Question 1

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

Question 2

An incentive is

Accepted Answer

A) an inducement to take a particular action. 
B) the marginal cost of some course of action. 
C) the marginal benefit of some course of action. 
D) the net gain of some course of action. 
E) a constraint that society imposes on those who make self-interested choices. 
A) an inducement to take a particular action. 
B) the marginal cost of some course of action. 
C) the marginal benefit of some course of action. 
D) the net gain of some course of action. 
E) a constraint that society imposes on those who make self-interested choices.

Question 3

-What is the slope of the line in the figure above?

Accepted Answer

A) 0.75 
B) -0.75 
C) 1.33 
D) -1.33 
E) Zero 
A) 0.75 
B) -0.75 
C) 1.33 
D) -1.33 
E) Zero

Question 4

-Graph the data in the table above in the figure.Label the axes.
   
a∙Is the relationship between X and Y positive or negative?
b∙What is the slope when X = 4?
c∙What is the slope when X = 8?

Accepted Answer

@#IMG-DLM& 
The figure labels the axes a

Question 5

A change in a marginal benefit or cost will

Accepted Answer

A) increase consumption. 
B) decrease production. 
C) cause an individual to make a rational choice. 
D) increase sunk costs. 
E) change incentives. 
A) increase consumption. 
B) decrease production. 
C) cause an individual to make a rational choice. 
D) increase sunk costs. 
E) change incentives.

Question 6

-A time-series graph displays the price of gold.The slope of the line is negative for periods when the

Accepted Answer

A) price of gold is falling. 
B) price of gold is rising. 
C) quantity of gold is falling. 
D) price of gold is low and not changing. 
E) price of gold fluctuates. 
A) price of gold is falling. 
B) price of gold is rising. 
C) quantity of gold is falling. 
D) price of gold is low and not changing. 
E) price of gold fluctuates.

Question 7

The tendency for the values of two variables to move in a predictable and related way is known as

Accepted Answer

A) a natural experiment. 
B) a normative relationship. 
C) an economic model. 
D) correlation. 
E) a policy relationship. 
A) a natural experiment. 
B) a normative relationship. 
C) an economic model. 
D) correlation. 
E) a policy relationship.

Question 8

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes, then there is

Accepted Answer

A) a movement along the drawn curve. 
B) a shift in the curve. 
C) no impact on the curve because the variable is not measured on either of the axes. 
D) either a shift in the curve or a movement along the curve but more information is needed to determine which. 
E) None of the above answers is correct. 
A) a movement along the drawn curve. 
B) a shift in the curve. 
C) no impact on the curve because the variable is not measured on either of the axes. 
D) either a shift in the curve or a movement along the curve but more information is needed to determine which. 
E) None of the above answers is correct.

Question 9

Of the three major economic questions, which of the following is the best example of a "How?" question?

Accepted Answer

A) Should we produce more heavy fleece coats? 
B) Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? 
C) Should we build log homes or build factories from bricks? 
D) Should we spend more on health care? 
E) Should we eat more oatmeal? 
A) Should we produce more heavy fleece coats? 
B) Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? 
C) Should we build log homes or build factories from bricks? 
D) Should we spend more on health care? 
E) Should we eat more oatmeal?

Question 10

________ shows the values of a variable for different groups in the population at a certain point in time.

Accepted Answer

A) A time-series graph 
B) The origin 
C) A cross-section graph 
D) A scatter plot 
E) A trend-line graph 
A) A time-series graph 
B) The origin 
C) A cross-section graph 
D) A scatter plot 
E) A trend-line graph

Question 11

In examining two variables, we find that as one variable changes, the other changes.These variables are said to be

Accepted Answer

A) independent. 
B) correlated. 
C) statistics. 
D) significantly related. 
E) casually related. 
A) independent. 
B) correlated. 
C) statistics. 
D) significantly related. 
E) casually related.

Question 12

Which of the following statements best describes the study of economics? Economics studies how

Accepted Answer

A) to organize production so that scarcity does not occur. 
B) firms make profits. 
C) we make choices in the face of scarcity. 
D) to create incentives so that scarcity does not exist. 
E) businesses reach decisions. 
A) to organize production so that scarcity does not occur. 
B) firms make profits. 
C) we make choices in the face of scarcity. 
D) to create incentives so that scarcity does not exist. 
E) businesses reach decisions.

Question 13

Self interest

Accepted Answer

A) reflects choices that are best for society as a whole. 
B) reflects choices that are best for the individual who makes them. 
C) has nothing to do with determining what goods are produced. 
D) occurs only when wants exceed available resources. 
E) cannot be used to determine how goods are produced. 
A) reflects choices that are best for society as a whole. 
B) reflects choices that are best for the individual who makes them. 
C) has nothing to do with determining what goods are produced. 
D) occurs only when wants exceed available resources. 
E) cannot be used to determine how goods are produced.

