Question 1

Define marginal cost and marginal benefit.

Accepted Answer

Marginal cost is the opportuni

Question 2

Scarcity means that

Accepted Answer

A) what we can produce with our resources is greater than our material wants. 
B) resources are unlimited. 
C) wants are greater than what we can produce with out resources. 
D) governments must make up for shortages in resources. 
E) choices made in self-interest cannot be the same as those made in the social interest. 
A) what we can produce with our resources is greater than our material wants. 
B) resources are unlimited. 
C) wants are greater than what we can produce with out resources. 
D) governments must make up for shortages in resources. 
E) choices made in self-interest cannot be the same as those made in the social interest.

Question 3

An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

Accepted Answer

A) negative and then linear after the minimum point. 
B) positive and then negative after the minimum point. 
C) negative and then positive after the minimum point. 
D) linear and then positive after the minimum point. 
E) negative both before and after the minimum point. 
A) negative and then linear after the minimum point. 
B) positive and then negative after the minimum point. 
C) negative and then positive after the minimum point. 
D) linear and then positive after the minimum point. 
E) negative both before and after the minimum point.

Question 4

What does the slope of a straight line equal? How is the slope of a curved line calculated?

Accepted Answer

The slope of a straight line is calculat

Question 5

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points A and B is

Accepted Answer

A) 20. 
B) 16. 
C) 2. 
D) 4 
E) nonexistent because at point A, no roses are sold. 
A) 20. 
B) 16. 
C) 2. 
D) 4 
E) nonexistent because at point A, no roses are sold.

Question 6

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then, there is

Accepted Answer

A) a movement along the plotted curve. 
B) a shift in the plotted curve. 
C) no impact on the plotted curve because the variable is not measured on either of the axes. 
D) an omitted variable. 
E) a violation of the absence of trend assumption. 
A) a movement along the plotted curve. 
B) a shift in the plotted curve. 
C) no impact on the plotted curve because the variable is not measured on either of the axes. 
D) an omitted variable. 
E) a violation of the absence of trend assumption.

Question 7

-A slope is measured as the

Accepted Answer

A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E) change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis. 
A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E) change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis.

Question 8

-A time-series graph measures

Accepted Answer

A) the value of one variable against the value of another variable. 
B) the value of an economic variable for different groups in a population at a point in time. 
C) time on the x-axis and the variable or variables in which we are interested on the y-axis. 
D) time on the y-axis and the variable or variables in which we are interested on the x-axis. 
E) time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure. 
A) the value of one variable against the value of another variable. 
B) the value of an economic variable for different groups in a population at a point in time. 
C) time on the x-axis and the variable or variables in which we are interested on the y-axis. 
D) time on the y-axis and the variable or variables in which we are interested on the x-axis. 
E) time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure.

Question 9

-In the figure above, what can you deduce about the slope of the curve?

Accepted Answer

The slope is positiv

Question 10

When people make rational choices, they

Accepted Answer

A) behave selfishly. 
B) do not consider their emotions. 
C) weigh the costs and benefits of their options and act to satisfy their wants. 
D) necessarily make a decision in the social interest. 
E) are necessarily making the best decision. 
A) behave selfishly. 
B) do not consider their emotions. 
C) weigh the costs and benefits of their options and act to satisfy their wants. 
D) necessarily make a decision in the social interest. 
E) are necessarily making the best decision.

Question 11

When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.

Accepted Answer

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

Question 12

-In the above figure, as the y variable increases,

Accepted Answer

A) the x variable is constant. 
B) the x variable increases. 
C) the x variable decreases. 
D) the x variable at first increases but then decreases. 
E) the x variable probably changes, but more information is needed to determine if it increases, decreases, or stays the same. 
A) the x variable is constant. 
B) the x variable increases. 
C) the x variable decreases. 
D) the x variable at first increases but then decreases. 
E) the x variable probably changes, but more information is needed to determine if it increases, decreases, or stays the same.

Question 13

A graph shows the average SAT scores for males and females in 2012.The kind of graph used to show these data would be a

Accepted Answer

A) scatter diagram. 
B) time-series graph. 
C) cross-section graph. 
D) time-stationary graph. 
E) trend figure. 
A) scatter diagram. 
B) time-series graph. 
C) cross-section graph. 
D) time-stationary graph. 
E) trend figure.

