Question 1

The statement that "peach ice cream is better than chocolate ice cream"

Accepted Answer

A)  can be tested using the scientific approach. 
B)  is a normative statement. 
C)  is a positive statement. 
D)  provides a basis for predicting which type of ice cream will exhibit the most sales. 
A)  can be tested using the scientific approach. 
B)  is a normative statement. 
C)  is a positive statement. 
D)  provides a basis for predicting which type of ice cream will exhibit the most sales.

Question 2

To graph a relationship that involves more than two variables,we use the "ceteris paribus" assumption.

Accepted Answer

A) True 
 B)False

Question 3

The 2010 Patient Protection and Affordable Care Act (Obamacare) contains a provision that may require individuals to either purchase private health insurance or pay a tax.This is an example of

Accepted Answer

A)  a mixed economy. 
B)  market capitalism. 
C)  centrally planned socialism. 
D)  the invisible hand. 
A)  a mixed economy. 
B)  market capitalism. 
C)  centrally planned socialism. 
D)  the invisible hand.

Question 4

One economist says that raising taxes on gas would be in the social interest.What does this economist mean?

Accepted Answer

A)  Higher taxes on gas would benefit society as a whole. 
B)  Raising taxes on gas would benefit most of the people. 
C)  Higher taxes on gas would benefit everyone. 
D)  Both answers A and C are correct. 
A)  Higher taxes on gas would benefit society as a whole. 
B)  Raising taxes on gas would benefit most of the people. 
C)  Higher taxes on gas would benefit everyone. 
D)  Both answers A and C are correct.

Question 5

-In the above figure,which curve indicates that the level of food production does not affect the population growth rate?

Accepted Answer

A)  F 
B)  G 
C)  H 
D)  I 
A)  F 
B)  G 
C)  H 
D)  I

Question 6

$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Total number } \
\text { of workers }
\end{array} & \begin{array} { c } 
\text { Average cost } \
\text { of producing a } \
\text { television set } \
\text { (dollars) }
\end{array} \
\hline 4 & 125 \
\hline 10 & 75 \
\hline 13 & 77 \
\hline 15 & 85 \
\hline
\end{array}$$
-If a curve falls and then rises,it shows

Accepted Answer

A)  a maximum. 
B)  a minimum. 
C)  a linear relationship. 
D)  a constant slope relationship. 
A)  a maximum. 
B)  a minimum. 
C)  a linear relationship. 
D)  a constant slope relationship.

Question 7

A linear relationship

Accepted Answer

A)  always has a maximum. 
B)  always has a constant slope. 
C)  always slopes up to the right. 
D)  never has a constant slope. 
A)  always has a maximum. 
B)  always has a constant slope. 
C)  always slopes up to the right. 
D)  never has a constant slope.

Question 8

You notice that when the inflation rate increases,the interest rate tends to increase.This observation indicates that

Accepted Answer

A)  there might be false causality between inflation and the interest rate. 
B)  higher inflation rates must cause a higher interest rate. 
C)  a scatter diagram of the inflation rate and the interest rate will show a positive relationship. 
D)  the variables have an inverse relationship. 
A)  there might be false causality between inflation and the interest rate. 
B)  higher inflation rates must cause a higher interest rate. 
C)  a scatter diagram of the inflation rate and the interest rate will show a positive relationship. 
D)  the variables have an inverse relationship.

Question 9

-In the above figure,using the slope across an arc,the slope of the curve between points a and b is

Accepted Answer

A)  1/2. 
B)  -1/2. 
C)  2. 
D)  -2. 
A)  1/2. 
B)  -1/2. 
C)  2. 
D)  -2.

Question 10

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 11

Which of the following questions is a topic that would be studied by microeconomics?

Accepted Answer

A)  Why did production and the number of jobs shrink in 2009? 
B)  Will the current budget deficit affect the well-being of the next generation? 
C)  How will a lower price of digital cameras affect the quantity of cameras sold? 
D)  What is the current unemployment rate in the United States? 
A)  Why did production and the number of jobs shrink in 2009? 
B)  Will the current budget deficit affect the well-being of the next generation? 
C)  How will a lower price of digital cameras affect the quantity of cameras sold? 
D)  What is the current unemployment rate in the United States?

