Question 1

When I buy an $8.00 movie ticket rather than two paperback books,the opportunity cost of going to the movie is the two paperback books I did not buy.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a positive statement?

Accepted Answer

A)  The United States should fight inflation even if it raises unemployment. 
B)  What to do with Social Security is the most important economic issue today. 
C)  A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice. 
D)  Because they decrease productivity, labor unions should be eliminated. 
A)  The United States should fight inflation even if it raises unemployment. 
B)  What to do with Social Security is the most important economic issue today. 
C)  A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice. 
D)  Because they decrease productivity, labor unions should be eliminated.

Question 3

$$\begin{array} { | c | c | c | } 
\hline \text { Point } & X & Y \
\hline \mathrm { a } & 100 & 50 \
\hline \mathrm { b } & 200 & 75 \
\hline \mathrm { c } & 300 & 100 \
\hline \mathrm { d } & 400 & 100 \
\hline \mathrm { e } & 500 & 75 \
\hline \mathrm { f } & 600 & 50 \
\hline
\end{array}$$
-In the table above,Y is measured along the y-axis and X along the x-axis.The slope between points c and d is

Accepted Answer

A)  100. 
B)  0. 
C)  0.25. 
D)  -4. 
A)  100. 
B)  0. 
C)  0.25. 
D)  -4.

Question 4

$$\begin{array} { | c | c | } 
\hline \text { Quantity } & \text { Price } \
\hline 0 & 50 \
\hline 8 & 40 \
\hline 16 & 30 \
\hline 24 & 20 \
\hline 32 & 10 \
\hline 36 & 5 \
\hline
\end{array}$$
-If we use the numbers in the above table to draw a graph,with the price on the vertical axis and the quantity on the horizontal axis,the line relating price and quantity has a slope of

Accepted Answer

A)  0.8. 
B)  -8.0. 
C)  -1.25. 
D)  8.0. 
A)  0.8. 
B)  -8.0. 
C)  -1.25. 
D)  8.0.

Question 5

-In the above figure,the slope across the arc between a and b is

Accepted Answer

A)  1. 
B)  -4. 
C)  1/4. 
D)  -1/4. 
A)  1. 
B)  -4. 
C)  1/4. 
D)  -1/4.

Question 6

An economic model includes

Accepted Answer

A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential. 
A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential.

Question 7

Positive economic statements

Accepted Answer

A)  prescribe what should be. 
B)  are related only to microeconomics. 
C)  can be tested against the facts. 
D)  cannot be tested against the facts. 
A)  prescribe what should be. 
B)  are related only to microeconomics. 
C)  can be tested against the facts. 
D)  cannot be tested against the facts.

Question 8

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Accepted Answer

A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail 
A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail

Question 9

Rather than go out to eat by yourself,you decide to stay at home and fix dinner for yourself and your two roommates.Your roommates applaud your decision.Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry.Is this roommate's comment correct?

Accepted Answer

Your first roommate's comment is incorre

Question 10

-The slope of a line equals the

Accepted Answer

A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis. 
A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis.

Question 11

When the government chooses to spend the tax dollars that it collects on homeland security,its choice ________.

Accepted Answer

A)  involves a tradeoff of other goods and services such as education for more homeland security 
B)  illustrates that scarcity does not always exist 
C)  involves no tradeoff because the defense is necessary 
D)  primarily affects who gets the goods and services produced. 
A)  involves a tradeoff of other goods and services such as education for more homeland security 
B)  illustrates that scarcity does not always exist 
C)  involves no tradeoff because the defense is necessary 
D)  primarily affects who gets the goods and services produced.

Question 12

If there is an inverse relationship between two variables,the graph of this relationship

Accepted Answer

A)  will be a horizontal line. 
B)  will be downward-sloping. 
C)  might be horizontal. 
D)  will be upward-sloping. 
A)  will be a horizontal line. 
B)  will be downward-sloping. 
C)  might be horizontal. 
D)  will be upward-sloping.

Question 13

After you graduate,you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year.The two other offers you received were working for Wal-Mart for $38,000 and working for Ernst and Young consulting for $42,000.Of these two offers,you would have preferred the job at Ernst and Young.What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

Accepted Answer

A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart 
A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart

Question 14

Which of the following is a positive statement?

Accepted Answer

A)  State lotteries are good methods to use for raising revenues. 
B)  Increased prison sentences are the best way to reduce the crime rate. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation. 
A)  State lotteries are good methods to use for raising revenues. 
B)  Increased prison sentences are the best way to reduce the crime rate. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation.

