Question 1

Define marginal cost and marginal benefit.

Accepted Answer

Marginal cost is the opportuni

Question 2

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 3

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

Accepted Answer

A)  making a normative statement. 
B)  making a positive statement. 
C)  testing an economic model. 
D)  facing the standard of living tradeoff. 
A)  making a normative statement. 
B)  making a positive statement. 
C)  testing an economic model. 
D)  facing the standard of living tradeoff.

Question 4

-The figure above shows ________ relationship between the two variables.

Accepted Answer

A)  a positive 
B)  a negative 
C)  no 
D)  an inverse 
A)  a positive 
B)  a negative 
C)  no 
D)  an inverse

Question 5

To graph a relationship among several variables, we hold all but ________ variable(s)constant and use the ________ assumption.

Accepted Answer

A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; marginal benefit 
D)  one; ceteris paribus 
A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; marginal benefit 
D)  one; ceteris paribus

Question 6

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

Accepted Answer

A)  an incentive. 
B)  a social interest/private interest conflict. 
C)  opportunity cost. 
D)  marginal benefit. 
A)  an incentive. 
B)  a social interest/private interest conflict. 
C)  opportunity cost. 
D)  marginal benefit.

Question 7

If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the line relating price and quantity has a slope of

Accepted Answer

A)  0.8. 
B)  -8.0. 
C)  -1.25. 
D)  8.0. 
A)  0.8. 
B)  -8.0. 
C)  -1.25. 
D)  8.0.

Question 8

The 2010 Patient Protection and Affordable Care Act (Obamacare)contains a provision that may require individuals to either purchase private health insurance or pay a tax. This is an example of

Accepted Answer

A)  a mixed economy. 
B)  market capitalism. 
C)  centrally planned socialism. 
D)  the invisible hand. 
A)  a mixed economy. 
B)  market capitalism. 
C)  centrally planned socialism. 
D)  the invisible hand.

Question 9

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

Accepted Answer

The slope equals the change in

Question 10

-A scatter diagram with the price of vacations to Mexico on the vertical axis and the price of vacations to California on the horizontal axis shows a positive relationship. If the price of vacations to Mexico were placed on the horizontal axis, and the price of vacations to California on the vertical axis, the relationship would be

Accepted Answer

A)  negative relationship, also called a direct relationship. 
B)  negative relationship, also called an inverse relationship. 
C)  positive relationship, also called a direct relationship. 
D)  positive relationship, also called an inverse relationship. 
A)  negative relationship, also called a direct relationship. 
B)  negative relationship, also called an inverse relationship. 
C)  positive relationship, also called a direct relationship. 
D)  positive relationship, also called an inverse relationship.

Question 11

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "when" 
B)  "for whom" 
C)  "how" 
D)  "why" 
A)  "when" 
B)  "for whom" 
C)  "how" 
D)  "why"

Question 12

The term human capital refers to

Accepted Answer

A)  labor resources used to make capital equipment. 
B)  buildings and machinery. 
C)  people's knowledge and skill. 
D)  entrepreneurship and risk-taking. 
A)  labor resources used to make capital equipment. 
B)  buildings and machinery. 
C)  people's knowledge and skill. 
D)  entrepreneurship and risk-taking.

Question 13

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

Accepted Answer

A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
C)  means that changes in either variable must cause changes in the other variable. 
D)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis. 
A)  means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. 
B)  means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. 
C)  means that changes in either variable must cause changes in the other variable. 
D)  does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis.

Question 14

On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a

Accepted Answer

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

Question 15

Which of the following is NOT an example of an opportunity cost?

Accepted Answer

A)  By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. 
B)  Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. 
C)  Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. 
D)  By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college. 
A)  By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. 
B)  Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. 
C)  Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. 
D)  By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.

Question 16

Ceteris paribus when graphing a relationship refers to

Accepted Answer

A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates. 
A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates.

Question 17

-In the above figure, a negative relationship is demonstrated in which of the graphs?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 18

-Jamie is preparing to take his SAT tests. The table above shows how Jamie's score depends on the number of hours a week Jamie studies.
a)Plot the relationship in the figure, putting the hours studied on the horizontal axis.
b)Is the relationship you plotted positive or negative?
c)What happens to the slope of the relationship as hours studied increase?
d)Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he studies, his score will be 100 points higher. Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure.
e)How many variables are involved in the figure you just completed?

Accepted Answer

@#IMG-DLM& 
a)The figure above plots the relations

Question 19

If the change in the y-axis variable is 4 and the change in the x-axis variable is 2, the slope of this line is 1/2.

Accepted Answer

A) True 
 B)False

Question 20

A benefit from an increase in activity is called the

Accepted Answer

A)  marginal benefit. 
B)  economic benefit. 
C)  total benefit. 
D)  opportunity benefit. 
A)  marginal benefit. 
B)  economic benefit. 
C)  total benefit. 
D)  opportunity benefit.

Define marginal cost and marginal benefit.

Scarcity requires that people must

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

-The figure above shows ________ relationship between the two variables.

To graph a relationship among several variables, we hold all but variable(s)constant and use the assumption.

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the line relating price and quantity has a slope of

The 2010 Patient Protection and Affordable Care Act (Obamacare)contains a provision that may require individuals to either purchase private health insurance or pay a tax. This is an example of

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

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions.

The term human capital refers to

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a

Which of the following is NOT an example of an opportunity cost?

Ceteris paribus when graphing a relationship refers to

-In the above figure, a negative relationship is demonstrated in which of the graphs?

If the change in the y-axis variable is 4 and the change in the x-axis variable is 2, the slope of this line is 1/2.

A benefit from an increase in activity is called the

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 1: What Is Economics?

Define marginal cost and marginal benefit.

Scarcity requires that people must

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

-The figure above shows ________ relationship between the two variables.

To graph a relationship among several variables, we hold all but ________ variable(s)constant and use the ________ assumption.

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the line relating price and quantity has a slope of

The 2010 Patient Protection and Affordable Care Act (Obamacare)contains a provision that may require individuals to either purchase private health insurance or pay a tax. This is an example of

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

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions.

The term human capital refers to

On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis

On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a

Which of the following is NOT an example of an opportunity cost?

Ceteris paribus when graphing a relationship refers to

-In the above figure, a negative relationship is demonstrated in which of the graphs?

If the change in the y-axis variable is 4 and the change in the x-axis variable is 2, the slope of this line is 1/2.

A benefit from an increase in activity is called the

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

To graph a relationship among several variables, we hold all but variable(s)constant and use the assumption.