Question 1

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 2

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

Accepted Answer

A)  y/x. 
B)  x/y. 
C)  (change in y)/(change in x). 
D)  (change in x)/(change in y). 
E)  y - x. 
A)  y/x. 
B)  x/y. 
C)  (change in y)/(change in x). 
D)  (change in x)/(change in y). 
E)  y - x.

Question 3

A rational choice is one that

Accepted Answer

A)  always turns out for the best for the decision maker. 
B)  creates no costs for the decision maker. 
C)  must be made with perfect information. 
D)  uses the available resources to most effectively satisfy the wants of the person making the choice. 
E)  is made in the social interest rather than the self-interest. 
A)  always turns out for the best for the decision maker. 
B)  creates no costs for the decision maker. 
C)  must be made with perfect information. 
D)  uses the available resources to most effectively satisfy the wants of the person making the choice. 
E)  is made in the social interest rather than the self-interest.

Question 4

When a third string professional quarterback earns more than a police officer, society answers the ________ question.

Accepted Answer

A)  for whom 
B)  what 
C)  how 
D)  why 
E)  social interest vs.self-interest 
A)  for whom 
B)  what 
C)  how 
D)  why 
E)  social interest vs.self-interest

Question 5

"If the price of home heating oil rises, ceteris paribus, people will buy less home heating oil." This statement is equivalent to which of the following?

Accepted Answer

A)  The relationship between the price of home heating oil and the amount of oil households purchased are independent of each other. 
B)  If the price of home heating oil rises and every thing else remains constant, the amount of home heating oil households purchase will decrease. 
C)  As the prices for all products including home heating oil rise, people buy less home heating oil. 
D)  Because the only way to heat a home is with oil, if the price increases, then households will purchase less. 
E)  No matter what else changes, if the price of home heating oil rises, people will buy less home heating oil. 
A)  The relationship between the price of home heating oil and the amount of oil households purchased are independent of each other. 
B)  If the price of home heating oil rises and every thing else remains constant, the amount of home heating oil households purchase will decrease. 
C)  As the prices for all products including home heating oil rise, people buy less home heating oil. 
D)  Because the only way to heat a home is with oil, if the price increases, then households will purchase less. 
E)  No matter what else changes, if the price of home heating oil rises, people will buy less home heating oil.

Question 6

Economists try to isolate the effect of one variable at a time.They do so by

Accepted Answer

A)  holding all other relevant factors the same. 
B)  imagining a real world. 
C)  assuming that every economic variable changes simultaneously. 
D)  keeping all variables constant. 
E)  looking only at decisions made on the margin. 
A)  holding all other relevant factors the same. 
B)  imagining a real world. 
C)  assuming that every economic variable changes simultaneously. 
D)  keeping all variables constant. 
E)  looking only at decisions made on the margin.

Question 7

A linear relationship

Accepted Answer

A)  when graphed is a straight line. 
B)  when graphed is a line whose slope changes. 
C)  can be a positive or a negative relationship. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  when graphed is a straight line. 
B)  when graphed is a line whose slope changes. 
C)  can be a positive or a negative relationship. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 8

Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

Accepted Answer

A)  increased the marginal benefit 
B)  decreased the marginal benefit 
C)  increased the marginal cost 
D)  decreased the marginal cost 
E)  increased the sunk cost 
A)  increased the marginal benefit 
B)  decreased the marginal benefit 
C)  increased the marginal cost 
D)  decreased the marginal cost 
E)  increased the sunk cost

Question 9

-In the figure above, the relationship between the x variable and the y variable

Accepted Answer

A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
E)  is non-existent because the two variables are unrelated. 
A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
E)  is non-existent because the two variables are unrelated.

Question 10

The Latin term ceteris paribus means

Accepted Answer

A)  after this, therefore because of this. 
B)  other things being equal. 
C)  what is correct for the part, is not correct for the whole. 
D)  on the margin. 
E)  when one variable increases, the other variable decreases. 
A)  after this, therefore because of this. 
B)  other things being equal. 
C)  what is correct for the part, is not correct for the whole. 
D)  on the margin. 
E)  when one variable increases, the other variable decreases.

Question 11

If whenever one variable increases, another variable also increases, then these two variables are ________ related.

Accepted Answer

A)  positively 
B)  negatively 
C)  inversely 
D)  cross-sectionally 
E)  trend-line 
A)  positively 
B)  negatively 
C)  inversely 
D)  cross-sectionally 
E)  trend-line

Question 12

If the quantity of the variable on the y-axis increases by 10 when the quantity of the variable on the x-axis decreases by 2, then the slope of the curve equals

Accepted Answer

A)  2. 
B)  -10. 
C)  10. 
D)  -5. 
E)  None of the above answers are correct. 
A)  2. 
B)  -10. 
C)  10. 
D)  -5. 
E)  None of the above answers are correct.

Question 13

Which of the following is an example of ceteris paribus?

