Question 1

When Delta decides to quit flying to Lithuania,it directly answers the ________ question.

Accepted Answer

A)  what 
B)  why 
C)  for whom 
D)  how 
E)  when 
A)  what 
B)  why 
C)  for whom 
D)  how 
E)  when

Question 2

Which of the following is an example of a normative statement?

Accepted Answer

A)  If cars become more expensive, fewer people will buy them. 
B)  Car prices should be affordable. 
C)  If wages increase, firms will fire some workers. 
D)  Fewer people die in larger cars than in smaller cars. 
E)  Cars emit pollution. 
A)  If cars become more expensive, fewer people will buy them. 
B)  Car prices should be affordable. 
C)  If wages increase, firms will fire some workers. 
D)  Fewer people die in larger cars than in smaller cars. 
E)  Cars emit pollution.

Question 3

Define marginal cost and marginal benefit.

Accepted Answer

Marginal cost is the opportuni

Question 4

In the diagram below,draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

Question 5

What does the slope of a straight line equal? How is the slope of a curved line calculated?

Accepted Answer

The slope of a straight line is calculat

Question 6

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

Accepted Answer

A)  Universal access to quality health insurance is the most important domestic policy issue of our time. 
B)  Extending the time in which laid-off workers are eligible to receive government unemployment compensation has increased the unemployment rate. 
C)  Lowering marginal income tax rates depresses consumer spending. 
D)  Prices rise when the government prints too much money. 
E)  Interest rates rise when the government runs persistent budget deficits. 
A)  Universal access to quality health insurance is the most important domestic policy issue of our time. 
B)  Extending the time in which laid-off workers are eligible to receive government unemployment compensation has increased the unemployment rate. 
C)  Lowering marginal income tax rates depresses consumer spending. 
D)  Prices rise when the government prints too much money. 
E)  Interest rates rise when the government runs persistent budget deficits.

Question 7

The slope

Accepted Answer

A)  of a straight line is the same regardless of where on the line it is calculated. 
B)  equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C)  will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D)  equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E)  falls as the x variable increases if the line has a negative slope. 
A)  of a straight line is the same regardless of where on the line it is calculated. 
B)  equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C)  will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D)  equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E)  falls as the x variable increases if the line has a negative slope.

Question 8

If a curve rises and then falls,it has a

Accepted Answer

A)  maximum. 
B)  minimum. 
C)  linear relationship. 
D)  constant slope relationship. 
E)  slope that is negative and then positive. 
A)  maximum. 
B)  minimum. 
C)  linear relationship. 
D)  constant slope relationship. 
E)  slope that is negative and then positive.

Question 9

Which of the following is a microeconomic issue?

Accepted Answer

A)  The price of gasoline increases in the United States this year. 
B)  The Brazilian economy experiences rapid economic growth. 
C)  The unemployment rate soars in Spain. 
D)  Inflation skyrockets in Russia. 
E)  The U.S. government cuts taxes to combat a recession. 
A)  The price of gasoline increases in the United States this year. 
B)  The Brazilian economy experiences rapid economic growth. 
C)  The unemployment rate soars in Spain. 
D)  Inflation skyrockets in Russia. 
E)  The U.S. government cuts taxes to combat a recession.

Question 10

A graph of two variables is a vertical line.What is the interpretation of this result?

Accepted Answer

When the graph of two variables is a ver

Question 11

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

Accepted Answer

A)  study time becomes less effective. 
B)  study time becomes more effective. 
C)  the number of problems worked increases. 
D)  the number of problems worked decreases. 
E)  the relationship between study time and the number of problems worked changes from direct to inverse. 
A)  study time becomes less effective. 
B)  study time becomes more effective. 
C)  the number of problems worked increases. 
D)  the number of problems worked decreases. 
E)  the relationship between study time and the number of problems worked changes from direct to inverse.

Question 12

-In the figure above,what is the slope of the curve at point A?

