Question 1

If the slope of a line that graphs the relationship between variable x and variable y is positive,then we know that

Accepted Answer

A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables are unrelated. 
D)  the two variables have an inverse relationship. 
A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables are unrelated. 
D)  the two variables have an inverse relationship.

Question 2

When a firm decides to produce more electric cars and fewer gas guzzlers,it is most directly answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "how" 
B)  "scarcity" 
C)  "what" 
D)  "for whom" 
A)  "how" 
B)  "scarcity" 
C)  "what" 
D)  "for whom"

Question 3

-In the above figure,the slope at point b is

Accepted Answer

A)  1. 
B)  5/2. 
C)  between 1 and 5/2. 
D)  greater than 5/2. 
A)  1. 
B)  5/2. 
C)  between 1 and 5/2. 
D)  greater than 5/2.

Question 4

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

Accepted Answer

A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases. 
A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases.

Question 5

According to Adam Smith,

Accepted Answer

A)  government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest. 
B)  politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes. 
C)  when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest. 
D)  in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can earn a profit, but both buyers and sellers can't gain simultaneously. 
A)  government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest. 
B)  politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes. 
C)  when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest. 
D)  in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can earn a profit, but both buyers and sellers can't gain simultaneously.

Question 6

Joe likes to sleep late in the mornings and play tennis in the afternoons.The opportunity cost of Joe attending his morning class for one hour is

Accepted Answer

A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class. 
A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class.

Question 7

-In the above figure,when income is zero,household expenditures equal

Accepted Answer

A)  0. 
B)  $1000. 
C)  $4000. 
D)  $8000. 
A)  0. 
B)  $1000. 
C)  $4000. 
D)  $8000.

Question 8

-In the above figure,while moving along the line showing the relationship between household income and expenditure,

Accepted Answer

A)  household expenditures are held constant. 
B)  household income is held constant. 
C)  the interest rate is held constant. 
D)  no variable is held constant. 
A)  household expenditures are held constant. 
B)  household income is held constant. 
C)  the interest rate is held constant. 
D)  no variable is held constant.

Question 9

On a graph,an upward-sloping curve that is flatter as you move away from the origin indicates a

Accepted Answer

A)  positive relationship with an increasing slope. 
B)  positive relationship with a decreasing slope. 
C)  negative relationship with an increasing slope. 
D)  negative relationship with a decreasing slope. 
A)  positive relationship with an increasing slope. 
B)  positive relationship with a decreasing slope. 
C)  negative relationship with an increasing slope. 
D)  negative relationship with a decreasing slope.

Question 10

Macroeconomic topics include

Accepted Answer

A)  total, nationwide employment. 
B)  studying what factors influence the price and quantity of automobiles. 
C)  studying the determination of wages and production costs in the software industry. 
D)  the impact of government regulation of markets. 
A)  total, nationwide employment. 
B)  studying what factors influence the price and quantity of automobiles. 
C)  studying the determination of wages and production costs in the software industry. 
D)  the impact of government regulation of markets.

Question 11

Opportunity cost is best defined as

Accepted Answer

A)  how much money is paid for something. 
B)  how much money is paid for something, taking inflation into account. 
C)  the highest-valued alternative that is given up to get something. 
D)  all the alternatives that are given up to get something. 
A)  how much money is paid for something. 
B)  how much money is paid for something, taking inflation into account. 
C)  the highest-valued alternative that is given up to get something. 
D)  all the alternatives that are given up to get something.

Question 12

-The slope of the line shown in the above figure is

Accepted Answer

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

Question 13

Along a straight line,the value of y is always equal to the value of x.The slope of the line is

Accepted Answer

A)  -1. 
B)  0. 
C)  1. 
D)  infinite. 
A)  -1. 
B)  0. 
C)  1. 
D)  infinite.

Question 14

When the government hires people to serve in the army,these people are no longer available to do other work.This choice illustrates the concept of

Accepted Answer

A)  an incentive. 
B)  a social interest/private interest conflict. 
C)  opportunity cost. 
D)  marginal benefit. 
A)  an incentive. 
B)  a social interest/private interest conflict. 
C)  opportunity cost. 
D)  marginal benefit.

Question 15

Which of the following questions is a macroeconomic issue?

Accepted Answer

A)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  What is the future growth prospect for an economy? 
D)  How many workers should the owner of a business hire? 
A)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  What is the future growth prospect for an economy? 
D)  How many workers should the owner of a business hire?

Question 16

The marginal benefit is the

Accepted Answer

A)  additional gain from one more unit of an activity. 
B)  additional cost from one more unit of an activity. 
C)  loss of the highest-valued alternative. 
D)  additional gain from one more unit of an activity minus the additional cost from one more unit of the activity. 
A)  additional gain from one more unit of an activity. 
B)  additional cost from one more unit of an activity. 
C)  loss of the highest-valued alternative. 
D)  additional gain from one more unit of an activity minus the additional cost from one more unit of the activity.

Question 17

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.The

Question 18

$$\begin{array} { | c | c | c | } 
\hline \text { Point } & X & Y \
\hline \mathrm { a } & 100 & 50 \
\hline \mathrm { b } & 200 & 75 \
\hline \mathrm { c } & 300 & 100 \
\hline \mathrm { d } & 400 & 100 \
\hline \mathrm { e } & 500 & 75 \
\hline \mathrm { f } & 600 & 50 \
\hline
\end{array}$$
-In the table above,Y is measured along the y-axis and X along the x-axis.The slope between points a and b is

Accepted Answer

A)  25. 
B)  4. 
C)  0.25. 
D)  -0.25. 
A)  25. 
B)  4. 
C)  0.25. 
D)  -0.25.

Question 19

-In the above figure,a negative relationship is demonstrated in which of the graphs?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 20

The term "opportunity cost" points out that

Accepted Answer

A)  there may be such a thing as a free lunch. 
B)  not all individuals will make the most of life's opportunities because some will fail to achieve their goals. 
C)  executives do not always recognize opportunities for profit as quickly as they should. 
D)  any decision regarding the use of a resource involves a costly choice. 
A)  there may be such a thing as a free lunch. 
B)  not all individuals will make the most of life's opportunities because some will fail to achieve their goals. 
C)  executives do not always recognize opportunities for profit as quickly as they should. 
D)  any decision regarding the use of a resource involves a costly choice.

If the slope of a line that graphs the relationship between variable x and variable y is positive,then we know that

When a firm decides to produce more electric cars and fewer gas guzzlers,it is most directly answering the ________ part of one of the two big economic questions.

-In the above figure,the slope at point b is

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

According to Adam Smith,

Joe likes to sleep late in the mornings and play tennis in the afternoons.The opportunity cost of Joe attending his morning class for one hour is

-In the above figure,when income is zero,household expenditures equal

-In the above figure,while moving along the line showing the relationship between household income and expenditure,

On a graph,an upward-sloping curve that is flatter as you move away from the origin indicates a

Macroeconomic topics include

Opportunity cost is best defined as

-The slope of the line shown in the above figure is

Along a straight line,the value of y is always equal to the value of x.The slope of the line is

When the government hires people to serve in the army,these people are no longer available to do other work.This choice illustrates the concept of

Which of the following questions is a macroeconomic issue?

The marginal benefit is the

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.

Point X Y 100 50 200 75 300 100 400 100 500 75 600 50 -In the table above,Y is measured along the y-axis and X along the x-axis.The slope between points a and b is

-In the above figure,a negative relationship is demonstrated in which of the graphs?

The term "opportunity cost" points out that

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

If the slope of a line that graphs the relationship between variable x and variable y is positive,then we know that

When a firm decides to produce more electric cars and fewer gas guzzlers,it is most directly answering the ________ part of one of the two big economic questions.

-In the above figure,the slope at point b is

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

According to Adam Smith,

Joe likes to sleep late in the mornings and play tennis in the afternoons.The opportunity cost of Joe attending his morning class for one hour is

-In the above figure,when income is zero,household expenditures equal

-In the above figure,while moving along the line showing the relationship between household income and expenditure,

On a graph,an upward-sloping curve that is flatter as you move away from the origin indicates a

Macroeconomic topics include

Opportunity cost is best defined as

-The slope of the line shown in the above figure is

Along a straight line,the value of y is always equal to the value of x.The slope of the line is

When the government hires people to serve in the army,these people are no longer available to do other work.This choice illustrates the concept of

Which of the following questions is a macroeconomic issue?

The marginal benefit is the

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.

Point X Y 100 50 200 75 300 100 400 100 500 75 600 50 -In the table above,Y is measured along the y-axis and X along the x-axis.The slope between points a and b is

-In the above figure,a negative relationship is demonstrated in which of the graphs?

The term "opportunity cost" points out that

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