Question 1

If variable x always increases when variable y decreases,x and y are said to be

Accepted Answer

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

Question 2

The slope of a negative relationship is

Accepted Answer

A)  negative. 
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)  negative. 
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 3

-Using the above figure,the origin is at which point?

Accepted Answer

A)  Point a 
B)  Point b 
C)  Point c 
D)  None of the points in the figure is the origin. 
A)  Point a 
B)  Point b 
C)  Point c 
D)  None of the points in the figure is the origin.

Question 4

When a farmer decides to raise hogs instead of cattle,the farmer is answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 5

-In the above figure,the axis breaks are used

Accepted Answer

A)  to create a misleading graph. 
B)  to indicate that there are jumps from the origin, 0, to the first values recorded along the axes. 
C)  to indicate that there are not enough data to be included in the graph. 
D)  to show that there are no data available for the omitted ranges. 
A)  to create a misleading graph. 
B)  to indicate that there are jumps from the origin, 0, to the first values recorded along the axes. 
C)  to indicate that there are not enough data to be included in the graph. 
D)  to show that there are no data available for the omitted ranges.

Question 6

People must make choices because

Accepted Answer

A)  most people enjoy shopping. 
B)  of scarcity. 
C)  there are many goods available. 
D)  None of the above answers is correct. 
A)  most people enjoy shopping. 
B)  of scarcity. 
C)  there are many goods available. 
D)  None of the above answers is correct.

Question 7

To graph a relationship among several variables,we hold all but ________ variable(s) constant and use the ________ assumption.

Accepted Answer

A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; marginal benefit 
D)  one; ceteris paribus 
A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; marginal benefit 
D)  one; ceteris paribus

Question 8

"Ceteris paribus" refers to the idea that if more than two variables are graphed,only one variable must be held constant.

Accepted Answer

A) True 
 B)False

Question 9

-If two variables both increase at the same time or decrease at the same time,they are

Accepted Answer

A)  unrelated to each other. 
B)  positively related. 
C)  negatively related. 
D)  conversely related. 
A)  unrelated to each other. 
B)  positively related. 
C)  negatively related. 
D)  conversely related.

Question 10

Economics is best defined as

Accepted Answer

A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household. 
A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household.

Question 11

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

Accepted Answer

A)  a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. 
B)  an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. 
C)  the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. 
D)  the variable measured along the x-axis and the variable measured along the y-axis move in the same direction. 
A)  a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. 
B)  an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. 
C)  the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. 
D)  the variable measured along the x-axis and the variable measured along the y-axis move in the same direction.

Question 12

The term human capital refers to

Accepted Answer

A)  labor resources used to make capital equipment. 
B)  buildings and machinery. 
C)  people's knowledge and skill. 
D)  entrepreneurship and risk-taking. 
A)  labor resources used to make capital equipment. 
B)  buildings and machinery. 
C)  people's knowledge and skill. 
D)  entrepreneurship and risk-taking.

Question 13

In broad terms the difference between microeconomics and macroeconomics is that

Accepted Answer

A)  they use different sets of tools and ideas. 
B)  microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. 
C)  macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. 
D)  microeconomics studies the effects of government taxes on the national unemployment rate. 
A)  they use different sets of tools and ideas. 
B)  microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. 
C)  macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. 
D)  microeconomics studies the effects of government taxes on the national unemployment rate.

Question 14

-The figure above shows that in 1996,unemployment was equal to about ________ and the inflation rate was equal to about ________.

Accepted Answer

A)  7.0 percent; 3.0 percent 
B)  3.0 percent; 5.5 percent 
C)  5.5 percent; 3.0 percent 
D)  6.0 percent; 4.0 percent 
A)  7.0 percent; 3.0 percent 
B)  3.0 percent; 5.5 percent 
C)  5.5 percent; 3.0 percent 
D)  6.0 percent; 4.0 percent

Question 15

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

Accepted Answer

The slope equals the change in

Question 16

Opportunity cost means the

Accepted Answer

A)  accounting cost minus the marginal cost. 
B)  highest-valued alternative forgone. 
C)  accounting cost minus the marginal benefit. 
D)  monetary costs of an activity. 
A)  accounting cost minus the marginal cost. 
B)  highest-valued alternative forgone. 
C)  accounting cost minus the marginal benefit. 
D)  monetary costs of an activity.

Question 17

-The slope of a line

Accepted Answer

A)  can never equal zero. 
B)  is always a constant. 
C)  measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. 
D)  measures the value of the y-axis variable relative to the value of the x-axis variable. 
A)  can never equal zero. 
B)  is always a constant. 
C)  measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. 
D)  measures the value of the y-axis variable relative to the value of the x-axis variable.

Question 18

-The relationship between x and y in the above figure is

Accepted Answer

A)  positive with an increasing slope. 
B)  positive with a decreasing slope. 
C)  negative with an increasing slope. 
D)  negative with a decreasing slope. 
A)  positive with an increasing slope. 
B)  positive with a decreasing slope. 
C)  negative with an increasing slope. 
D)  negative with a decreasing slope.

Question 19

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree?
Substantiate your answer.

Accepted Answer

You should disagree.The recent corporate

Question 20

Scarcity requires that people must

Accepted Answer

A)  cooperate. 
B)  compete. 
C)  trade. 
D)  make choices. 
A)  cooperate. 
B)  compete. 
C)  trade. 
D)  make choices.

If variable x always increases when variable y decreases,x and y are said to be

The slope of a negative relationship is

-Using the above figure,the origin is at which point?

When a farmer decides to raise hogs instead of cattle,the farmer is answering the ________ part of one of the two big economic questions.

-In the above figure,the axis breaks are used

People must make choices because

To graph a relationship among several variables,we hold all but variable(s) constant and use the assumption.

"Ceteris paribus" refers to the idea that if more than two variables are graphed,only one variable must be held constant.

-If two variables both increase at the same time or decrease at the same time,they are

Economics is best defined as

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

The term human capital refers to

In broad terms the difference between microeconomics and macroeconomics is that

-The figure above shows that in 1996,unemployment was equal to about and the inflation rate was equal to about .

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

Opportunity cost means the

-The slope of a line

-The relationship between x and y in the above figure is

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Scarcity requires that people must

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

If variable x always increases when variable y decreases,x and y are said to be

The slope of a negative relationship is

-Using the above figure,the origin is at which point?

When a farmer decides to raise hogs instead of cattle,the farmer is answering the ________ part of one of the two big economic questions.

-In the above figure,the axis breaks are used

People must make choices because

To graph a relationship among several variables,we hold all but ________ variable(s) constant and use the ________ assumption.

"Ceteris paribus" refers to the idea that if more than two variables are graphed,only one variable must be held constant.

-If two variables both increase at the same time or decrease at the same time,they are

Economics is best defined as

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

The term human capital refers to

In broad terms the difference between microeconomics and macroeconomics is that

-The figure above shows that in 1996,unemployment was equal to about ________ and the inflation rate was equal to about ________.

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

Opportunity cost means the

-The slope of a line

-The relationship between x and y in the above figure is

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Scarcity requires that people must

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

To graph a relationship among several variables,we hold all but variable(s) constant and use the assumption.

-The figure above shows that in 1996,unemployment was equal to about and the inflation rate was equal to about .