Question 1

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

Accepted Answer

A)  a normative statement. 
B)  a positive statement. 
C)  a decision at the margin. 
D)  OPEC overcoming scarcity 
A)  a normative statement. 
B)  a positive statement. 
C)  a decision at the margin. 
D)  OPEC overcoming scarcity

Question 2

What is the relationship between wants,factors of production,scarcity,and choices?
Discuss the relationship for an individual and for a society.

Accepted Answer

A person faces scarcity whenever his or

Question 3

-Which of the following correctly describes the above figure?

Accepted Answer

A)  There is no relationship between x and y. 
B)  There is a positive relationship between x and y. 
C)  There is a negative relationship between x and y. 
D)  None of the above answers are correct. 
A)  There is no relationship between x and y. 
B)  There is a positive relationship between x and y. 
C)  There is a negative relationship between x and y. 
D)  None of the above answers are correct.

Question 4

$$\begin{array} { | c | c | } 
\hline x & y \
\hline 0 & 0 \
\hline 1 & 3 \
\hline 2 & 6 \
\hline 3 & 9 \
\hline 4 & 12 \
\hline 5 & 15 \
\hline
\end{array}$$
-Using the data in the table above,with y measured on the vertical axis,the slope of the line relating y to x is

Accepted Answer

A)  1/3. 
B)  1. 
C)  3. 
D)  6. 
A)  1/3. 
B)  1. 
C)  3. 
D)  6.

Question 5

Studying the effects choices have on the individual markets within the economy is part of

Accepted Answer

A)  scarcity. 
B)  microeconomics. 
C)  macroeconomics. 
D)  incentives. 
A)  scarcity. 
B)  microeconomics. 
C)  macroeconomics. 
D)  incentives.

Question 6

Which of the following is NOT a factor of production?

Accepted Answer

A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock 
A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock

Question 7

Marginal benefit is the benefit

Accepted Answer

A)  that your activity provides to someone else. 
B)  of an activity that exceeds its cost. 
C)  that arises from the secondary effects of an activity. 
D)  that arises from an increase in an activity. 
A)  that your activity provides to someone else. 
B)  of an activity that exceeds its cost. 
C)  that arises from the secondary effects of an activity. 
D)  that arises from an increase in an activity.

Question 8

Samantha goes to college to become an engineer.This is an example of an

Accepted Answer

A)  investment in physical capital. 
B)  investment in human capital. 
C)  increase in entrepreneurship. 
D)  increase in labor. 
A)  investment in physical capital. 
B)  investment in human capital. 
C)  increase in entrepreneurship. 
D)  increase in labor.

Question 9

"As part of the financial crisis bailout plan in 2008,the Federal Reserve should not bail out banks that made risky loans." This is an example of

Accepted Answer

A)  a positive statement. 
B)  the Federal Reserve taking actions that are not at the margin. 
C)  opportunity costs. 
D)  a normative statement. 
A)  a positive statement. 
B)  the Federal Reserve taking actions that are not at the margin. 
C)  opportunity costs. 
D)  a normative statement.

Question 10

What is the difference between scarcity and poverty?

Accepted Answer

Scarcity exists when availabil

Question 11

The analysis of the behavior of individual decision-making units is the definition of

Accepted Answer

A)  microeconomics. 
B)  positive economics. 
C)  macroeconomics. 
D)  normative economics. 
A)  microeconomics. 
B)  positive economics. 
C)  macroeconomics. 
D)  normative economics.

Question 12

If the quantity of wood purchased decreases when the price of wood rises,a graph representing these variables would have

Accepted Answer

A)  time on the vertical axis. 
B)  the slope on the vertical axis. 
C)  a negative slope. 
D)  a positive slope. 
A)  time on the vertical axis. 
B)  the slope on the vertical axis. 
C)  a negative slope. 
D)  a positive slope.

Question 13

All economic questions arise because we

Accepted Answer

A)  want more than we can get. 
B)  want more than we need. 
C)  have an abundance of resources. 
D)  have limited wants that need to be satisfied. 
A)  want more than we can get. 
B)  want more than we need. 
C)  have an abundance of resources. 
D)  have limited wants that need to be satisfied.

