Question 1

A cross-section graph can show how economic variables for different groups of people vary over time.

Accepted Answer

A) True 
 B)False

Question 2

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

Accepted Answer

A)  physical capital. 
B)  venture capital. 
C)  entrepreneurship. 
D)  productive capital. 
A)  physical capital. 
B)  venture capital. 
C)  entrepreneurship. 
D)  productive capital.

Question 3

-In the above figure, if household consumption is positively related to household income, then an increase in household income will

Accepted Answer

A)  shift the line rightward. 
B)  shift the line leftward. 
C)  make the line positively sloped. 
D)  cause a movement along the line. 
A)  shift the line rightward. 
B)  shift the line leftward. 
C)  make the line positively sloped. 
D)  cause a movement along the line.

Question 4

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

Accepted Answer

A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables are unrelated. 
D)  the two variables have an inverse relationship. 
A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables are unrelated. 
D)  the two variables have an inverse relationship.

Question 5

When a firm decides to produce more electric cars and conventional gas powered cars, it is most directly answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "how" 
B)  "scarcity" 
C)  "what" 
D)  "for whom" 
A)  "how" 
B)  "scarcity" 
C)  "what" 
D)  "for whom"

Question 6

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

Accepted Answer

A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5. 
A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5.

Question 7

-In the above figure, which curve indicates that the level of food production does not affect the population growth rate?

Accepted Answer

A)  F 
B)  G 
C)  H 
D)  I 
A)  F 
B)  G 
C)  H 
D)  I

Question 8

Which of the following is a macroeconomic issue?

Accepted Answer

A)  the purchasing decisions that an individual consumer makes 
B)  the effect of increasing the money supply on inflation 
C)  the hiring decisions that a business makes 
D)  the effect of an increase in the tax on cigarettes on cigarette sales 
A)  the purchasing decisions that an individual consumer makes 
B)  the effect of increasing the money supply on inflation 
C)  the hiring decisions that a business makes 
D)  the effect of an increase in the tax on cigarettes on cigarette sales

Question 9

In broad terms the difference between microeconomics and macroeconomics is that

Accepted Answer

A)  they use different sets of tools and ideas. 
B)  microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. 
C)  macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. 
D)  microeconomics studies the effects of government taxes on the national unemployment rate. 
A)  they use different sets of tools and ideas. 
B)  microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. 
C)  macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. 
D)  microeconomics studies the effects of government taxes on the national unemployment rate.

Question 10

Which of the following is NOT an investment in human capital?

Accepted Answer

A)  A business student takes a seminar in using a laptop computer. 
B)  A student purchases a laptop computer. 
C)  A computer science student learns how to repair a laptop computer. 
D)  A computer science student takes a course on programming a laptop computer. 
A)  A business student takes a seminar in using a laptop computer. 
B)  A student purchases a laptop computer. 
C)  A computer science student learns how to repair a laptop computer. 
D)  A computer science student takes a course on programming a laptop computer.

Question 11

A positive statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  the result of a model's normative assumptions. 
D)  valid only in the context of a model with simple assumptions. 
A)  about what ought to be. 
B)  about what is. 
C)  the result of a model's normative assumptions. 
D)  valid only in the context of a model with simple assumptions.

Question 12

The loss of the highest-valued alternative defines the concept of

Accepted Answer

A)  marginal benefit. 
B)  scarcity. 
C)  entrepreneurship. 
D)  opportunity cost. 
A)  marginal benefit. 
B)  scarcity. 
C)  entrepreneurship. 
D)  opportunity cost.

Question 13

-The figure above shows ________ relationship between the two variables.

Accepted Answer

A)  a positive 
B)  a negative 
C)  no 
D)  an inverse 
A)  a positive 
B)  a negative 
C)  no 
D)  an inverse

Question 14

-The slope of the line in the above figure is

Accepted Answer

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

Question 15

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

Accepted Answer

A)  Brand B plus Brand C. 
B)  twenty dollars. 
C)  Brand A. 
D)  Brand B or Brand C, depending on which is considered the highest-value alternative forgone. 
A)  Brand B plus Brand C. 
B)  twenty dollars. 
C)  Brand A. 
D)  Brand B or Brand C, depending on which is considered the highest-value alternative forgone.

Question 16

When y changes, x stays the same. The line depicting this relationship would be

Accepted Answer

A)  vertical. 
B)  horizontal. 
C)  linear with a negative slope. 
D)  linear with a positive slope. 
A)  vertical. 
B)  horizontal. 
C)  linear with a negative slope. 
D)  linear with a positive slope.

Question 17

Economics is best defined as the science of choice and how people cope with

Accepted Answer

A)  differences in wants. 
B)  differences in needs. 
C)  scarcity. 
D)  different economic systems. 
A)  differences in wants. 
B)  differences in needs. 
C)  scarcity. 
D)  different economic systems.

Question 18

Microeconomics is the study of ________.

Accepted Answer

A)  the choices that individuals and businesses make 
B)  all aspects of scarcity 
C)  the global economy 
D)  the national economy 
A)  the choices that individuals and businesses make 
B)  all aspects of scarcity 
C)  the global economy 
D)  the national economy

Question 19

Statements about what ought to be are called

Accepted Answer

A)  positive statements. 
B)  normative statements. 
C)  assumptions. 
D)  implications. 
A)  positive statements. 
B)  normative statements. 
C)  assumptions. 
D)  implications.

Question 20

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 accuracy.

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

A cross-section graph can show how economic variables for different groups of people vary over time.

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

-In the above figure, if household consumption is positively related to household income, then an increase in household income will

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

When a firm decides to produce more electric cars and conventional gas powered cars, it is most directly answering the ________ part of one of the two big economic questions.

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

-In the above figure, which curve indicates that the level of food production does not affect the population growth rate?

Which of the following is a macroeconomic issue?

In broad terms the difference between microeconomics and macroeconomics is that

Which of the following is NOT an investment in human capital?

A positive statement is

The loss of the highest-valued alternative defines the concept of

-The figure above shows ________ relationship between the two variables.

-The slope of the line in the above figure is

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

When y changes, x stays the same. The line depicting this relationship would be

Economics is best defined as the science of choice and how people cope with

Microeconomics is the study of ________.

Statements about what ought to be are 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 accuracy.

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

A cross-section graph can show how economic variables for different groups of people vary over time.

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

-In the above figure, if household consumption is positively related to household income, then an increase in household income will

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

When a firm decides to produce more electric cars and conventional gas powered cars, it is most directly answering the ________ part of one of the two big economic questions.

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

-In the above figure, which curve indicates that the level of food production does not affect the population growth rate?

Which of the following is a macroeconomic issue?

In broad terms the difference between microeconomics and macroeconomics is that

Which of the following is NOT an investment in human capital?

A positive statement is

The loss of the highest-valued alternative defines the concept of

-The figure above shows ________ relationship between the two variables.

-The slope of the line in the above figure is

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

When y changes, x stays the same. The line depicting this relationship would be

Economics is best defined as the science of choice and how people cope with

Microeconomics is the study of ________.

Statements about what ought to be are 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 accuracy.

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