Question 12

Which of the following is a positive statement?

Accepted Answer

A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza. 
A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza.

Question 13

A normative statement concerns

Accepted Answer

A)  what is provable. 
B)  what is correct. 
C)  what is incorrect. 
D)  a value judgment. 
A)  what is provable. 
B)  what is correct. 
C)  what is incorrect. 
D)  a value judgment.

Question 14

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 15

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is

Accepted Answer

A)  a horizontal line. 
B)  a vertical line. 
C)  a curve with a maximum. 
D)  a positively-sloped line. 
A)  a horizontal line. 
B)  a vertical line. 
C)  a curve with a maximum. 
D)  a positively-sloped line.

Question 16

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is

Accepted Answer

A)  working and doing fix-up projects. 
B)  working or doing fix-up projects, depending on which you would have done otherwise. 
C)  working, because you would be giving up dollars. 
D)  nothing because you will enjoy the trip to Florida. 
A)  working and doing fix-up projects. 
B)  working or doing fix-up projects, depending on which you would have done otherwise. 
C)  working, because you would be giving up dollars. 
D)  nothing because you will enjoy the trip to Florida.

Question 17

Suppose that we find that student grades and time spent at parties move in opposite directions.A graph of the relationship between these two variables would curve

Accepted Answer

A)  upward and be linear. 
B)  upward and may be linear or nonlinear. 
C)  downward and be linear. 
D)  downward and may be linear or nonlinear. 
A)  upward and be linear. 
B)  upward and may be linear or nonlinear. 
C)  downward and be linear. 
D)  downward and may be linear or nonlinear.

Question 18

-In the above figure,the slope across the arc between b and c is

Accepted Answer

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

Question 19

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false?
Explain your answer.

Accepted Answer

The statement is false because it is pos

Question 20

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

Accepted Answer

A) True 
 B)False

The statement that "peach ice cream is better than chocolate ice cream"

To graph a relationship that involves more than two variables,we use the "ceteris paribus" assumption.

The 2010 Patient Protection and Affordable Care Act (Obamacare) contains a provision that may require individuals to either purchase private health insurance or pay a tax.This is an example of

One economist says that raising taxes on gas would be in the social interest.What does this economist mean?

-In the above figure,which curve indicates that the level of food production does not affect the population growth rate?

Total number of workers Average cost of producing a television set (dollars) 4 125 10 75 13 77 15 85 -If a curve falls and then rises,it shows

A linear relationship

You notice that when the inflation rate increases,the interest rate tends to increase.This observation indicates that

-In the above figure,using the slope across an arc,the slope of the curve between points a and b is

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

Which of the following questions is a topic that would be studied by microeconomics?

Which of the following is a positive statement?

A normative statement concerns

Define economics and describe its branches of study.

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is

Suppose that we find that student grades and time spent at parties move in opposite directions.A graph of the relationship between these two variables would curve

-In the above figure,the slope across the arc between b and c is

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

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 statement that "peach ice cream is better than chocolate ice cream"

To graph a relationship that involves more than two variables,we use the "ceteris paribus" assumption.

The 2010 Patient Protection and Affordable Care Act (Obamacare) contains a provision that may require individuals to either purchase private health insurance or pay a tax.This is an example of

One economist says that raising taxes on gas would be in the social interest.What does this economist mean?

-In the above figure,which curve indicates that the level of food production does not affect the population growth rate?

Total number of workers Average cost of producing a television set (dollars) 4 125 10 75 13 77 15 85 -If a curve falls and then rises,it shows

A linear relationship

You notice that when the inflation rate increases,the interest rate tends to increase.This observation indicates that

-In the above figure,using the slope across an arc,the slope of the curve between points a and b is

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

Which of the following questions is a topic that would be studied by microeconomics?

Which of the following is a positive statement?

A normative statement concerns

Define economics and describe its branches of study.

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is

Suppose that we find that student grades and time spent at parties move in opposite directions.A graph of the relationship between these two variables would curve

-In the above figure,the slope across the arc between b and c is

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

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