Question 1

If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by

Accepted Answer

A)  an increase in the value of variable y. 
B)  a decrease in the value of variable y. 
C)  no change in the value of variable y. 
D)  variable y reaching its maximum value. 
A)  an increase in the value of variable y. 
B)  a decrease in the value of variable y. 
C)  no change in the value of variable y. 
D)  variable y reaching its maximum value.

Question 2

-Suppose you produce 10 bikes a day for a total cost of $1000. Total costs increase to $1100 when you produce 15 bikes. Finally, total costs increase to $1300 if you make 20 bikes. A graph showing the relationship between total costs and the number of bikes produced would be

Accepted Answer

A)  a negatively-sloped line that becomes steeper. 
B)  a positively-sloped line that becomes steeper. 
C)  a negatively-sloped line that becomes flatter. 
D)  a positively-sloped line that becomes flatter. 
A)  a negatively-sloped line that becomes steeper. 
B)  a positively-sloped line that becomes steeper. 
C)  a negatively-sloped line that becomes flatter. 
D)  a positively-sloped line that becomes flatter.

Question 3

Economics is best defined as the study of how people, businesses, governments, and societies

Accepted Answer

A)  choose abundance over scarcity. 
B)  make choices to cope with scarcity. 
C)  use their infinite resources. 
D)  attain wealth. 
A)  choose abundance over scarcity. 
B)  make choices to cope with scarcity. 
C)  use their infinite resources. 
D)  attain wealth.

Question 4

Which of the following is a positive statement?

Accepted Answer

A)  Taxes should be lower because then people get to keep more of what they earn. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions. 
A)  Taxes should be lower because then people get to keep more of what they earn. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions.

Question 5

Overtime worked by a JCPenney associate is considered ________ and earns ________.

Accepted Answer

A)  labor; wages 
B)  entrepreneurship; profit 
C)  human capital; interest 
D)  labor; profit 
A)  labor; wages 
B)  entrepreneurship; profit 
C)  human capital; interest 
D)  labor; profit

Question 6

The largest part of what the United States produces today is ________ such as ________.

Accepted Answer

A)  goods; food and electronic equipment 
B)  goods; education and entertainment 
C)  services; trade and health care 
D)  services; textbooks and computers 
A)  goods; food and electronic equipment 
B)  goods; education and entertainment 
C)  services; trade and health care 
D)  services; textbooks and computers

Question 7

-In the figure above, when income equals $20,000, what does consumption equal?

Accepted Answer

A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell 
A)  $0 
B)  $10,000 
C)  $20,000 
D)  impossible to tell

Question 8

Factors of production include

Accepted Answer

A)  the economic system. 
B)  land, labor, capital and entrepreneurship. 
C)  labor and capital (not land, which is fixed). 
D)  only capital, land, and labor. 
A)  the economic system. 
B)  land, labor, capital and entrepreneurship. 
C)  labor and capital (not land, which is fixed). 
D)  only capital, land, and labor.

Question 9

A graph of two variables is a vertical line. What is the interpretation of this result?

Accepted Answer

When the graph of two variables is a ver

Question 10

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

Accepted Answer

A)  is the benefit she gets from all the hours she's worked out all week. 
B)  is the benefit she receives from exercising the additional hour. 
C)  is less than the marginal cost of the additional hour. 
D)  depends on the cost of the workout. 
A)  is the benefit she gets from all the hours she's worked out all week. 
B)  is the benefit she receives from exercising the additional hour. 
C)  is less than the marginal cost of the additional hour. 
D)  depends on the cost of the workout.

Question 11

-Based on the information in the table above, what is the relationship between x and y?

Accepted Answer

A)  direct 
B)  inverse 
C)  positive 
D)  No relationship exists between x and y. 
A)  direct 
B)  inverse 
C)  positive 
D)  No relationship exists between x and y.

Question 12

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

Accepted Answer

A)  -0.057 
B)  -19.28 
C)  -35 
D)  70 
A)  -0.057 
B)  -19.28 
C)  -35 
D)  70

Question 13

When an economist talks of scarcity, the economist is referring to the

Accepted Answer

A)  ability of society to employ all of its resources. 
B)  ability of society to consume all that it produces. 
C)  inability of society to satisfy all human wants because of limited resources. 
D)  ability of society to continually make technological breakthroughs and increase production. 
A)  ability of society to employ all of its resources. 
B)  ability of society to consume all that it produces. 
C)  inability of society to satisfy all human wants because of limited resources. 
D)  ability of society to continually make technological breakthroughs and increase production.

