Question 1

In which of the following cases is the slope of a line positive and less than infinity?

Accepted Answer

A)  As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. 
B)  As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. 
C)  As the variable measured on the y-axis increases, the variable measured on the x-axis does not change. 
D)  As the variable measured on the y-axis increases, the variable measured on the x-axis decreases. 
A)  As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. 
B)  As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. 
C)  As the variable measured on the y-axis increases, the variable measured on the x-axis does not change. 
D)  As the variable measured on the y-axis increases, the variable measured on the x-axis decreases.

Question 2

China's population is over 1.5 billion, while the population of the United States is about 300 million. This fact means that China has much more human capital than the U.S. does. True or false? Explain your answer.

Accepted Answer

False. Population can measure the quanti

Question 3

In the above figure, if household consumption is positively related to household income, then an increase in household income will

Accepted Answer

A)  shift the line rightward. 
B)  shift the line leftward. 
C)  make the line positively sloped. 
D)  cause a movement along the line. 
A)  shift the line rightward. 
B)  shift the line leftward. 
C)  make the line positively sloped. 
D)  cause a movement along the line.

Question 4

-In the figure above, what can you deduce about the slope of the curve?

Accepted Answer

The slope is positiv

Question 5

The slope in the above figure is

Accepted Answer

A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing. 
A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing.

Question 6

Keeping in mind economists' definition of factors of production, which of the following is NOT a factor of production?

Accepted Answer

A)  money 
B)  low-skilled labor 
C)  coal 
D)  an engineer 
A)  money 
B)  low-skilled labor 
C)  coal 
D)  an engineer

Question 7

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

Accepted Answer

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

Question 8

In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 9

"Government should act to reduce poverty levels."

Accepted Answer

A)  This statement is a normative statement. 
B)  This statement is a positive statement. 
C)  This statement is an example of the fallacy of composition. 
D)  This statement is an example of the post hoc fallacy. 
A)  This statement is a normative statement. 
B)  This statement is a positive statement. 
C)  This statement is an example of the fallacy of composition. 
D)  This statement is an example of the post hoc fallacy.

Question 10

A normative statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts. 
A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts.

Question 11

If there is a direct relationship between two variables

Accepted Answer

A)  the graph of the relationship will be upward-sloping. 
B)  the graph of the relationship will be downward-sloping. 
C)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
D)  Both answers A and C are correct. 
A)  the graph of the relationship will be upward-sloping. 
B)  the graph of the relationship will be downward-sloping. 
C)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
D)  Both answers A and C are correct.

Question 12

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

Accepted Answer

A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement. 
A)  a political statement. 
B)  a positive statement. 
C)  a normative statement. 
D)  a scientific statement.

Question 13

What is the difference between positive and normative statements?

Accepted Answer

Positive statements tell what is and nor

Question 14

The slope of a straight line is

Accepted Answer

A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero. 
A)  always equal to zero. 
B)  calculated as y/x at any point. 
C)  constant. 
D)  always greater than zero.

Question 15

If an increase in x (the variable on the horizontal axis)from 6 to 8 units causes a decrease in y (the variable on the vertical axis)from 4 to 3 units, the slope equals

Accepted Answer

A)  2. 
B)  -2. 
C)  1/2. 
D)  -1/2. 
A)  2. 
B)  -2. 
C)  1/2. 
D)  -1/2.

Question 16

The slope of a negative relationship is

Accepted Answer

A)  negative. 
B)  undefined. 
C)  positive to the right of the maximum point and negative to the left. 
D)  constant as long as the relationship is nonlinear. 
A)  negative. 
B)  undefined. 
C)  positive to the right of the maximum point and negative to the left. 
D)  constant as long as the relationship is nonlinear.

Question 17

The slope of a straight line is

Accepted Answer

A)  variable. 
B)  increasing. 
C)  decreasing. 
D)  constant. 
A)  variable. 
B)  increasing. 
C)  decreasing. 
D)  constant.

Question 18

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self-interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Accepted Answer

You should disagree. The recent corporat

Question 19

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

Accepted Answer

A)  scarcity. 
B)  ceteris paribus. 
C)  choosing at the margin. 
D)  productivity. 
A)  scarcity. 
B)  ceteris paribus. 
C)  choosing at the margin. 
D)  productivity.

Question 20

-"As interest rates rise, people save more money." A graph displaying this relationship would show

Accepted Answer

A)  an inverse relationship. 
B)  a positive relationship. 
C)  a cross-section graph. 
D)  a positive then a negative relationship. 
A)  an inverse relationship. 
B)  a positive relationship. 
C)  a cross-section graph. 
D)  a positive then a negative relationship.

In which of the following cases is the slope of a line positive and less than infinity?

China's population is over 1.5 billion, while the population of the United States is about 300 million. This fact means that China has much more human capital than the U.S. does. True or false? Explain your answer.

In the above figure, if household consumption is positively related to household income, then an increase in household income will

-In the figure above, what can you deduce about the slope of the curve?

The slope in the above figure is

Keeping in mind economists' definition of factors of production, which of the following is NOT a factor of production?

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

In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

"Government should act to reduce poverty levels."

A normative statement is

If there is a direct relationship between two variables

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

What is the difference between positive and normative statements?

The slope of a straight line is

If an increase in x (the variable on the horizontal axis)from 6 to 8 units causes a decrease in y (the variable on the vertical axis)from 4 to 3 units, the slope equals

The slope of a negative relationship is

The slope of a straight line is

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self-interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

-"As interest rates rise, people save more money." A graph displaying this relationship would show

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?

In which of the following cases is the slope of a line positive and less than infinity?

China's population is over 1.5 billion, while the population of the United States is about 300 million. This fact means that China has much more human capital than the U.S. does. True or false? Explain your answer.

In the above figure, if household consumption is positively related to household income, then an increase in household income will

-In the figure above, what can you deduce about the slope of the curve?

The slope in the above figure is

Keeping in mind economists' definition of factors of production, which of the following is NOT a factor of production?

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

In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

"Government should act to reduce poverty levels."

A normative statement is

If there is a direct relationship between two variables

The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is

What is the difference between positive and normative statements?

The slope of a straight line is

If an increase in x (the variable on the horizontal axis)from 6 to 8 units causes a decrease in y (the variable on the vertical axis)from 4 to 3 units, the slope equals

The slope of a negative relationship is

The slope of a straight line is

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self-interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

-"As interest rates rise, people save more money." A graph displaying this relationship would show

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