Question 1

In the above, which figure shows both a positive and a negative relationship between the variables?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A, B, and D 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A, B, and D

Question 2

Which of the following statements is true regarding scarcity?

Accepted Answer

A) Scarcity affects poorer countries only. 
B) An economy experiences scarcity only when the incomes of its citizens decline. 
C) Poor people experience scarcity more often than do rich people. 
D) All citizens in a wealthy economy experience scarcity. 
E) Scarcity could be overcome if people would make all choices in the social interest. 
A) Scarcity affects poorer countries only. 
B) An economy experiences scarcity only when the incomes of its citizens decline. 
C) Poor people experience scarcity more often than do rich people. 
D) All citizens in a wealthy economy experience scarcity. 
E) Scarcity could be overcome if people would make all choices in the social interest.

Question 3

The benefit of a one-unit increase in an activity

Accepted Answer

A) is called marginal cost. 
B) is always greater than the opportunity cost of that activity. 
C) decreases as you do more of it. 
D) is measured by what you must give up. 
E) is called rational-choice benefit. 
A) is called marginal cost. 
B) is always greater than the opportunity cost of that activity. 
C) decreases as you do more of it. 
D) is measured by what you must give up. 
E) is called rational-choice benefit.

Question 4

1.5 Chapter Figures
  
-The relationship between distance traveled in 5 hours and speed shown in the figure above is

Accepted Answer

A) direct, linear. 
B) inverse, linear. 
C) direct, non-linear. 
D) inverse, positive. 
E) direct, negative. 
A) direct, linear. 
B) inverse, linear. 
C) direct, non-linear. 
D) inverse, positive. 
E) direct, negative.

Question 5

Why do economists use graphs?

Accepted Answer

Graphs help economists, and others, to v

Question 6

A graph of two variables is a vertical line. What is the interpretation of this result?

Accepted Answer

When the graph of two variables is a ver

Question 7

In order to make a rational choice, people must

Accepted Answer

A) only know what they want. 
B) be able to afford the choice decided upon. 
C) decide quickly without wasting time. 
D) compare marginal costs and marginal benefits. 
E) determine what is in the social interest. 
A) only know what they want. 
B) be able to afford the choice decided upon. 
C) decide quickly without wasting time. 
D) compare marginal costs and marginal benefits. 
E) determine what is in the social interest.

Question 8

Correlation means

Accepted Answer

A) "after this, therefore because of this." 
B) other things remaining the same. 
C) a natural experiment has been conducted. 
D) the tendency for the values of two variables to move in a predictable and related way. 
E) "on the margin." 
A) "after this, therefore because of this." 
B) other things remaining the same. 
C) a natural experiment has been conducted. 
D) the tendency for the values of two variables to move in a predictable and related way. 
E) "on the margin."

Question 9

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 10

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 11

Trend refers to

Accepted Answer

A) the scale used on the x- and y-axes. 
B) increases but not decreases of a variable. 
C) decreases but not increases of a variable. 
D) a general tendency for a variable to rise or fall. 
E) the difference between the maximum value of the variable and the minimum value of the variable. 
A) the scale used on the x- and y-axes. 
B) increases but not decreases of a variable. 
C) decreases but not increases of a variable. 
D) a general tendency for a variable to rise or fall. 
E) the difference between the maximum value of the variable and the minimum value of the variable.

Question 12

-In the diagram above, which figure(s)show(s)an inverse relationship between the variables?

Accepted Answer

A) both B and C 
B) only B 
C) both A and C 
D) only D 
E) only C 
A) both B and C 
B) only B 
C) both A and C 
D) only D 
E) only C

Question 13

You have data for sales of pizza for each of the 50 states in 2011. The type of graph to best display these data would be a

Accepted Answer

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

Question 14

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 15

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

Accepted Answer

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

Question 16

In the above, which figure(s)has at least one point at which the slope equals zero?

Accepted Answer

A) Figure B only 
B) Figures A and C 
C) Figure D only 
D) Figures A, C, and D 
E) Figures A and D 
A) Figure B only 
B) Figures A and C 
C) Figure D only 
D) Figures A, C, and D 
E) Figures A and D

Question 17

A steep slope in a time series graph means the variable is

Accepted Answer

A) high. 
B) falling. 
C) rising or falling quickly. 
D) rising or falling slowly. 
E) very close to its trend point. 
A) high. 
B) falling. 
C) rising or falling quickly. 
D) rising or falling slowly. 
E) very close to its trend point.

Question 18

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has

Accepted Answer

A) increased the marginal cost of cheating. 
B) decreased the marginal benefit of cheating. 
C) made all the students act in the social interest. 
D) recognized that students don't respond to incentives. 
E) recognized that students don't make rational choices. 
A) increased the marginal cost of cheating. 
B) decreased the marginal benefit of cheating. 
C) made all the students act in the social interest. 
D) recognized that students don't respond to incentives. 
E) recognized that students don't make rational choices.

Question 19

Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement.

Accepted Answer

The statement is normative. Th

Question 20

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.

In the above, which figure shows both a positive and a negative relationship between the variables?

Which of the following statements is true regarding scarcity?

The benefit of a one-unit increase in an activity

1.5 Chapter Figures -The relationship between distance traveled in 5 hours and speed shown in the figure above is

Why do economists use graphs?

A graph of two variables is a vertical line. What is the interpretation of this result?

In order to make a rational choice, people must

Correlation means

A rational choice is one that

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

Trend refers to

-In the diagram above, which figure(s)show(s)an inverse relationship between the variables?

You have data for sales of pizza for each of the 50 states in 2011. The type of graph to best display these data would be a

Scarcity exists because

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

In the above, which figure(s)has at least one point at which the slope equals zero?

A steep slope in a time series graph means the variable is

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has

Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement.

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

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 1: Getting Started

In the above, which figure shows both a positive and a negative relationship between the variables?

Which of the following statements is true regarding scarcity?

The benefit of a one-unit increase in an activity

1.5 Chapter Figures -The relationship between distance traveled in 5 hours and speed shown in the figure above is

Why do economists use graphs?

A graph of two variables is a vertical line. What is the interpretation of this result?

In order to make a rational choice, people must

Correlation means

A rational choice is one that

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

Trend refers to

-In the diagram above, which figure(s)show(s)an inverse relationship between the variables?

You have data for sales of pizza for each of the 50 states in 2011. The type of graph to best display these data would be a

Scarcity exists because

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

In the above, which figure(s)has at least one point at which the slope equals zero?

A steep slope in a time series graph means the variable is

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has

Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement.

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

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters