Question 1

Which of the following statements is a normative statement?

Accepted Answer

A) Every American household should have health care insurance coverage. 
B) Military spending as a percent of government spending decreased by 5 percent in the 1990s. 
C) Welfare reform has decreased the amount the government spends on welfare. 
D) The price of computers fell last year. 
E) Fewer people are unemployed this year than last year. 
A) Every American household should have health care insurance coverage. 
B) Military spending as a percent of government spending decreased by 5 percent in the 1990s. 
C) Welfare reform has decreased the amount the government spends on welfare. 
D) The price of computers fell last year. 
E) Fewer people are unemployed this year than last year.

Question 2

What do economists mean when they discuss "scarcity"?

Accepted Answer

Scarcity occurs whenever people's wants

Question 3

The slope of a line equals the change in the variable measured along the

Accepted Answer

A) x-axis divided by the change in the variable measured along the y-axis. 
B) y-axis divided by the change in the variable measured along the x-axis. 
C) x-axis minus the change in the variable measured along the y-axis. 
D) x-axis multiplied by the change in the variable measured along the y-axis. 
E) y-axis minus the change in the variable measured along the x-axis. 
A) x-axis divided by the change in the variable measured along the y-axis. 
B) y-axis divided by the change in the variable measured along the x-axis. 
C) x-axis minus the change in the variable measured along the y-axis. 
D) x-axis multiplied by the change in the variable measured along the y-axis. 
E) y-axis minus the change in the variable measured along the x-axis.

Question 4

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2008," is a normative or positive statement.

Accepted Answer

The statement is a positive statement be

Question 5

Which of the following statements is the best example of the term ceteris paribus?

Accepted Answer

A) An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B) More money should be spent on cleaning up the environment. 
C) The government budget surplus was $200 billion in 2000 because the economy was growing. 
D) An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E) When studying the effects of a budget deficit, an economist must take account of all the factors involved. 
A) An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B) More money should be spent on cleaning up the environment. 
C) The government budget surplus was $200 billion in 2000 because the economy was growing. 
D) An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E) When studying the effects of a budget deficit, an economist must take account of all the factors involved.

Question 6

Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

Accepted Answer

A) forgone work. 
B) forgone party. 
C) forgone working and partying. 
D) forgone working or partying, depending on which was your next best choice. 
E) test because you are taking it. 
A) forgone work. 
B) forgone party. 
C) forgone working and partying. 
D) forgone working or partying, depending on which was your next best choice. 
E) test because you are taking it.

Question 7

If two variables are positively related, then

Accepted Answer

A) one variable causes the other. 
B) an increase in one variable is accompanied by a decrease in the other. 
C) an increase in one variable is accompanied by an increase in the other. 
D) they change together, but not necessarily in the same direction. 
E) neither variable can be positively related to any other variable. 
A) one variable causes the other. 
B) an increase in one variable is accompanied by a decrease in the other. 
C) an increase in one variable is accompanied by an increase in the other. 
D) they change together, but not necessarily in the same direction. 
E) neither variable can be positively related to any other variable.

Question 8

-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 equals

Accepted Answer

A) -5. 
B) -4. 
C) -3. 
D) -1. 
E) -2 
A) -5. 
B) -4. 
C) -3. 
D) -1. 
E) -2

Question 9

A positive relationship exists between two variables if

Accepted Answer

A) one variable has "positively" no effect on the other variable. 
B) a decrease in one variable is associated with an increase in the other variable. 
C) a decrease in one variable is associated with a decrease in the other variable. 
D) an increase in one variable is associated with both a decrease and an increase in the other variable. 
E) None of the above answers is correct. 
A) one variable has "positively" no effect on the other variable. 
B) a decrease in one variable is associated with an increase in the other variable. 
C) a decrease in one variable is associated with a decrease in the other variable. 
D) an increase in one variable is associated with both a decrease and an increase in the other variable. 
E) None of the above answers is correct.

Question 10

When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the

Accepted Answer

A) benefits of the candy bars to the desires he had for the candy bars. 
B) marginal benefits of the candy bars to the marginal costs of the candy bars. 
C) opportunity costs of the candy bars to the scarcity of the candy bars. 
D) benefits of the candy bars to the scarcity candy bars. 
E) self-interest to the social interest. 
A) benefits of the candy bars to the desires he had for the candy bars. 
B) marginal benefits of the candy bars to the marginal costs of the candy bars. 
C) opportunity costs of the candy bars to the scarcity of the candy bars. 
D) benefits of the candy bars to the scarcity candy bars. 
E) self-interest to the social interest.

Question 11

Which of the following statements is a positive statement?

