Question 1

-In the above figure, the curve has a slope that is ________.

Accepted Answer

A)  positive and becoming larger in magnitude 
B)  positive and becoming smaller in magnitude 
C)  negative and becoming larger in magnitude 
D)  negative and becoming smaller in magnitude 
A)  positive and becoming larger in magnitude 
B)  positive and becoming smaller in magnitude 
C)  negative and becoming larger in magnitude 
D)  negative and becoming smaller in magnitude

Question 2

The slope of a straight line is

Accepted Answer

A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero. 
A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero.

Question 3

-In the above figure, when income is zero, household expenditures equal

Accepted Answer

A)  0. 
B)  $1000. 
C)  $4000. 
D)  $8000. 
A)  0. 
B)  $1000. 
C)  $4000. 
D)  $8000.

Question 4

-The relationship between x and y in the above figure is

Accepted Answer

A)  positive with an increasing slope. 
B)  positive with a decreasing slope. 
C)  negative with an increasing slope. 
D)  negative with a decreasing slope. 
A)  positive with an increasing slope. 
B)  positive with a decreasing slope. 
C)  negative with an increasing slope. 
D)  negative with a decreasing slope.

Question 5

Which of the following is a positive statement?

Accepted Answer

A)  The government must lower the price of a pizza so that more students can afford to buy it. 
B)  The best level of taxation is zero percent because then people get to keep everything they earn. 
C)  My economics class should last for two terms because it is my favorite class. 
D)  An increase in tuition means fewer students will apply to college. 
A)  The government must lower the price of a pizza so that more students can afford to buy it. 
B)  The best level of taxation is zero percent because then people get to keep everything they earn. 
C)  My economics class should last for two terms because it is my favorite class. 
D)  An increase in tuition means fewer students will apply to college.

Question 6

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

Accepted Answer

The slope equals the change in

Question 7

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

Accepted Answer

A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail 
A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail

Question 8

If the slope of the relationship between savings and interest rates is 0.5, then

Accepted Answer

A)  savings and interest rates have a positive relationship. 
B)  savings and interest rates have a negative relationship. 
C)  savings and interest rates have no relationship. 
D)  savings and interest rates have an inverse relationship. 
A)  savings and interest rates have a positive relationship. 
B)  savings and interest rates have a negative relationship. 
C)  savings and interest rates have no relationship. 
D)  savings and interest rates have an inverse relationship.

Question 9

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

Accepted Answer

A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct. 
A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct.

Question 10

Which of the following is a positive statement?

Accepted Answer

A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want. 
A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want.

Question 11

Samantha goes to college to become an engineer. This is an example of an

Accepted Answer

A)  investment in physical capital. 
B)  investment in human capital. 
C)  increase in entrepreneurship. 
D)  increase in labor. 
A)  investment in physical capital. 
B)  investment in human capital. 
C)  increase in entrepreneurship. 
D)  increase in labor.

Question 12

The slope of a curved line can be approximated by

Accepted Answer

A)  the average of the variable measured along the y-axis divided by the average of the variable measured along the x-axis. 
B)  the inverse of the straight-line method. 
C)  the average of the variable measured along the x-axis divided by the average of the variable measured along the y-axis. 
D)  the slope across an arc from one point on the curve to another point on the curve. 
A)  the average of the variable measured along the y-axis divided by the average of the variable measured along the x-axis. 
B)  the inverse of the straight-line method. 
C)  the average of the variable measured along the x-axis divided by the average of the variable measured along the y-axis. 
D)  the slope across an arc from one point on the curve to another point on the curve.

Question 13

-In the table above, y is measured along the y-axis and x along the x-axis. The slope of the relationship between x = 0 and x = 2 is

Accepted Answer

A)  -6. 
B)  2. 
C)  3. 
D)  6. 
A)  -6. 
B)  2. 
C)  3. 
D)  6.

Question 14

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

Accepted Answer

A) True 
 B)False

Question 15

-Household consumption depends on both income and interest rates. In the above figure

Accepted Answer

A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant. 
A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant.

Question 16

The slope of a negative relationship is

Accepted Answer

A)  negative. 
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)  negative. 
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 17

"Government should act to reduce poverty levels."

Accepted Answer

A)  This statement is a normative statement. 
B)  This statement is a positive statement. 
C)  This statement is an example of the fallacy of composition. 
D)  This statement is an example of the post hoc fallacy. 
A)  This statement is a normative statement. 
B)  This statement is a positive statement. 
C)  This statement is an example of the fallacy of composition. 
D)  This statement is an example of the post hoc fallacy.

Question 18

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

Accepted Answer

A)  incentives. 
B)  a microeconomic decision. 
C)  a macroeconomic decision. 
D)  scarcity. 
A)  incentives. 
B)  a microeconomic decision. 
C)  a macroeconomic decision. 
D)  scarcity.

Question 19

Which of the following is a positive statement?

Accepted Answer

A)  An unemployment rate of 9 percent is a national disgrace. 
B)  Unemployment is a more important problem than inflation. 
C)  When the national unemployment rate is 9 percent, the unemployment rate for inner-city youth is often close to 40 percent. 
D)  Unemployment and inflation are equally important problems. 
A)  An unemployment rate of 9 percent is a national disgrace. 
B)  Unemployment is a more important problem than inflation. 
C)  When the national unemployment rate is 9 percent, the unemployment rate for inner-city youth is often close to 40 percent. 
D)  Unemployment and inflation are equally important problems.

Question 20

If an increase in x (the variable on the horizontal axis) from 6 to 8 units causes a decrease in y (the variable on the vertical axis) from 4 to 3 units, the slope equals

Accepted Answer

A)  2. 
B)  -2. 
C)  1/2. 
D)  -1/2. 
A)  2. 
B)  -2. 
C)  1/2. 
D)  -1/2.

-In the above figure, the curve has a slope that is ________.

The slope of a straight line is

-In the above figure, when income is zero, household expenditures equal

-The relationship between x and y in the above figure is

Which of the following is a positive statement?

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

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

If the slope of the relationship between savings and interest rates is 0.5, then

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

Which of the following is a positive statement?

Samantha goes to college to become an engineer. This is an example of an

The slope of a curved line can be approximated by

-In the table above, y is measured along the y-axis and x along the x-axis. The slope of the relationship between x = 0 and x = 2 is

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

-Household consumption depends on both income and interest rates. In the above figure

The slope of a negative relationship is

"Government should act to reduce poverty levels."

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

Which of the following is a positive statement?

If an increase in x (the variable on the horizontal axis) from 6 to 8 units causes a decrease in y (the variable on the vertical axis) from 4 to 3 units, the slope equals

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

-In the above figure, the curve has a slope that is ________.

The slope of a straight line is

-In the above figure, when income is zero, household expenditures equal

-The relationship between x and y in the above figure is

Which of the following is a positive statement?

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

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

If the slope of the relationship between savings and interest rates is 0.5, then

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

Which of the following is a positive statement?

Samantha goes to college to become an engineer. This is an example of an

The slope of a curved line can be approximated by

-In the table above, y is measured along the y-axis and x along the x-axis. The slope of the relationship between x = 0 and x = 2 is

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

-Household consumption depends on both income and interest rates. In the above figure

The slope of a negative relationship is

"Government should act to reduce poverty levels."

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

Which of the following is a positive statement?

If an increase in x (the variable on the horizontal axis) from 6 to 8 units causes a decrease in y (the variable on the vertical axis) from 4 to 3 units, the slope equals

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