Question 1

-In the above figure, the curve's slope is

Accepted Answer

A)  positive and is becoming steeper. 
B)  positive and is becoming less steep. 
C)  negative and is becoming steeper. 
D)  negative and is becoming less steep. 
A)  positive and is becoming steeper. 
B)  positive and is becoming less steep. 
C)  negative and is becoming steeper. 
D)  negative and is becoming less steep.

Question 2

In part, microeconomics is concerned with

Accepted Answer

A)  how a business firm decides upon the amount it produces and the price it sets. 
B)  changes in the economy's total output of goods and services over long periods of time. 
C)  factors that explain changes in the unemployment rate over time. 
D)  the Federal Reserve's policy decisions. 
A)  how a business firm decides upon the amount it produces and the price it sets. 
B)  changes in the economy's total output of goods and services over long periods of time. 
C)  factors that explain changes in the unemployment rate over time. 
D)  the Federal Reserve's policy decisions.

Question 3

In the U.S. economy, which of the following statements is TRUE?

Accepted Answer

A)  More goods are produced than services. 
B)  More services are produced than goods. 
C)  Production is divided evenly between goods and services. 
D)  The economy is too complex to determine the proportion of production that is devoted to producing services. 
A)  More goods are produced than services. 
B)  More services are produced than goods. 
C)  Production is divided evenly between goods and services. 
D)  The economy is too complex to determine the proportion of production that is devoted to producing services.

Question 4

A cost due to an increase in activity is called

Accepted Answer

A)  an incentive loss. 
B)  a marginal cost. 
C)  a negative marginal benefit. 
D)  the total cost. 
A)  an incentive loss. 
B)  a marginal cost. 
C)  a negative marginal benefit. 
D)  the total cost.

Question 5

"As you devote more hours to studying, your GPA increases." A graph of this relationship would show

Accepted Answer

A)  a positive relationship. 
B)  a direct relationship. 
C)  an inverse relationship. 
D)  Both answers A and B are correct. 
A)  a positive relationship. 
B)  a direct relationship. 
C)  an inverse relationship. 
D)  Both answers A and B are correct.

Question 6

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

Accepted Answer

A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above. 
A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above.

Question 7

A scatter diagram shows the

Accepted Answer

A)  level of one variable over time. 
B)  change in one variable over time. 
C)  relationship between two variables. 
D)  evolution of a variable. 
A)  level of one variable over time. 
B)  change in one variable over time. 
C)  relationship between two variables. 
D)  evolution of a variable.

Question 8

-In the above figure, the slope at point b is

Accepted Answer

A)  1. 
B)  5/2. 
C)  between 1 and 5/2. 
D)  greater than 5/2. 
A)  1. 
B)  5/2. 
C)  between 1 and 5/2. 
D)  greater than 5/2.

Question 9

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

Accepted Answer

A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement. 
A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement.

Question 10

According to Adam Smith

Accepted Answer

A)  government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest. 
B)  politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes. 
C)  when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest. 
D)  in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can earn a profit, but both buyers and sellers can't gain simultaneously. 
A)  government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest. 
B)  politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes. 
C)  when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest. 
D)  in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can earn a profit, but both buyers and sellers can't gain simultaneously.

Question 11

-The slope in the above figure is

Accepted Answer

A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing. 
A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing.

Question 12

An economic model is

Accepted Answer

A)  a generalization that summarizes all the normative assumptions we make about a particular issue. 
B)  a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. 
C)  a statement that describes how the world should be. 
D)  a collection of facts that describe the real world. 
A)  a generalization that summarizes all the normative assumptions we make about a particular issue. 
B)  a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. 
C)  a statement that describes how the world should be. 
D)  a collection of facts that describe the real world.

Question 13

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

Accepted Answer

A person faces scarcity whenever his or

Question 14

The problem of "scarcity" applies

Accepted Answer

A)  only in industrially developed countries because resources are scarce in these countries. 
B)  only in underdeveloped countries because there are few productive resources in these countries. 
C)  only in economic systems that are just beginning to develop because specialized resources are scarce. 
D)  to all economic systems, regardless of their level of development. 
A)  only in industrially developed countries because resources are scarce in these countries. 
B)  only in underdeveloped countries because there are few productive resources in these countries. 
C)  only in economic systems that are just beginning to develop because specialized resources are scarce. 
D)  to all economic systems, regardless of their level of development.

Question 15

A normative statement concerns

Accepted Answer

A)  what is provable. 
B)  what is correct. 
C)  what is incorrect. 
D)  a value judgment. 
A)  what is provable. 
B)  what is correct. 
C)  what is incorrect. 
D)  a value judgment.

Question 16

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

Accepted Answer

A)  is the benefit she gets from all the hours she's worked out all week. 
B)  is the benefit she receives from exercising the additional hour. 
C)  is less than the marginal cost of the additional hour. 
D)  depends on the cost of the workout. 
A)  is the benefit she gets from all the hours she's worked out all week. 
B)  is the benefit she receives from exercising the additional hour. 
C)  is less than the marginal cost of the additional hour. 
D)  depends on the cost of the workout.

Question 17

In the figure above, when income equals $20,000, what does consumption equal?

Accepted Answer

A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell 
A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell

Question 18

Which of the following is a positive statement?

Accepted Answer

A)  Taxes should be lower because then people get to keep more of what they earn. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions. 
A)  Taxes should be lower because then people get to keep more of what they earn. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions.

Question 19

When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

The slope equals the change in

-In the above figure, the curve's slope is

In part, microeconomics is concerned with

In the U.S. economy, which of the following statements is TRUE?

A cost due to an increase in activity is called

"As you devote more hours to studying, your GPA increases." A graph of this relationship would show

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

A scatter diagram shows the

-In the above figure, the slope at point b is

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

According to Adam Smith

-The slope in the above figure is

An economic model is

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

The problem of "scarcity" applies

A normative statement concerns

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

In the figure above, when income equals $20,000, what does consumption equal?

Which of the following is a positive statement?

When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy.

-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

-In the above figure, the curve's slope is

In part, microeconomics is concerned with

In the U.S. economy, which of the following statements is TRUE?

A cost due to an increase in activity is called

"As you devote more hours to studying, your GPA increases." A graph of this relationship would show

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

A scatter diagram shows the

-In the above figure, the slope at point b is

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

According to Adam Smith

-The slope in the above figure is

An economic model is

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

The problem of "scarcity" applies

A normative statement concerns

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

In the figure above, when income equals $20,000, what does consumption equal?

Which of the following is a positive statement?

When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy.

-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