Question 1

An incentive

Accepted Answer

A)  could be a reward but could not be a penalty. 
B)  could be a penalty but could not be a reward. 
C)  could be either a reward or a penalty. 
D)  is the opposite of a tradeoff. 
A)  could be a reward but could not be a penalty. 
B)  could be a penalty but could not be a reward. 
C)  could be either a reward or a penalty. 
D)  is the opposite of a tradeoff.

Question 2

Human resources that perform the functions of organizing,managing,and assembling the other resources are called

Accepted Answer

A)  physical capital. 
B)  venture capital. 
C)  entrepreneurship. 
D)  productive capital. 
A)  physical capital. 
B)  venture capital. 
C)  entrepreneurship. 
D)  productive capital.

Question 3

In terms of dollars,the marginal benefit of working five days a week instead of four days a week is

Accepted Answer

A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct. 
A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct.

Question 4

Marginal cost is the cost

Accepted Answer

A)  that your activity imposes on someone else. 
B)  that arises from an increase in an activity. 
C)  of an activity that exceeds its benefit. 
D)  that arises from the secondary effects of an activity. 
A)  that your activity imposes on someone else. 
B)  that arises from an increase in an activity. 
C)  of an activity that exceeds its benefit. 
D)  that arises from the secondary effects of an activity.

Question 5

What does the slope of a straight line equal?
How is the slope of a curved line calculated at a point on the curve?

Accepted Answer

The slope of a straight line is calculat

Question 6

$$\begin{array} { | c | c | } 
\hline x & y \
\hline 0 & 4 \
\hline 1 & 5 \
\hline 2 & 8 \
\hline 3 & 13 \
\hline 4 & 20 \
\hline
\end{array}$$
-In the above table,the relationship between x and y is ________ and,with y measured on the vertical axis,the slope between $y = 5$ and $y = 8$ is equal to ________.

Accepted Answer

A)  negative; 8 
B)  negative; 6 
C)  positive; 5 
D)  positive; 3 
A)  negative; 8 
B)  negative; 6 
C)  positive; 5 
D)  positive; 3

Question 7

-In the above figure,between x = 2 and x = 3,what is the slope of the line?

Accepted Answer

A)  1 
B)  -1 
C)  2 
D)  3 
A)  1 
B)  -1 
C)  2 
D)  3

Question 8

Entrepreneurs directly do all of the following except

Accepted Answer

A)  create new ideas about what and how to produce. 
B)  make business decisions. 
C)  face risks that arise from making business decisions. 
D)  decide for whom goods and services are produced. 
A)  create new ideas about what and how to produce. 
B)  make business decisions. 
C)  face risks that arise from making business decisions. 
D)  decide for whom goods and services are produced.

Question 9

-In the above figure,the slope at point b

Accepted Answer

A)  lies between 1/3 and 1. 
B)  equals 1. 
C)  lies between 1 and 2. 
D)  exceeds 2. 
A)  lies between 1/3 and 1. 
B)  equals 1. 
C)  lies between 1 and 2. 
D)  exceeds 2.

Question 10

Making a choice at the margin means ________.

Accepted Answer

A)  letting someone else choose for you 
B)  waiting until the last minute to make a choice 
C)  deciding to do a little bit more or a little bit less of an activity 
D)  making a choice by comparing the total benefit and the total cost 
A)  letting someone else choose for you 
B)  waiting until the last minute to make a choice 
C)  deciding to do a little bit more or a little bit less of an activity 
D)  making a choice by comparing the total benefit and the total cost

Question 11

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 12

Jane is deciding whether to go to school for 8 weeks this summer.The cost of tuition and textbooks is $1,700 and housing and other expenses will cost her $600.If she does not go to school,she will live in her parents' house for free and they will cover her food and other expenses for her.Also,if Jane does not go to summer school she could work fulltime.But the best job she can get pays only $600 per week,and Jane would only agree to give up her free time for no less than $750 per week.However,if she goes to summer school,she'll have to spend 40 hours a week attending classes and studying.
a) What will the summer school cost Jane in terms of money spent?
b) What are the opportunity costs of going to summer school that Jane does not pay explicitly?
Explain.
c) What is Jane's total opportunity cost of going to school this summer?
Explain your answer.
d) Suppose that if Jane does not go to summer school,she will eventually take the classes anyway.What is Jane's marginal benefit of going to summer school?
e) Suppose Jane decides to go to school in the summer.Explain her decision using the concepts of marginal cost and marginal benefit.

