Question 1

-In the above figure,how does the slope of the line between x = 4 and x = 5 compare with the slope between x = 2 and x = 3?

Accepted Answer

A)  The slope is greater between x = 4 and x = 5. 
B)  The slope is greater between x = 2 and x = 3. 
C)  The slope is the same. 
D)  The slope is not comparable. 
A)  The slope is greater between x = 4 and x = 5. 
B)  The slope is greater between x = 2 and x = 3. 
C)  The slope is the same. 
D)  The slope is not comparable.

Question 2

$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Total household } \
\text { income (dollars) }
\end{array} & \begin{array} { c } 
\text { Total consumption } \
\text { (dollars) }
\end{array} \
\hline 30,000 & 27,000 \
\hline 40,000 & 35,000 \
\hline 50,000 & 38,000 \
\hline
\end{array}$$
-The data in the table above shows the relationship between the Joneses' total consumption and total household income.Based on these data,total consumption varies

Accepted Answer

A)  directly with their total household income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  negatively with their income. 
A)  directly with their total household income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  negatively with their income.

Question 3

During the summer you have made the decision to attend summer school,which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer.Your tuition cost is $3,000 and books and supplies cost $1,300.In terms of dollars,the opportunity cost of attending summer school is

Accepted Answer

A)  $10,300. 
B)  $6,000. 
C)  $4,300. 
D)  $3,300. 
A)  $10,300. 
B)  $6,000. 
C)  $4,300. 
D)  $3,300.

Question 4

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

Accepted Answer

A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement. 
A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement.

Question 5

-What does the slope of the curved line at point A shown in the above figure equal?

Accepted Answer

The slope of a curved line equals the sl

Question 6

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases.As a result,the relationship between the variables will

Accepted Answer

A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above. 
A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above.

Question 7

U.S.producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises.Producers are answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "what" 
B)  "how" 
C)  "when" 
D)  "how many" 
A)  "what" 
B)  "how" 
C)  "when" 
D)  "how many"

Question 8

-The above figure shows the relationship between the Joneses' total consumption and total household income.The figure illustrates that the Joneses' total consumption varies

Accepted Answer

A)  directly with their total household income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  negatively with their income. 
A)  directly with their total household income. 
B)  independently of their total household income. 
C)  inversely with their total household income. 
D)  negatively with their income.

Question 9

Why do economists use graphs?

Accepted Answer

Graphs help economists,and others,to vis

Question 10

"As part of the financial crisis bailout plan in 2009,the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of

Accepted Answer

A)  a positive statement. 
B)  a normative statement. 
C)  a microeconomic statement. 
D)  an economic model. 
A)  a positive statement. 
B)  a normative statement. 
C)  a microeconomic statement. 
D)  an economic model.

Question 11

If the x-axis variable increases while the y-axis variable decreases,the variables x and y are negatively related.

Accepted Answer

A) True 
 B)False

Question 12

-In the above figure,which curve shows a negative relationship between x and y?

Accepted Answer

A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  None of the curves show a negative relationship. 
A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  None of the curves show a negative relationship.

Question 13

Scarcity affects only those who are in need.

Accepted Answer

A) True 
 B)False

Question 14

-A scatter diagram with the price of vacations to Mexico on the vertical axis and the price of vacations to California on the horizontal axis shows a positive relationship.If the price of vacations to Mexico were placed on the horizontal axis,and the price of vacations to California on the vertical axis,the relationship would be

Accepted Answer

A)  negative relationship, also called a direct relationship. 
B)  negative relationship, also called an inverse relationship. 
C)  positive relationship, also called a direct relationship. 
D)  positive relationship, also called an inverse relationship. 
A)  negative relationship, also called a direct relationship. 
B)  negative relationship, also called an inverse relationship. 
C)  positive relationship, also called a direct relationship. 
D)  positive relationship, also called an inverse relationship.

Question 15

Which of the following is a positive statement?

Accepted Answer

A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want. 
A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want.

Question 16

Which of the following is a positive statement?

Accepted Answer

A)  People buy more of a good or service when its price falls. 
B)  The distribution of income is fair. 
C)  The government ought to provide health care to everyone. 
D)  Corporations should be more socially responsible. 
A)  People buy more of a good or service when its price falls. 
B)  The distribution of income is fair. 
C)  The government ought to provide health care to everyone. 
D)  Corporations should be more socially responsible.

Question 17

Factors of production are grouped into four categories:

Accepted Answer

A)  land, labor, capital, entrepreneurship 
B)  land, labor, capital, money 
C)  land, capital, money, entrepreneurship 
D)  labor, capital, money, entrepreneurship 
A)  land, labor, capital, entrepreneurship 
B)  land, labor, capital, money 
C)  land, capital, money, entrepreneurship 
D)  labor, capital, money, entrepreneurship

Question 18

-In the above figure,which curve shows a positive relationship between x and y?

Accepted Answer

A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  All the curves show a positive relationship. 
A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  All the curves show a positive relationship.

Question 19

Define marginal cost and marginal benefit.

Accepted Answer

Marginal cost is the opportuni

Question 20

The tools,instruments,machines,and buildings that people use to produce goods and services are called human capital.

Accepted Answer

A) True 
 B)False

-In the above figure,how does the slope of the line between x = 4 and x = 5 compare with the slope between x = 2 and x = 3?

Total household income (dollars) Total consumption (dollars) 30,000 27,000 40,000 35,000 50,000 38,000 -The data in the table above shows the relationship between the Joneses' total consumption and total household income.Based on these data,total consumption varies

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

-What does the slope of the curved line at point A shown in the above figure equal?

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases.As a result,the relationship between the variables will

U.S.producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises.Producers are answering the ________ part of one of the two big economic questions.

-The above figure shows the relationship between the Joneses' total consumption and total household income.The figure illustrates that the Joneses' total consumption varies

Why do economists use graphs?

"As part of the financial crisis bailout plan in 2009,the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of

If the x-axis variable increases while the y-axis variable decreases,the variables x and y are negatively related.

-In the above figure,which curve shows a negative relationship between x and y?

Scarcity affects only those who are in need.

Which of the following is a positive statement?

Which of the following is a positive statement?

Factors of production are grouped into four categories:

-In the above figure,which curve shows a positive relationship between x and y?

Define marginal cost and marginal benefit.

The tools,instruments,machines,and buildings that people use to produce goods and services are called human capital.

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

-In the above figure,how does the slope of the line between x = 4 and x = 5 compare with the slope between x = 2 and x = 3?

Total household income (dollars) Total consumption (dollars) 30,000 27,000 40,000 35,000 50,000 38,000 -The data in the table above shows the relationship between the Joneses' total consumption and total household income.Based on these data,total consumption varies

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

-What does the slope of the curved line at point A shown in the above figure equal?

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases.As a result,the relationship between the variables will

U.S.producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises.Producers are answering the ________ part of one of the two big economic questions.

-The above figure shows the relationship between the Joneses' total consumption and total household income.The figure illustrates that the Joneses' total consumption varies

Why do economists use graphs?

"As part of the financial crisis bailout plan in 2009,the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of

If the x-axis variable increases while the y-axis variable decreases,the variables x and y are negatively related.

-In the above figure,which curve shows a negative relationship between x and y?

Scarcity affects only those who are in need.

Which of the following is a positive statement?

Which of the following is a positive statement?

Factors of production are grouped into four categories:

-In the above figure,which curve shows a positive relationship between x and y?

Define marginal cost and marginal benefit.

The tools,instruments,machines,and buildings that people use to produce goods and services are called human capital.

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