Question 1

-To graph a relationship that involves more than two variables, we use

Accepted Answer

A) a positive relationship. 
B) a direct relationship. 
C) a negative relationship. 
D) ceteris paribus. 
E) movement up along one of the lines showing the relationship between x and y. 
A) a positive relationship. 
B) a direct relationship. 
C) a negative relationship. 
D) ceteris paribus. 
E) movement up along one of the lines showing the relationship between x and y.

Question 2

Scarcity exists because

Accepted Answer

A) human wants exceed the resources available to satisfy them. 
B) some individuals have low income. 
C) the costs of production are high. 
D) some people make bad economic decisions. 
E) people take too much leisure time. 
A) human wants exceed the resources available to satisfy them. 
B) some individuals have low income. 
C) the costs of production are high. 
D) some people make bad economic decisions. 
E) people take too much leisure time.

Question 3

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score.Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

Accepted Answer

The figure shows that there is a negativ

Question 4

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

Accepted Answer

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

Question 5

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes.Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

Accepted Answer

The figure shows that there is a positiv

Question 6

What kind of information is conveyed in a time-series graph?

Accepted Answer

A time series graph reveals four types o

Question 7

An incentive is

Accepted Answer

A) a reward or a penalty that encourages or discourages an action. 
B) when people make rational choices by comparing costs and benefits. 
C) what you must give up to get something. 
D) a choice is made on the margin. 
E) a good or service that satisfies wants. 
A) a reward or a penalty that encourages or discourages an action. 
B) when people make rational choices by comparing costs and benefits. 
C) what you must give up to get something. 
D) a choice is made on the margin. 
E) a good or service that satisfies wants.

Question 8

Correlation means

Accepted Answer

A) holding everything else constant. 
B) after this, therefore because of this. 
C) the values of two variables move in a predictable and related way. 
D) making statements about how the world should be. 
E) the same as causation. 
A) holding everything else constant. 
B) after this, therefore because of this. 
C) the values of two variables move in a predictable and related way. 
D) making statements about how the world should be. 
E) the same as causation.

Question 9

The question of "What goods and services get produced?" most closely relates to which of the following issues?

Accepted Answer

A) the distribution of goods and services in the economy 
B) producing goods and services in the least costly manner 
C) building a missile defense system, or putting a computer in every elementary school classroom 
D) obtaining specialized training to increase one's income 
E) taxing high income workers to give payments to poor households 
A) the distribution of goods and services in the economy 
B) producing goods and services in the least costly manner 
C) building a missile defense system, or putting a computer in every elementary school classroom 
D) obtaining specialized training to increase one's income 
E) taxing high income workers to give payments to poor households

Question 10

Which of the following is a topic studied in macroeconomics?

Accepted Answer

A) The pricing decisions in the computer hardware industry 
B) The effect on economic growth if the government raises taxes 
C) How the wheat industry determines how much wheat to grow 
D) The impact of labor unions on wages 
E) The impact of higher prices for gasoline on the number of SUVs people buy 
A) The pricing decisions in the computer hardware industry 
B) The effect on economic growth if the government raises taxes 
C) How the wheat industry determines how much wheat to grow 
D) The impact of labor unions on wages 
E) The impact of higher prices for gasoline on the number of SUVs people buy

Question 11

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 12

The marginal cost of an activity ________ as you do more of it.

Accepted Answer

A) increases 
B) decreases 
C) doesn't change 
D) changes only if the marginal benefit of the activity does not change 
E) changes only if the marginal benefit of the activity changes 
A) increases 
B) decreases 
C) doesn't change 
D) changes only if the marginal benefit of the activity does not change 
E) changes only if the marginal benefit of the activity changes

Question 13

-Two variables are unrelated if their graph is
I∙a vertical line.
Ii∙a 45 degree line.
Iii∙a horizontal line.

Accepted Answer

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

Question 14

For spring break, Melanie will either stay home or go to Daytona Beach.At home, Melanie pays $10 per day for food and earns $90 a day at her job.At Daytona Beach, Melanie will stay with friends and so has no lodging cost.She will pay $20 per day for food.In terms of dollars, Melanie's opportunity cost per day of going to Daytona Beach is how much?

