Question 1

The Occupy Wall Street movement advocates

Accepted Answer

A)  a shift away from market capitalism. 
B)  a shift towards more market capitalism. 
C)  centrally planned socialism. 
D)  following the teachings of Adam Smith. 
A)  a shift away from market capitalism. 
B)  a shift towards more market capitalism. 
C)  centrally planned socialism. 
D)  following the teachings of Adam Smith.

Question 2

Normative statements are statements about

Accepted Answer

A)  prices. 
B)  quantities. 
C)  what is. 
D)  what ought to be. 
A)  prices. 
B)  quantities. 
C)  what is. 
D)  what ought to be.

Question 3

-In the above figure,

Accepted Answer

A)  consumption expenditures are a linear function of labor income. 
B)  the slope of the function depicted is 0.9. 
C)  consumption expenditures are positively related to labor income. 
D)  All of the above answers are correct. 
A)  consumption expenditures are a linear function of labor income. 
B)  the slope of the function depicted is 0.9. 
C)  consumption expenditures are positively related to labor income. 
D)  All of the above answers are correct.

Question 4

The opportunity cost of something you decide to get is

Accepted Answer

A)  all the possible alternatives that you give up to get it. 
B)  the highest valued alternative you give up to get it. 
C)  the value of the item minus the cost you paid for it. 
D)  the amount of money you pay to get it. 
A)  all the possible alternatives that you give up to get it. 
B)  the highest valued alternative you give up to get it. 
C)  the value of the item minus the cost you paid for it. 
D)  the amount of money you pay to get it.

Question 5

In New State,the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles?
In your answer,be sure to mention the role played by incentives.

Accepted Answer

Policy makers know that people making ch

Question 6

In the U.S.economy,which of the following statements is true?

Accepted Answer

A)  More goods are produced than services. 
B)  More services are produced than goods. 
C)  Production is divided evenly between goods and services. 
D)  The economy is too complex to determine the proportion of production that is devoted to producing services. 
A)  More goods are produced than services. 
B)  More services are produced than goods. 
C)  Production is divided evenly between goods and services. 
D)  The economy is too complex to determine the proportion of production that is devoted to producing services.

Question 7

Factors of production include all of the following EXCEPT ________.

Accepted Answer

A)  machines made in past years. 
B)  money 
C)  entrepreneurship 
D)  a wheat field that is not irrigated 
A)  machines made in past years. 
B)  money 
C)  entrepreneurship 
D)  a wheat field that is not irrigated

Question 8

-In the above figure,the curve has a slope that is ________.

Accepted Answer

A)  positive and becoming larger in magnitude 
B)  positive and becoming smaller in magnitude 
C)  negative and becoming larger in magnitude 
D)  negative and becoming smaller in magnitude 
A)  positive and becoming larger in magnitude 
B)  positive and becoming smaller in magnitude 
C)  negative and becoming larger in magnitude 
D)  negative and becoming smaller in magnitude

Question 9

-Which of the following correctly describes the above figure?
I. There is no relationship between the price of an avocado and a student's grade in economics.
II. The value of variable measured on the y-axis is constant as the variable measured on the x-axis increases.
III. As a student's grade in economics increases,the price of an avocado increases.

Accepted Answer

A)  I 
B)  I and II 
C)  II and III 
D)  I, II, and III 
A)  I 
B)  I and II 
C)  II and III 
D)  I, II, and III

Question 10

When China builds a dam using few machines and a great deal of labor,it is answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 11

The "gifts of nature" are included as part of which factor of production?

Accepted Answer

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

Question 12

In economics we learn that

Accepted Answer

A)  tradeoffs allow us to have more of everything we value. 
B)  tradeoffs allow us to avoid the problem of opportunity cost. 
C)  opportunity costs are all of the possible alternatives given up when we make a choice. 
D)  None of the above answers is correct. 
A)  tradeoffs allow us to have more of everything we value. 
B)  tradeoffs allow us to avoid the problem of opportunity cost. 
C)  opportunity costs are all of the possible alternatives given up when we make a choice. 
D)  None of the above answers is correct.

Question 13

-Household consumption depends on both income and interest rates.In the above figure

Accepted Answer

A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant. 
A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant.

Question 14

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

Accepted Answer

A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis. 
A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis.

Question 15

-In the figure above,an increase in z leads to a

Accepted Answer

A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y.

Question 16

-The above figure reveals

Accepted Answer

A)  no relationship between household income and average household expenditure on automobiles. 
B)  that as household income increases the average household expenditure on automobiles decreases. 
C)  that as household income increases the average household expenditure on automobiles increases. 
D)  All of the above are possible. 
A)  no relationship between household income and average household expenditure on automobiles. 
B)  that as household income increases the average household expenditure on automobiles decreases. 
C)  that as household income increases the average household expenditure on automobiles increases. 
D)  All of the above are possible.

Question 17

-The slope in the above figure is

Accepted Answer

A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing. 
A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing.

Question 18

Scarcity exists because

Accepted Answer

A)  society and people are greedy and wasteful. 
B)  our wants exceed the resources available to satisfy them. 
C)  of the inefficient choices we make. 
D)  poor people need more food and other goods. 
A)  society and people are greedy and wasteful. 
B)  our wants exceed the resources available to satisfy them. 
C)  of the inefficient choices we make. 
D)  poor people need more food and other goods.

Question 19

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist?
Be sure to use the terms positive and normative in your answer.

Accepted Answer

Positive statements are statements that

Question 20

On a graph,high correlation between the variable measured along the x-axis and the variable measured along the y-axis

Accepted Answer

A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
C)  means that changes in either variable must cause changes in the other variable. 
D)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis. 
A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
C)  means that changes in either variable must cause changes in the other variable. 
D)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis.

The Occupy Wall Street movement advocates

Normative statements are statements about

-In the above figure,

The opportunity cost of something you decide to get is

In New State,the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer,be sure to mention the role played by incentives.

In the U.S.economy,which of the following statements is true?

Factors of production include all of the following EXCEPT ________.

-In the above figure,the curve has a slope that is ________.

When China builds a dam using few machines and a great deal of labor,it is answering the ________ part of one of the two big economic questions.

The "gifts of nature" are included as part of which factor of production?

In economics we learn that

-Household consumption depends on both income and interest rates.In the above figure

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

-In the figure above,an increase in z leads to a

-The above figure reveals

-The slope in the above figure is

Scarcity exists because

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

On a graph,high correlation between the variable measured along the x-axis and the variable measured along the y-axis

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

The Occupy Wall Street movement advocates

Normative statements are statements about

-In the above figure,

The opportunity cost of something you decide to get is

In New State,the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer,be sure to mention the role played by incentives.

In the U.S.economy,which of the following statements is true?

Factors of production include all of the following EXCEPT ________.

-In the above figure,the curve has a slope that is ________.

When China builds a dam using few machines and a great deal of labor,it is answering the ________ part of one of the two big economic questions.

The "gifts of nature" are included as part of which factor of production?

In economics we learn that

-Household consumption depends on both income and interest rates.In the above figure

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

-In the figure above,an increase in z leads to a

-The above figure reveals

-The slope in the above figure is

Scarcity exists because

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

On a graph,high correlation between the variable measured along the x-axis and the variable measured along the y-axis

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