Question 1

Two variables are independent if as one variable __________,the other variable __________.

Accepted Answer

A) rises;rises. 
B) falls;falls. 
C) rises;falls. 
D) changes;does not change. 
A) rises;rises. 
B) falls;falls. 
C) rises;falls. 
D) changes;does not change.

Question 2

It usually takes less time to buy a six-pack of 7-Up,a loaf of bread,and a half-gallon of ice cream at a small convenience store (such as a 7-Eleven)than at a large,full-service grocery store.Which of the following persons is most likely to buy these items at a convenience store?

Accepted Answer

A) a person with a high opportunity cost of time 
B) a person with a low opportunity cost of time 
C) a person who is out of work 
D) a person who works at a full-service grocery store 
A) a person with a high opportunity cost of time 
B) a person with a low opportunity cost of time 
C) a person who is out of work 
D) a person who works at a full-service grocery store

Question 3

A theory is an abstract representation of reality.This means a theory

Accepted Answer

A) is descriptive of the way the world is. 
B) is an unrealistic representation of reality. 
C) omits certain factors when trying to explain something. 
D) is usually expressed in professional jargon. 
E) none of the above 
A) is descriptive of the way the world is. 
B) is an unrealistic representation of reality. 
C) omits certain factors when trying to explain something. 
D) is usually expressed in professional jargon. 
E) none of the above

Question 4

Which of the following is least likely to be an effect of scarcity?

Accepted Answer

A) rationing device 
B) choice 
C) opportunity cost 
D) dollar price 
E) utility 
A) rationing device 
B) choice 
C) opportunity cost 
D) dollar price 
E) utility

Question 5

The coordinates of point A are 20 units of X and 36 units of Y.The coordinates of point B are 22 units of X and 30 units of Y.With X on the horizontal axis and Y on the vertical axis,the slope of the line between points A and B is

Accepted Answer

A) + 3.00 
B) + .20 
C) + 0.33 
D) - 0.33 
E) - 3.00 
A) + 3.00 
B) + .20 
C) + 0.33 
D) - 0.33 
E) - 3.00

Question 6

Which of the following is a positive economic statement?

Accepted Answer

A) We should raise the minimum wage in order to provide a decent wage for more people. 
B) Consumers bought fewer cars when the relative price of cars increased. 
C) The budget deficit has been rising in recent years. 
D) Federal government spending ought to be curtailed. 
E) b and c 
A) We should raise the minimum wage in order to provide a decent wage for more people. 
B) Consumers bought fewer cars when the relative price of cars increased. 
C) The budget deficit has been rising in recent years. 
D) Federal government spending ought to be curtailed. 
E) b and c

Question 7

Which of the following is not one of the four broad categories of resources?

Accepted Answer

A) labor 
B) government 
C) capital 
D) entrepreneurship 
E) land 
A) labor 
B) government 
C) capital 
D) entrepreneurship 
E) land

Question 8

Which of the following statements is false?

Accepted Answer

A) Capital consists of produced goods that can be used as inputs for further production. 
B) The terms resources,inputs,and factors of production are synonyms. 
C) Labor consists of the physical,but not mental,talents of people who contribute to the production process. 
D) Entrepreneurship is one of the four categories of resources. 
E) The resource category land includes natural resources,such as minerals,forests,water,and unimproved land. 
A) Capital consists of produced goods that can be used as inputs for further production. 
B) The terms resources,inputs,and factors of production are synonyms. 
C) Labor consists of the physical,but not mental,talents of people who contribute to the production process. 
D) Entrepreneurship is one of the four categories of resources. 
E) The resource category land includes natural resources,such as minerals,forests,water,and unimproved land.

Question 9

The answer is,"This is principally used to exhibit changes in data over time." The question is,

Accepted Answer

A) What is a pie chart? 
B) What is a 45-degree line? 
C) What is a tangent line? 
D) What is a line graph? 
E) b and d 
A) What is a pie chart? 
B) What is a 45-degree line? 
C) What is a tangent line? 
D) What is a line graph? 
E) b and d

Question 10

The question of how a tax change might impact U.S.economic output is most closely associated with the study of

Accepted Answer

A) microeconomics. 
B) managerial economics. 
C) macroeconomics. 
D) consumer economics. 
A) microeconomics. 
B) managerial economics. 
C) macroeconomics. 
D) consumer economics.

Question 11

In economics,a synonym for utility is

Accepted Answer

A) usefulness. 
B) satisfaction. 
C) sacrifice. 
D) a service. 
A) usefulness. 
B) satisfaction. 
C) sacrifice. 
D) a service.

Question 12

Some economic studies have shown that mandatory seat belt laws do not lead to a reduction in traffic fatalities.

