Jessie studies economics for two hours instead of going to the movies with her friends, then

Accepted Answer

A) the benefit of studying is the missed movie. 
B) the opportunity cost of studying is the missed movie. 
C) Jesse definitely is making a rational choice. 
D) Jessie is ignoring a sunk cost. 
E) Jessie is not responding to any incentives. 
A) the benefit of studying is the missed movie. 
B) the opportunity cost of studying is the missed movie. 
C) Jesse definitely is making a rational choice. 
D) Jessie is ignoring a sunk cost. 
E) Jessie is not responding to any incentives.

Question 19

If x increases and as a result y decreases, then x and y are

Accepted Answer

A) not related because the relationship is a causal one. 
B) positively related. 
C) negatively related. 
D) directly related. 
E) trend-line related. 
A) not related because the relationship is a causal one. 
B) positively related. 
C) negatively related. 
D) directly related. 
E) trend-line related.

Question 20

The slope

Accepted Answer

A) of a straight line is the same regardless of where on the line it is calculated. 
B) equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C) will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D) equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E) falls as the x variable increases if the line has a negative slope. 
A) of a straight line is the same regardless of where on the line it is calculated. 
B) equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C) will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D) equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E) falls as the x variable increases if the line has a negative slope.

-A graph of the relationship between two variables is a line that slopes down to the right.These two variables are ________ related.

Making choices on the margin means

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

If a small change in the x variable results in a large change in the y variable, the curve will be

An opportunity cost is

Why do economists say that even very rich people face scarcity?

When you make the decision to spend your time attending class, which economic question are you answering?

-In the above figure, which of the figures shows a relationship between x and y with a negative slope?

To help unscramble cause and effect, economists

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B, the slope of the line is ________ the slope of the line between points B and C.

If whenever one variable increases, another variable also increases, then these two variables are ________ related.

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care.Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

-In the above figure, a negative relationship between x and y is shown in Figure

When the power company decides to use manpower to bury its lines, it directly answers the ________ question.

Which of the following is a normative statement?

If Jessie studies economics for two hours instead of going to the movies with her friends, then

If x increases and as a result y decreases, then x and y are

The slope

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 graph of the relationship between two variables is a line that slopes down to the right.These two variables are ________ related.

Making choices on the margin means

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

If a small change in the x variable results in a large change in the y variable, the curve will be

An opportunity cost is

Why do economists say that even very rich people face scarcity?

When you make the decision to spend your time attending class, which economic question are you answering?

-In the above figure, which of the figures shows a relationship between x and y with a negative slope?

To help unscramble cause and effect, economists

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B, the slope of the line is ________ the slope of the line between points B and C.

If whenever one variable increases, another variable also increases, then these two variables are ________ related.

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care.Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

-In the above figure, a negative relationship between x and y is shown in Figure

When the power company decides to use manpower to bury its lines, it directly answers the ________ question.

Which of the following is a normative statement?

If Jessie studies economics for two hours instead of going to the movies with her friends, then

If x increases and as a result y decreases, then x and y are

The slope

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