Question 1

Entrepreneurs do all of the following EXCEPT

Accepted Answer

A)  organize labor, land, and capital. 
B)  come up with new ideas about what and how to produce. 
C)  bear risk from business decisions. 
D)  own all the other resources used in the production process. 
A)  organize labor, land, and capital. 
B)  come up with new ideas about what and how to produce. 
C)  bear risk from business decisions. 
D)  own all the other resources used in the production process.

Question 2

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

Accepted Answer

The figure shows that there is a negativ

Question 3

Which of the following is an example of a microeconomic decision?

Accepted Answer

A)  an individual deciding how to allocate the time he or she has for work and leisure 
B)  a small shoe factory deciding how much leather to purchase for the next quarter's production need 
C)  a multinational company deciding where to relocate its world headquarter 
D)  All of the above answers are correct. 
A)  an individual deciding how to allocate the time he or she has for work and leisure 
B)  a small shoe factory deciding how much leather to purchase for the next quarter's production need 
C)  a multinational company deciding where to relocate its world headquarter 
D)  All of the above answers are correct.

Question 4

-What does the slope of the curved line at point A shown in the above figure equal?

Accepted Answer

The slope of a curved line equals the sl

Question 5

A positive statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  the result of a model's normative assumptions. 
D)  valid only in the context of a model with simple assumptions. 
A)  about what ought to be. 
B)  about what is. 
C)  the result of a model's normative assumptions. 
D)  valid only in the context of a model with simple assumptions.

Question 6

-The slope of the line in the above figure is

Accepted Answer

A)  8. 
B)  0.05. 
C)  0.125. 
D)  0.10. 
A)  8. 
B)  0.05. 
C)  0.125. 
D)  0.10.

Question 7

-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 8

The value of the x-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 9

As a firm expands its output, cost per unit of output (average cost)decreases and then increases. Average cost and output have

Accepted Answer

A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear positive relationship. 
A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear positive relationship.

Question 10

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "what" 
B)  "why" 
C)  "when" 
D)  "scarcity" 
A)  "what" 
B)  "why" 
C)  "when" 
D)  "scarcity"

Question 11

Which of the following is NOT a factor of production?

Accepted Answer

A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock 
A)  mineral resources 
B)  a university professor 
C)  an apartment building 
D)  100 shares of Microsoft stock

Question 12

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is ________ and the slope is ________.

Accepted Answer

A)  downward-sloping; large 
B)  downward-sloping; small 
C)  upward-sloping; small 
D)  either downward or upward-sloping; small 
A)  downward-sloping; large 
B)  downward-sloping; small 
C)  upward-sloping; small 
D)  either downward or upward-sloping; small

Question 13

Suppose that for the past two months, you have studied economics one hour a day. You now decide to study economics two hours a day. For the past two months

Accepted Answer

A)  your marginal cost of studying economics for an hour must have exceeded its marginal benefit. 
B)  the marginal cost of studying economics must have fallen. 
C)  your marginal benefit from studying economics an hour must have been greater than its marginal cost. 
D)  the opportunity cost of studying economics must have risen. 
A)  your marginal cost of studying economics for an hour must have exceeded its marginal benefit. 
B)  the marginal cost of studying economics must have fallen. 
C)  your marginal benefit from studying economics an hour must have been greater than its marginal cost. 
D)  the opportunity cost of studying economics must have risen.

Question 14

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

Accepted Answer

A)  a normative statement. 
B)  a positive statement. 
C)  a decision at the margin. 
D)  OPEC overcoming scarcity. 
A)  a normative statement. 
B)  a positive statement. 
C)  a decision at the margin. 
D)  OPEC overcoming scarcity.

Question 15

Studying the determination of prices in individual markets is primarily a concern of

Accepted Answer

A)  positive economics. 
B)  negative economics. 
C)  macroeconomics. 
D)  microeconomics. 
A)  positive economics. 
B)  negative economics. 
C)  macroeconomics. 
D)  microeconomics.

Question 16

As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced

Accepted Answer

A)  would be positively and then negatively sloped. 
B)  would be positively sloped. 
C)  would be horizontal. 
D)  would be negatively sloped. 
A)  would be positively and then negatively sloped. 
B)  would be positively sloped. 
C)  would be horizontal. 
D)  would be negatively sloped.

Question 17

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

Accepted Answer

A)  0.90. 
B)  1.5. 
C)  1.11. 
D)  2. 
A)  0.90. 
B)  1.5. 
C)  1.11. 
D)  2.

Question 18

-The slope of a line

Accepted Answer

A)  can never equal zero. 
B)  is always a constant. 
C)  measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. 
D)  measures the value of the y-axis variable relative to the value of the x-axis variable. 
A)  can never equal zero. 
B)  is always a constant. 
C)  measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. 
D)  measures the value of the y-axis variable relative to the value of the x-axis variable.

Question 19

-In the figure above, the value on the y-axis decreases as we move from

Accepted Answer

A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A. 
A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A.

Question 20

Which of the following is a macroeconomic issue?

Accepted Answer

A)  how a rise in the price of sugar affects the market for sodas 
B)  how federal government budget deficits affect interest rates 
C)  what determines the amount a firm will produce 
D)  the cause of a decline in the price of peanut butter 
A)  how a rise in the price of sugar affects the market for sodas 
B)  how federal government budget deficits affect interest rates 
C)  what determines the amount a firm will produce 
D)  the cause of a decline in the price of peanut butter

Entrepreneurs do all of the following EXCEPT

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

Which of the following is an example of a microeconomic decision?

-What does the slope of the curved line at point A shown in the above figure equal?

A positive statement is

-The slope of the line in the above figure is

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

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

As a firm expands its output, cost per unit of output (average cost)decreases and then increases. Average cost and output have

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the ________ part of one of the two big economic questions.

Which of the following is NOT a factor of production?

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is and the slope is .

Suppose that for the past two months, you have studied economics one hour a day. You now decide to study economics two hours a day. For the past two months

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

Studying the determination of prices in individual markets is primarily a concern of

As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced

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

-The slope of a line

-In the figure above, the value on the y-axis decreases as we move from

Which of the following is a macroeconomic issue?

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?

Entrepreneurs do all of the following EXCEPT

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score. Is the relationship between hours on the web and the SAT score positive, negative, neither? Explain your answer.

Which of the following is an example of a microeconomic decision?

-What does the slope of the curved line at point A shown in the above figure equal?

A positive statement is

-The slope of the line in the above figure is

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

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

As a firm expands its output, cost per unit of output (average cost)decreases and then increases. Average cost and output have

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the ________ part of one of the two big economic questions.

Which of the following is NOT a factor of production?

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is ________ and the slope is ________.

Suppose that for the past two months, you have studied economics one hour a day. You now decide to study economics two hours a day. For the past two months

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

Studying the determination of prices in individual markets is primarily a concern of

As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced

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

-The slope of a line

-In the figure above, the value on the y-axis decreases as we move from

Which of the following is a macroeconomic issue?

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

If a large change in the variable measured on the x-axis is associated with a small change of the variable measured on the y-axis, the line is and the slope is .