Question 14

-In the above figure, while moving along the line showing the relationship between household income and expenditure

Accepted Answer

A)  household expenditures are held constant. 
B)  household income is held constant. 
C)  the interest rate is held constant. 
D)  no variable is held constant. 
A)  household expenditures are held constant. 
B)  household income is held constant. 
C)  the interest rate is held constant. 
D)  no variable is held constant.

Question 15

If a curve falls and then rises, it shows

Accepted Answer

A)  a maximum. 
B)  a minimum. 
C)  a linear relationship. 
D)  a constant slope relationship. 
A)  a maximum. 
B)  a minimum. 
C)  a linear relationship. 
D)  a constant slope relationship.

Question 16

As an economic concept, scarcity applies to

Accepted Answer

A)  both money and time. 
B)  money but not time. 
C)  time but not money. 
D)  neither time nor money. 
A)  both money and time. 
B)  money but not time. 
C)  time but not money. 
D)  neither time nor money.

Question 17

-The slope of the line in the above figure is

Accepted Answer

A)  2/5 = 0.4. 
B)  5/2 = 2.5. 
C)  -2/5 = -0.4. 
D)  -5/2 = -2.5. 
A)  2/5 = 0.4. 
B)  5/2 = 2.5. 
C)  -2/5 = -0.4. 
D)  -5/2 = -2.5.

Question 18

A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative. Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Accepted Answer

@#IMG-DLM& The point is a maximum point. Examine t

Question 19

Marginal benefit is the benefit

Accepted Answer

A)  that your activity provides to someone else. 
B)  of an activity that exceeds its cost. 
C)  that arises from the secondary effects of an activity. 
D)  that arises from an increase in an activity. 
A)  that your activity provides to someone else. 
B)  of an activity that exceeds its cost. 
C)  that arises from the secondary effects of an activity. 
D)  that arises from an increase in an activity.

Question 20

Opportunity cost means the

Accepted Answer

A)  accounting cost minus the marginal cost. 
B)  highest-valued alternative forgone. 
C)  accounting cost minus the marginal benefit. 
D)  monetary costs of an activity. 
A)  accounting cost minus the marginal cost. 
B)  highest-valued alternative forgone. 
C)  accounting cost minus the marginal benefit. 
D)  monetary costs of an activity.

If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by

-Suppose you produce 10 bikes a day for a total cost of $1000. Total costs increase to $1100 when you produce 15 bikes. Finally, total costs increase to $1300 if you make 20 bikes. A graph showing the relationship between total costs and the number of bikes produced would be

Economics is best defined as the study of how people, businesses, governments, and societies

Which of the following is a positive statement?

Overtime worked by a JCPenney associate is considered and earns .

The largest part of what the United States produces today is such as .

-In the figure above, when income equals $20,000, what does consumption equal?

Factors of production include

A graph of two variables is a vertical line. What is the interpretation of this result?

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

-Based on the information in the table above, what is the relationship between x and y?

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

When an economist talks of scarcity, the economist is referring to the

-In the above figure, while moving along the line showing the relationship between household income and expenditure

If a curve falls and then rises, it shows

As an economic concept, scarcity applies to

-The slope of the line in the above figure is

A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative. Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Marginal benefit is the benefit

Opportunity cost means 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?

If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by

-Suppose you produce 10 bikes a day for a total cost of $1000. Total costs increase to $1100 when you produce 15 bikes. Finally, total costs increase to $1300 if you make 20 bikes. A graph showing the relationship between total costs and the number of bikes produced would be

Economics is best defined as the study of how people, businesses, governments, and societies

Which of the following is a positive statement?

Overtime worked by a JCPenney associate is considered ________ and earns ________.

The largest part of what the United States produces today is ________ such as ________.

-In the figure above, when income equals $20,000, what does consumption equal?

Factors of production include

A graph of two variables is a vertical line. What is the interpretation of this result?

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

-Based on the information in the table above, what is the relationship between x and y?

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

When an economist talks of scarcity, the economist is referring to the

-In the above figure, while moving along the line showing the relationship between household income and expenditure

If a curve falls and then rises, it shows

As an economic concept, scarcity applies to

-The slope of the line in the above figure is

A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative. Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Marginal benefit is the benefit

Opportunity cost means 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

Overtime worked by a JCPenney associate is considered and earns .

The largest part of what the United States produces today is such as .