Question 1

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

Accepted Answer

A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above. 
A)  be negatively sloped. 
B)  have a slope of zero. 
C)  be a vertical line. 
D)  be none of the above.

Question 2

-In the figure above, point B is ________.

Accepted Answer

A)  on the x-axis 
B)  on the y-axis 
C)  at the origin 
D)  a coordinate 
A)  on the x-axis 
B)  on the y-axis 
C)  at the origin 
D)  a coordinate

Question 3

-If you study 3 hours for an exam, you can raise your score by 30 points. If you study for another 3 hours your score increases by 10 points. And if you study for another 3 hours, your score will increase by 5 more points. A graph displaying this relationship between the number of hours studied and your total exam score would show

Accepted Answer

A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  an upward-sloping curve that becomes more steep. 
A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  an upward-sloping curve that becomes more steep.

Question 4

-In the figure above, the relationship between the x variable and the y variable

Accepted Answer

A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive.

Question 5

From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is

Accepted Answer

A)  talking with friends and studying. 
B)  studying. 
C)  talking with friends. 
D)  two hours of time. 
A)  talking with friends and studying. 
B)  studying. 
C)  talking with friends. 
D)  two hours of time.

Question 6

The relationship in the above figure indicates that

Accepted Answer

A)  a decrease in the interest rate leads to a decrease in household income. 
B)  a decrease in household consumption leads to a decrease in interest rates. 
C)  a decrease in household income will lead household consumption to increase. 
D)  none of the above. 
A)  a decrease in the interest rate leads to a decrease in household income. 
B)  a decrease in household consumption leads to a decrease in interest rates. 
C)  a decrease in household income will lead household consumption to increase. 
D)  none of the above.

Question 7

-A scatter diagram will be most useful

Accepted Answer

A)  in discerning a possible relationship between height and weight for individuals. 
B)  in resolving a dispute over two normative assertions. 
C)  in predicting next year's rate of unemployment. 
D)  All of the above are correct. 
A)  in discerning a possible relationship between height and weight for individuals. 
B)  in resolving a dispute over two normative assertions. 
C)  in predicting next year's rate of unemployment. 
D)  All of the above are correct.

Question 8

Which of the following is a normative statement?

Accepted Answer

A)  Next year's inflation rate will be under 4 percent. 
B)  Consumers will buy more gasoline over the Christmas holiday even if the price of gas is 10 cents higher than it was during the Thanksgiving holiday. 
C)  The government's cuts in welfare spending impose an unfair hardship on the poor. 
D)  The current butter surplus is the result of federal policies. 
A)  Next year's inflation rate will be under 4 percent. 
B)  Consumers will buy more gasoline over the Christmas holiday even if the price of gas is 10 cents higher than it was during the Thanksgiving holiday. 
C)  The government's cuts in welfare spending impose an unfair hardship on the poor. 
D)  The current butter surplus is the result of federal policies.

Question 9

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

Accepted Answer

A)  5. 
B)  2/5. 
C)  2/3. 
D)  5/2. 
A)  5. 
B)  2/5. 
C)  2/3. 
D)  5/2.

Question 10

A good economic model

Accepted Answer

A)  describes every aspect of the economic world, with no exception. 
B)  includes all those features of the world that can be described numerically. 
C)  includes only those features of the world that are needed for the purpose at hand. 
D)  should not include more than two variables. 
A)  describes every aspect of the economic world, with no exception. 
B)  includes all those features of the world that can be described numerically. 
C)  includes only those features of the world that are needed for the purpose at hand. 
D)  should not include more than two variables.

Question 11

In evaluating a relationship between x and y, ceteris paribus means other variables

Accepted Answer

A)  are not relevant to x and y. 
B)  move in opposite directions to x and y. 
C)  are not changing while x and y change. 
D)  move in the same direction as x and y. 
A)  are not relevant to x and y. 
B)  move in opposite directions to x and y. 
C)  are not changing while x and y change. 
D)  move in the same direction as x and y.

Question 12

Economists point out that scarcity confronts

Accepted Answer

A)  neither the poor nor the rich. 
B)  the poor but not the rich. 
C)  the rich but not the poor. 
D)  both the poor and the rich. 
A)  neither the poor nor the rich. 
B)  the poor but not the rich. 
C)  the rich but not the poor. 
D)  both the poor and the rich.

Question 13

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  both Figure A and Figure C 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  both Figure A and Figure C

Question 14

The above table indicates that variables x and y are

Accepted Answer

A)  positively related. 
B)  inversely related. 
C)  negatively related. 
D)  not related. 
A)  positively related. 
B)  inversely related. 
C)  negatively related. 
D)  not related.

Question 15

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

Accepted Answer

A) True 
 B)False

Question 16

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

Accepted Answer

A)  "for whom" 
B)  "when" 
C)  "where" 
D)  "how" 
A)  "for whom" 
B)  "when" 
C)  "where" 
D)  "how"

Question 17

-"If you hire 1 worker, the worker can produce 20 pizzas a day. If you hire a 2nd worker, that worker can produce 10 more pizzas. If you hire a 3rd worker, that worker can produce 2 more pizzas a day." A graph displaying this relationship between the number of employees and total pizza output per day would show

Accepted Answer

A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  a negatively-sloped curve that becomes less steep. 
A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  a negatively-sloped curve that becomes less steep.

Question 18

The "gifts of nature" are included as part of which factor of production?

Accepted Answer

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

Question 19

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

Accepted Answer

A) True 
 B)False

Question 20

The study of the decisions of individual units in the economy is known as

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  the study of incentives. 
D)  ceteris paribus study. 
A)  macroeconomics. 
B)  microeconomics. 
C)  the study of incentives. 
D)  ceteris paribus study.

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

-In the figure above, point B is ________.

-In the figure above, the relationship between the x variable and the y variable

From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is

The relationship in the above figure indicates that

-A scatter diagram will be most useful

Which of the following is a normative statement?

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

A good economic model

In evaluating a relationship between x and y, ceteris paribus means other variables

Economists point out that scarcity confronts

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

The above table indicates that variables x and y are

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

The "gifts of nature" are included as part of which factor of production?

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

The study of the decisions of individual units in the economy is known as

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 variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

-In the figure above, point B is ________.

-In the figure above, the relationship between the x variable and the y variable

From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is

The relationship in the above figure indicates that

-A scatter diagram will be most useful

Which of the following is a normative statement?

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

A good economic model

In evaluating a relationship between x and y, ceteris paribus means other variables

Economists point out that scarcity confronts

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

The above table indicates that variables x and y are

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

The "gifts of nature" are included as part of which factor of production?

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

The study of the decisions of individual units in the economy is known as

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