Question 1

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would

Accepted Answer

A) have a negative slope. 
B) have a positive relationship. 
C) have a direct relationship. 
D) be a horizontal line. 
E) be a vertical line. 
A) have a negative slope. 
B) have a positive relationship. 
C) have a direct relationship. 
D) be a horizontal line. 
E) be a vertical line.

Question 2

Which of the following is true regarding a normative statement?
i. It uses the ceteris paribus assumption.
ii. It is a value judgment.
iii. It accounts for opportunity costs.

Accepted Answer

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

Question 3

A straight line falls when moving rightward along it.Hence the slope of the line is

Accepted Answer

A) positive. 
B) negative. 
C) undefined. 
D) zero because it is a straight line. 
E) perhaps positive, negative, or zero, but without more information it is impossible to determine. 
A) positive. 
B) negative. 
C) undefined. 
D) zero because it is a straight line. 
E) perhaps positive, negative, or zero, but without more information it is impossible to determine.

Question 4

Why does scarcity lead to the what, how, and for whom questions?

Accepted Answer

Human wants exceed the resources availab

Question 5

-In the above, in which figure(s)is the slope the same at every point?

Accepted Answer

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

Question 6

-If a curve falls and then rises, it

Accepted Answer

A) has a maximum. 
B) has a minimum. 
C) has a linear relationship. 
D) has a constant slope relationship. 
E) shows no relationship between the two variables. 
A) has a maximum. 
B) has a minimum. 
C) has a linear relationship. 
D) has a constant slope relationship. 
E) shows no relationship between the two variables.

Question 7

-Jamie is preparing to take his SAT tests.The table above shows how Jamie's score depends on the number of hours a week Jamie studies
a∙Plot the relationship in the figure, putting the hours studied on the horizontal axis.
   
b∙Is the relationship you plotted positive or negative?
c∙What happens to the slope of the relationship as hours studied increase?
d∙Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he studies, his score will be 100 points higher.Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure.
e∙How many variables are involved in the figure you just completed?

Accepted Answer

@#IMG-DLM& 
a∙The figure above plots the relations

Question 8

Correlation means

Accepted Answer

A) "after this, therefore because of this." 
B) other things remaining the same. 
C) a natural experiment has been conducted. 
D) the tendency for the values of two variables to move in a predictable and related way. 
E) "on the margin." 
A) "after this, therefore because of this." 
B) other things remaining the same. 
C) a natural experiment has been conducted. 
D) the tendency for the values of two variables to move in a predictable and related way. 
E) "on the margin."

Question 9

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

Accepted Answer

A) direct, linear. 
B) inverse, linear. 
C) direct, non-linear. 
D) inverse, positive. 
E) direct, negative. 
A) direct, linear. 
B) inverse, linear. 
C) direct, non-linear. 
D) inverse, positive. 
E) direct, negative.

Question 10

-The slope of the line shown in the above figure is

Accepted Answer

A) -1 1/3. 
B) -1 2/3. 
C) -1.25. 
D) -0.80. 
E) 5. 
A) -1 1/3. 
B) -1 2/3. 
C) -1.25. 
D) -0.80. 
E) 5.

Question 11

-In the above figure, the diagram shows

Accepted Answer

A) a downward trend in x. 
B) an upward trend in x. 
C) a scatter diagram. 
D) a two-variable scatter diagram. 
E) a cross-section graph between x and time. 
A) a downward trend in x. 
B) an upward trend in x. 
C) a scatter diagram. 
D) a two-variable scatter diagram. 
E) a cross-section graph between x and time.

Question 12

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

Accepted Answer

A) This is a normative statement. 
B) The federal government does not face scarcity. 
C) This topic would be studied in microeconomics. 
D) Social interest must always be more important than self-interest. 
E) Ceteris paribus does not apply to the government. 
A) This is a normative statement. 
B) The federal government does not face scarcity. 
C) This topic would be studied in microeconomics. 
D) Social interest must always be more important than self-interest. 
E) Ceteris paribus does not apply to the government.

Question 13

A scatter diagram can be used to see

Accepted Answer

A) if the value of a variable is rising or falling. 
B) the value of a variable for different groups in a population. 
C) if a relationship exists between two variables. 
D) how a variable behaves over time. 
E) whether a variable is positively or negatively related to itself. 
A) if the value of a variable is rising or falling. 
B) the value of a variable for different groups in a population. 
C) if a relationship exists between two variables. 
D) how a variable behaves over time. 
E) whether a variable is positively or negatively related to itself.

