Question 1

-In the above table, when x increases from 4 units to 6 units, y changes by ________ units.

Accepted Answer

A)  2 
B)  -2 
C)  6 
D)  -6 
A)  2 
B)  -2 
C)  6 
D)  -6

Question 2

In economics, positive statements are about

Accepted Answer

A)  the way things ought to be. 
B)  the way things are. 
C)  macroeconomics, not microeconomics. 
D)  microeconomics, not macroeconomics. 
A)  the way things ought to be. 
B)  the way things are. 
C)  macroeconomics, not microeconomics. 
D)  microeconomics, not macroeconomics.

Question 3

-In the above figure, when income is zero, household expenditures equal

Accepted Answer

A)  0. 
B)  $1000. 
C)  $4000. 
D)  $8000. 
A)  0. 
B)  $1000. 
C)  $4000. 
D)  $8000.

Question 4

Scarcity affects only those who are in need.

Accepted Answer

A) True 
 B)False

Question 5

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this roommate's comment correct?

Accepted Answer

Your first roommate's comment is incorre

Question 6

Scarcity exists because

Accepted Answer

A)  society and people are greedy and wasteful. 
B)  our wants exceed the resources available to satisfy them. 
C)  of the inefficient choices we make. 
D)  poor people need more food and other goods. 
A)  society and people are greedy and wasteful. 
B)  our wants exceed the resources available to satisfy them. 
C)  of the inefficient choices we make. 
D)  poor people need more food and other goods.

Question 7

What is the difference between a positive and a negative relationship?

Accepted Answer

Two variables are positively related whe

Question 8

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

Accepted Answer

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

Question 9

If two variables are unrelated, a scatter diagram of those variables will

Accepted Answer

A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope. 
A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope.

Question 10

Samantha goes to college to become an engineer. This is an example of an

Accepted Answer

A)  investment in physical capital. 
B)  investment in human capital. 
C)  increase in entrepreneurship. 
D)  increase in labor. 
A)  investment in physical capital. 
B)  investment in human capital. 
C)  increase in entrepreneurship. 
D)  increase in labor.

Question 11

Microeconomics is the study of topics such as national production and unemployment.

Accepted Answer

A) True 
 B)False

Question 12

-The slope of a positive relationship is

Accepted Answer

A)  positive. 
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)  positive. 
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 13

Human capital is

Accepted Answer

A)  all capital owned by individuals, but not by corporations or governments. 
B)  all capital owned by individuals or corporations, but not by governments. 
C)  machinery that meets or exceeds federal safety standards for use by humans. 
D)  the skill and knowledge of workers. 
A)  all capital owned by individuals, but not by corporations or governments. 
B)  all capital owned by individuals or corporations, but not by governments. 
C)  machinery that meets or exceeds federal safety standards for use by humans. 
D)  the skill and knowledge of workers.

Question 14

An economic system in which the government decides what, how, and for whom to produce, directs workers to jobs, and owns all the land and capital is

Accepted Answer

A)  centrally planned socialism. 
B)  market capitalism. 
C)  mixed economy. 
D)  supported by economists as the best system available. 
A)  centrally planned socialism. 
B)  market capitalism. 
C)  mixed economy. 
D)  supported by economists as the best system available.

Question 15

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

Accepted Answer

A)  both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie. 
B)  both bear the same opportunity cost of seeing the movie because they are doing the same thing. 
C)  it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free. 
D)  the opportunity cost of seeing the movie is zero because the tickets were free. 
A)  both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie. 
B)  both bear the same opportunity cost of seeing the movie because they are doing the same thing. 
C)  it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free. 
D)  the opportunity cost of seeing the movie is zero because the tickets were free.

Question 16

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

Accepted Answer

A)  1/2. 
B)  4/3. 
C)  2/3. 
D)  3/4. 
A)  1/2. 
B)  4/3. 
C)  2/3. 
D)  3/4.

Question 17

In every economic system, choices must be made because resources are ________ and our wants are ________.

Accepted Answer

A)  unlimited; limited 
B)  limited; unlimited 
C)  unlimited; unlimited 
D)  limited; limited 
A)  unlimited; limited 
B)  limited; unlimited 
C)  unlimited; unlimited 
D)  limited; limited

Question 18

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 19

Household consumption depends on both income and interest rates. In the above figure

Accepted Answer

A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant. 
A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant.

Question 20

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

Accepted Answer

A person faces scarcity whenever his or

-In the above table, when x increases from 4 units to 6 units, y changes by ________ units.

In economics, positive statements are about

-In the above figure, when income is zero, household expenditures equal

Scarcity affects only those who are in need.

Scarcity exists because

What is the difference between a positive and a negative relationship?

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

If two variables are unrelated, a scatter diagram of those variables will

Samantha goes to college to become an engineer. This is an example of an

Microeconomics is the study of topics such as national production and unemployment.

-The slope of a positive relationship is

Human capital is

An economic system in which the government decides what, how, and for whom to produce, directs workers to jobs, and owns all the land and capital is

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

In every economic system, choices must be made because resources are and our wants are .

-What does the slope of the line shown in the above figure equal?

Household consumption depends on both income and interest rates. In the above figure

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

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 table, when x increases from 4 units to 6 units, y changes by ________ units.

In economics, positive statements are about

-In the above figure, when income is zero, household expenditures equal

Scarcity affects only those who are in need.

Scarcity exists because

What is the difference between a positive and a negative relationship?

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

If two variables are unrelated, a scatter diagram of those variables will

Samantha goes to college to become an engineer. This is an example of an

Microeconomics is the study of topics such as national production and unemployment.

-The slope of a positive relationship is

Human capital is

An economic system in which the government decides what, how, and for whom to produce, directs workers to jobs, and owns all the land and capital is

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

In every economic system, choices must be made because resources are ________ and our wants are ________.

-What does the slope of the line shown in the above figure equal?

Household consumption depends on both income and interest rates. In the above figure

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

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

In every economic system, choices must be made because resources are and our wants are .