Question 14

A graph measures y on the vertical axis and x on the horizontal.The curve on the graph is a horizontal line.From this fact we know that

Accepted Answer

A)  the value of x never changes. 
B)  the value of y does not depend on the value of x. 
C)  the ratio of x to y is constant. 
D)  the slope of the line is not defined because y never changes. 
A)  the value of x never changes. 
B)  the value of y does not depend on the value of x. 
C)  the ratio of x to y is constant. 
D)  the slope of the line is not defined because y never changes.

Question 15

-In the above figure,a negative relationship between price and quantity is shown in

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 16

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

Accepted Answer

A)  -1 3/8. 
B)  -1 2/3. 
C)  5/8. 
D)  -0.625. 
A)  -1 3/8. 
B)  -1 2/3. 
C)  5/8. 
D)  -0.625.

Question 17

An example of a question that might be explored in microeconomics is to determine

Accepted Answer

A)  the number of workers employed by Intel. 
B)  savings by the household sector. 
C)  why the U.S. economy has grown more rapidly than the Japanese economy. 
D)  the total employment within the U.S. economy. 
A)  the number of workers employed by Intel. 
B)  savings by the household sector. 
C)  why the U.S. economy has grown more rapidly than the Japanese economy. 
D)  the total employment within the U.S. economy.

Question 18

Along a straight line,when x equals 90,then y equals 30.When x equals 120,then y equals 40.The slope of the straight line is

Accepted Answer

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

Question 19

A positive statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts. 
A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts.

Question 20

If the marginal cost of an activity exceeds the marginal benefit,then

Accepted Answer

A)  the activity will occur because the high marginal cost means it must be highly valued. 
B)  the forgone alternatives' costs must be increased. 
C)  an alternative action will be selected. 
D)  the person must concentrate on the activity's total benefits. 
A)  the activity will occur because the high marginal cost means it must be highly valued. 
B)  the forgone alternatives' costs must be increased. 
C)  an alternative action will be selected. 
D)  the person must concentrate on the activity's total benefits.

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

What is the relationship between wants,factors of production,scarcity,and choices? Discuss the relationship for an individual and for a society.

-Which of the following correctly describes the above figure?

x y 0 0 1 3 2 6 3 9 4 12 5 15 -Using the data in the table above,with y measured on the vertical axis,the slope of the line relating y to x is

Studying the effects choices have on the individual markets within the economy is part of

Which of the following is NOT a factor of production?

Marginal benefit is the benefit

Samantha goes to college to become an engineer.This is an example of an

"As part of the financial crisis bailout plan in 2008,the Federal Reserve should not bail out banks that made risky loans." This is an example of

What is the difference between scarcity and poverty?

The analysis of the behavior of individual decision-making units is the definition of

If the quantity of wood purchased decreases when the price of wood rises,a graph representing these variables would have

All economic questions arise because we

A graph measures y on the vertical axis and x on the horizontal.The curve on the graph is a horizontal line.From this fact we know that

-In the above figure,a negative relationship between price and quantity is shown in

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

An example of a question that might be explored in microeconomics is to determine

Along a straight line,when x equals 90,then y equals 30.When x equals 120,then y equals 40.The slope of the straight line is

A positive statement is

If the marginal cost of an activity exceeds the marginal benefit,then

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

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

What is the relationship between wants,factors of production,scarcity,and choices? Discuss the relationship for an individual and for a society.

-Which of the following correctly describes the above figure?

x y 0 0 1 3 2 6 3 9 4 12 5 15 -Using the data in the table above,with y measured on the vertical axis,the slope of the line relating y to x is

Studying the effects choices have on the individual markets within the economy is part of

Which of the following is NOT a factor of production?

Marginal benefit is the benefit

Samantha goes to college to become an engineer.This is an example of an

"As part of the financial crisis bailout plan in 2008,the Federal Reserve should not bail out banks that made risky loans." This is an example of

What is the difference between scarcity and poverty?

The analysis of the behavior of individual decision-making units is the definition of

If the quantity of wood purchased decreases when the price of wood rises,a graph representing these variables would have

All economic questions arise because we

A graph measures y on the vertical axis and x on the horizontal.The curve on the graph is a horizontal line.From this fact we know that

-In the above figure,a negative relationship between price and quantity is shown in

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

An example of a question that might be explored in microeconomics is to determine

Along a straight line,when x equals 90,then y equals 30.When x equals 120,then y equals 40.The slope of the straight line is

A positive statement is

If the marginal cost of an activity exceeds the marginal benefit,then

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