Accepted Answer

a)Jane explicitly pays the cost of tuiti

Question 13

Below is a student's answer to the question "What is microeconomics?
" If you were the instructor,how would you correct the student's answer?
"Microeconomics is the study of how government influences the choices made by individuals and businesses and of the performance of the whole national economy."

Accepted Answer

The answer is partially correct.Microeco

Question 14

-In the above figure,if the tax rate is increased from 20 percent to 30 percent,tax revenue

Accepted Answer

A)  decreases. 
B)  is constant. 
C)  increases. 
D)  may increase or decrease. 
A)  decreases. 
B)  is constant. 
C)  increases. 
D)  may increase or decrease.

Question 15

In part,microeconomics is concerned with the study of

Accepted Answer

A)  unemployment and economic growth. 
B)  the Federal Reserve's policies. 
C)  the effect government regulation has on the price of a product. 
D)  national output of goods and services. 
A)  unemployment and economic growth. 
B)  the Federal Reserve's policies. 
C)  the effect government regulation has on the price of a product. 
D)  national output of goods and services.

Question 16

Scarcity is

Accepted Answer

A)  our inability to satisfy all our wants. 
B)  a situation that exists during economic recessions but not during economic booms. 
C)  eliminated by choices. 
D)  an economic problem only for poor people. 
A)  our inability to satisfy all our wants. 
B)  a situation that exists during economic recessions but not during economic booms. 
C)  eliminated by choices. 
D)  an economic problem only for poor people.

Question 17

All economic questions are about

Accepted Answer

A)  how to make money. 
B)  what to produce. 
C)  how to cope with scarcity. 
D)  how to satisfy all our wants. 
A)  how to make money. 
B)  what to produce. 
C)  how to cope with scarcity. 
D)  how to satisfy all our wants.

Question 18

$$\begin{array} { | c | c | } 
\hline X & Y \
\hline 2 & 20 \
\hline 4 & 16 \
\hline 6 & 12 \
\hline 8 & 8 \
\hline
\end{array}$$ 
  
-Graph the data in the table above in the figure.Label the axes.
a) Is the relationship between X and Y positive or negative?
b) What is the slope when X = 4?
c) What is the slope when X = 8?

Accepted Answer

@#IMG-DLM& 
The figure labels the axes a

Question 19

Microeconomics is the study of topics such as national production and unemployment.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

An incentive

Human resources that perform the functions of organizing,managing,and assembling the other resources are called

In terms of dollars,the marginal benefit of working five days a week instead of four days a week is

Marginal cost is the cost

What does the slope of a straight line equal? How is the slope of a curved line calculated at a point on the curve?

x y 0 4 1 5 2 8 3 13 4 20 -In the above table,the relationship between x and y is and,with y measured on the vertical axis,the slope between $y = 5$ and $y = 8$ is equal to .

-In the above figure,between x = 2 and x = 3,what is the slope of the line?

Entrepreneurs directly do all of the following except

-In the above figure,the slope at point b

Making a choice at the margin means ________.

-What does the slope of the line shown in the above figure equal?

-In the above figure,if the tax rate is increased from 20 percent to 30 percent,tax revenue

In part,microeconomics is concerned with the study of

Scarcity is

All economic questions are about

Microeconomics is the study of topics such as national production and unemployment.

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

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

An incentive

Human resources that perform the functions of organizing,managing,and assembling the other resources are called

In terms of dollars,the marginal benefit of working five days a week instead of four days a week is

Marginal cost is the cost

What does the slope of a straight line equal? How is the slope of a curved line calculated at a point on the curve?

x y 0 4 1 5 2 8 3 13 4 20 -In the above table,the relationship between x and y is ________ and,with y measured on the vertical axis,the slope between y=5y = 5y=5 and y=8y = 8y=8 is equal to ________.

-In the above figure,between x = 2 and x = 3,what is the slope of the line?

Entrepreneurs directly do all of the following except

-In the above figure,the slope at point b

Making a choice at the margin means ________.

-What does the slope of the line shown in the above figure equal?

-In the above figure,if the tax rate is increased from 20 percent to 30 percent,tax revenue

In part,microeconomics is concerned with the study of

Scarcity is

All economic questions are about

X Y 2 20 4 16 6 12 8 8 -Graph the data in the table above in the figure.Label the axes. a) Is the relationship between X and Y positive or negative? b) What is the slope when X = 4? c) What is the slope when X = 8?

Microeconomics is the study of topics such as national production and unemployment.

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

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

x y 0 4 1 5 2 8 3 13 4 20 -In the above table,the relationship between x and y is and,with y measured on the vertical axis,the slope between $y = 5$ and $y = 8$ is equal to .