Question 1

The analysis of the behavior of individual decision-making units is the definition of

Accepted Answer

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

Question 2

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

Accepted Answer

A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive.

Question 3

Explain why both rich and poor people experience scarcity.

Accepted Answer

Scarcity exists when people's wants exce

Question 4

Entrepreneurs directly do all of the following except

Accepted Answer

A)  create new ideas about what and how to produce. 
B)  make business decisions. 
C)  face risks that arise from making business decisions. 
D)  decide for whom goods and services are produced. 
A)  create new ideas about what and how to produce. 
B)  make business decisions. 
C)  face risks that arise from making business decisions. 
D)  decide for whom goods and services are produced.

Question 5

As an economic concept, scarcity applies to

Accepted Answer

A)  both money and time. 
B)  money but not time. 
C)  time but not money. 
D)  neither time nor money. 
A)  both money and time. 
B)  money but not time. 
C)  time but not money. 
D)  neither time nor money.

Question 6

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

Accepted Answer

A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class. 
A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class.

Question 7

The vertical axis in a graph

Accepted Answer

A)  is named the y-axis. 
B)  is named the x-axis. 
C)  is not used in a scatter diagram. 
D)  has no origin. 
A)  is named the y-axis. 
B)  is named the x-axis. 
C)  is not used in a scatter diagram. 
D)  has no origin.

Question 8

An economic system in which the government decides what, how, and for whom to produce, directs workers to jobs, and owns all the land and capital is

Accepted Answer

A)  centrally planned socialism. 
B)  market capitalism. 
C)  mixed economy. 
D)  supported by economists as the best system available. 
A)  centrally planned socialism. 
B)  market capitalism. 
C)  mixed economy. 
D)  supported by economists as the best system available.

Question 9

Scarcity affects only those who are in need.

Accepted Answer

A) True 
 B)False

Question 10

Most income in the United States is earned by business owners as profit.

Accepted Answer

A) True 
 B)False

Question 11

If two variables are positively related, then

Accepted Answer

A)  they move in opposite directions. 
B)  they are independent of each other. 
C)  they move in the same direction. 
D)  their graph will have a negative slope. 
A)  they move in opposite directions. 
B)  they are independent of each other. 
C)  they move in the same direction. 
D)  their graph will have a negative slope.

Question 12

-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 13

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

Accepted Answer

The slope equals the change in

Question 14

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's ________.

Accepted Answer

A)  human capital 
B)  physical capital 
C)  entrepreneurship 
D)  None of the above answers are correct. 
A)  human capital 
B)  physical capital 
C)  entrepreneurship 
D)  None of the above answers are correct.

Question 15

"The difference between positive and normative statements is that a positive statement is always true while a normative statement might or might not be true." True or false? Explain.

Accepted Answer

False. The difference between positive a

Question 16

The slope of a straight line is

Accepted Answer

A)  variable. 
B)  increasing. 
C)  decreasing. 
D)  constant. 
A)  variable. 
B)  increasing. 
C)  decreasing. 
D)  constant.

Question 17

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie. Therefore, the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

Accepted Answer

Your friend's analysis is incorrect. The

Question 18

An incentive

Accepted Answer

A)  could be a reward but could not be a penalty. 
B)  could be a penalty but could not be a reward. 
C)  could be either a reward or a penalty. 
D)  is the opposite of a tradeoff. 
A)  could be a reward but could not be a penalty. 
B)  could be a penalty but could not be a reward. 
C)  could be either a reward or a penalty. 
D)  is the opposite of a tradeoff.

Question 19

Which of the following is NOT an example of an opportunity cost?

Accepted Answer

A)  By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. 
B)  Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. 
C)  Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. 
D)  By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college. 
A)  By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. 
B)  Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. 
C)  Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. 
D)  By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.

Question 20

If the x-axis variable increases while the y-axis variable decreases, the variables x and y are negatively related.

Accepted Answer

A) True 
 B)False

The analysis of the behavior of individual decision-making units is the definition of

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

Explain why both rich and poor people experience scarcity.

Entrepreneurs directly do all of the following except

As an economic concept, scarcity applies to

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

The vertical axis in a graph

An economic system in which the government decides what, how, and for whom to produce, directs workers to jobs, and owns all the land and capital is

Scarcity affects only those who are in need.

Most income in the United States is earned by business owners as profit.

If two variables are positively related, then

-The slope of the line in the above figure is

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

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's ________.

"The difference between positive and normative statements is that a positive statement is always true while a normative statement might or might not be true." True or false? Explain.

The slope of a straight line is

An incentive

Which of the following is NOT an example of an opportunity cost?

If the x-axis variable increases while the y-axis variable decreases, the variables x and y are negatively related.

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

The analysis of the behavior of individual decision-making units is the definition of

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

Explain why both rich and poor people experience scarcity.

Entrepreneurs directly do all of the following except

As an economic concept, scarcity applies to

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

The vertical axis in a graph

An economic system in which the government decides what, how, and for whom to produce, directs workers to jobs, and owns all the land and capital is

Scarcity affects only those who are in need.

Most income in the United States is earned by business owners as profit.

If two variables are positively related, then

-The slope of the line in the above figure is

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

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's ________.

"The difference between positive and normative statements is that a positive statement is always true while a normative statement might or might not be true." True or false? Explain.

The slope of a straight line is

An incentive

Which of the following is NOT an example of an opportunity cost?

If the x-axis variable increases while the y-axis variable decreases, the variables x and y are negatively related.

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