Question 1

Which of the following is an example of a positive statement?

Accepted Answer

A)  Government should not redistribute income. 
B)  Business firms ought to contribute more to charities. 
C)  Households are the primary source of saving. 
D)  The foreign sector should be more tightly controlled. 
A)  Government should not redistribute income. 
B)  Business firms ought to contribute more to charities. 
C)  Households are the primary source of saving. 
D)  The foreign sector should be more tightly controlled.

Question 2

Human capital is

Accepted Answer

A)  all capital owned by individuals, but not by corporations or governments. 
B)  all capital owned by individuals or corporations, but not by governments. 
C)  machinery that meets or exceeds federal safety standards for use by humans. 
D)  the skill and knowledge of workers. 
A)  all capital owned by individuals, but not by corporations or governments. 
B)  all capital owned by individuals or corporations, but not by governments. 
C)  machinery that meets or exceeds federal safety standards for use by humans. 
D)  the skill and knowledge of workers.

Question 3

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 4

-In the above figure, the slope at point b

Accepted Answer

A)  lies between 1/3 and 1. 
B)  equals 1. 
C)  lies between 1 and 2. 
D)  exceeds 2. 
A)  lies between 1/3 and 1. 
B)  equals 1. 
C)  lies between 1 and 2. 
D)  exceeds 2.

Question 5

If two variables are unrelated, a scatter diagram of those variables will

Accepted Answer

A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope. 
A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope.

Question 6

Consider the following events: I. Samsung hires associates to market their HDTV sets to Best Buy.
II. The Dallas Cowboys build a new football stadium.
III. Ebay fires 10 percent of its workforce.
IV. Ten million stocks were traded on the New York Stock Exchange in one day.
V. Pennsylvania builds a new state park.
Which of the events describe use of factors of production?

Accepted Answer

A)  i, II, III, and v 
B)  II, iv, and v 
C)  i and III only 
D)  iv only 
A)  i, II, III, and v 
B)  II, iv, and v 
C)  i and III only 
D)  iv only

Question 7

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

Accepted Answer

A) True 
 B)False

Question 8

Panasonic sends its HDTV salespeople to training sessions. This is an example of

Accepted Answer

A)  a macroeconomic decision. 
B)  scarcity. 
C)  a firm investing in workers' human capital. 
D)  entrepreneurship. 
A)  a macroeconomic decision. 
B)  scarcity. 
C)  a firm investing in workers' human capital. 
D)  entrepreneurship.

Question 9

-What does the slope of the curved line at point A shown in the above figure equal?

Accepted Answer

The slope of a curved line equals the sl

Question 10

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  both Figure A and Figure C 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  both Figure A and Figure C

Question 11

If a curve rises and then falls, it shows a

Accepted Answer

A)  maximum. 
B)  minimum. 
C)  linear relationship. 
D)  constant slope relationship. 
A)  maximum. 
B)  minimum. 
C)  linear relationship. 
D)  constant slope relationship.

Question 12

-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 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

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

Accepted Answer

A)  a horizontal line. 
B)  a vertical line. 
C)  a positively sloped line. 
D)  a negatively sloped line 
A)  a horizontal line. 
B)  a vertical line. 
C)  a positively sloped line. 
D)  a negatively sloped line

Question 15

On the horizontal axis of a graph, generally

Accepted Answer

A)  values increase from left to right. 
B)  values increase from right to left. 
C)  values can be positive and/or negative. 
D)  Both answers A and C are correct. 
A)  values increase from left to right. 
B)  values increase from right to left. 
C)  values can be positive and/or negative. 
D)  Both answers A and C are correct.

Question 16

Which of the following is NOT a factor of production?

Accepted Answer

A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock 
A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock

Question 17

Which of the following is a normative statement?

Accepted Answer

A)  The price of candy bars is $1.25 each. 
B)  Candy bars are more expensive than newspapers. 
C)  You should eat less candy. 
D)  Popcorn and candy are sold in movie theaters. 
A)  The price of candy bars is $1.25 each. 
B)  Candy bars are more expensive than newspapers. 
C)  You should eat less candy. 
D)  Popcorn and candy are sold in movie theaters.

Question 18

-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 graph of the two variables would be

Accepted Answer

A)  upward sloping. 
B)  downward sloping. 
C)  vertical. 
D)  horizontal. 
A)  upward sloping. 
B)  downward sloping. 
C)  vertical. 
D)  horizontal.

Question 19

-In the above figure, the relationship between x and y is

Accepted Answer

A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases. 
A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases.

Question 20

-In the above, which figure shows a linear relationship?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B 
A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B

Which of the following is an example of a positive statement?

Human capital is

Normative economic statements

-In the above figure, the slope at point b

If two variables are unrelated, a scatter diagram of those variables will

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

Panasonic sends its HDTV salespeople to training sessions. This is an example of

-What does the slope of the curved line at point A shown in the above figure equal?

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

If a curve rises and then falls, it shows a

-The above table gives data on two variables. If these data were graphed, their relationship would

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

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

On the horizontal axis of a graph, generally

Which of the following is NOT a factor of production?

Which of the following is a normative statement?

-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 graph of the two variables would be

-In the above figure, the relationship between x and y is

-In the above, which figure shows a linear relationship?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 1: What Is Economics

Which of the following is an example of a positive statement?

Human capital is

Normative economic statements

-In the above figure, the slope at point b

If two variables are unrelated, a scatter diagram of those variables will

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

Panasonic sends its HDTV salespeople to training sessions. This is an example of

-What does the slope of the curved line at point A shown in the above figure equal?

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

If a curve rises and then falls, it shows a

-The above table gives data on two variables. If these data were graphed, their relationship would

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

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

On the horizontal axis of a graph, generally

Which of the following is NOT a factor of production?

Which of the following is a normative statement?

-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 graph of the two variables would be

-In the above figure, the relationship between x and y is

-In the above, which figure shows a linear relationship?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters