Question 1

In the above, which figure shows a line with a slope of 1.0?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B 
A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B

Question 2

A positive 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 3

When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "what" 
B)  "for whom" 
C)  "how" 
D)  "why" 
A)  "what" 
B)  "for whom" 
C)  "how" 
D)  "why"

Question 4

When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "how" 
B)  "for whom" 
C)  "scarcity" 
D)  "what" 
A)  "how" 
B)  "for whom" 
C)  "scarcity" 
D)  "what"

Question 5

What is a tradeoff? Give an example.

Accepted Answer

A tradeoff occurs when one thing must be

Question 6

What is opportunity cost?

Accepted Answer

Opportunity cost is the highest-valued a

Question 7

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

Accepted Answer

A)  2. 
B)  0.75. 
C)  0.25. 
D)  1 1/3. 
A)  2. 
B)  0.75. 
C)  0.25. 
D)  1 1/3.

Question 8

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following are TRUE regarding "positive" statements?
I.They describe what "ought to be."
II.They describe what is believed about how the world appears.
III.They can be tested as to their accuracy.

Accepted Answer

A)  I and II 
B)  II and III 
C)  I and III 
D)  I, II and III 
A)  I and II 
B)  II and III 
C)  I and III 
D)  I, II and III

Question 10

All economic questions arise because we

Accepted Answer

A)  want more than we can get. 
B)  want more than we need. 
C)  have an abundance of resources. 
D)  have limited wants that need to be satisfied. 
A)  want more than we can get. 
B)  want more than we need. 
C)  have an abundance of resources. 
D)  have limited wants that need to be satisfied.

Question 11

Which of the following questions is a macroeconomic issue?

Accepted Answer

A)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  What is the future growth prospect for an economy? 
D)  How many workers should the owner of a business hire? 
A)  How many more pounds of cookies will a consumer purchase if the price of cookies decreases? 
B)  What effect would a cure for Mad Cow Disease have on the market for beef? 
C)  What is the future growth prospect for an economy? 
D)  How many workers should the owner of a business hire?

Question 12

-In the figure above, the value on the x-axis increases 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 13

Economics is best defined as

Accepted Answer

A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household. 
A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household.

Question 14

The loss of the highest-valued alternative defines the concept of

Accepted Answer

A)  marginal benefit. 
B)  scarcity. 
C)  entrepreneurship. 
D)  opportunity cost. 
A)  marginal benefit. 
B)  scarcity. 
C)  entrepreneurship. 
D)  opportunity cost.

Question 15

The statement "The unemployment rate for teens is higher than that for adults" 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 16

-You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

Accepted Answer

A)  there must be false causality between interest rates and housing prices. 
B)  higher interest rates must cause low housing prices. 
C)  a scatter diagram between interest rates and housing prices will show a negative relationship. 
D)  a scatter diagram between interest rates and housing prices will show a direct relationship. 
A)  there must be false causality between interest rates and housing prices. 
B)  higher interest rates must cause low housing prices. 
C)  a scatter diagram between interest rates and housing prices will show a negative relationship. 
D)  a scatter diagram between interest rates and housing prices will show a direct relationship.

Question 17

The horizontal axis in a graph

Accepted Answer

A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis. 
A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis.

Question 18

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

Accepted Answer

A)  upward and be linear. 
B)  upward and may be linear or nonlinear. 
C)  downward and be linear. 
D)  downward and may be linear or nonlinear. 
A)  upward and be linear. 
B)  upward and may be linear or nonlinear. 
C)  downward and be linear. 
D)  downward and may be linear or nonlinear.

Question 19

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

Accepted Answer

A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class. 
A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class.

In the above, which figure shows a line with a slope of 1.0?

A positive statement is

When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions.

When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the ________ part of one of the two big economic questions.

What is a tradeoff? Give an example.

What is opportunity cost?

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

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

Which of the following are TRUE regarding "positive" statements? I.They describe what "ought to be." II.They describe what is believed about how the world appears. III.They can be tested as to their accuracy.

All economic questions arise because we

Which of the following questions is a macroeconomic issue?

-In the figure above, the value on the x-axis increases as we move from

Economics is best defined as

The loss of the highest-valued alternative defines the concept of

The statement "The unemployment rate for teens is higher than that for adults" is

-You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

The horizontal axis in a graph

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour 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?

In the above, which figure shows a line with a slope of 1.0?

A positive statement is

When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions.

When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the ________ part of one of the two big economic questions.

What is a tradeoff? Give an example.

What is opportunity cost?

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

The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable.

Which of the following are TRUE regarding "positive" statements? I.They describe what "ought to be." II.They describe what is believed about how the world appears. III.They can be tested as to their accuracy.

All economic questions arise because we

Which of the following questions is a macroeconomic issue?

-In the figure above, the value on the x-axis increases as we move from

Economics is best defined as

The loss of the highest-valued alternative defines the concept of

The statement "The unemployment rate for teens is higher than that for adults" is

-You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

The horizontal axis in a graph

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour 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