Question 1

The slope of a (nonlinear)curve varies from one point to another.

Accepted Answer

A) True 
 B)False

Question 2

Macroeconomics deals with issues involving large corporations,while microeconomics exclusively deals with issues involving small businesses.

Accepted Answer

A) True 
 B)False

Question 3

If scarcity didn't exist,neither would

Accepted Answer

A) rationing devices. 
B) competition. 
C) labor. 
D) capital. 
E) a and b 
A) rationing devices. 
B) competition. 
C) labor. 
D) capital. 
E) a and b

Question 4

Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be your chances of winning the Wednesday night state lottery.What kind of a relationship do you most likely expect between X and Y?

Accepted Answer

A) direct 
B) inverse 
C) linear 
D) 45-degree line 
E) independent 
A) direct 
B) inverse 
C) linear 
D) 45-degree line 
E) independent

Question 5

The __________ the opportunity cost of doing something,the __________ likely a person will do that something.

Accepted Answer

A) lower;less 
B) lower;more 
C) higher;more 
D) higher;less 
E) b and d 
A) lower;less 
B) lower;more 
C) higher;more 
D) higher;less 
E) b and d

Question 6

A good provides __________ and a bad provides __________.

Accepted Answer

A) utility;satisfaction 
B) disutility;utility 
C) dissatisfaction;satisfaction 
D) utility;disutility 
E) satisfaction;utility 
A) utility;satisfaction 
B) disutility;utility 
C) dissatisfaction;satisfaction 
D) utility;disutility 
E) satisfaction;utility

Question 7

A line is parallel to the horizontal axis.The slope of the line is

Accepted Answer

A) infinite. 
B) indicative of an inverse relationship between two variables. 
C) indicative of a direct relationship between two variables. 
D) zero. 
E) b and d 
A) infinite. 
B) indicative of an inverse relationship between two variables. 
C) indicative of a direct relationship between two variables. 
D) zero. 
E) b and d

Question 8

The higher the opportunity cost of making a new friend,the more likely one is to make a new friend,​ceteris paribus​.

Accepted Answer

A) True 
 B)False

Question 9

Variables A and B are directly related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

Accepted Answer

A) parallel to the horizontal axis. 
B) downward-sloping (left to right). 
C) parallel to the vertical axis. 
D) upward-sloping (left to right). 
E) a or c 
A) parallel to the horizontal axis. 
B) downward-sloping (left to right). 
C) parallel to the vertical axis. 
D) upward-sloping (left to right). 
E) a or c

Question 10

The opportunity cost of attending college is

Accepted Answer

A) the money one spends on college tuition,books,and so forth. 
B) the highest valued alternative one forfeits to attend college. 
C) the least valued alternative one forfeits to attend college. 
D) equal to the salary one will earn when one graduates from college. 
A) the money one spends on college tuition,books,and so forth. 
B) the highest valued alternative one forfeits to attend college. 
C) the least valued alternative one forfeits to attend college. 
D) equal to the salary one will earn when one graduates from college.

Question 11

The slope of a horizontal line is always equal to zero.

Accepted Answer

A) True 
 B)False

Question 12

In all cases,microeconomics deals with

Accepted Answer

A) what is. 
B) what should be. 
C) relatively small units in the economy. 
D) the entire economy. 
A) what is. 
B) what should be. 
C) relatively small units in the economy. 
D) the entire economy.

Question 13

In all cases,macroeconomics deals with

Accepted Answer

A) what is. 
B) what should be. 
C) relatively small units in the economy. 
D) the entire economy. 
A) what is. 
B) what should be. 
C) relatively small units in the economy. 
D) the entire economy.

Question 14

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

Accepted Answer

A) watching television is the opportunity cost of having dinner with your friends. 
B) the price of having dinner with your friends is more than the price you would have had to pay to watch television. 
C) the opportunity cost of having dinner with your friends is lower than the opportunity cost of watching television. 
D) it is less costly to watch television than to have dinner with your friends. 
A) watching television is the opportunity cost of having dinner with your friends. 
B) the price of having dinner with your friends is more than the price you would have had to pay to watch television. 
C) the opportunity cost of having dinner with your friends is lower than the opportunity cost of watching television. 
D) it is less costly to watch television than to have dinner with your friends.

Question 15

Attempts to determine "what is" are part of __________ economics.

Accepted Answer

A) positive 
B) normative 
C) positive and normative 
D) neither positive nor normative 
A) positive 
B) normative 
C) positive and normative 
D) neither positive nor normative

Question 16

Opportunity cost is the __________ alternative forfeited when a choice is made.

Accepted Answer

A) least-valued 
B) most highly-valued 
C) most convenient 
D) most recently considered 
A) least-valued 
B) most highly-valued 
C) most convenient 
D) most recently considered

Question 17

Which of the following is an example of a positive economic statement?

Accepted Answer

A) The U.S.public should devote more resources to education. 
B) The poor should pay lower taxes and the rich should pay higher taxes. 
C) Soap operas should be taken off television. 
D) If you drop a ball from the top of a building,it will fall to the ground. 
A) The U.S.public should devote more resources to education. 
B) The poor should pay lower taxes and the rich should pay higher taxes. 
C) Soap operas should be taken off television. 
D) If you drop a ball from the top of a building,it will fall to the ground.

Question 18

Economists use the terms resource and input as synonyms.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is false?

Accepted Answer

A) There are always opportunity costs to making choices. 
B) Because of scarcity,choices must be made. 
C) Elementary education at public schools is free. 
D) When government builds a new highway,taxpayers end up with less of some of the things they would otherwise have. 
A) There are always opportunity costs to making choices. 
B) Because of scarcity,choices must be made. 
C) Elementary education at public schools is free. 
D) When government builds a new highway,taxpayers end up with less of some of the things they would otherwise have.

Question 20

In an interview an economist states,"This problem should be of greater concern to the federal government." We can explicitly put this statement in the category of

Accepted Answer

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

Exam 1: What Economics Is About

The slope of a (nonlinear)curve varies from one point to another.

Macroeconomics deals with issues involving large corporations,while microeconomics exclusively deals with issues involving small businesses.

If scarcity didn't exist,neither would

Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be your chances of winning the Wednesday night state lottery.What kind of a relationship do you most likely expect between X and Y?

The __________ the opportunity cost of doing something,the __________ likely a person will do that something.

A good provides __________ and a bad provides __________.

A line is parallel to the horizontal axis.The slope of the line is

The higher the opportunity cost of making a new friend,the more likely one is to make a new friend,​ceteris paribus​.

Variables A and B are directly related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

The opportunity cost of attending college is

The slope of a horizontal line is always equal to zero.

In all cases,microeconomics deals with

In all cases,macroeconomics deals with

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

Attempts to determine "what is" are part of __________ economics.

Opportunity cost is the __________ alternative forfeited when a choice is made.

Which of the following is an example of a positive economic statement?

Economists use the terms resource and input as synonyms.

Which of the following statements is false?

In an interview an economist states,"This problem should be of greater concern to the federal government." We can explicitly put this statement in the category of

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, part I: Prices and Unemployment

Macroeconomic Measurements, part II: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, technology, ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

Stocks, bonds, futures, and Options

Filters

The the opportunity cost of doing something,the likely a person will do that something.

A good provides and a bad provides .

The higher the opportunity cost of making a new friend,the more likely one is to make a new friend,ceteris paribus.