Question 1

The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

Accepted Answer

A)  strongly positively related. 
B)  strongly negatively related. 
C)  not related. 
D)  related via an indirect relationship. 
A)  strongly positively related. 
B)  strongly negatively related. 
C)  not related. 
D)  related via an indirect relationship.

Question 2

Along a straight line, when x equals 90, then y equals 30. When x equals 120, then y equals 40. The slope of the straight line is

Accepted Answer

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

Question 3

Which of the following is NOT part of the first big economic question?

Accepted Answer

A)  What goods and services are produced? 
B)  How are goods and services produced? 
C)  For whom are goods and services produced? 
D)  Why do incentives affect only marginal costs? 
A)  What goods and services are produced? 
B)  How are goods and services produced? 
C)  For whom are goods and services produced? 
D)  Why do incentives affect only marginal costs?

Question 4

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

Accepted Answer

The statement is a positive statement be

Question 5

A scatter diagram will be most useful

Accepted Answer

A)  in discerning a possible relationship between height and weight for individuals. 
B)  in resolving a dispute over two normative assertions. 
C)  in predicting next year's rate of unemployment. 
D)  All of the above are correct. 
A)  in discerning a possible relationship between height and weight for individuals. 
B)  in resolving a dispute over two normative assertions. 
C)  in predicting next year's rate of unemployment. 
D)  All of the above are correct.

Question 6

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment he values the

Accepted Answer

A)  20 percentage points more than the 10 hours of his time. 
B)  10 hours of his time more than the 20 percentage points. 
C)  70 percentage points more than the 10 hours of his time. 
D)  wants a higher score. 
A)  20 percentage points more than the 10 hours of his time. 
B)  10 hours of his time more than the 20 percentage points. 
C)  70 percentage points more than the 10 hours of his time. 
D)  wants a higher score.

Question 7

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

Accepted Answer

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

Question 8

The income earned by the people who sell the services of the factor of production ________ is called ________.

Accepted Answer

A)  capital; rent 
B)  entrepreneurship; wages 
C)  land; profit 
D)  entrepreneurship; profit 
A)  capital; rent 
B)  entrepreneurship; wages 
C)  land; profit 
D)  entrepreneurship; profit

Question 9

-The above table indicates that variables x and y are

Accepted Answer

A)  positively related. 
B)  inversely related. 
C)  negatively related. 
D)  not related. 
A)  positively related. 
B)  inversely related. 
C)  negatively related. 
D)  not related.

Question 10

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

Accepted Answer

A)  -0.057 
B)  -19.28 
C)  -35 
D)  70 
A)  -0.057 
B)  -19.28 
C)  -35 
D)  70

Question 11

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

Accepted Answer

A)  total amount paid to only the new worker. 
B)  total amount paid to all previously hired workers. 
C)  the total amount paid to all the workers, both the new one and the previously hired workers. 
D)  the additional revenue created by having an additional worker minus the cost of hiring the worker. 
A)  total amount paid to only the new worker. 
B)  total amount paid to all previously hired workers. 
C)  the total amount paid to all the workers, both the new one and the previously hired workers. 
D)  the additional revenue created by having an additional worker minus the cost of hiring the worker.

Question 12

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

Accepted Answer

A)  negative relationship 
B)  positive relationship 
C)  no relationship 
D)  maximum relationship 
A)  negative relationship 
B)  positive relationship 
C)  no relationship 
D)  maximum relationship

Question 13

If you study 3 hours for an exam, you can raise your score by 30 points. If you study for another 3 hours your score increases by 10 points. And if you study for another 3 hours, your score will increase by 5 more points. A graph displaying this relationship between the number of hours studied and your total exam score would show

Accepted Answer

A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  an upward-sloping curve that becomes more steep. 
A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  an upward-sloping curve that becomes more steep.

Question 14

A normative statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that is based on an economic experiment. 
A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that is based on an economic experiment.

Question 15

Because we face scarcity, every choice involves

Accepted Answer

A)  money. 
B)  the question "what." 
C)  giving up something for nothing. 
D)  an opportunity cost. 
A)  money. 
B)  the question "what." 
C)  giving up something for nothing. 
D)  an opportunity cost.

Question 16

An economic model includes

Accepted Answer

A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential. 
A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential.

Question 17

Below is a student's answer to the question "What is microeconomics?" If you were the instructor, how would you correct the student's answer?
"Microeconomics is the study of how government influences the choices made by individuals and businesses and of the performance of the whole national economy."

Accepted Answer

The answer is partially correct. Microec

Question 18

-The slope of the line in the above figure is

Accepted Answer

A)  1/2 = 0.5. 
B)  2. 
C)  -1/2 = -0.5. 
D)  -2. 
A)  1/2 = 0.5. 
B)  2. 
C)  -1/2 = -0.5. 
D)  -2.

Question 19

-In the above figure, the y-coordinate of point b is

Accepted Answer

A)  1. 
B)  2. 
C)  3. 
D)  14. 
A)  1. 
B)  2. 
C)  3. 
D)  14.

Question 20

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

Accepted Answer

The slope equals the change in

The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

Along a straight line, when x equals 90, then y equals 30. When x equals 120, then y equals 40. The slope of the straight line is

Which of the following is NOT part of the first big economic question?

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

A scatter diagram will be most useful

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment he values the

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

The income earned by the people who sell the services of the factor of production is called .

-The above table indicates that variables x and y are

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

A normative statement is

Because we face scarcity, every choice involves

An economic model includes

-The slope of the line in the above figure is

-In the above figure, the y-coordinate of point b is

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

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

The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

Along a straight line, when x equals 90, then y equals 30. When x equals 120, then y equals 40. The slope of the straight line is

Which of the following is NOT part of the first big economic question?

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

A scatter diagram will be most useful

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment he values the

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

The income earned by the people who sell the services of the factor of production ________ is called ________.

-The above table indicates that variables x and y are

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

A normative statement is

Because we face scarcity, every choice involves

An economic model includes

-The slope of the line in the above figure is

-In the above figure, the y-coordinate of point b is

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

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

The income earned by the people who sell the services of the factor of production is called .