Question 14

Why is the benefit of something measured by what you are willing to give up?

Accepted Answer

The benefit of a good or service, say a

Question 15

Explain whether the statement, "There is life on Mars," is a normative or positive statement.

Accepted Answer

The statement is a positive statement be

Question 16

Normative statements
I∙describe how the world is.
Ii∙describe how the world ought to be.
Iii∙depend on people's values and cannot be tested.

Accepted Answer

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

Question 17

-Moving from left to right, a U-shaped curve starts with a

Accepted Answer

A) positive slope, reaches a maximum, then ends with a negative slope. 
B) positive slope, reaches a minimum, then ends with a negative slope. 
C) negative slope, reaches a maximum, then ends with a positive slope. 
D) negative slope, reaches a minimum, then ends with a positive slope. 
E) negative slope, reaches a minimum, then ends with a negative slope. 
A) positive slope, reaches a maximum, then ends with a negative slope. 
B) positive slope, reaches a minimum, then ends with a negative slope. 
C) negative slope, reaches a maximum, then ends with a positive slope. 
D) negative slope, reaches a minimum, then ends with a positive slope. 
E) negative slope, reaches a minimum, then ends with a negative slope.

Question 18

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A equals

Accepted Answer

A) 3. 
B) 3/20 
C) 2/20. 
D) 1/20. 
E) 0. 
A) 3. 
B) 3/20 
C) 2/20. 
D) 1/20. 
E) 0.

Question 19

A time series graph reveals whether there is a ________ , which represents ________.

Accepted Answer

A) trend in a variable; a general tendency for the variable to rise or fall 
B) relationship between two variables; a cross-section relationship 
C) trends in two variables; unrelated variables 
D) relationship between two variables; a trend in a variable 
E) cross-section relationship; a general tendency for the variables to rise or fall 
A) trend in a variable; a general tendency for the variable to rise or fall 
B) relationship between two variables; a cross-section relationship 
C) trends in two variables; unrelated variables 
D) relationship between two variables; a trend in a variable 
E) cross-section relationship; a general tendency for the variables to rise or fall

Question 20

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

Accepted Answer

A) positive. 
B) negative. 
C) inverse. 
D) cross-sectional. 
E) multilateral. 
A) positive. 
B) negative. 
C) inverse. 
D) cross-sectional. 
E) multilateral.

Define marginal cost and marginal benefit.

Scarcity means that

An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

What does the slope of a straight line equal? How is the slope of a curved line calculated?

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points A and B is

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then, there is

-A slope is measured as the

-A time-series graph measures

-In the figure above, what can you deduce about the slope of the curve?

When people make rational choices, they

When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.

-In the above figure, as the y variable increases,

A graph shows the average SAT scores for males and females in 2012.The kind of graph used to show these data would be a

Why is the benefit of something measured by what you are willing to give up?

Explain whether the statement, "There is life on Mars," is a normative or positive statement.

Normative statements I∙describe how the world is. Ii∙describe how the world ought to be. Iii∙depend on people's values and cannot be tested.

-Moving from left to right, a U-shaped curve starts with a

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A equals

A time series graph reveals whether there is a , which represents .

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

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

Define marginal cost and marginal benefit.

Scarcity means that

An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

What does the slope of a straight line equal? How is the slope of a curved line calculated?

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points A and B is

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then, there is

-A slope is measured as the

-A time-series graph measures

-In the figure above, what can you deduce about the slope of the curve?

When people make rational choices, they

When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.

-In the above figure, as the y variable increases,

A graph shows the average SAT scores for males and females in 2012.The kind of graph used to show these data would be a

Why is the benefit of something measured by what you are willing to give up?

Explain whether the statement, "There is life on Mars," is a normative or positive statement.

Normative statements I∙describe how the world is. Ii∙describe how the world ought to be. Iii∙depend on people's values and cannot be tested.

-Moving from left to right, a U-shaped curve starts with a

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A equals

A time series graph reveals whether there is a ________ , which represents ________.

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

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

A time series graph reveals whether there is a , which represents .