Accepted Answer

A) Our country must increase military spending. 
B) There should be a computer in every elementary school classroom. 
C) We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. 
D) Online shopping increased by 50 percent this Christmas season. 
E) Too many people are unemployed. 
A) Our country must increase military spending. 
B) There should be a computer in every elementary school classroom. 
C) We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. 
D) Online shopping increased by 50 percent this Christmas season. 
E) Too many people are unemployed.

Question 12

List and explain the three fundamental economic questions that must be answered by all economic systems.

Accepted Answer

First, all economic systems must answer

Question 13

-A time series graph

Accepted Answer

A) shows how a variable changes over time. 
B) uses bars rather than lines. 
C) shows points in a scatter diagram. 
D) is similar to a cross-section graph because both can show trends over time. 
E) is in the shape of a pie. 
A) shows how a variable changes over time. 
B) uses bars rather than lines. 
C) shows points in a scatter diagram. 
D) is similar to a cross-section graph because both can show trends over time. 
E) is in the shape of a pie.

Question 14

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 vertical axis divided by the change in the variable measured along the horizontal axis. 
C) will be small if a large change in the variable measured on the vertical axis is associated with a small change in the variable measured along the horizontal axis. 
D) Answers A and B are correct. 
E) Answers A and C are correct. 
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 vertical axis divided by the change in the variable measured along the horizontal axis. 
C) will be small if a large change in the variable measured on the vertical axis is associated with a small change in the variable measured along the horizontal axis. 
D) Answers A and B are correct. 
E) Answers A and C are correct.

Question 15

You have chosen to take a trip during spring break.If you had not gone, you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Accepted Answer

A) the wages you would have earned from working. 
B) the lower grade earned by not studying. 
C) the wages you would have earned from working and the lower grade earned by not studying. 
D) the value of the trip. 
E) We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred. 
A) the wages you would have earned from working. 
B) the lower grade earned by not studying. 
C) the wages you would have earned from working and the lower grade earned by not studying. 
D) the value of the trip. 
E) We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred.

Question 16

-The graph shows

Accepted Answer

A) a relationship with a minimum. 
B) a relationship with a maximum. 
C) no relationship. 
D) a linear relationship. 
E) a cross-section relationship. 
A) a relationship with a minimum. 
B) a relationship with a maximum. 
C) no relationship. 
D) a linear relationship. 
E) a cross-section relationship.

Question 17

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

Accepted Answer

A) by a cross-section graph. 
B) by a time-series graph. 
C) as a trend. 
D) by a scatter diagram. 
E) by a trend-section graph. 
A) by a cross-section graph. 
B) by a time-series graph. 
C) as a trend. 
D) by a scatter diagram. 
E) by a trend-section graph.

Question 18

A graph has a point that is either a maximum or a minimum.To the left of the point, the slope of relationship is positive.To the right of the point, the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Accepted Answer

@#IMG-DLM& The point is a maximum point.Examine th

Question 19

All economic questions and problems arise from

Accepted Answer

A) the fact that society has more than it needs. 
B) turmoil in the stock market. 
C) the unequal distribution of income. 
D) a society's wants exceeding what its scarce resources can produce. 
E) the difference between self-interest and social interest. 
A) the fact that society has more than it needs. 
B) turmoil in the stock market. 
C) the unequal distribution of income. 
D) a society's wants exceeding what its scarce resources can produce. 
E) the difference between self-interest and social interest.

Question 20

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

Accepted Answer

The amount of goods and services a perso

Which of the following statements is a normative statement?

What do economists mean when they discuss "scarcity"?

The slope of a line equals the change in the variable measured along the

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2008," is a normative or positive statement.

Which of the following statements is the best example of the term ceteris paribus?

Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

If two variables are positively related, then

-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 equals

A positive relationship exists between two variables if

When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the

Which of the following statements is a positive statement?

List and explain the three fundamental economic questions that must be answered by all economic systems.

-A time series graph

The slope

You have chosen to take a trip during spring break.If you had not gone, you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

-The graph shows

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

A graph has a point that is either a maximum or a minimum.To the left of the point, the slope of relationship is positive.To the right of the point, the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

All economic questions and problems arise from

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

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

Which of the following statements is a normative statement?

What do economists mean when they discuss "scarcity"?

The slope of a line equals the change in the variable measured along the

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2008," is a normative or positive statement.

Which of the following statements is the best example of the term ceteris paribus?

Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

If two variables are positively related, then

-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 equals

A positive relationship exists between two variables if

When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the

Which of the following statements is a positive statement?

List and explain the three fundamental economic questions that must be answered by all economic systems.

-A time series graph

The slope

You have chosen to take a trip during spring break.If you had not gone, you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

-The graph shows

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

A graph has a point that is either a maximum or a minimum.To the left of the point, the slope of relationship is positive.To the right of the point, the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

All economic questions and problems arise from

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

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