Question 1

The value of the x-coordinate of a point in a graph is the length of a line from the point to the

Accepted Answer

A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis. 
A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis.

Question 2

What is a normative statement?
Give an example.

Accepted Answer

A normative statement is a statement abo

Question 3

If there is an inverse relationship between variable x and variable y,then an increase in the value of variable x will be accompanied by

Accepted Answer

A)  an increase in the value of variable y. 
B)  a decrease in the value of variable y. 
C)  no change in the value of variable y. 
D)  variable y reaching its maximum value. 
A)  an increase in the value of variable y. 
B)  a decrease in the value of variable y. 
C)  no change in the value of variable y. 
D)  variable y reaching its maximum value.

Question 4

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

Accepted Answer

A)  positive, and the curve becomes flatter as x increases. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive and linear. 
D)  negative and linear. 
A)  positive, and the curve becomes flatter as x increases. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive and linear. 
D)  negative and linear.

Question 5

As a firm produces more and more CDs,the average cost of producing each CD falls.A curve showing the behavior of the average cost of a CD as more CDs are produced

Accepted Answer

A)  would be positively and then negatively-sloped. 
B)  would be positively sloped. 
C)  would be horizontal. 
D)  would be negatively sloped. 
A)  would be positively and then negatively-sloped. 
B)  would be positively sloped. 
C)  would be horizontal. 
D)  would be negatively sloped.

Question 6

Which of the following questions is NOT a microeconomic question?

Accepted Answer

A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services? 
A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services?

Question 7

-In the above figure,the axis break in the x-axis

Accepted Answer

A)  reflects the fact that for the years covered in the figure, the unemployment rate was never less than 3 percent. 
B)  shows that there is no relationship between inflation and unemployment. 
C)  misleadingly shows that inflation has changed very little even though the unemployment rate has increased a great deal. 
D)  implies that for the years covered in the figure, the inflation rate was always greater than 1 percent. 
A)  reflects the fact that for the years covered in the figure, the unemployment rate was never less than 3 percent. 
B)  shows that there is no relationship between inflation and unemployment. 
C)  misleadingly shows that inflation has changed very little even though the unemployment rate has increased a great deal. 
D)  implies that for the years covered in the figure, the inflation rate was always greater than 1 percent.

Question 8

Suppose you produce 10 bikes a day for a total cost of $1000.Total costs increase to $1100 when you produce 15 bikes.Finally,total costs increase to $1300 if you make 20 bikes.A graph showing the relationship between total costs and the number of bikes produced would be

Accepted Answer

A)  a negatively-sloped line that becomes steeper. 
B)  a positively-sloped line that becomes steeper. 
C)  a negatively-sloped line that becomes flatter. 
D)  a positively-sloped line that becomes flatter. 
A)  a negatively-sloped line that becomes steeper. 
B)  a positively-sloped line that becomes steeper. 
C)  a negatively-sloped line that becomes flatter. 
D)  a positively-sloped line that becomes flatter.

Question 9

Which of the following is NOT an investment in human capital?

Accepted Answer

A)  a business student takes a seminar in using a laptop computer 
B)  a student purchases a laptop computer 
C)  a computer science student learns how to repair a laptop computer 
D)  a computer science student takes a course on programming a laptop computer 
A)  a business student takes a seminar in using a laptop computer 
B)  a student purchases a laptop computer 
C)  a computer science student learns how to repair a laptop computer 
D)  a computer science student takes a course on programming a laptop computer

Question 10

Ben Bernanke,Chairman of the Federal Reserve,must choose whether tomorrow he meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

Accepted Answer

A)  fact that Bernanke faces scarcity. 
B)  concept of entrepreneurship. 
C)  fact that Bernanke responds to incentives 
D)  use of capital. 
A)  fact that Bernanke faces scarcity. 
B)  concept of entrepreneurship. 
C)  fact that Bernanke responds to incentives 
D)  use of capital.

Question 11

In economics,the term "capital" refers to

Accepted Answer

A)  the money in one's pocket. 
B)  buildings and equipment. 
C)  mineral resources. 
D)  consumer goods. 
A)  the money in one's pocket. 
B)  buildings and equipment. 
C)  mineral resources. 
D)  consumer goods.

Question 12

Factors of production include

Accepted Answer

A)  the economic system. 
B)  land, labor, capital and entrepreneurship. 
C)  labor and capital (not land, which is fixed). 
D)  only capital, land, and labor. 
A)  the economic system. 
B)  land, labor, capital and entrepreneurship. 
C)  labor and capital (not land, which is fixed). 
D)  only capital, land, and labor.

Question 13

In every economic system,choices must be made because resources are ________ and our wants are ________.

