Question 1

A student athlete is deciding whether to work out for an extra hour.Her marginal benefit from another hour of exercise

Accepted Answer

A)  is the benefit she gets from all the hours she's worked out all week. 
B)  is the benefit she receives from exercising the additional hour. 
C)  is less than the marginal cost of the additional hour. 
D)  depends on the cost of the workout. 
A)  is the benefit she gets from all the hours she's worked out all week. 
B)  is the benefit she receives from exercising the additional hour. 
C)  is less than the marginal cost of the additional hour. 
D)  depends on the cost of the workout.

Question 2

If the government raises the tax on cigarettes,what is the effect on people's incentives and choices?

Accepted Answer

The government raises the tax on cigaret

Question 3

A positive relationship exists between two variables if

Accepted Answer

A)  one variable has "positively" no effect on the other variable. 
B)  a reduction in one variable is associated with an increase in the other variable. 
C)  a reduction in one variable is associated with a decrease in the other variable. 
D)  both variables are inflation-distorted. 
A)  one variable has "positively" no effect on the other variable. 
B)  a reduction in one variable is associated with an increase in the other variable. 
C)  a reduction in one variable is associated with a decrease in the other variable. 
D)  both variables are inflation-distorted.

Question 4

Fred and Ann are both given free tickets to see a movie.Both decide to see the same movie.We know that

Accepted Answer

A)  both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie. 
B)  both bear the same opportunity cost of seeing the movie because they are doing the same thing. 
C)  it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free. 
D)  the opportunity cost of seeing the movie is zero because the tickets were free. 
A)  both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie. 
B)  both bear the same opportunity cost of seeing the movie because they are doing the same thing. 
C)  it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free. 
D)  the opportunity cost of seeing the movie is zero because the tickets were free.

Question 5

The vertical axis of a graph shows only positive values.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  -3/5. 
B)  3/5. 
C)  5/3. 
D)  -5/3. 
A)  -3/5. 
B)  3/5. 
C)  5/3. 
D)  -5/3.

Question 7

An economic model is

Accepted Answer

A)  a generalization that summarizes all the normative assumptions we make about a particular issue. 
B)  a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. 
C)  a statement that describes how the world should be. 
D)  a collection of facts that describe the real world. 
A)  a generalization that summarizes all the normative assumptions we make about a particular issue. 
B)  a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. 
C)  a statement that describes how the world should be. 
D)  a collection of facts that describe the real world.

Question 8

A positive statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  the result of a model's normative assumptions. 
D)  valid only in the context of a model with simple assumptions. 
A)  about what ought to be. 
B)  about what is. 
C)  the result of a model's normative assumptions. 
D)  valid only in the context of a model with simple assumptions.

Question 9

$$\begin{array} { | c | c | } 
\begin{array} { c } 
 x \text {-variable } \
\text { (on the horizontal axis) }
\end{array} & \begin{array} { c } 
y \text {-variable } \
\text { (on the vertical axis) }
\end{array} \
\hline 100 & 50 \
\hline 200 & 125 \
\hline 300 & 200 \
\hline
\end{array}$$
-The above table shows data on two variables.If these data were graphed,the slope of the line would be

Accepted Answer

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

Question 10

-In the above figure,the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

Accepted Answer

A)  0 percent and 30 percent. 
B)  30 percent and 100 percent. 
C)  0 percent and 100 percent. 
D)  None of the above answers are correct. 
A)  0 percent and 30 percent. 
B)  30 percent and 100 percent. 
C)  0 percent and 100 percent. 
D)  None of the above answers are correct.

Question 11

The study of the decisions of individual units in the economy is known as

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  the study of incentives. 
D)  ceteris paribus study. 
A)  macroeconomics. 
B)  microeconomics. 
C)  the study of incentives. 
D)  ceteris paribus study.

Question 12

Consider the following events: I. Samsung hires associates to market their HDTV sets to Best Buy.
II. The Dallas Cowboys build a new football stadium.
III. Ebay fires 10 percent of its workforce.
IV. Ten million stocks were traded on the New York Stock Exchange in one day.
V. Pennsylvania builds a new state park.
Which of the events describe use of factors of production?

Accepted Answer

A)  i, II, III, and v 
B)  II, iv, and v 
C)  i and III only 
D)  iv only 
A)  i, II, III, and v 
B)  II, iv, and v 
C)  i and III only 
D)  iv only

Question 13

Economics can be defined as the social science that explains the ________.

Accepted Answer

A)  choices made by politicians 
B)  choices we make when we trade in markets 
C)  choices that we make as we cope with scarcity 
D)  choices made by households 
A)  choices made by politicians 
B)  choices we make when we trade in markets 
C)  choices that we make as we cope with scarcity 
D)  choices made by households

Question 14

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "when" 
B)  "for whom" 
C)  "how" 
D)  "why" 
A)  "when" 
B)  "for whom" 
C)  "how" 
D)  "why"

Question 15

When a California farmer decides to harvest lettuce using machines instead of by migrant workers,the farmer is answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 16

Which of the following is a positive statement?

Accepted Answer

A)  Taxes should be lower because then people get to keep more of what they earn. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions. 
A)  Taxes should be lower because then people get to keep more of what they earn. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions.

Question 17

What are the two different types of relationships that variables can have?
Explain each.What do these relationships look like when they are graphed?

Accepted Answer

Variables can have two relationships: po

Question 18

If variables x and y move up and down together,they are

Accepted Answer

A)  positively related. 
B)  negative related. 
C)  unrelated. 
D)  trend related. 
A)  positively related. 
B)  negative related. 
C)  unrelated. 
D)  trend related.

Question 19

-In the above,a positive 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 20

Which factor of production earns most income in the United States?

Accepted Answer

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

A student athlete is deciding whether to work out for an extra hour.Her marginal benefit from another hour of exercise

If the government raises the tax on cigarettes,what is the effect on people's incentives and choices?

A positive relationship exists between two variables if

Fred and Ann are both given free tickets to see a movie.Both decide to see the same movie.We know that

The vertical axis of a graph shows only positive values.

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

An economic model is

A positive statement is

x -variable (on the horizontal axis) y -variable (on the vertical axis) 100 50 200 125 300 200 -The above table shows data on two variables.If these data were graphed,the slope of the line would be

-In the above figure,the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

The study of the decisions of individual units in the economy is known as

Economics can be defined as the social science that explains the ________.

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions.

When a California farmer decides to harvest lettuce using machines instead of by migrant workers,the farmer is answering the ________ part of one of the two big economic questions.

Which of the following is a positive statement?

What are the two different types of relationships that variables can have? Explain each.What do these relationships look like when they are graphed?

If variables x and y move up and down together,they are

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

Which factor of production earns most income in the United States?

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

A student athlete is deciding whether to work out for an extra hour.Her marginal benefit from another hour of exercise

If the government raises the tax on cigarettes,what is the effect on people's incentives and choices?

A positive relationship exists between two variables if

Fred and Ann are both given free tickets to see a movie.Both decide to see the same movie.We know that

The vertical axis of a graph shows only positive values.

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

An economic model is

A positive statement is

x -variable (on the horizontal axis) y -variable (on the vertical axis) 100 50 200 125 300 200 -The above table shows data on two variables.If these data were graphed,the slope of the line would be

-In the above figure,the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

The study of the decisions of individual units in the economy is known as

Economics can be defined as the social science that explains the ________.

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions.

When a California farmer decides to harvest lettuce using machines instead of by migrant workers,the farmer is answering the ________ part of one of the two big economic questions.

Which of the following is a positive statement?

What are the two different types of relationships that variables can have? Explain each.What do these relationships look like when they are graphed?

If variables x and y move up and down together,they are

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

Which factor of production earns most income in the United States?

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