Question 1

Which of the following is a positive statement?

Accepted Answer

A)  Our planet is warming because of an increased carbon dioxide buildup in the atmosphere. 
B)  A minimum wage of $7.50 per hour is a shame for a rich country like the United States. 
C)  Both these statements are positive. 
D)  Neither of these statements is positive. 
A)  Our planet is warming because of an increased carbon dioxide buildup in the atmosphere. 
B)  A minimum wage of $7.50 per hour is a shame for a rich country like the United States. 
C)  Both these statements are positive. 
D)  Neither of these statements is positive.

Question 2

Which of the following is a macroeconomic issue?

Accepted Answer

A)  the purchasing decisions that an individual consumer makes 
B)  the effect of increasing the money supply on inflation 
C)  the hiring decisions that a business makes 
D)  the effect of an increase in the tax on cigarettes on cigarette sales 
A)  the purchasing decisions that an individual consumer makes 
B)  the effect of increasing the money supply on inflation 
C)  the hiring decisions that a business makes 
D)  the effect of an increase in the tax on cigarettes on cigarette sales

Question 3

Factors of production are grouped into four categories

Accepted Answer

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

Question 4

-The slope of a line equals the

Accepted Answer

A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis. 
A)  change in the variable measured along the x-axis divided by the change in the variable measured along the y-axis. 
B)  change in the variable measured along the y-axis divided by the change in the variable measured along the x-axis. 
C)  change in the variable measured along the x-axis minus the change in the variable measured along the y-axis. 
D)  change in the variable measured along the x-axis multiplied by the change in the variable measured along the y-axis.

Question 5

The Occupy Wall Street movement advocates

Accepted Answer

A)  a shift away from market capitalism. 
B)  a shift towards more market capitalism. 
C)  centrally planned socialism. 
D)  following the teachings of Adam Smith. 
A)  a shift away from market capitalism. 
B)  a shift towards more market capitalism. 
C)  centrally planned socialism. 
D)  following the teachings of Adam Smith.

Question 6

Copper falls into which factor of production category?

Accepted Answer

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

Question 7

Explain why both rich and poor people experience scarcity.

Accepted Answer

Scarcity exists when people's wants exce

Question 8

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

Accepted Answer

A)  working and doing fix-up projects. 
B)  working or doing fix-up projects, depending on which you would have done otherwise. 
C)  working, because you would be giving up income. 
D)  nothing because you will enjoy the trip to Florida. 
A)  working and doing fix-up projects. 
B)  working or doing fix-up projects, depending on which you would have done otherwise. 
C)  working, because you would be giving up income. 
D)  nothing because you will enjoy the trip to Florida.

Question 9

The marginal benefit is the

Accepted Answer

A)  additional gain from one more unit of an activity. 
B)  additional cost from one more unit of an activity. 
C)  loss of the highest-valued alternative. 
D)  additional gain from one more unit of an activity minus the additional cost from one more unit of the activity. 
A)  additional gain from one more unit of an activity. 
B)  additional cost from one more unit of an activity. 
C)  loss of the highest-valued alternative. 
D)  additional gain from one more unit of an activity minus the additional cost from one more unit of the activity.

Question 10

The term "direct relationship" means the same as

Accepted Answer

A)  correlation. 
B)  trend. 
C)  positive relationship. 
D)  negative relationship. 
A)  correlation. 
B)  trend. 
C)  positive relationship. 
D)  negative relationship.

Question 11

In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

Accepted Answer

A)  100. 
B)  0. 
C)  0.25. 
D)  -4. 
A)  100. 
B)  0. 
C)  0.25. 
D)  -4.

Question 12

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie. Therefore, the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

Accepted Answer

Your friend's analysis is incorrect. The

Question 13

Which of the following is CORRECT? Factors of production are

Accepted Answer

A)  land, labor, the price system, and capital. 
B)  the inputs used to produce goods and services. 
C)  the fundamental source of abundance. 
D)  only land and labor. 
A)  land, labor, the price system, and capital. 
B)  the inputs used to produce goods and services. 
C)  the fundamental source of abundance. 
D)  only land and labor.

Question 14

In economics, normative statements are about

Accepted Answer

A)  the way things ought to be. 
B)  the way things are. 
C)  marginal benefits, not marginal costs. 
D)  marginal costs, not marginal benefits. 
A)  the way things ought to be. 
B)  the way things are. 
C)  marginal benefits, not marginal costs. 
D)  marginal costs, not marginal benefits.

Question 15

What do economists mean when they discuss "scarcity"?

Accepted Answer

Scarcity occurs whenever people's wants

Question 16

-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 17

Which of the following is a positive statement?

Accepted Answer

A)  State lotteries are good methods to use for raising revenues. 
B)  Increased prison sentences are the best way to reduce the crime rate. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation. 
A)  State lotteries are good methods to use for raising revenues. 
B)  Increased prison sentences are the best way to reduce the crime rate. 
C)  An increase in gas prices leads people to car pool more. 
D)  Inflation is a more serious problem than is deflation.

Question 18

A linear relationship

Accepted Answer

A)  always has a maximum. 
B)  always has a constant slope. 
C)  always slopes up to the right. 
D)  never has a constant slope. 
A)  always has a maximum. 
B)  always has a constant slope. 
C)  always slopes up to the right. 
D)  never has a constant slope.

Question 19

Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500. If you didn't go to school, you'd live in your parents' house for free, but your other living expenses would be about the same. Also, if you didn't go to school you'd work full time and could earn $8,000. You can still work part time while attending the summer school, but you will earn only $3,000.
a)What will the summer school cost you in terms of money explicitly paid?
b)What are the opportunity costs of going to summer school that you don't pay explicitly? Explain.
c)What is your total opportunity costs of going to school this summer? Explain your answer.

Accepted Answer

a)You explicitly pay the cost of tuition

Question 20

Which of the following is a positive statement?

Accepted Answer

A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza. 
A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza.

Which of the following is a positive statement?

Which of the following is a macroeconomic issue?

Factors of production are grouped into four categories

-The slope of a line equals the

The Occupy Wall Street movement advocates

Copper falls into which factor of production category?

Explain why both rich and poor people experience scarcity.

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

The marginal benefit is the

The term "direct relationship" means the same as

In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

Which of the following is CORRECT? Factors of production are

In economics, normative statements are about

What do economists mean when they discuss "scarcity"?

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

Which of the following is a positive statement?

A linear relationship

Which of the following is a positive statement?

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?

Which of the following is a positive statement?

Which of the following is a macroeconomic issue?

Factors of production are grouped into four categories

-The slope of a line equals the

The Occupy Wall Street movement advocates

Copper falls into which factor of production category?

Explain why both rich and poor people experience scarcity.

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

The marginal benefit is the

The term "direct relationship" means the same as

In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

Which of the following is CORRECT? Factors of production are

In economics, normative statements are about

What do economists mean when they discuss "scarcity"?

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

Which of the following is a positive statement?

A linear relationship

Which of the following is a positive statement?

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