Question 1

Suppose Company A's profits increase by $10 million and nobody is made worse off. The CEO of Company A keeps all $10 million for herself. This situation

Accepted Answer

A)  is definitely efficient. 
B)  is definitely not in the self-interest of Company A. 
C)  is definitely not in the social interest. 
D)  is definitely fair. 
A)  is definitely efficient. 
B)  is definitely not in the self-interest of Company A. 
C)  is definitely not in the social interest. 
D)  is definitely fair.

Question 2

Making a choice at the margin means

Accepted Answer

A)  letting someone else choose for you. 
B)  waiting until the last minute to make a choice. 
C)  deciding to do a little bit more or a little bit less of an activity. 
D)  making a choice by comparing the total benefit and the total cost. 
A)  letting someone else choose for you. 
B)  waiting until the last minute to make a choice. 
C)  deciding to do a little bit more or a little bit less of an activity. 
D)  making a choice by comparing the total benefit and the total cost.

Question 3

-In the above figure, the curve's slope is

Accepted Answer

A)  positive and is becoming steeper. 
B)  positive and is becoming less steep. 
C)  negative and is becoming steeper. 
D)  negative and is becoming less steep. 
A)  positive and is becoming steeper. 
B)  positive and is becoming less steep. 
C)  negative and is becoming steeper. 
D)  negative and is becoming less steep.

Question 4

The analysis of the behavior of individual decision-making units is the definition of

Accepted Answer

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

Question 5

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

Accepted Answer

A)  perpendicular line. 
B)  line with slope equal to zero. 
C)  line that has positive slope. 
D)  line that has a negative slope. 
A)  perpendicular line. 
B)  line with slope equal to zero. 
C)  line that has positive slope. 
D)  line that has a negative slope.

Question 6

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

Accepted Answer

A)  physical capital. 
B)  venture capital. 
C)  entrepreneurship. 
D)  productive capital. 
A)  physical capital. 
B)  venture capital. 
C)  entrepreneurship. 
D)  productive capital.

Question 7

-A curve is plotted with y measured on the vertical axis and x measured on the horizontal axis. The slope of the curve equals

Accepted Answer

A)  y divided by x. 
B)  the change in y divided by x. 
C)  the change in y divided by the change in x. 
D)  y divided by the change in x. 
A)  y divided by x. 
B)  the change in y divided by x. 
C)  the change in y divided by the change in x. 
D)  y divided by the change in x.

Question 8

-In the above figure, the slope across the arc between b and d is

Accepted Answer

A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5. 
A)  1/2. 
B)  1/3. 
C)  5/3. 
D)  6/5.

Question 9

-The above figure depicts a

Accepted Answer

A)  positive non-linear relationship between age and the number of hamburgers purchased per year. 
B)  negative non-linear relationship between age and the number of hamburgers purchased per year. 
C)  positive linear relationship between age and the number of hamburgers purchased per year. 
D)  negative linear relationship between age and the number of hamburgers purchased per year. 
A)  positive non-linear relationship between age and the number of hamburgers purchased per year. 
B)  negative non-linear relationship between age and the number of hamburgers purchased per year. 
C)  positive linear relationship between age and the number of hamburgers purchased per year. 
D)  negative linear relationship between age and the number of hamburgers purchased per year.

Question 10

After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal-Mart for $38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

Accepted Answer

A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart 
A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart

Question 11

-The figure above shows that in 1996, unemployment was equal to about ________ and the inflation rate was equal to about ________.

Accepted Answer

A)  7.0 percent; 3.0 percent 
B)  3.0 percent; 5.5 percent 
C)  5.5 percent; 3.0 percent 
D)  6.0 percent; 4.0 percent 
A)  7.0 percent; 3.0 percent 
B)  3.0 percent; 5.5 percent 
C)  5.5 percent; 3.0 percent 
D)  6.0 percent; 4.0 percent

Question 12

The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

Accepted Answer

A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  an ethical statement. 
A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  an ethical statement.

Question 13

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

Accepted Answer

A)  1 
B)  -1 
C)  2 
D)  3 
A)  1 
B)  -1 
C)  2 
D)  3

Question 14

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

Question 15

What is the difference between scarcity and poverty?

Accepted Answer

Scarcity exists when availabil

Question 16

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

Accepted Answer

A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases. 
A)  positive, with slope decreasing as x increases. 
B)  negative, with slope decreasing as x increases. 
C)  negative, with slope increasing as x increases. 
D)  positive, with slope increasing as x increases.

Question 17

-The relationship between income and consumption illustrated in the figure above is

Accepted Answer

A)  positive and linear. 
B)  positive and nonlinear. 
C)  negative and linear. 
D)  negative and nonlinear. 
A)  positive and linear. 
B)  positive and nonlinear. 
C)  negative and linear. 
D)  negative and nonlinear.

Question 18

-Using the above figure, which of the following is TRUE?

Accepted Answer

A)  Axis 1 is typically called the y-axis. 
B)  Axis 1 is also known as the origin. 
C)  Axis 2 is typically called the x-axis. 
D)  Point b is known as the origin. 
A)  Axis 1 is typically called the y-axis. 
B)  Axis 1 is also known as the origin. 
C)  Axis 2 is typically called the x-axis. 
D)  Point b is known as the origin.

Question 19

Economic models

Accepted Answer

A)  are essentially different from those used in other sciences. 
B)  always use graphs. 
C)  simplify reality. 
D)  include all relevant facts. 
A)  are essentially different from those used in other sciences. 
B)  always use graphs. 
C)  simplify reality. 
D)  include all relevant facts.

Question 20

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

Accepted Answer

A)  1/3. 
B)  1. 
C)  3. 
D)  6. 
A)  1/3. 
B)  1. 
C)  3. 
D)  6.

Suppose Company A's profits increase by $10 million and nobody is made worse off. The CEO of Company A keeps all $10 million for herself. This situation

Making a choice at the margin means

-In the above figure, the curve's slope is

The analysis of the behavior of individual decision-making units is the definition of

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

-A curve is plotted with y measured on the vertical axis and x measured on the horizontal axis. The slope of the curve equals

-In the above figure, the slope across the arc between b and d is

-The above figure depicts a

-The figure above shows that in 1996, unemployment was equal to about and the inflation rate was equal to about .

The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

Why do economists say that even very rich people face scarcity?

What is the difference between scarcity and poverty?

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

-The relationship between income and consumption illustrated in the figure above is

-Using the above figure, which of the following is TRUE?

Economic models

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

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?

Suppose Company A's profits increase by $10 million and nobody is made worse off. The CEO of Company A keeps all $10 million for herself. This situation

Making a choice at the margin means

-In the above figure, the curve's slope is

The analysis of the behavior of individual decision-making units is the definition of

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

-A curve is plotted with y measured on the vertical axis and x measured on the horizontal axis. The slope of the curve equals

-In the above figure, the slope across the arc between b and d is

-The above figure depicts a

-The figure above shows that in 1996, unemployment was equal to about ________ and the inflation rate was equal to about ________.

The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

Why do economists say that even very rich people face scarcity?

What is the difference between scarcity and poverty?

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

-The relationship between income and consumption illustrated in the figure above is

-Using the above figure, which of the following is TRUE?

Economic models

-Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

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

-The figure above shows that in 1996, unemployment was equal to about and the inflation rate was equal to about .