Accepted Answer

A)  unlimited; limited 
B)  limited; unlimited 
C)  unlimited; unlimited 
D)  limited; limited 
A)  unlimited; limited 
B)  limited; unlimited 
C)  unlimited; unlimited 
D)  limited; limited

Question 14

-In the figure above,the value on the y-axis decreases as we move from

Accepted Answer

A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A. 
A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A.

Question 15

What is the difference between microeconomics and macroeconomics?
Give an example of an issue each studies.

Accepted Answer

Essentially microeconomics studies indiv

Question 16

When Susan makes the statement,"The government should spend less money to take care of national parks," she is

Accepted Answer

A)  making a normative statement. 
B)  making a positive statement. 
C)  testing an economic model. 
D)  not dealing with scarcity. 
A)  making a normative statement. 
B)  making a positive statement. 
C)  testing an economic model. 
D)  not dealing with scarcity.

Question 17

-In the above,which figure shows a linear relationship?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B 
A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B

Question 18

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 19

Overtime worked by a JCPenney associate is considered ________ and earns ________.

Accepted Answer

A)  labor; wages. 
B)  entrepreneurship; profit. 
C)  human capital; interest. 
D)  labor; profit. 
A)  labor; wages. 
B)  entrepreneurship; profit. 
C)  human capital; interest. 
D)  labor; profit.

Question 20

From 8 P.M.to 10 P.M.,Susan can attend a movie,study,or talk with friends.Suppose that Susan decides to go to the movie but thinks that,if she hadn't,she would otherwise have talked with friends.The opportunity cost of attending the movie is

Accepted Answer

A)  talking with friends and studying. 
B)  studying. 
C)  talking with friends. 
D)  two hours of time. 
A)  talking with friends and studying. 
B)  studying. 
C)  talking with friends. 
D)  two hours of time.

The value of the x-coordinate of a point in a graph is the length of a line from the point to the

What is a normative statement? Give an example.

If there is an inverse relationship between variable x and variable y,then an increase in the value of variable x will be accompanied by

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

As a firm produces more and more CDs,the average cost of producing each CD falls.A curve showing the behavior of the average cost of a CD as more CDs are produced

Which of the following questions is NOT a microeconomic question?

-In the above figure,the axis break in the x-axis

Suppose you produce 10 bikes a day for a total cost of $1000.Total costs increase to $1100 when you produce 15 bikes.Finally,total costs increase to $1300 if you make 20 bikes.A graph showing the relationship between total costs and the number of bikes produced would be

Which of the following is NOT an investment in human capital?

Ben Bernanke,Chairman of the Federal Reserve,must choose whether tomorrow he meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

In economics,the term "capital" refers to

Factors of production include

In every economic system,choices must be made because resources are and our wants are .

-In the figure above,the value on the y-axis decreases as we move from

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

When Susan makes the statement,"The government should spend less money to take care of national parks," she is

-In the above,which figure shows a linear relationship?

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

Overtime worked by a JCPenney associate is considered and earns .

From 8 P.M.to 10 P.M.,Susan can attend a movie,study,or talk with friends.Suppose that Susan decides to go to the movie but thinks that,if she hadn't,she would otherwise have talked with friends.The opportunity cost of attending the movie is

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 1: What Is Economics

The value of the x-coordinate of a point in a graph is the length of a line from the point to the

What is a normative statement? Give an example.

If there is an inverse relationship between variable x and variable y,then an increase in the value of variable x will be accompanied by

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

As a firm produces more and more CDs,the average cost of producing each CD falls.A curve showing the behavior of the average cost of a CD as more CDs are produced

Which of the following questions is NOT a microeconomic question?

-In the above figure,the axis break in the x-axis

Suppose you produce 10 bikes a day for a total cost of $1000.Total costs increase to $1100 when you produce 15 bikes.Finally,total costs increase to $1300 if you make 20 bikes.A graph showing the relationship between total costs and the number of bikes produced would be

Which of the following is NOT an investment in human capital?

Ben Bernanke,Chairman of the Federal Reserve,must choose whether tomorrow he meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

In economics,the term "capital" refers to

Factors of production include

In every economic system,choices must be made because resources are ________ and our wants are ________.

-In the figure above,the value on the y-axis decreases as we move from

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

When Susan makes the statement,"The government should spend less money to take care of national parks," she is

-In the above,which figure shows a linear relationship?

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

Overtime worked by a JCPenney associate is considered ________ and earns ________.

From 8 P.M.to 10 P.M.,Susan can attend a movie,study,or talk with friends.Suppose that Susan decides to go to the movie but thinks that,if she hadn't,she would otherwise have talked with friends.The opportunity cost of attending the movie is

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

In every economic system,choices must be made because resources are and our wants are .

Overtime worked by a JCPenney associate is considered and earns .