Question 14

Most economic graphs have two lines perpendicular to each other.Where these lines met is called the

Accepted Answer

A) origin. 
B) y-axis. 
C) x-axis. 
D) variable. 
E) point of beginning. 
A) origin. 
B) y-axis. 
C) x-axis. 
D) variable. 
E) point of beginning.

Question 15

A positive statement

Accepted Answer

A) must always be right. 
B) cannot be tested. 
C) might be right or wrong. 
D) depends on someone's value judgment. 
E) cannot be negative. 
A) must always be right. 
B) cannot be tested. 
C) might be right or wrong. 
D) depends on someone's value judgment. 
E) cannot be negative.

Question 16

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

Accepted Answer

A) scatter diagram. 
B) time-series graph. 
C) linear graph. 
D) cross-section graph. 
E) Venn diagram. 
A) scatter diagram. 
B) time-series graph. 
C) linear graph. 
D) cross-section graph. 
E) Venn diagram.

Question 17

"Lower ticket prices would lead to more people attending ballgames." This statement is a

Accepted Answer

A) statement assessing the social interest versus the private interest. 
B) normative statement. 
C) positive statement. 
D) macroeconomic statement. 
E) statement that confuses marginal cost and sunk cost. 
A) statement assessing the social interest versus the private interest. 
B) normative statement. 
C) positive statement. 
D) macroeconomic statement. 
E) statement that confuses marginal cost and sunk cost.

Question 18

If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will

Accepted Answer

A) eat the slice of pizza. 
B) not eat the slice of pizza. 
C) be unable to choose between eating or not eating. 
D) eat half the slice. 
E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice. 
A) eat the slice of pizza. 
B) not eat the slice of pizza. 
C) be unable to choose between eating or not eating. 
D) eat half the slice. 
E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.

Question 19

As part of its proposal to win the 2012 Olympics, London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011, the organizers decided to drop this plan to reduce emissions.We can conclude that

Accepted Answer

A) the marginal cost of reducing emissions exceeded the marginal benefits of reducing emissions. 
B) the organizers are not making a rational decision. 
C) the organizers are ignoring a sunk cost. 
D) there are no incentives to reduce carbon emissions. 
E) it is difficult to calculate the cost of reducing emissions. 
A) the marginal cost of reducing emissions exceeded the marginal benefits of reducing emissions. 
B) the organizers are not making a rational decision. 
C) the organizers are ignoring a sunk cost. 
D) there are no incentives to reduce carbon emissions. 
E) it is difficult to calculate the cost of reducing emissions.

Question 20

-The graph shows a

Accepted Answer

A) positive relationship that becomes steeper. 
B) negative relationship that becomes steeper. 
C) positive relationship that becomes less steep. 
D) negative relationship that become less steep. 
E) negative trend between the total cost of a cake and the output of cakes. 
A) positive relationship that becomes steeper. 
B) negative relationship that becomes steeper. 
C) positive relationship that becomes less steep. 
D) negative relationship that become less steep. 
E) negative trend between the total cost of a cake and the output of cakes.

What is a normative statement? Give an example.

An incentive is

-What is the slope of the line in the figure above?

-Graph the data in the table above in the figure.Label the axes. a∙Is the relationship between X and Y positive or negative? b∙What is the slope when X = 4? c∙What is the slope when X = 8?

A change in a marginal benefit or cost will

-A time-series graph displays the price of gold.The slope of the line is negative for periods when the

The tendency for the values of two variables to move in a predictable and related way is known as

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes, then there is

Of the three major economic questions, which of the following is the best example of a "How?" question?

________ shows the values of a variable for different groups in the population at a certain point in time.

In examining two variables, we find that as one variable changes, the other changes.These variables are said to be

Which of the following statements best describes the study of economics? Economics studies how

Self interest

Most economic graphs have two lines perpendicular to each other.Where these lines met is called the

A positive statement

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

"Lower ticket prices would lead to more people attending ballgames." This statement is a

If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will

As part of its proposal to win the 2012 Olympics, London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011, the organizers decided to drop this plan to reduce emissions.We can conclude that

-The graph shows a

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

What is a normative statement? Give an example.

An incentive is

-What is the slope of the line in the figure above?

-Graph the data in the table above in the figure.Label the axes. a∙Is the relationship between X and Y positive or negative? b∙What is the slope when X = 4? c∙What is the slope when X = 8?

A change in a marginal benefit or cost will

-A time-series graph displays the price of gold.The slope of the line is negative for periods when the

The tendency for the values of two variables to move in a predictable and related way is known as

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes, then there is

Of the three major economic questions, which of the following is the best example of a "How?" question?

________ shows the values of a variable for different groups in the population at a certain point in time.

In examining two variables, we find that as one variable changes, the other changes.These variables are said to be

Which of the following statements best describes the study of economics? Economics studies how

Self interest

Most economic graphs have two lines perpendicular to each other.Where these lines met is called the

A positive statement

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

"Lower ticket prices would lead to more people attending ballgames." This statement is a

If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will

As part of its proposal to win the 2012 Olympics, London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011, the organizers decided to drop this plan to reduce emissions.We can conclude that

-The graph shows a

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