Question 1

-The relationship between two variables,x and y,is a vertical line.Thus x and y are

Accepted Answer

A)  positively correlated. 
B)  negatively correlated. 
C)  not related. 
D)  falsely related. 
A)  positively correlated. 
B)  negatively correlated. 
C)  not related. 
D)  falsely related.

Question 2

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

Accepted Answer

A)  2/5. 
B)  1. 
C)  3/2. 
D)  5/2. 
A)  2/5. 
B)  1. 
C)  3/2. 
D)  5/2.

Question 3

-In the above figure,using the slope across an arc,the slope of the curve between points a and c is

Accepted Answer

A)  3/5. 
B)  5/3. 
C)  -3/5. 
D)  -5/3. 
A)  3/5. 
B)  5/3. 
C)  -3/5. 
D)  -5/3.

Question 4

Which of the following is a normative statement?

Accepted Answer

A)  Next year's inflation rate will be under 4 percent. 
B)  Consumers will buy more gasoline over the Christmas holiday even if the price of gas is 10 cents higher than it was during the Thanksgiving holiday. 
C)  The government's cuts in welfare spending impose an unfair hardship on the poor. 
D)  The current butter surplus is the result of federal policies. 
A)  Next year's inflation rate will be under 4 percent. 
B)  Consumers will buy more gasoline over the Christmas holiday even if the price of gas is 10 cents higher than it was during the Thanksgiving holiday. 
C)  The government's cuts in welfare spending impose an unfair hardship on the poor. 
D)  The current butter surplus is the result of federal policies.

Question 5

When a country decides to produce fewer bombers and more public housing projects,it is answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 6

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

Accepted Answer

A)  5. 
B)  2/5. 
C)  2/3. 
D)  5/2. 
A)  5. 
B)  2/5. 
C)  2/3. 
D)  5/2.

Question 7

Scarcity applies to both the rich and the poor.

Accepted Answer

A) True 
 B)False

Question 8

An inducement to take a particular action is called

Accepted Answer

A)  the marginal benefit. 
B)  the marginal cost. 
C)  opportunity cost. 
D)  an incentive. 
A)  the marginal benefit. 
B)  the marginal cost. 
C)  opportunity cost. 
D)  an incentive.

Question 9

A good economic model

Accepted Answer

A)  describes every aspect of the economic world, with no exception. 
B)  includes all those features of the world that can be described numerically. 
C)  includes only those features of the world that are needed for the purpose at hand. 
D)  should not include more than two variables. 
A)  describes every aspect of the economic world, with no exception. 
B)  includes all those features of the world that can be described numerically. 
C)  includes only those features of the world that are needed for the purpose at hand. 
D)  should not include more than two variables.

Question 10

-In the above diagram,draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

Question 11

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

Accepted Answer

A)  incentives. 
B)  a microeconomic decision. 
C)  a macroeconomic decision. 
D)  scarcity. 
A)  incentives. 
B)  a microeconomic decision. 
C)  a macroeconomic decision. 
D)  scarcity.

Question 12

Which of the following is a microeconomic topic?

Accepted Answer

A)  How a trade agreement between the United States and Mexico affects both nations' unemployment rates. 
B)  Comparing inflation rates across countries. 
C)  How rent ceilings impact the supply of apartments. 
D)  How a tax rate increase will impact total production. 
A)  How a trade agreement between the United States and Mexico affects both nations' unemployment rates. 
B)  Comparing inflation rates across countries. 
C)  How rent ceilings impact the supply of apartments. 
D)  How a tax rate increase will impact total production.

Question 13

-The slope of the line in the above figure is

Accepted Answer

A)  8. 
B)  0.05. 
C)  0.125. 
D)  0.10. 
A)  8. 
B)  0.05. 
C)  0.125. 
D)  0.10.

Question 14

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

Accepted Answer

The slope equals the change in

Question 15

When y changes,x stays the same.The line depicting this relationship would be

Accepted Answer

A)  vertical. 
B)  horizontal. 
C)  linear with a negative slope. 
D)  linear with a positive slope. 
A)  vertical. 
B)  horizontal. 
C)  linear with a negative slope. 
D)  linear with a positive slope.

Question 16

$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
x \text {-variable } \
\text { (on the horizontal axis) }
\end{array} & \begin{array} { c } 
y \text {-variable } \
\text { (on the vertical axis) }
\end{array} \
\hline 8 & 14 \
\hline 10 & 18 \
\hline 12 & 22 \
\hline
\end{array}$$
-The above table gives data on two variables.If these data were graphed,their relationship would

Accepted Answer

A)  be a straight line. 
B)  be a curved line. 
C)  show a negative relationship. 
D)  nonexistent. 
A)  be a straight line. 
B)  be a curved line. 
C)  show a negative relationship. 
D)  nonexistent.

Question 17

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5,the slope of this line is 6/5.

Accepted Answer

A) True 
 B)False

Question 18

The opportunity cost of any action is

Accepted Answer

A)  all the possible alternatives given up. 
B)  the highest-valued alternative given up. 
C)  the benefit from the action minus the cost of the action. 
D)  the dollars the action cost. 
A)  all the possible alternatives given up. 
B)  the highest-valued alternative given up. 
C)  the benefit from the action minus the cost of the action. 
D)  the dollars the action cost.

Question 19

-The relationship in the above figure indicates that

Accepted Answer

A)  a decrease in the interest rate leads to a decrease in household income. 
B)  a decrease in household consumption leads to a decrease in interest rates. 
C)  a decrease in household income will lead household consumption to increase. 
D)  none of the above 
A)  a decrease in the interest rate leads to a decrease in household income. 
B)  a decrease in household consumption leads to a decrease in interest rates. 
C)  a decrease in household income will lead household consumption to increase. 
D)  none of the above

Question 20

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

Accepted Answer

A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5. 
A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5.

-The relationship between two variables,x and y,is a vertical line.Thus x and y are

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

-In the above figure,using the slope across an arc,the slope of the curve between points a and c is

Which of the following is a normative statement?

When a country decides to produce fewer bombers and more public housing projects,it is answering the ________ part of one of the two big economic questions.

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

Scarcity applies to both the rich and the poor.

An inducement to take a particular action is called

A good economic model

-In the above diagram,draw a straight line with a slope of zero.

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

Which of the following is a microeconomic topic?

-The slope of the line in the above figure is

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

When y changes,x stays the same.The line depicting this relationship would be

x -variable (on the horizontal axis) y -variable (on the vertical axis) 8 14 10 18 12 22 -The above table gives data on two variables.If these data were graphed,their relationship would

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5,the slope of this line is 6/5.

The opportunity cost of any action is

-The relationship in the above figure indicates that

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

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 relationship between two variables,x and y,is a vertical line.Thus x and y are

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

-In the above figure,using the slope across an arc,the slope of the curve between points a and c is

Which of the following is a normative statement?

When a country decides to produce fewer bombers and more public housing projects,it is answering the ________ part of one of the two big economic questions.

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

Scarcity applies to both the rich and the poor.

An inducement to take a particular action is called

A good economic model

-In the above diagram,draw a straight line with a slope of zero.

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

Which of the following is a microeconomic topic?

-The slope of the line in the above figure is

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

When y changes,x stays the same.The line depicting this relationship would be

x -variable (on the horizontal axis) y -variable (on the vertical axis) 8 14 10 18 12 22 -The above table gives data on two variables.If these data were graphed,their relationship would

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5,the slope of this line is 6/5.

The opportunity cost of any action is

-The relationship in the above figure indicates that

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

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