Question 1

Along a curve,when one variable increases,the other variable decreases.The curve showing this relationship

Accepted Answer

A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope. 
A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope.

Question 2

-The slope of the line in the above figure is

Accepted Answer

A)  positive. 
B)  negative. 
C)  direct. 
D)  independent. 
A)  positive. 
B)  negative. 
C)  direct. 
D)  independent.

Question 3

The horizontal axis in a graph

Accepted Answer

A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis. 
A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis.

Question 4

The statement "The unemployment rate for teens is higher than that for adults" is

Accepted Answer

A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  an ethical statement. 
A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  an ethical statement.

Question 5

-The slope of a positive relationship is

Accepted Answer

A)  positive. 
B)  undefined. 
C)  positive to the right of the maximum point and negative to the left. 
D)  constant as long as the relationship is nonlinear. 
A)  positive. 
B)  undefined. 
C)  positive to the right of the maximum point and negative to the left. 
D)  constant as long as the relationship is nonlinear.

Question 6

A store remains open from 8 a.m.to 4 p.m.each weekday.The store owner is deciding whether to stay open an extra hour each evening.The owner's marginal benefit

Accepted Answer

A)  is the benefit the owner receives from staying open from 8 a.m. to 5 pm. 
B)  depends on the revenues the owner makes during the day. 
C)  must be greater than or equal to the owner's marginal cost if the owner decides to stay open. 
D)  is the benefit the owner receives from staying open from 8 a.m. to 6 pm. 
A)  is the benefit the owner receives from staying open from 8 a.m. to 5 pm. 
B)  depends on the revenues the owner makes during the day. 
C)  must be greater than or equal to the owner's marginal cost if the owner decides to stay open. 
D)  is the benefit the owner receives from staying open from 8 a.m. to 6 pm.

Question 7

-Suppose we are considering the relationship between two variables y and x.y is measured on the y-axis and x is measured on the x-axis,and the relationship between then is a straight line.Suppose that the slope of the line is greater than 1.This slope means that

Accepted Answer

A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y. 
A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y.

Question 8

A scatter diagram shows the

Accepted Answer

A)  level of one variable over time. 
B)  change in one variable over time. 
C)  relationship between two variables. 
D)  evolution of a variable. 
A)  level of one variable over time. 
B)  change in one variable over time. 
C)  relationship between two variables. 
D)  evolution of a variable.

Question 9

-In the above figure,if household consumption is positively related to household income,then an increase in household income will

Accepted Answer

A)  shift the line rightward. 
B)  shift the line leftward. 
C)  make the line positively sloped. 
D)  cause a movement along the line. 
A)  shift the line rightward. 
B)  shift the line leftward. 
C)  make the line positively sloped. 
D)  cause a movement along the line.

Question 10

-The relationship depicted in the above figure is

Accepted Answer

A)  a negative linear relationship. 
B)  a positive linear relationship. 
C)  a positive becoming less steep relationship. 
D)  a positive becoming steeper relationship. 
A)  a negative linear relationship. 
B)  a positive linear relationship. 
C)  a positive becoming less steep relationship. 
D)  a positive becoming steeper relationship.

Question 11

-Suppose we are considering the relationship between two variables y and x.y is measured on the y-axis and x is measured on the x-axis,and the relationship between then is a straight line.Suppose that the slope of the line is positive and is less than 1.This slope means that a change in x is associated with

Accepted Answer

A)  a bigger change in y. 
B)  a smaller change in y. 
C)  no change in y. 
D)  an equal change in y. 
A)  a bigger change in y. 
B)  a smaller change in y. 
C)  no change in y. 
D)  an equal change in y.

Question 12

Misty has the option of purchasing one of three products: Brand A,Brand B,or Brand C.Each costs ten dollars.If she decides that Brand A meets her needs best,then the opportunity cost of this decision is

Accepted Answer

A)  Brand B plus Brand C. 
B)  twenty dollars. 
C)  Brand A. 
D)  Brand B or Brand C, depending on which is considered the highest-value alternative forgone. 
A)  Brand B plus Brand C. 
B)  twenty dollars. 
C)  Brand A. 
D)  Brand B or Brand C, depending on which is considered the highest-value alternative forgone.

Question 13

Which of the following is a normative statement?

Accepted Answer

A)  The price of candy bars is $1.25 each. 
B)  Candy bars are more expensive than newspapers. 
C)  You should eat less candy. 
D)  Popcorn and candy are sold in movie theaters. 
A)  The price of candy bars is $1.25 each. 
B)  Candy bars are more expensive than newspapers. 
C)  You should eat less candy. 
D)  Popcorn and candy are sold in movie theaters.

