Question 1

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 2

If the government raises the tax on cigarettes, what is the effect on people's incentives and choices?

Accepted Answer

The government raises the tax on cigaret

Question 3

Normative economic statements

Accepted Answer

A)  describe what ought to be. 
B)  describe what is rather than what ought to be. 
C)  describe the process of economic policy-making. 
D)  deal with economic hypotheses that are not well-established laws. 
A)  describe what ought to be. 
B)  describe what is rather than what ought to be. 
C)  describe the process of economic policy-making. 
D)  deal with economic hypotheses that are not well-established laws.

Question 4

-The slope of the line shown in the above figure is

Accepted Answer

A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80. 
A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80.

Question 5

-In the table above, y is measured along the y-axis and x along the x-axis. The slope of the relationship between x = 0 and x = 2 is

Accepted Answer

A)  -6. 
B)  2. 
C)  3. 
D)  6. 
A)  -6. 
B)  2. 
C)  3. 
D)  6.

Question 6

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

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 7

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

Question 8

If the slope of the relationship between savings and interest rates is 0.5, then

Accepted Answer

A)  savings and interest rates have a positive relationship. 
B)  savings and interest rates have a negative relationship. 
C)  savings and interest rates have no relationship. 
D)  savings and interest rates have an inverse relationship. 
A)  savings and interest rates have a positive relationship. 
B)  savings and interest rates have a negative relationship. 
C)  savings and interest rates have no relationship. 
D)  savings and interest rates have an inverse relationship.

Question 9

-In the above diagram, draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

Question 10

Opportunity cost is best defined as

Accepted Answer

A)  how much money is paid for something. 
B)  how much money is paid for something, taking inflation into account. 
C)  the highest-valued alternative that is given up to get something. 
D)  all the alternatives that are given up to get something. 
A)  how much money is paid for something. 
B)  how much money is paid for something, taking inflation into account. 
C)  the highest-valued alternative that is given up to get something. 
D)  all the alternatives that are given up to get something.

Question 11

Suppose that you are spending two hours a day studying economics, and your grade is 85 percent. You want a higher grade and decide to study for an extra hour a day. As a result, your grade rises to 90 percent. Your marginal benefit is the

Accepted Answer

A)  5 point increase in your grade minus the opportunity cost to you of spending the hour studying. 
B)  extra hour per day you spend on studying. 
C)  5 point increase in your grade. 
D)  three hours per day you spend on studying. 
A)  5 point increase in your grade minus the opportunity cost to you of spending the hour studying. 
B)  extra hour per day you spend on studying. 
C)  5 point increase in your grade. 
D)  three hours per day you spend on studying.

Question 12

As a curve approaches a maximum point, the slope will

Accepted Answer

A)  be positive, then negative after the maximum point. 
B)  be negative, then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
A)  be positive, then negative after the maximum point. 
B)  be negative, then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point.

Question 13

Positive economic statements

Accepted Answer

A)  prescribe what should be. 
B)  are related only to microeconomics. 
C)  can be tested against the facts. 
D)  cannot be tested against the facts. 
A)  prescribe what should be. 
B)  are related only to microeconomics. 
C)  can be tested against the facts. 
D)  cannot be tested against the facts.

Question 14

In a graph, a line has a negative slope if

Accepted Answer

A)  the line is vertical. 
B)  the line is horizontal. 
C)  the line rises from right to left. 
D)  the line rises from left to right. 
A)  the line is vertical. 
B)  the line is horizontal. 
C)  the line rises from right to left. 
D)  the line rises from left to right.

Question 15

Scarcity can be eliminated through

Accepted Answer

A)  the use of market mechanisms. 
B)  exploration that helps us find new resources. 
C)  wise use of our resources. 
D)  None of the above because scarcity cannot be eliminated. 
A)  the use of market mechanisms. 
B)  exploration that helps us find new resources. 
C)  wise use of our resources. 
D)  None of the above because scarcity cannot be eliminated.

Question 16

Panasonic sends its HDTV salespeople to training sessions. This is an example of

Accepted Answer

A)  a macroeconomic decision. 
B)  scarcity. 
C)  a firm investing in workers' human capital. 
D)  entrepreneurship. 
A)  a macroeconomic decision. 
B)  scarcity. 
C)  a firm investing in workers' human capital. 
D)  entrepreneurship.

Question 17

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

Accepted Answer

A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables are unrelated. 
D)  the two variables have an inverse relationship. 
A)  when the value of variable x increases, then the value of variable y decreases. 
B)  when the value of variable x decreases, then the value of variable y decreases. 
C)  the two variables are unrelated. 
D)  the two variables have an inverse relationship.

Question 18

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

Accepted Answer

A)  a normative statement. 
B)  the failure of opportunity cost to determine prices. 
C)  a positive statement. 
D)  a macroeconomic statement. 
A)  a normative statement. 
B)  the failure of opportunity cost to determine prices. 
C)  a positive statement. 
D)  a macroeconomic statement.

Question 19

The study of economics

Accepted Answer

A)  focuses mainly on individual consumers. 
B)  arises from the fact that our wants exceed available resources. 
C)  recognizes that scarcity does not affect rich nations. 
D)  deals mainly with microeconomics. 
A)  focuses mainly on individual consumers. 
B)  arises from the fact that our wants exceed available resources. 
C)  recognizes that scarcity does not affect rich nations. 
D)  deals mainly with microeconomics.

Question 20

Explain whether the statement, "There is life on Mars," is a normative or positive statement.

Accepted Answer

The statement is a positive statement be

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

If the government raises the tax on cigarettes, what is the effect on people's incentives and choices?

Normative economic statements

-The slope of the line shown in the above figure is

-In the table above, y is measured along the y-axis and x along the x-axis. The slope of the relationship between x = 0 and x = 2 is

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

What is a normative statement? Give an example.

If the slope of the relationship between savings and interest rates is 0.5, then

-In the above diagram, draw a straight line with a slope of zero.

Opportunity cost is best defined as

Suppose that you are spending two hours a day studying economics, and your grade is 85 percent. You want a higher grade and decide to study for an extra hour a day. As a result, your grade rises to 90 percent. Your marginal benefit is the

As a curve approaches a maximum point, the slope will

Positive economic statements

In a graph, a line has a negative slope if

Scarcity can be eliminated through

Panasonic sends its HDTV salespeople to training sessions. This is an example of

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

The study of economics

Explain whether the statement, "There is life on Mars," is a normative or 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?

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

If the government raises the tax on cigarettes, what is the effect on people's incentives and choices?

Normative economic statements

-The slope of the line shown in the above figure is

-In the table above, y is measured along the y-axis and x along the x-axis. The slope of the relationship between x = 0 and x = 2 is

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

What is a normative statement? Give an example.

If the slope of the relationship between savings and interest rates is 0.5, then

-In the above diagram, draw a straight line with a slope of zero.

Opportunity cost is best defined as

Suppose that you are spending two hours a day studying economics, and your grade is 85 percent. You want a higher grade and decide to study for an extra hour a day. As a result, your grade rises to 90 percent. Your marginal benefit is the

As a curve approaches a maximum point, the slope will

Positive economic statements

In a graph, a line has a negative slope if

Scarcity can be eliminated through

Panasonic sends its HDTV salespeople to training sessions. This is an example of

If the slope of a line that graphs the relationship between variable x and variable y is positive, then we know that

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

The study of economics

Explain whether the statement, "There is life on Mars," is a normative or 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