Question 1

A scatter diagram plots the value of one economic variable against time.

Accepted Answer

A) True 
 B)False

Question 2

Scarcity is a situation in which ________.

Accepted Answer

A)  some people are poor and others are rich 
B)  something is being wasted 
C)  we are unable to satisfy all our wants 
D)  long lines form at gas stations 
A)  some people are poor and others are rich 
B)  something is being wasted 
C)  we are unable to satisfy all our wants 
D)  long lines form at gas stations

Question 3

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

Accepted Answer

A)  1/6. 
B)  12/11. 
C)  3. 
D)  4. 
A)  1/6. 
B)  12/11. 
C)  3. 
D)  4.

Question 4

Normative economic statements

Accepted Answer

A)  describe what ought to be. 
B)  describe what is rather than what ought to be. 
C)  describe the process of economic policy-making. 
D)  deal with economic hypotheses that are not well-established laws. 
A)  describe what ought to be. 
B)  describe what is rather than what ought to be. 
C)  describe the process of economic policy-making. 
D)  deal with economic hypotheses that are not well-established laws.

Question 5

-In the above figure,the relationship between income and expenditures is

Accepted Answer

A)  positive. 
B)  negative. 
C)  independent. 
D)  random. 
A)  positive. 
B)  negative. 
C)  independent. 
D)  random.

Question 6

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 7

To calculate the slope of a curved line,you can calculate the slope at a point on the curve or across an arc of the curve.

Accepted Answer

A) True 
 B)False

Question 8

When the president of the Bank of America addresses Congress regarding lending standards in that industry,he is discussing

Accepted Answer

A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  incentives. 
D)  the big tradeoff. 
A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  incentives. 
D)  the big tradeoff.

Question 9

$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Income } \
\text { (dollars per } \
\text { month) }
\end{array} & \begin{array} { c } 
\text { Amount spent on } \
\text { restaurant meals } \
\text { (dollars per month) }
\end{array} \
\hline 50 & 20 \
\hline 100 & 40 \
\hline 150 & 60 \
\hline 200 & 80 \
\hline
\end{array}$$
-Using the data in the above table,if income is on the x-axis and the amount spent on restaurant meals is on the y-axis,the slope of the straight line graph equals

Accepted Answer

A)  0.2. 
B)  0.4. 
C)  0.5. 
D)  2.5. 
A)  0.2. 
B)  0.4. 
C)  0.5. 
D)  2.5.

Question 10

An outcome is considered efficient if

Accepted Answer

A)  it is not possible to make someone better off without making anyone else worse off. 
B)  it is the best available choice for an individual. 
C)  it results in fair shares for everyone involved. 
D)  it is possible to make someone better off without making anyone else worse off. 
A)  it is not possible to make someone better off without making anyone else worse off. 
B)  it is the best available choice for an individual. 
C)  it results in fair shares for everyone involved. 
D)  it is possible to make someone better off without making anyone else worse off.

Question 11

The branch of economics that deals with the analysis of the whole economy is called

Accepted Answer

A)  macroeconomics. 
B)  marginal analysis. 
C)  microeconomics. 
D)  metroanalysis. 
A)  macroeconomics. 
B)  marginal analysis. 
C)  microeconomics. 
D)  metroanalysis.

Question 12

Which of the following are true regarding "positive" statements?
I. They describe what "ought to be."
II. They describe what is believed about how the world appears.
III. They can be tested as to their truthfulness.

Accepted Answer

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

Question 13

The fact that some people can afford to live in beautiful homes while others are homeless,is most directly an example of an economy facing the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 14

In part,microeconomics is concerned with

Accepted Answer

A)  how a business firm decides upon the amount it produces and the price it sets. 
B)  changes in the economy's total output of goods and services over long periods of time. 
C)  factors that explain changes in the unemployment rate over time. 
D)  the Federal Reserve's policy decisions. 
A)  how a business firm decides upon the amount it produces and the price it sets. 
B)  changes in the economy's total output of goods and services over long periods of time. 
C)  factors that explain changes in the unemployment rate over time. 
D)  the Federal Reserve's policy decisions.

Question 15

Suppose Company A's profits increase by $10 million and nobody is made worse off.The CEO of Company A keeps all $10 million for herself.This situation

Accepted Answer

A)  is definitely efficient. 
B)  is definitely not in the self-interest of Company A. 
C)  is definitely not in the social interest. 
D)  is definitely fair. 
A)  is definitely efficient. 
B)  is definitely not in the self-interest of Company A. 
C)  is definitely not in the social interest. 
D)  is definitely fair.

Question 16

Whenever one variable increases,another variable decreases.The two variables are

Accepted Answer

A)  definitely related through a third variable. 
B)  negatively related. 
C)  positively related. 
D)  unrelated to each other. 
A)  definitely related through a third variable. 
B)  negatively related. 
C)  positively related. 
D)  unrelated to each other.