Accepted Answer

A) True 
 B)False

Question 13

The opportunity cost of attending college

Accepted Answer

A) consists of the tuition costs only. 
B) consists of the tuition costs plus the costs of room and board and other expenses. 
C) is zero,if the student receives a scholarship that covers the costs of tuition,room and board,and other expenses. 
D) varies from person to person. 
E) both b and c 
A) consists of the tuition costs only. 
B) consists of the tuition costs plus the costs of room and board and other expenses. 
C) is zero,if the student receives a scholarship that covers the costs of tuition,room and board,and other expenses. 
D) varies from person to person. 
E) both b and c

Question 14

Variables X and Y are independent of each other.If we plot X on the horizontal axis and Y on the vertical axis,the line that connects combinations of X and Y 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 15

If it is discovered that using drugs enhances a person's chance of contracting a lethal disease,the cost of using drugs

Accepted Answer

A) increases. 
B) decreases. 
C) is not affected. 
D) is irrelevant,since they are illegal anyway. 
A) increases. 
B) decreases. 
C) is not affected. 
D) is irrelevant,since they are illegal anyway.

Question 16

The resource termed labor consists of the physical,but not the mental,talents that people contribute to the production process.

Accepted Answer

A) True 
 B)False

Question 17

Something that provides utility is called a

Accepted Answer

A) good. 
B) bad. 
C) want. 
D) need. 
E) a and d 
A) good. 
B) bad. 
C) want. 
D) need. 
E) a and d

Question 18

Which of the following is a positive microeconomics statement?

Accepted Answer

A) The central bank should increase the nation's money supply. 
B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. 
C) Ford Motor Company's new advertising campaign ended up hurting General Motors's sales. 
D) The local government ought to spend more on recreational activities. 
A) The central bank should increase the nation's money supply. 
B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. 
C) Ford Motor Company's new advertising campaign ended up hurting General Motors's sales. 
D) The local government ought to spend more on recreational activities.

Question 19

Which of the following statements is false?

Accepted Answer

A) Microeconomics is the branch of economics that deals with human behavior and choices as they relate to relatively small units-an individual,a firm,an industry,and a single market. 
B) Macroeconomics is the branch of economics that deals with human behavior and choices as they relate to highly aggregate markets. 
C) Positive economics attempts to determine what is. 
D) Normative economics addresses what should be. 
E) Positive and normative economics both address what should be. 
A) Microeconomics is the branch of economics that deals with human behavior and choices as they relate to relatively small units-an individual,a firm,an industry,and a single market. 
B) Macroeconomics is the branch of economics that deals with human behavior and choices as they relate to highly aggregate markets. 
C) Positive economics attempts to determine what is. 
D) Normative economics addresses what should be. 
E) Positive and normative economics both address what should be.

Question 20

When economists speak of scarcity,they are referring to the

Accepted Answer

A) condition in which society is not employing all its resources in an efficient way. 
B) condition in which people's wants outstrip the limited resources available to satisfy those wants. 
C) economic condition that exists in only very poor countries of the world. 
D) condition in which society produces too many frivolous goods and not enough socially desirable goods. 
A) condition in which society is not employing all its resources in an efficient way. 
B) condition in which people's wants outstrip the limited resources available to satisfy those wants. 
C) economic condition that exists in only very poor countries of the world. 
D) condition in which society produces too many frivolous goods and not enough socially desirable goods.

Exam 1: What Economics Is About

Two variables are independent if as one variable __________,the other variable __________.

It usually takes less time to buy a six-pack of 7-Up,a loaf of bread,and a half-gallon of ice cream at a small convenience store (such as a 7-Eleven)than at a large,full-service grocery store.Which of the following persons is most likely to buy these items at a convenience store?

A theory is an abstract representation of reality.This means a theory

Which of the following is least likely to be an effect of scarcity?

The coordinates of point A are 20 units of X and 36 units of Y.The coordinates of point B are 22 units of X and 30 units of Y.With X on the horizontal axis and Y on the vertical axis,the slope of the line between points A and B is

Which of the following is a positive economic statement?

Which of the following is not one of the four broad categories of resources?

Which of the following statements is false?

The answer is,"This is principally used to exhibit changes in data over time." The question is,

The question of how a tax change might impact U.S.economic output is most closely associated with the study of

In economics,a synonym for utility is

Some economic studies have shown that mandatory seat belt laws do not lead to a reduction in traffic fatalities.

The opportunity cost of attending college

Variables X and Y are independent of each other.If we plot X on the horizontal axis and Y on the vertical axis,the line that connects combinations of X and Y in a two-variable diagram is

If it is discovered that using drugs enhances a person's chance of contracting a lethal disease,the cost of using drugs

The resource termed labor consists of the physical,but not the mental,talents that people contribute to the production process.

Something that provides utility is called a

Which of the following is a positive microeconomics statement?

Which of the following statements is false?

When economists speak of scarcity,they are referring to the

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

Two variables are independent if as one variable ,the other variable .