Accepted Answer

A)  0.75 
B)  -0.75 
C)  1.33 
D)  -1.33 
E)  zero 
A)  0.75 
B)  -0.75 
C)  1.33 
D)  -1.33 
E)  zero

Question 13

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Accepted Answer

A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail 
E)  going to the concert because that is what John choose to do 
A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail 
E)  going to the concert because that is what John choose to do

Question 14

Moving rightward along a straight line,the slope of the line

Accepted Answer

A)  always increases. 
B)  always decreases. 
C)  stays the same. 
D)  increases if the line slopes upward to the right. 
E)  decreases if the line slopes downward to the right. 
A)  always increases. 
B)  always decreases. 
C)  stays the same. 
D)  increases if the line slopes upward to the right. 
E)  decreases if the line slopes downward to the right.

Question 15

An independent relationship between two variables is shown in a graph by

Accepted Answer

A)  an upward-sloping line. 
B)  a horizontal or a vertical line. 
C)  a downward-sloping line. 
D)  a steeply sloped line. 
E)  any straight line curve. 
A)  an upward-sloping line. 
B)  a horizontal or a vertical line. 
C)  a downward-sloping line. 
D)  a steeply sloped line. 
E)  any straight line curve.

Question 16

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line is ________ the slope of the line between points B and C.

Accepted Answer

A)  greater than 
B)  equal to 
C)  less than 
D)  unrelated to 
E)  not comparable to 
A)  greater than 
B)  equal to 
C)  less than 
D)  unrelated to 
E)  not comparable to

Question 17

-In the figure above,suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

Accepted Answer

A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected. 
E)  None of the above answers is correct because the graph assumes that the price of pecans does not change. 
A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected. 
E)  None of the above answers is correct because the graph assumes that the price of pecans does not change.

Question 18

Trend refers to

Accepted Answer

A)  the scale used on the x- and y-axes. 
B)  increases but not decreases of a variable. 
C)  decreases but not increases of a variable. 
D)  a general tendency for a variable to rise or fall. 
E)  the difference between the maximum value of the variable and the minimum value of the variable. 
A)  the scale used on the x- and y-axes. 
B)  increases but not decreases of a variable. 
C)  decreases but not increases of a variable. 
D)  a general tendency for a variable to rise or fall. 
E)  the difference between the maximum value of the variable and the minimum value of the variable.

Question 19

When two variables in a graph are related to a third,changing the third causes

Accepted Answer

A)  a movement along the curve. 
B)  a shift of the curve. 
C)  no change in the curve because the third variable isn't on the axes. 
D)  either a shift or a movement in the curve but more information is needed to determine which occurs. 
E)  None of the above answers is correct. 
A)  a movement along the curve. 
B)  a shift of the curve. 
C)  no change in the curve because the third variable isn't on the axes. 
D)  either a shift or a movement in the curve but more information is needed to determine which occurs. 
E)  None of the above answers is correct.

Question 20

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

When Delta decides to quit flying to Lithuania,it directly answers the ________ question.

Which of the following is an example of a normative statement?

Define marginal cost and marginal benefit.

In the diagram below,draw a straight line with a slope of zero.

What does the slope of a straight line equal? How is the slope of a curved line calculated?

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

The slope

If a curve rises and then falls,it has a

Which of the following is a microeconomic issue?

A graph of two variables is a vertical line.What is the interpretation of this result?

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

-In the figure above,what is the slope of the curve at point A?

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Moving rightward along a straight line,the slope of the line

An independent relationship between two variables is shown in a graph by

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line is ________ the slope of the line between points B and C.

-In the figure above,suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

Trend refers to

When two variables in a graph are related to a third,changing the third causes

What is a normative statement? Give an example.

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: Getting Started

When Delta decides to quit flying to Lithuania,it directly answers the ________ question.

Which of the following is an example of a normative statement?

Define marginal cost and marginal benefit.

In the diagram below,draw a straight line with a slope of zero.

What does the slope of a straight line equal? How is the slope of a curved line calculated?

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

The slope

If a curve rises and then falls,it has a

Which of the following is a microeconomic issue?

A graph of two variables is a vertical line.What is the interpretation of this result?

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

-In the figure above,what is the slope of the curve at point A?

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Moving rightward along a straight line,the slope of the line

An independent relationship between two variables is shown in a graph by

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line is ________ the slope of the line between points B and C.

-In the figure above,suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

Trend refers to

When two variables in a graph are related to a third,changing the third causes

What is a normative statement? Give an example.

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters