Question 1

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

Accepted Answer

A)  a normative statement. 
B)  the failure of opportunity cost to determine prices. 
C)  a positive statement. 
D)  a macroeconomic statement. 
A)  a normative statement. 
B)  the failure of opportunity cost to determine prices. 
C)  a positive statement. 
D)  a macroeconomic statement.

Question 2

The formula for the slope across an arc is used to approximate the slope for

Accepted Answer

A)  linear relationships only. 
B)  a curved line. 
C)  a positive relationship only. 
D)  a negative relationship only. 
A)  linear relationships only. 
B)  a curved line. 
C)  a positive relationship only. 
D)  a negative relationship only.

Question 3

Which of the following is a positive statement?

Accepted Answer

A)  State lotteries are good methods to use for raising revenues. 
B)  Increased prison sentences are the best way to reduce the crime rate. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation. 
A)  State lotteries are good methods to use for raising revenues. 
B)  Increased prison sentences are the best way to reduce the crime rate. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation.

Question 4

The study of economics

Accepted Answer

A)  focuses mainly on individual consumers. 
B)  arises from the fact that our wants exceed available resources. 
C)  recognizes that scarcity does not affect rich nations. 
D)  deals mainly with microeconomics. 
A)  focuses mainly on individual consumers. 
B)  arises from the fact that our wants exceed available resources. 
C)  recognizes that scarcity does not affect rich nations. 
D)  deals mainly with microeconomics.

Question 5

Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

Accepted Answer

A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope. 
A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope.

Question 6

Which of the following is NOT a factor of production?

Accepted Answer

A)  vans used by a bakery company for deliveries 
B)  a person developing a production schedule for a new product 
C)  175 shares of Microsoft stock 
D)  wilderness areas that have yet to be developed 
A)  vans used by a bakery company for deliveries 
B)  a person developing a production schedule for a new product 
C)  175 shares of Microsoft stock 
D)  wilderness areas that have yet to be developed

Question 7

If there is an inverse relationship between two variables, the graph of this relationship

Accepted Answer

A)  will be a horizontal line. 
B)  will be downward-sloping. 
C)  might be horizontal. 
D)  will be upward-sloping. 
A)  will be a horizontal line. 
B)  will be downward-sloping. 
C)  might be horizontal. 
D)  will be upward-sloping.

Question 8

-In the above figure, the relationship between costs and quantity is negative

Accepted Answer

A)  between point A and point B. 
B)  between point B and point C. 
C)  along the entire curve. 
D)  no where along the curve. 
A)  between point A and point B. 
B)  between point B and point C. 
C)  along the entire curve. 
D)  no where along the curve.

Question 9

-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 10

The largest part of what the United States produces today is ________ such as ________.

Accepted Answer

A)  goods; food and electronic equipment 
B)  goods; education and entertainment 
C)  services; trade and health care 
D)  services; textbooks and computers 
A)  goods; food and electronic equipment 
B)  goods; education and entertainment 
C)  services; trade and health care 
D)  services; textbooks and computers

Question 11

Making a choice at the margin means

Accepted Answer

A)  letting someone else choose for you. 
B)  waiting until the last minute to make a choice. 
C)  deciding to do a little bit more or a little bit less of an activity. 
D)  making a choice by comparing the total benefit and the total cost. 
A)  letting someone else choose for you. 
B)  waiting until the last minute to make a choice. 
C)  deciding to do a little bit more or a little bit less of an activity. 
D)  making a choice by comparing the total benefit and the total cost.

Question 12

In the figure above, point B is ________.

Accepted Answer

A)  on the x-axis 
B)  on the y-axis 
C)  at the origin 
D)  a coordinate 
A)  on the x-axis 
B)  on the y-axis 
C)  at the origin 
D)  a coordinate

Question 13

Which factor of production earns most income in the United States?

Accepted Answer

A)  capital 
B)  labor 
C)  money 
D)  entrepreneurship 
A)  capital 
B)  labor 
C)  money 
D)  entrepreneurship

Question 14

If two variables both increase at the same time or decrease at the same time, they are

Accepted Answer

A)  unrelated to each other. 
B)  positively related. 
C)  negatively related. 
D)  conversely related. 
A)  unrelated to each other. 
B)  positively related. 
C)  negatively related. 
D)  conversely related.

Question 15

-Using the information in the table above, what does the slope of the line between x and y equal?

Accepted Answer

A)  5 
B)  -0.5 
C)  2 
D)  -2 
A)  5 
B)  -0.5 
C)  2 
D)  -2

Question 16

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

Accepted Answer

A)  3/4. 
B)  2/3. 
C)  1 1/3. 
D)  1 3/4. 
A)  3/4. 
B)  2/3. 
C)  1 1/3. 
D)  1 3/4.

Question 17

The slope of a positive relationship is

Accepted Answer

A)  positive. 
B)  undefined. 
C)  positive to the right of the maximum point and negative to the left. 
D)  constant as long as the relationship is nonlinear. 
A)  positive. 
B)  undefined. 
C)  positive to the right of the maximum point and negative to the left. 
D)  constant as long as the relationship is nonlinear.

Question 18

Which of the following is a macroeconomic issue?

Accepted Answer

A)  how a rise in the price of sugar affects the market for sodas 
B)  how federal government budget deficits affect interest rates 
C)  what determines the amount a firm will produce 
D)  the cause of a decline in the price of peanut butter 
A)  how a rise in the price of sugar affects the market for sodas 
B)  how federal government budget deficits affect interest rates 
C)  what determines the amount a firm will produce 
D)  the cause of a decline in the price of peanut butter

Question 19

Which of the following questions is NOT a microeconomic question?

Accepted Answer

A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services? 
A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services?

Question 20

The opportunity cost of something you decide to get is

Accepted Answer

A)  all the possible alternatives that you give up to get it. 
B)  the highest valued alternative you give up to get it. 
C)  the value of the item minus the cost you paid for it. 
D)  the amount of money you pay to get it. 
A)  all the possible alternatives that you give up to get it. 
B)  the highest valued alternative you give up to get it. 
C)  the value of the item minus the cost you paid for it. 
D)  the amount of money you pay to get it.

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

The formula for the slope across an arc is used to approximate the slope for

Which of the following is a positive statement?

The study of economics

Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

Which of the following is NOT a factor of production?

If there is an inverse relationship between two variables, the graph of this relationship

-In the above figure, the relationship between costs and quantity is negative

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

The largest part of what the United States produces today is such as .

Making a choice at the margin means

In the figure above, point B is ________.

Which factor of production earns most income in the United States?

If two variables both increase at the same time or decrease at the same time, they are

-Using the information in the table above, what does the slope of the line between x and y equal?

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

The slope of a positive relationship is

Which of the following is a macroeconomic issue?

Which of the following questions is NOT a microeconomic question?

The opportunity cost of something you decide to get is

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

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

The formula for the slope across an arc is used to approximate the slope for

Which of the following is a positive statement?

The study of economics

Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

Which of the following is NOT a factor of production?

If there is an inverse relationship between two variables, the graph of this relationship

-In the above figure, the relationship between costs and quantity is negative

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

The largest part of what the United States produces today is ________ such as ________.

Making a choice at the margin means

In the figure above, point B is ________.

Which factor of production earns most income in the United States?

If two variables both increase at the same time or decrease at the same time, they are

-Using the information in the table above, what does the slope of the line between x and y equal?

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

The slope of a positive relationship is

Which of the following is a macroeconomic issue?

Which of the following questions is NOT a microeconomic question?

The opportunity cost of something you decide to get is

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

The largest part of what the United States produces today is such as .