Question 17

The income earned by the people who sell the services of the factor of production ________ is called ________.

Accepted Answer

A)  capital; rent 
B)  entrepreneurship; wages 
C)  land; profit 
D)  entrepreneurship; profit 
A)  capital; rent 
B)  entrepreneurship; wages 
C)  land; profit 
D)  entrepreneurship; profit

Question 18

-In the figure above,when income equals $20,000,what does consumption equal?

Accepted Answer

A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell 
A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell

Question 19

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis,the slope between two points on the line describing the relationship between price and quantity is

Accepted Answer

A)  the change in price multiplied by the change in quantity. 
B)  the change in price divided by the change in quantity. 
C)  the change in quantity divided by the change in price. 
D)  price divided by quantity. 
A)  the change in price multiplied by the change in quantity. 
B)  the change in price divided by the change in quantity. 
C)  the change in quantity divided by the change in price. 
D)  price divided by quantity.

Question 20

You have the choice of going to Hawaii for a week,staying at work for the week,or spending the week skiing.If you decide to go to Hawaii,the opportunity cost is

Accepted Answer

A)  the value of working and skiing. 
B)  the value of working or skiing, depending on which you would have done rather than go to Hawaii. 
C)  working, because you would be giving up a week's pay. 
D)  None of the above if you enjoy the time spent in Hawaii. 
A)  the value of working and skiing. 
B)  the value of working or skiing, depending on which you would have done rather than go to Hawaii. 
C)  working, because you would be giving up a week's pay. 
D)  None of the above if you enjoy the time spent in Hawaii.

A scatter diagram plots the value of one economic variable against time.

Scarcity is a situation in which ________.

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

Normative economic statements

-In the above figure,the relationship between income and expenditures is

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

To calculate the slope of a curved line,you can calculate the slope at a point on the curve or across an arc of the curve.

When the president of the Bank of America addresses Congress regarding lending standards in that industry,he is discussing

Income (dollars per month) Amount spent on restaurant meals (dollars per month) 50 20 100 40 150 60 200 80 -Using the data in the above table,if income is on the x-axis and the amount spent on restaurant meals is on the y-axis,the slope of the straight line graph equals

An outcome is considered efficient if

The branch of economics that deals with the analysis of the whole economy is called

Which of the following are true regarding "positive" statements? I. They describe what "ought to be." II. They describe what is believed about how the world appears. III. They can be tested as to their truthfulness.

The fact that some people can afford to live in beautiful homes while others are homeless,is most directly an example of an economy facing the ________ part of one of the two big economic questions.

In part,microeconomics is concerned with

Suppose Company A's profits increase by $10 million and nobody is made worse off.The CEO of Company A keeps all $10 million for herself.This situation

Whenever one variable increases,another variable decreases.The two variables are

The income earned by the people who sell the services of the factor of production is called .

-In the figure above,when income equals $20,000,what does consumption equal?

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis,the slope between two points on the line describing the relationship between price and quantity is

You have the choice of going to Hawaii for a week,staying at work for the week,or spending the week skiing.If you decide to go to Hawaii,the opportunity cost 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

A scatter diagram plots the value of one economic variable against time.

Scarcity is a situation in which ________.

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

Normative economic statements

-In the above figure,the relationship between income and expenditures is

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

To calculate the slope of a curved line,you can calculate the slope at a point on the curve or across an arc of the curve.

When the president of the Bank of America addresses Congress regarding lending standards in that industry,he is discussing

Income (dollars per month) Amount spent on restaurant meals (dollars per month) 50 20 100 40 150 60 200 80 -Using the data in the above table,if income is on the x-axis and the amount spent on restaurant meals is on the y-axis,the slope of the straight line graph equals

An outcome is considered efficient if

The branch of economics that deals with the analysis of the whole economy is called

Which of the following are true regarding "positive" statements? I. They describe what "ought to be." II. They describe what is believed about how the world appears. III. They can be tested as to their truthfulness.

The fact that some people can afford to live in beautiful homes while others are homeless,is most directly an example of an economy facing the ________ part of one of the two big economic questions.

In part,microeconomics is concerned with

Suppose Company A's profits increase by $10 million and nobody is made worse off.The CEO of Company A keeps all $10 million for herself.This situation

Whenever one variable increases,another variable decreases.The two variables are

The income earned by the people who sell the services of the factor of production ________ is called ________.

-In the figure above,when income equals $20,000,what does consumption equal?

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis,the slope between two points on the line describing the relationship between price and quantity is

You have the choice of going to Hawaii for a week,staying at work for the week,or spending the week skiing.If you decide to go to Hawaii,the opportunity cost 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

The income earned by the people who sell the services of the factor of production is called .