Question 1

-In the figure above, what can you deduce about the slope of the curve?

Accepted Answer

The slope is positiv

Question 2

The term "opportunity cost" points out that

Accepted Answer

A)  there may be such a thing as a free lunch. 
B)  not all individuals will make the most of life's opportunities because some will fail to achieve their goals. 
C)  executives do not always recognize opportunities for profit as quickly as they should. 
D)  any decision regarding the use of a resource involves a costly choice. 
A)  there may be such a thing as a free lunch. 
B)  not all individuals will make the most of life's opportunities because some will fail to achieve their goals. 
C)  executives do not always recognize opportunities for profit as quickly as they should. 
D)  any decision regarding the use of a resource involves a costly choice.

Question 3

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "scarcity" 
B)  "what" 
C)  "why" 
D)  "how" 
A)  "scarcity" 
B)  "what" 
C)  "why" 
D)  "how"

Question 4

An outcome is considered efficient if

Accepted Answer

A)  it is not possible to make someone better off without making anyone else worse off. 
B)  it is the best available choice for an individual. 
C)  it results in fair shares for everyone involved. 
D)  it is possible to make someone better off without making anyone else worse off. 
A)  it is not possible to make someone better off without making anyone else worse off. 
B)  it is the best available choice for an individual. 
C)  it results in fair shares for everyone involved. 
D)  it is possible to make someone better off without making anyone else worse off.

Question 5

After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal-Mart for $38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

Accepted Answer

A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart 
A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart

Question 6

The "gifts of nature" are included as part of which factor of production?

Accepted Answer

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

Question 7

A positive statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts. 
A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts.

Question 8

When Susan makes the statement, "The government should spend less money to take care of national parks," she is

Accepted Answer

A)  making a normative statement. 
B)  making a positive statement. 
C)  testing an economic model. 
D)  not dealing with scarcity. 
A)  making a normative statement. 
B)  making a positive statement. 
C)  testing an economic model. 
D)  not dealing with scarcity.

Question 9

-In the above figure, using the slope across an arc, the slope of the curve between points b and c is

Accepted Answer

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

Question 10

The economic resource that organizes the use of other economic resources is called

Accepted Answer

A)  labor. 
B)  capital. 
C)  entrepreneurship. 
D)  land. 
A)  labor. 
B)  capital. 
C)  entrepreneurship. 
D)  land.

Question 11

Which of the following is a normative statement?

Accepted Answer

A)  Studying more hours leads to an increase in your GPA. 
B)  An increase in tax rates means people work fewer hours. 
C)  Taking extra vitamin C prevents catching a cold. 
D)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed. 
A)  Studying more hours leads to an increase in your GPA. 
B)  An increase in tax rates means people work fewer hours. 
C)  Taking extra vitamin C prevents catching a cold. 
D)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed.

Question 12

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 13

-In the above figure, which curve shows a positive relationship between x and y?

Accepted Answer

A)  only curve A 
B)  only curve B 
C)  only curve C 
D)  All the curves show a positive relationship. 
A)  only curve A 
B)  only curve B 
C)  only curve C 
D)  All the curves show a positive relationship.

Question 14

What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?

Accepted Answer

Variables can have two relationships: po

Question 15

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Accepted Answer

You should disagree. The recent corporat

Question 16

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes. Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

Accepted Answer

The figure shows that there is a positiv

Question 17

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

Accepted Answer

A)  scarcity. 
B)  ceteris paribus. 
C)  choosing at the margin. 
D)  productivity. 
A)  scarcity. 
B)  ceteris paribus. 
C)  choosing at the margin. 
D)  productivity.

Question 18

"The rich should pay higher income tax rates than the poor" is an example of a

Accepted Answer

A)  normative statement. 
B)  positive statement. 
C)  descriptive statement. 
D)  theoretical statement. 
A)  normative statement. 
B)  positive statement. 
C)  descriptive statement. 
D)  theoretical statement.

Question 19

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

Accepted Answer

A)  1 
B)  -1 
C)  2 
D)  3 
A)  1 
B)  -1 
C)  2 
D)  3

-In the figure above, what can you deduce about the slope of the curve?

The term "opportunity cost" points out that

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

An outcome is considered efficient if

The "gifts of nature" are included as part of which factor of production?

A positive statement is

When Susan makes the statement, "The government should spend less money to take care of national parks," she is

-In the above figure, using the slope across an arc, the slope of the curve between points b and c is

The economic resource that organizes the use of other economic resources is called

Which of the following is a normative statement?

Define economics and describe its branches of study.

-In the above figure, which curve shows a positive relationship between x and y?

What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes. Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

"The rich should pay higher income tax rates than the poor" is an example of a

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

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 figure above, what can you deduce about the slope of the curve?

The term "opportunity cost" points out that

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

An outcome is considered efficient if

The "gifts of nature" are included as part of which factor of production?

A positive statement is

When Susan makes the statement, "The government should spend less money to take care of national parks," she is

-In the above figure, using the slope across an arc, the slope of the curve between points b and c is

The economic resource that organizes the use of other economic resources is called

Which of the following is a normative statement?

Define economics and describe its branches of study.

-In the above figure, which curve shows a positive relationship between x and y?

What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes. Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

"The rich should pay higher income tax rates than the poor" is an example of a

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

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