Question 1

The statement that ________ is a positive statement.

Accepted Answer

A)  more students should study economics 
B)  the price of gasoline is too high 
C)  too many people in the United States have no health care insurance 
D)  the price of sugar in the United States is higher than the price in Australia 
A)  more students should study economics 
B)  the price of gasoline is too high 
C)  too many people in the United States have no health care insurance 
D)  the price of sugar in the United States is higher than the price in Australia

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

The slope of a straight line increases as the numbers on the x-axis become larger.

Accepted Answer

A) True 
 B)False

Question 4

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

Accepted Answer

A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis. 
A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis.

Question 5

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is greater than 1. This slope means that

Accepted Answer

A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y. 
A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y.

Question 6

15 Appendix: Numeric and Graphing Questions
  
-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 7

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's ________.

Accepted Answer

A)  human capital 
B)  physical capital 
C)  entrepreneurship 
D)  None of the above answers are correct. 
A)  human capital 
B)  physical capital 
C)  entrepreneurship 
D)  None of the above answers are correct.

Question 8

Which of the following is a normative statement?

Accepted Answer

A)  The United States has a comparative advantage compared to the European Union in the production of wheat. 
B)  The main reason why the United States has a trade deficit with China is because China's trade practices are unfair. 
C)  Both these statements are normative. 
D)  Neither of these statements is normative. 
A)  The United States has a comparative advantage compared to the European Union in the production of wheat. 
B)  The main reason why the United States has a trade deficit with China is because China's trade practices are unfair. 
C)  Both these statements are normative. 
D)  Neither of these statements is normative.

Question 9

The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your exam. If you had studied the night before, you'd have scored 70 percent. What was the opportunity cost of your evening at the movies?

Accepted Answer

A)  10 percent off your grade 
B)  60 percent 
C)  70 percent 
D)  zero 
A)  10 percent off your grade 
B)  60 percent 
C)  70 percent 
D)  zero

Question 10

If there is an inverse relationship between two variables, the graph of this relationship

Accepted Answer

A)  will be a horizontal line. 
B)  will be downward-sloping. 
C)  might be horizontal. 
D)  will be upward-sloping. 
A)  will be a horizontal line. 
B)  will be downward-sloping. 
C)  might be horizontal. 
D)  will be upward-sloping.

Question 11

Which of the following creates an incentive to increase the amount of an activity?

Accepted Answer

A)  an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity 
B)  a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity 
C)  constant marginal cost and constant marginal benefit of the activity 
D)  None of the above create an incentive to increase the amount of an activity. 
A)  an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity 
B)  a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity 
C)  constant marginal cost and constant marginal benefit of the activity 
D)  None of the above create an incentive to increase the amount of an activity.

Question 12

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

Accepted Answer

A)  no other variables are related to x and y. 
B)  the value of x is held constant. 
C)  the value of y is held constant. 
D)  other variables not shown are held constant. 
A)  no other variables are related to x and y. 
B)  the value of x is held constant. 
C)  the value of y is held constant. 
D)  other variables not shown are held constant.

Question 13

People must make choices because

Accepted Answer

A)  most people enjoy shopping. 
B)  of scarcity. 
C)  there are many goods available. 
D)  None of the above answers is correct. 
A)  most people enjoy shopping. 
B)  of scarcity. 
C)  there are many goods available. 
D)  None of the above answers is correct.

Question 14

-The slope of the line in the above figure is

Accepted Answer

A)  -10. 
B)  10. 
C)  5. 
D)  -5. 
A)  -10. 
B)  10. 
C)  5. 
D)  -5.

Question 15

If two variables both increase at the same time or decrease at the same time, they are

Accepted Answer

A)  unrelated to each other. 
B)  positively related. 
C)  negatively related. 
D)  conversely related. 
A)  unrelated to each other. 
B)  positively related. 
C)  negatively related. 
D)  conversely related.

Question 16

Which of the following is a positive statement?

Accepted Answer

A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want. 
A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want.

Question 17

Which of the following questions is a topic that would be studied by microeconomics?

Accepted Answer

A)  Why did production and the number of jobs shrink in 2009? 
B)  Will the current budget deficit affect the well-being of the next generation? 
C)  How will a lower price of digital cameras affect the quantity of cameras sold? 
D)  What is the current unemployment rate in the United States? 
A)  Why did production and the number of jobs shrink in 2009? 
B)  Will the current budget deficit affect the well-being of the next generation? 
C)  How will a lower price of digital cameras affect the quantity of cameras sold? 
D)  What is the current unemployment rate in the United States?

Question 18

In which of the following cases is the slope of a line positive?

Accepted Answer

A)  As x increases, y increases. 
B)  As x increases, y decreases. 
C)  As x increases, y remains the same. 
D)  As x increases, y equals a positive number. 
A)  As x increases, y increases. 
B)  As x increases, y decreases. 
C)  As x increases, y remains the same. 
D)  As x increases, y equals a positive number.

Question 19

Macroeconomics is concerned with

Accepted Answer

A)  individual consumers. 
B)  government decision making concerning farm price supports. 
C)  economy-wide variables. 
D)  the effects on Ford Motor of a strike by the United Auto Workers. 
A)  individual consumers. 
B)  government decision making concerning farm price supports. 
C)  economy-wide variables. 
D)  the effects on Ford Motor of a strike by the United Auto Workers.

Question 20

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?

The statement that ________ is a positive statement.

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

The slope of a straight line increases as the numbers on the x-axis become larger.

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is greater than 1. This slope means that

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's ________.

Which of the following is a normative statement?

The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your exam. If you had studied the night before, you'd have scored 70 percent. What was the opportunity cost of your evening at the movies?

If there is an inverse relationship between two variables, the graph of this relationship

Which of the following creates an incentive to increase the amount of an activity?

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

People must make choices because

-The slope of the line in the above figure is

If two variables both increase at the same time or decrease at the same time, they are

Which of the following is a positive statement?

Which of the following questions is a topic that would be studied by microeconomics?

In which of the following cases is the slope of a line positive?

Macroeconomics is concerned with

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

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?

The statement that ________ is a positive statement.

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

The slope of a straight line increases as the numbers on the x-axis become larger.

The value of the y-coordinate of a point in a graph is the length of a line from the point to the

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is greater than 1. This slope means that

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's ________.

Which of the following is a normative statement?

The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your exam. If you had studied the night before, you'd have scored 70 percent. What was the opportunity cost of your evening at the movies?

If there is an inverse relationship between two variables, the graph of this relationship

Which of the following creates an incentive to increase the amount of an activity?

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

People must make choices because

-The slope of the line in the above figure is

If two variables both increase at the same time or decrease at the same time, they are

Which of the following is a positive statement?

Which of the following questions is a topic that would be studied by microeconomics?

In which of the following cases is the slope of a line positive?

Macroeconomics is concerned with

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

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