Accepted Answer

Melanie's opportunity cost of

Question 15

Microeconomics includes the study of the

Accepted Answer

A) aggregate effects on the national economy. 
B) recessions and inflation in the global economy. 
C) choices made by individuals and businesses. 
D) reasons why the government changes interest rates. 
E) nationwide unemployment rate. 
A) aggregate effects on the national economy. 
B) recessions and inflation in the global economy. 
C) choices made by individuals and businesses. 
D) reasons why the government changes interest rates. 
E) nationwide unemployment rate.

Question 16

-A graph shows that the number of U.S.tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls.The graph shows

Accepted Answer

A) a positive relationship. 
B) a direct relationship. 
C) a negative relationship. 
D) no relationship. 
E) an invalid relationship. 
A) a positive relationship. 
B) a direct relationship. 
C) a negative relationship. 
D) no relationship. 
E) an invalid relationship.

Question 17

Whenever people's incomes increase, they buy more guitars.Hence a scatter diagram shows that the relationship between income and guitars purchased is

Accepted Answer

A) a positive relationship. 
B) a linear relationship. 
C) a negative relationship. 
D) some sort of relationship, but whether it is positive or negative depends on whether income is plotted on the vertical or horizontal axis. 
E) a U-shaped relationship. 
A) a positive relationship. 
B) a linear relationship. 
C) a negative relationship. 
D) some sort of relationship, but whether it is positive or negative depends on whether income is plotted on the vertical or horizontal axis. 
E) a U-shaped relationship.

Question 18

Which of the following is a macroeconomic topic?

Accepted Answer

A) The federal government's decision to spend more on environmental protection 
B) The county government's decision to increase the sales tax for your county 
C) Why did production and jobs expand slowly in 2011? 
D) General Motors decides what prices to set for their new models. 
E) The effect of floods in the growing areas on the price and quantity of wheat 
A) The federal government's decision to spend more on environmental protection 
B) The county government's decision to increase the sales tax for your county 
C) Why did production and jobs expand slowly in 2011? 
D) General Motors decides what prices to set for their new models. 
E) The effect of floods in the growing areas on the price and quantity of wheat

Question 19

-The table above shows data on two variables.If these data were graphed, the slope of the line would be

Accepted Answer

A) 1/2. 
B) 4/3. 
C) 2/3. 
D) 3/4. 
E) 2. 
A) 1/2. 
B) 4/3. 
C) 2/3. 
D) 3/4. 
E) 2.

Question 20

The Latin term "ceteris paribus" means

Accepted Answer

A) "false unless proven true." 
B) "other things remaining the same." 
C) "after this, therefore because of this." 
D) "what is true of the whole is not necessarily true of the parts." 
E) "obviously true." 
A) "false unless proven true." 
B) "other things remaining the same." 
C) "after this, therefore because of this." 
D) "what is true of the whole is not necessarily true of the parts." 
E) "obviously true."

-To graph a relationship that involves more than two variables, we use

Scarcity exists because

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score.Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes.Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

What kind of information is conveyed in a time-series graph?

An incentive is

Correlation means

The question of "What goods and services get produced?" most closely relates to which of the following issues?

Which of the following is a topic studied in macroeconomics?

-What does the slope of the line shown in the above figure equal?

The marginal cost of an activity ________ as you do more of it.

-Two variables are unrelated if their graph is I∙a vertical line. Ii∙a 45 degree line. Iii∙a horizontal line.

Microeconomics includes the study of the

-A graph shows that the number of U.S.tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls.The graph shows

Whenever people's incomes increase, they buy more guitars.Hence a scatter diagram shows that the relationship between income and guitars purchased is

Which of the following is a macroeconomic topic?

-The table above shows data on two variables.If these data were graphed, the slope of the line would be

The Latin term "ceteris paribus" means

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

-To graph a relationship that involves more than two variables, we use

Scarcity exists because

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score.Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes.Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

What kind of information is conveyed in a time-series graph?

An incentive is

Correlation means

The question of "What goods and services get produced?" most closely relates to which of the following issues?

Which of the following is a topic studied in macroeconomics?

-What does the slope of the line shown in the above figure equal?

The marginal cost of an activity ________ as you do more of it.

-Two variables are unrelated if their graph is I∙a vertical line. Ii∙a 45 degree line. Iii∙a horizontal line.

Microeconomics includes the study of the

-A graph shows that the number of U.S.tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls.The graph shows

Whenever people's incomes increase, they buy more guitars.Hence a scatter diagram shows that the relationship between income and guitars purchased is

Which of the following is a macroeconomic topic?

-The table above shows data on two variables.If these data were graphed, the slope of the line would be

The Latin term "ceteris paribus" means

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