Question 1

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

Accepted Answer

A)  a positive statement. 
B)  the Federal Reserve taking actions that are not at the margin. 
C)  opportunity costs. 
D)  a normative statement. 
A)  a positive statement. 
B)  the Federal Reserve taking actions that are not at the margin. 
C)  opportunity costs. 
D)  a normative statement.

Question 2

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

Accepted Answer

A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected. 
A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected.

Question 3

-The figure above shows

Accepted Answer

A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  no relationship between the variables. 
A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  no relationship between the variables.

Question 4

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

Accepted Answer

A)  upward and be linear. 
B)  upward and may be linear or nonlinear. 
C)  downward and be linear. 
D)  downward and may be linear or nonlinear. 
A)  upward and be linear. 
B)  upward and may be linear or nonlinear. 
C)  downward and be linear. 
D)  downward and may be linear or nonlinear.

Question 5

The horizontal axis in a graph

Accepted Answer

A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis. 
A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis.

Question 6

The slope of a line

Accepted Answer

A)  can never equal zero. 
B)  is always a constant. 
C)  measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. 
D)  measures the value of the y-axis variable relative to the value of the x-axis variable. 
A)  can never equal zero. 
B)  is always a constant. 
C)  measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. 
D)  measures the value of the y-axis variable relative to the value of the x-axis variable.

Question 7

-In the above figure, tax revenue is at a maximum when the tax rate is

Accepted Answer

A)  0 percent. 
B)  30 percent. 
C)  50 percent. 
D)  100 percent. 
A)  0 percent. 
B)  30 percent. 
C)  50 percent. 
D)  100 percent.

Question 8

-The relationship depicted in the above figure is

Accepted Answer

A)  a negative linear relationship. 
B)  a positive linear relationship. 
C)  a positive becoming less steep relationship. 
D)  a positive becoming steeper relationship. 
A)  a negative linear relationship. 
B)  a positive linear relationship. 
C)  a positive becoming less steep relationship. 
D)  a positive becoming steeper relationship.

Question 9

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is

Accepted Answer

A)  -25. 
B)  4. 
C)  0.25. 
D)  -0.25. 
A)  -25. 
B)  4. 
C)  0.25. 
D)  -0.25.

Question 10

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

Accepted Answer

A)  price of a pound of pecans is held constant. 
B)  price of a pound of peanuts is held constant. 
C)  quantity of peanuts that farmers supply is constant. 
D)  Both answers A and B are true. 
A)  price of a pound of pecans is held constant. 
B)  price of a pound of peanuts is held constant. 
C)  quantity of peanuts that farmers supply is constant. 
D)  Both answers A and B are true.

Question 11

When an economist talks of scarcity, the economist is referring to the

Accepted Answer

A)  ability of society to employ all of its resources. 
B)  ability of society to consume all that it produces. 
C)  inability of society to satisfy all human wants because of limited resources. 
D)  ability of society to continually make technological breakthroughs and increase production. 
A)  ability of society to employ all of its resources. 
B)  ability of society to consume all that it produces. 
C)  inability of society to satisfy all human wants because of limited resources. 
D)  ability of society to continually make technological breakthroughs and increase production.

Question 12

An example of a question that might be explored in microeconomics is to determine

Accepted Answer

A)  the number of workers employed by Intel. 
B)  savings by the household sector. 
C)  why the U.S. economy has grown more rapidly than the Japanese economy. 
D)  the total employment within the U.S. economy. 
A)  the number of workers employed by Intel. 
B)  savings by the household sector. 
C)  why the U.S. economy has grown more rapidly than the Japanese economy. 
D)  the total employment within the U.S. economy.

Question 13

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

Accepted Answer

A)  is the benefit the owner receives from staying open from 8 a.m. to 5 pm. 
B)  depends on the revenues the owner makes during the day. 
C)  must be greater than or equal to the owner's marginal cost if the owner decides to stay open. 
D)  is the benefit the owner receives from staying open from 8 a.m. to 6 pm. 
A)  is the benefit the owner receives from staying open from 8 a.m. to 5 pm. 
B)  depends on the revenues the owner makes during the day. 
C)  must be greater than or equal to the owner's marginal cost if the owner decides to stay open. 
D)  is the benefit the owner receives from staying open from 8 a.m. to 6 pm.

Question 14

If a curve falls and then rises, it shows

Accepted Answer

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

Question 15

Scarcity requires that people must

Accepted Answer

A)  cooperate. 
B)  compete. 
C)  trade. 
D)  make choices. 
A)  cooperate. 
B)  compete. 
C)  trade. 
D)  make choices.

Question 16

Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

Accepted Answer

A)  fact that Ms. Yellen faces scarcity. 
B)  concept of entrepreneurship. 
C)  fact that Ms. Yellen responds to incentives. 
D)  use of capital. 
A)  fact that Ms. Yellen faces scarcity. 
B)  concept of entrepreneurship. 
C)  fact that Ms. Yellen responds to incentives. 
D)  use of capital.

Question 17

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

Accepted Answer

Essentially microeconomics studies indiv

Question 18

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 greater than 1. This slope means that

Accepted Answer

A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y. 
A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y.

Question 19

Which of the following is a microeconomic topic?

Accepted Answer

A)  how a trade agreement between the United States and Mexico affects both nations' unemployment rates 
B)  comparing inflation rates across countries 
C)  how rent ceilings impact the supply of apartments 
D)  how a tax rate increase will impact total production 
A)  how a trade agreement between the United States and Mexico affects both nations' unemployment rates 
B)  comparing inflation rates across countries 
C)  how rent ceilings impact the supply of apartments 
D)  how a tax rate increase will impact total production

Question 20

Opportunity cost is best defined as

Accepted Answer

A)  how much money is paid for something. 
B)  how much money is paid for something, taking inflation into account. 
C)  the highest-valued alternative that is given up to get something. 
D)  all the alternatives that are given up to get something. 
A)  how much money is paid for something. 
B)  how much money is paid for something, taking inflation into account. 
C)  the highest-valued alternative that is given up to get something. 
D)  all the alternatives that are given up to get something.

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

-The figure above shows

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

The horizontal axis in a graph

The slope of a line

-In the above figure, tax revenue is at a maximum when the tax rate is

-The relationship depicted in the above figure is

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

When an economist talks of scarcity, the economist is referring to the

An example of a question that might be explored in microeconomics is to determine

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

If a curve falls and then rises, it shows

Scarcity requires that people must

Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

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 greater than 1. This slope means that

Which of the following is a microeconomic topic?

Opportunity cost is best defined as

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

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases

-The figure above shows

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

The horizontal axis in a graph

The slope of a line

-In the above figure, tax revenue is at a maximum when the tax rate is

-The relationship depicted in the above figure is

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

When an economist talks of scarcity, the economist is referring to the

An example of a question that might be explored in microeconomics is to determine

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

If a curve falls and then rises, it shows

Scarcity requires that people must

Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

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 greater than 1. This slope means that

Which of the following is a microeconomic topic?

Opportunity cost is best defined as

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