Question 1

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour.The student's marginal benefit

Accepted Answer

A)  depends on the grade the student earns on the exam. 
B)  is the benefit the student receives from studying all 3 hours. 
C)  is the benefit the student receives from studying the extra hour. 
D)  is greater than the student's marginal cost. 
A)  depends on the grade the student earns on the exam. 
B)  is the benefit the student receives from studying all 3 hours. 
C)  is the benefit the student receives from studying the extra hour. 
D)  is greater than the student's marginal cost.

Question 2

The opportunity cost of attending college includes the cost of

Accepted Answer

A)  the tuition but not the job at which you would otherwise have worked. 
B)  the highest valued alternative to attending college. 
C)  the highest valued alternative to attending college plus the cost of tuition. 
D)  tuition, books, and the lost wages for the hours spent studying. 
A)  the tuition but not the job at which you would otherwise have worked. 
B)  the highest valued alternative to attending college. 
C)  the highest valued alternative to attending college plus the cost of tuition. 
D)  tuition, books, and the lost wages for the hours spent studying.

Question 3

$$\begin{array} { | c | c | } 
\hline x & y \
\hline 0 & 4 \
\hline 1 & 5 \
\hline 2 & 8 \
\hline 3 & 13 \
\hline 4 & 20 \
\hline
\end{array}$$
-The slope of a straight line is

Accepted Answer

A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero. 
A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero.

Question 4

-The slope of the line shown in the above figure is

Accepted Answer

A)  2. 
B)  0.75. 
C)  0.25. 
D)  1 1/3. 
A)  2. 
B)  0.75. 
C)  0.25. 
D)  1 1/3.

Question 5

What is the difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics studies the decisions of

Question 6

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

Question 7

Jill,an economics student,has already spent 5 hours cleaning her room.In deciding whether or not to continue cleaning for another hour,she applies the economic principle of

Accepted Answer

A)  scarcity. 
B)  ceteris paribus. 
C)  choosing at the margin. 
D)  productivity. 
A)  scarcity. 
B)  ceteris paribus. 
C)  choosing at the margin. 
D)  productivity.

Question 8

-In the above,as the y variable increases

Accepted Answer

A)  the x variable is constant. 
B)  the x variable increases. 
C)  the x variable decreases. 
D)  the x variable at first increases but then decreases. 
A)  the x variable is constant. 
B)  the x variable increases. 
C)  the x variable decreases. 
D)  the x variable at first increases but then decreases.

Question 9

A graph shows that as fees to use ATM machines increase,people use them less frequently.The graph of this relationship would show

Accepted Answer

A)  an inverse relationship. 
B)  a negative relationship. 
C)  a direct relationship. 
D)  Both answers A and B are correct. 
A)  an inverse relationship. 
B)  a negative relationship. 
C)  a direct relationship. 
D)  Both answers A and B are correct.

Question 10

Which of the following are considered factors of production used to produce goods and services?
I. Land
II. Labor
III. Capital
IV. Entrepreneurship

Accepted Answer

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

Question 11

According to economists,

Accepted Answer

A)  market capitalism is the best system available and some government intervention and regulation can either help or harm the social interest. 
B)  market capitalism is the best system available and any government intervention and regulation will inevitably harm the social interest. 
C)  centrally planned socialism is the best system available since governments generally make decisions that are in social interest. 
D)  centrally planned socialism and pure market capitalism are equally capable of promoting social interest, but a mixed economy is an undesirable compromise between the two that will harm social interest. 
A)  market capitalism is the best system available and some government intervention and regulation can either help or harm the social interest. 
B)  market capitalism is the best system available and any government intervention and regulation will inevitably harm the social interest. 
C)  centrally planned socialism is the best system available since governments generally make decisions that are in social interest. 
D)  centrally planned socialism and pure market capitalism are equally capable of promoting social interest, but a mixed economy is an undesirable compromise between the two that will harm social interest.

Question 12

The term used to emphasize that making choices in the face of scarcity involves a cost is

Accepted Answer

A)  substitution cost. 
B)  opportunity cost. 
C)  utility cost. 
D)  accounting cost. 
A)  substitution cost. 
B)  opportunity cost. 
C)  utility cost. 
D)  accounting cost.

Question 13

The fact that wants cannot be fully satisfied with available resources reflects the definition of

Accepted Answer

A)  the what tradeoff. 
B)  scarcity. 
C)  the big tradeoff. 
D)  for whom to produce. 
A)  the what tradeoff. 
B)  scarcity. 
C)  the big tradeoff. 
D)  for whom to produce.

Question 14

What is opportunity cost?

Accepted Answer

Opportunity cost is the highest-valued a

Question 15

The loss of the highest-valued alternative defines the concept of

Accepted Answer

A)  marginal benefit. 
B)  scarcity. 
C)  entrepreneurship. 
D)  opportunity cost. 
A)  marginal benefit. 
B)  scarcity. 
C)  entrepreneurship. 
D)  opportunity cost.

Question 16

Studying the determination of prices in individual markets is primarily a concern of

Accepted Answer

A)  positive economics. 
B)  negative economics. 
C)  macroeconomics. 
D)  microeconomics. 
A)  positive economics. 
B)  negative economics. 
C)  macroeconomics. 
D)  microeconomics.

Question 17

The slope of a curved line can be approximated by

Accepted Answer

A)  the average of the variable measured along the y-axis divided by the average of the variable measured along the x-axis. 
B)  the inverse of the straight-line method. 
C)  the average of the variable measured along the x-axis divided by the average of the variable measured along the y-axis. 
D)  the slope across an arc from one point on the curve to another point on the curve. 
A)  the average of the variable measured along the y-axis divided by the average of the variable measured along the x-axis. 
B)  the inverse of the straight-line method. 
C)  the average of the variable measured along the x-axis divided by the average of the variable measured along the y-axis. 
D)  the slope across an arc from one point on the curve to another point on the curve.

Question 18

-In the figure above,ceteris paribus,an increase in x is associated with

Accepted Answer

A)  an increase in y. 
B)  a decrease in y. 
C)  a decrease in z. 
D)  None of the above answers is correct. 
A)  an increase in y. 
B)  a decrease in y. 
C)  a decrease in z. 
D)  None of the above answers is correct.

Question 19

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides.The museum is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "scarcity" 
B)  "what" 
C)  "why" 
D)  "how" 
A)  "scarcity" 
B)  "what" 
C)  "why" 
D)  "how"

Question 20

Which of the following is a macroeconomic issue?

Accepted Answer

A)  The purchasing decisions that an individual consumer makes. 
B)  The effect of increasing the money supply on inflation. 
C)  The hiring decisions that a business makes. 
D)  The effect of an increase in the tax on cigarettes on cigarette sales. 
A)  The purchasing decisions that an individual consumer makes. 
B)  The effect of increasing the money supply on inflation. 
C)  The hiring decisions that a business makes. 
D)  The effect of an increase in the tax on cigarettes on cigarette sales.

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour.The student's marginal benefit

The opportunity cost of attending college includes the cost of

x y 0 4 1 5 2 8 3 13 4 20 -The slope of a straight line is

-The slope of the line shown in the above figure is

What is the difference between microeconomics and macroeconomics?

Why do economists say that even very rich people face scarcity?

Jill,an economics student,has already spent 5 hours cleaning her room.In deciding whether or not to continue cleaning for another hour,she applies the economic principle of

-In the above,as the y variable increases

A graph shows that as fees to use ATM machines increase,people use them less frequently.The graph of this relationship would show

Which of the following are considered factors of production used to produce goods and services? I. Land II. Labor III. Capital IV. Entrepreneurship

According to economists,

The term used to emphasize that making choices in the face of scarcity involves a cost is

The fact that wants cannot be fully satisfied with available resources reflects the definition of

What is opportunity cost?

The loss of the highest-valued alternative defines the concept of

Studying the determination of prices in individual markets is primarily a concern of

The slope of a curved line can be approximated by

-In the figure above,ceteris paribus,an increase in x is associated with

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides.The museum is answering the ________ part of one of the two big economic questions.

Which of the following is a macroeconomic issue?

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 is studying for an exam 2 hours a day and is debating whether to study an extra hour.The student's marginal benefit

The opportunity cost of attending college includes the cost of

x y 0 4 1 5 2 8 3 13 4 20 -The slope of a straight line is

-The slope of the line shown in the above figure is

What is the difference between microeconomics and macroeconomics?

Why do economists say that even very rich people face scarcity?

Jill,an economics student,has already spent 5 hours cleaning her room.In deciding whether or not to continue cleaning for another hour,she applies the economic principle of

-In the above,as the y variable increases

A graph shows that as fees to use ATM machines increase,people use them less frequently.The graph of this relationship would show

Which of the following are considered factors of production used to produce goods and services? I. Land II. Labor III. Capital IV. Entrepreneurship

According to economists,

The term used to emphasize that making choices in the face of scarcity involves a cost is

The fact that wants cannot be fully satisfied with available resources reflects the definition of

What is opportunity cost?

The loss of the highest-valued alternative defines the concept of

Studying the determination of prices in individual markets is primarily a concern of

The slope of a curved line can be approximated by

-In the figure above,ceteris paribus,an increase in x is associated with

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides.The museum is answering the ________ part of one of the two big economic questions.

Which of the following is a macroeconomic issue?

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