Question 15

Which of the following is NOT a normative 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 16

"The rich should pay higher income tax rates than the poor" is an example of a

Accepted Answer

A)  normative statement. 
B)  positive statement. 
C)  descriptive statement. 
D)  theoretical statement. 
A)  normative statement. 
B)  positive statement. 
C)  descriptive statement. 
D)  theoretical statement.

Question 17

Which of the following best defines capital as a factor of production?

Accepted Answer

A)  The gifts of nature that businesses use to produce goods and services. 
B)  The knowledge and skills that people obtain from education and use in production of goods and services. 
C)  Financial assets used by businesses. 
D)  Instruments, machines, and buildings used in production. 
A)  The gifts of nature that businesses use to produce goods and services. 
B)  The knowledge and skills that people obtain from education and use in production of goods and services. 
C)  Financial assets used by businesses. 
D)  Instruments, machines, and buildings used in production.

Question 18

-If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis,the line is ________ and the slope is ________.

Accepted Answer

A)  downward-sloping; large 
B)  downward-sloping; small 
C)  upward-sloping; small 
D)  either downward or upward-sloping; small 
A)  downward-sloping; large 
B)  downward-sloping; small 
C)  upward-sloping; small 
D)  either downward or upward-sloping; small

Question 19

From 8 to 11 p.m.,Sam can either attend a basketball game,a hockey match or the symphony.Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony.Then the opportunity cost of attending the hockey match is

Accepted Answer

A)  going to the symphony and the basketball game. 
B)  going to the symphony. 
C)  going to the basketball game. 
D)  three hours of time. 
A)  going to the symphony and the basketball game. 
B)  going to the symphony. 
C)  going to the basketball game. 
D)  three hours of time.

Question 20

Economics is the study of

Accepted Answer

A)  the distribution of surplus goods to those in need. 
B)  affluence in a morally bankrupt world. 
C)  the choices we make because of scarcity. 
D)  ways to reduce wants to eliminate the problem of scarcity. 
A)  the distribution of surplus goods to those in need. 
B)  affluence in a morally bankrupt world. 
C)  the choices we make because of scarcity. 
D)  ways to reduce wants to eliminate the problem of scarcity.

When I buy an $8.00 movie ticket rather than two paperback books,the opportunity cost of going to the movie is the two paperback books I did not buy.

Which of the following is a positive statement?

Point X Y 100 50 200 75 300 100 400 100 500 75 600 50 -In the table above,Y is measured along the y-axis and X along the x-axis.The slope between points c and d is

Quantity Price 0 50 8 40 16 30 24 20 32 10 36 5 -If we use the numbers in the above table to draw a graph,with the price on the vertical axis and the quantity on the horizontal axis,the line relating price and quantity has a slope of

-In the above figure,the slope across the arc between a and b is

An economic model includes

Positive economic statements

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

-The slope of a line equals the

When the government chooses to spend the tax dollars that it collects on homeland security,its choice ________.

If there is an inverse relationship between two variables,the graph of this relationship

Which of the following is a positive statement?

Which of the following is NOT a normative statement?

"The rich should pay higher income tax rates than the poor" is an example of a

Which of the following best defines capital as a factor of production?

-If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis,the line is and the slope is .

From 8 to 11 p.m.,Sam can either attend a basketball game,a hockey match or the symphony.Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony.Then the opportunity cost of attending the hockey match is

Economics is the study of

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

When I buy an $8.00 movie ticket rather than two paperback books,the opportunity cost of going to the movie is the two paperback books I did not buy.

Which of the following is a positive statement?

Point X Y 100 50 200 75 300 100 400 100 500 75 600 50 -In the table above,Y is measured along the y-axis and X along the x-axis.The slope between points c and d is

Quantity Price 0 50 8 40 16 30 24 20 32 10 36 5 -If we use the numbers in the above table to draw a graph,with the price on the vertical axis and the quantity on the horizontal axis,the line relating price and quantity has a slope of

-In the above figure,the slope across the arc between a and b is

An economic model includes

Positive economic statements

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

-The slope of a line equals the

When the government chooses to spend the tax dollars that it collects on homeland security,its choice ________.

If there is an inverse relationship between two variables,the graph of this relationship

Which of the following is a positive statement?

Which of the following is NOT a normative statement?

"The rich should pay higher income tax rates than the poor" is an example of a

Which of the following best defines capital as a factor of production?

-If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis,the line is ________ and the slope is ________.

From 8 to 11 p.m.,Sam can either attend a basketball game,a hockey match or the symphony.Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony.Then the opportunity cost of attending the hockey match is

Economics is the study of

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

-If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis,the line is and the slope is .