Question 14

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.

Accepted Answer

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

Question 15

What is the difference between a positive and a negative relationship?

Accepted Answer

Two variables are positively related whe

Question 16

In economics, cost is measured as ________, and benefit is measured as ________.

Accepted Answer

A) what you must give up to get something; what you are willing to give up to get it 
B) what you are willing to give up to get it; what you must give up to get something 
C) the amount of money that you pay for something; the amount of money that someone else is willing to pay you 
D) what you are willing to pay on the margin; what the government pays you when you are unemployed or retired 
E) the amount of money that you pay on the margin; the amount of money that you receive on the margin 
A) what you must give up to get something; what you are willing to give up to get it 
B) what you are willing to give up to get it; what you must give up to get something 
C) the amount of money that you pay for something; the amount of money that someone else is willing to pay you 
D) what you are willing to pay on the margin; what the government pays you when you are unemployed or retired 
E) the amount of money that you pay on the margin; the amount of money that you receive on the margin

Question 17

If there is no scarcity,

Accepted Answer

A) the opportunity cost of an action would be greater than its sunk cost. 
B) an action would have zero opportunity cost. 
C) choices are no longer rational. 
D) marginal cost of an action is greater than its marginal benefit. 
E) all marginal benefits would equal zero. 
A) the opportunity cost of an action would be greater than its sunk cost. 
B) an action would have zero opportunity cost. 
C) choices are no longer rational. 
D) marginal cost of an action is greater than its marginal benefit. 
E) all marginal benefits would equal zero.

Question 18

-The table above shows how many blouses Katie and Kim will purchase at different prices for a blouse.In the figure, label the axes and put the price on the y-axis and the quantity of blouses on the x-axis.Plot the data for Katie in the figure.Then, plot the data for Kim in the figure.

Accepted Answer

@#IMG-DLM& The figure above shows the la

Question 19

What is the relationship between wants, resources, scarcity, and choices? Discuss the relationship for an individual and for a society.

Accepted Answer

A person faces scarcity whenever his or

Question 20

As a shoe factory adds more workers, shoe production grows, reaches a maximum, and then shrinks.In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis, the relationship between the number of workers and the number of shoes starts as ________ and then, after the maximum point, is ________.

Accepted Answer

A) positive; negative 
B) negative; positive 
C) linear; negative 
D) positive; linear 
E) positive; nonexistent 
A) positive; negative 
B) negative; positive 
C) linear; negative 
D) positive; linear 
E) positive; nonexistent

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would

Which of the following is true regarding a normative statement? i. It uses the ceteris paribus assumption. ii. It is a value judgment. iii. It accounts for opportunity costs.

A straight line falls when moving rightward along it.Hence the slope of the line is

Why does scarcity lead to the what, how, and for whom questions?

-In the above, in which figure(s)is the slope the same at every point?

-If a curve falls and then rises, it

Correlation means

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

-The slope of the line shown in the above figure is

-In the above figure, the diagram shows

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

A scatter diagram can be used to see

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.

What is the difference between a positive and a negative relationship?

In economics, cost is measured as , and benefit is measured as .

If there is no scarcity,

-The table above shows how many blouses Katie and Kim will purchase at different prices for a blouse.In the figure, label the axes and put the price on the y-axis and the quantity of blouses on the x-axis.Plot the data for Katie in the figure.Then, plot the data for Kim in the figure.

What is the relationship between wants, resources, scarcity, and choices? Discuss the relationship for an individual and for a society.

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

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would

Which of the following is true regarding a normative statement? i. It uses the ceteris paribus assumption. ii. It is a value judgment. iii. It accounts for opportunity costs.

A straight line falls when moving rightward along it.Hence the slope of the line is

Why does scarcity lead to the what, how, and for whom questions?

-In the above, in which figure(s)is the slope the same at every point?

-If a curve falls and then rises, it

Correlation means

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

-The slope of the line shown in the above figure is

-In the above figure, the diagram shows

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

A scatter diagram can be used to see

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.

What is the difference between a positive and a negative relationship?

In economics, cost is measured as ________, and benefit is measured as ________.

If there is no scarcity,

-The table above shows how many blouses Katie and Kim will purchase at different prices for a blouse.In the figure, label the axes and put the price on the y-axis and the quantity of blouses on the x-axis.Plot the data for Katie in the figure.Then, plot the data for Kim in the figure.

What is the relationship between wants, resources, scarcity, and choices? Discuss the relationship for an individual and for a society.

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

In economics, cost is measured as , and benefit is measured as .