Question 14

-The above figure plots income and consumption in a nation.In 2007

Accepted Answer

A)  consumption was equal to $25,000 and income was equal to $28,000. 
B)  consumption was equal to $28,000 and income was equal to $25,000. 
C)  consumption was equal to $25,000 and income was equal to $25,000. 
D)  consumption was equal to $27,000 and income was equal to $31,000. 
A)  consumption was equal to $25,000 and income was equal to $28,000. 
B)  consumption was equal to $28,000 and income was equal to $25,000. 
C)  consumption was equal to $25,000 and income was equal to $25,000. 
D)  consumption was equal to $27,000 and income was equal to $31,000.

Question 15

Explain whether the statement,"Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

Accepted Answer

The statement is a positive statement be

Question 16

The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

Accepted Answer

A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  an ethical statement. 
A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  an ethical statement.

Question 17

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours,Kiki could have played tennis or watched a movie.Therefore,the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not?
Explain your answer.

Accepted Answer

Your friend's analysis is incorrect.The

Question 18

$$\begin{array} { | c | c | } 
\hline x & y \
\hline 0 & 2 \
\hline 1 & 5 \
\hline 2 & 8 \
\hline 3 & 11 \
\hline 4 & 14 \
\hline 5 & 17 \
\hline
\end{array}$$
-Given the information in the above table,the relationship between x and y is

Accepted Answer

A)  positive, and the curve becomes flatter as x increases. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive and linear. 
D)  negative and linear. 
A)  positive, and the curve becomes flatter as x increases. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive and linear. 
D)  negative and linear.

Question 19

-In the above figure,the relationship between costs and quantity is negative

Accepted Answer

A)  between point A and point B. 
B)  between point B and point C. 
C)  along the entire curve. 
D)  no where along the curve. 
A)  between point A and point B. 
B)  between point B and point C. 
C)  along the entire curve. 
D)  no where along the curve.

Question 20

Fundamental economic problems basically arise from

Accepted Answer

A)  the fact that society has more than it needs. 
B)  turmoil in the stock market. 
C)  the unequal distribution of income. 
D)  our wants exceeding our scarce resources. 
A)  the fact that society has more than it needs. 
B)  turmoil in the stock market. 
C)  the unequal distribution of income. 
D)  our wants exceeding our scarce resources.

Along a curve,when one variable increases,the other variable decreases.The curve showing this relationship

-The slope of the line in the above figure is

The horizontal axis in a graph

The statement "The unemployment rate for teens is higher than that for adults" is

-The slope of a positive relationship is

A store remains open from 8 a.m.to 4 p.m.each weekday.The store owner is deciding whether to stay open an extra hour each evening.The owner's marginal benefit

-Suppose we are considering the relationship between two variables y and x.y is measured on the y-axis and x is measured on the x-axis,and the relationship between then is a straight line.Suppose that the slope of the line is greater than 1.This slope means that

A scatter diagram shows the

-In the above figure,if household consumption is positively related to household income,then an increase in household income will

-The relationship depicted in the above figure is

Misty has the option of purchasing one of three products: Brand A,Brand B,or Brand C.Each costs ten dollars.If she decides that Brand A meets her needs best,then the opportunity cost of this decision is

Which of the following is a normative statement?

-The above figure plots income and consumption in a nation.In 2007

Explain whether the statement,"Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

x y 0 2 1 5 2 8 3 11 4 14 5 17 -Given the information in the above table,the relationship between x and y is

-In the above figure,the relationship between costs and quantity is negative

Fundamental economic problems basically arise from

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

Along a curve,when one variable increases,the other variable decreases.The curve showing this relationship

-The slope of the line in the above figure is

The horizontal axis in a graph

The statement "The unemployment rate for teens is higher than that for adults" is

-The slope of a positive relationship is

A store remains open from 8 a.m.to 4 p.m.each weekday.The store owner is deciding whether to stay open an extra hour each evening.The owner's marginal benefit

-Suppose we are considering the relationship between two variables y and x.y is measured on the y-axis and x is measured on the x-axis,and the relationship between then is a straight line.Suppose that the slope of the line is greater than 1.This slope means that

A scatter diagram shows the

-In the above figure,if household consumption is positively related to household income,then an increase in household income will

-The relationship depicted in the above figure is

Misty has the option of purchasing one of three products: Brand A,Brand B,or Brand C.Each costs ten dollars.If she decides that Brand A meets her needs best,then the opportunity cost of this decision is

Which of the following is a normative statement?

-The above figure plots income and consumption in a nation.In 2007

Explain whether the statement,"Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

x y 0 2 1 5 2 8 3 11 4 14 5 17 -Given the information in the above table,the relationship between x and y is

-In the above figure,the relationship between costs and quantity is negative

Fundamental economic problems basically arise from

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