Accepted Answer

A)  varying both temperature and the amount of rain to decide how hardy a new plant is 
B)  holding caloric intake the same as you decide how exercising affects your weight 
C)  allowing the dosages to change as you investigate how two new drugs compare 
D)  varying both the options available and the price of PCs to investigate what has happened to the demand for PCs 
E)  assuming that correlation does not mean causation 
A)  varying both temperature and the amount of rain to decide how hardy a new plant is 
B)  holding caloric intake the same as you decide how exercising affects your weight 
C)  allowing the dosages to change as you investigate how two new drugs compare 
D)  varying both the options available and the price of PCs to investigate what has happened to the demand for PCs 
E)  assuming that correlation does not mean causation

Question 14

Which of the following is a macroeconomic issue?

Accepted Answer

A)  The price of a ticket to Walt Disney World in Orlando is increased. 
B)  The National Football League signs a new television contract. 
C)  The number of jobs and production in Zimbabwe increase. 
D)  The Iowa corn harvest is smaller than normal. 
E)  Utilities are required to install more anti-pollution devices. 
A)  The price of a ticket to Walt Disney World in Orlando is increased. 
B)  The National Football League signs a new television contract. 
C)  The number of jobs and production in Zimbabwe increase. 
D)  The Iowa corn harvest is smaller than normal. 
E)  Utilities are required to install more anti-pollution devices.

Question 15

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 16

Which type of graph is most useful in determining if two variables are correlated?

Accepted Answer

A)  time-series 
B)  scatter diagram 
C)  cross-section 
D)  variable-correlation figure 
E)  None of the above answers is correct. 
A)  time-series 
B)  scatter diagram 
C)  cross-section 
D)  variable-correlation figure 
E)  None of the above answers is correct.

Question 17

Which of the following is a microeconomic topic?

Accepted Answer

A)  Northwest Airlines analyzes the benefits of adding one more flight to Salt Lake City. 
B)  Unemployment soars as taxes increase. 
C)  The government leaves interest rates unchanged as the economy improves. 
D)  Germany's government increases taxes to avoid a budget deficit. 
E)  Chinese economic growth slows. 
A)  Northwest Airlines analyzes the benefits of adding one more flight to Salt Lake City. 
B)  Unemployment soars as taxes increase. 
C)  The government leaves interest rates unchanged as the economy improves. 
D)  Germany's government increases taxes to avoid a budget deficit. 
E)  Chinese economic growth slows.

Question 18

A linear relationship

Accepted Answer

A)  graphs as a straight line. 
B)  graphs as a curve. 
C)  can be either positive or negative. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct. 
A)  graphs as a straight line. 
B)  graphs as a curve. 
C)  can be either positive or negative. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct.

Question 19

Which of the following best defines economics?

Accepted Answer

A)  Economics teaches how to limit our wants. 
B)  Economics studies how to choose the best alternative when coping with scarcity. 
C)  Economics helps you earn as much money as possible. 
D)  Economics analyzes all aspects of human behavior in general. 
E)  Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level. 
A)  Economics teaches how to limit our wants. 
B)  Economics studies how to choose the best alternative when coping with scarcity. 
C)  Economics helps you earn as much money as possible. 
D)  Economics analyzes all aspects of human behavior in general. 
E)  Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.

Question 20

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.

If a curve falls and then rises, it

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

A rational choice is one that

When a third string professional quarterback earns more than a police officer, society answers the ________ question.

"If the price of home heating oil rises, ceteris paribus, people will buy less home heating oil." This statement is equivalent to which of the following?

Economists try to isolate the effect of one variable at a time.They do so by

A linear relationship

Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

-In the figure above, the relationship between the x variable and the y variable

The Latin term ceteris paribus means

If whenever one variable increases, another variable also increases, then these two variables are ________ related.

If the quantity of the variable on the y-axis increases by 10 when the quantity of the variable on the x-axis decreases by 2, then the slope of the curve equals

Which of the following is an example of ceteris paribus?

Which of the following is a macroeconomic issue?

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

Which type of graph is most useful in determining if two variables are correlated?

Which of the following is a microeconomic topic?

A linear relationship

Which of the following best defines economics?

A change in a marginal benefit or cost will

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 1: Getting Started

If a curve falls and then rises, it

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

A rational choice is one that

When a third string professional quarterback earns more than a police officer, society answers the ________ question.

"If the price of home heating oil rises, ceteris paribus, people will buy less home heating oil." This statement is equivalent to which of the following?

Economists try to isolate the effect of one variable at a time.They do so by

A linear relationship

Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

-In the figure above, the relationship between the x variable and the y variable

The Latin term ceteris paribus means

If whenever one variable increases, another variable also increases, then these two variables are ________ related.

If the quantity of the variable on the y-axis increases by 10 when the quantity of the variable on the x-axis decreases by 2, then the slope of the curve equals

Which of the following is an example of ceteris paribus?

Which of the following is a macroeconomic issue?

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

Which type of graph is most useful in determining if two variables are correlated?

Which of the following is a microeconomic topic?

A linear relationship

Which of the following best defines economics?

A change in a marginal benefit or cost will

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters