Question 1

If variable x always increases when variable y decreases, x and y are said to be

Accepted Answer

A)  positively related. 
B)  negatively related. 
C)  unrelated. 
D)  trend related. 
A)  positively related. 
B)  negatively related. 
C)  unrelated. 
D)  trend related.

Question 2

The faster an automobile is driven (speed), the lower the miles per gallon (mpg) for that automobile. Given this information, we say that an automobile's speed and mpg have

Accepted Answer

A)  a direct relationship. 
B)  an inverse relationship. 
C)  a linear relationship. 
D)  a maximum relationship. 
A)  a direct relationship. 
B)  an inverse relationship. 
C)  a linear relationship. 
D)  a maximum relationship.

Question 3

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

Accepted Answer

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

Question 4

A graph cannot be used to show that two variables are unrelated.

Accepted Answer

A) True 
 B)False

Question 5

-The table above shows how the number of books Katie buys each year depends on her income.
a) What kind of relationship exists between Katie's income and the number of books she purchases?
b) Plot the relationship between Katie's income and the number of books she purchases in the above figure. Measure income along the vertical axis and the number of books along the horizontal axis. Be sure to label the axes.
c) What is the slope of the relationship between $50,000 and $70,000 of income?
d) What is the slope of the relationship between $90,000 and $110,000 of income?
e) Comment on the similarity or dissimilarity of your answers to parts (c) and (d).

Accepted Answer

a) There is a positive relationship. Whe

Question 6

Macroeconomics differs from microeconomics in that

Accepted Answer

A)  macroeconomics studies the decisions of individuals. 
B)  microeconomics looks at the economy as a whole. 
C)  macroeconomics studies the behavior of government while microeconomics looks at private corporations. 
D)  macroeconomics focuses on the national economy and the global economy. 
A)  macroeconomics studies the decisions of individuals. 
B)  microeconomics looks at the economy as a whole. 
C)  macroeconomics studies the behavior of government while microeconomics looks at private corporations. 
D)  macroeconomics focuses on the national economy and the global economy.

Question 7

In economics, normative statements are about

Accepted Answer

A)  the way things ought to be. 
B)  the way things are. 
C)  marginal benefits, not marginal costs. 
D)  marginal costs, not marginal benefits. 
A)  the way things ought to be. 
B)  the way things are. 
C)  marginal benefits, not marginal costs. 
D)  marginal costs, not marginal benefits.

Question 8

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is ________ and the slope is ________.

Accepted Answer

A)  downward-sloping; large 
B)  downward-sloping; small 
C)  upward-sloping; small 
D)  either downward or upward-sloping; small 
A)  downward-sloping; large 
B)  downward-sloping; small 
C)  upward-sloping; small 
D)  either downward or upward-sloping; small

Question 9

-The relationship in the above figure suggests that when the interest rate is 5 percent

Accepted Answer

A)  a decrease in income will be associated with a decrease in expenditures. 
B)  a decrease in income will be associated with an increase in expenditures. 
C)  an increase in income will be associated with a decrease in expenditures. 
D)  there is no relationship between expenditures and income. 
A)  a decrease in income will be associated with a decrease in expenditures. 
B)  a decrease in income will be associated with an increase in expenditures. 
C)  an increase in income will be associated with a decrease in expenditures. 
D)  there is no relationship between expenditures and income.

Question 10

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 11

Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5. Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?

Accepted Answer

Marginal benefit is the benefit that ari

Question 12

-Jamie is preparing to take his SAT tests. The table above shows how Jamie's score depends on the number of hours a week Jamie studies.
a) Plot the relationship in the figure, putting the hours studied on the horizontal axis.
b) Is the relationship you plotted positive or negative?
c) What happens to the slope of the relationship as hours studied increase?
d) Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he studies, his score will be 100 points higher. Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure.
e) How many variables are involved in the figure you just completed?

Accepted Answer

@#IMG-DLM& a) The figure above plots the relations

Question 13

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is positive and is less than 1. This slope means that a change in x is associated with

Accepted Answer

A)  a bigger change in y. 
B)  a smaller change in y. 
C)  no change in y. 
D)  an equal change in y. 
A)  a bigger change in y. 
B)  a smaller change in y. 
C)  no change in y. 
D)  an equal change in y.

Question 14

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

Accepted Answer

A)  a market mechanism. 
B)  macroeconomics. 
C)  opportunity cost. 
D)  a fallacy of composition. 
A)  a market mechanism. 
B)  macroeconomics. 
C)  opportunity cost. 
D)  a fallacy of composition.

Question 15

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 16

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

Accepted Answer

A)  negative relationship, also called a direct relationship. 
B)  negative relationship, also called an inverse relationship. 
C)  positive relationship, also called a direct relationship. 
D)  positive relationship, also called an inverse relationship. 
A)  negative relationship, also called a direct relationship. 
B)  negative relationship, also called an inverse relationship. 
C)  positive relationship, also called a direct relationship. 
D)  positive relationship, also called an inverse relationship.

Question 17

Economics is best defined as

Accepted Answer

A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household. 
A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household.

Question 18

A positive relationship exists between two variables if

Accepted Answer

A)  one variable has "positively" no effect on the other variable. 
B)  a reduction in one variable is associated with an increase in the other variable. 
C)  a reduction in one variable is associated with a decrease in the other variable. 
D)  both variables are inflation-distorted. 
A)  one variable has "positively" no effect on the other variable. 
B)  a reduction in one variable is associated with an increase in the other variable. 
C)  a reduction in one variable is associated with a decrease in the other variable. 
D)  both variables are inflation-distorted.

Question 19

Ceteris paribus when graphing a relationship refers to

Accepted Answer

A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates. 
A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates.

Question 20

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

Accepted Answer

A)  the price of a pizza and the income of pizza consumers are the only variables that are allowed to change. 
B)  the price of pizza and quantity consumed of pizza are the only variables that are allowed to change. 
C)  consumers' taste for pizza and the income of pizza purchasers are the only variables that are allowed to change. 
D)  None of the above answers are correct. 
A)  the price of a pizza and the income of pizza consumers are the only variables that are allowed to change. 
B)  the price of pizza and quantity consumed of pizza are the only variables that are allowed to change. 
C)  consumers' taste for pizza and the income of pizza purchasers are the only variables that are allowed to change. 
D)  None of the above answers are correct.

If variable x always increases when variable y decreases, x and y are said to be

The faster an automobile is driven (speed), the lower the miles per gallon (mpg) for that automobile. Given this information, we say that an automobile's speed and mpg have

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

A graph cannot be used to show that two variables are unrelated.

Macroeconomics differs from microeconomics in that

In economics, normative statements are about

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is and the slope is .

-The relationship in the above figure suggests that when the interest rate is 5 percent

Scarcity is a situation in which ________.

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

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

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

Economics is best defined as

A positive relationship exists between two variables if

Ceteris paribus when graphing a relationship refers to

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

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

If variable x always increases when variable y decreases, x and y are said to be

The faster an automobile is driven (speed), the lower the miles per gallon (mpg) for that automobile. Given this information, we say that an automobile's speed and mpg have

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

A graph cannot be used to show that two variables are unrelated.

Macroeconomics differs from microeconomics in that

In economics, normative statements are about

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is ________ and the slope is ________.

-The relationship in the above figure suggests that when the interest rate is 5 percent

Scarcity is a situation in which ________.

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

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

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

Economics is best defined as

A positive relationship exists between two variables if

Ceteris paribus when graphing a relationship refers to

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

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

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is and the slope is .