Question 1

-In the above figure, the slope at point b

Accepted Answer

A)  lies between 1/3 and 1. 
B)  equals 1. 
C)  lies between 1 and 2. 
D)  exceeds 2.

Question 2

-The relationship depicted in the above figure is

Accepted Answer

A)  a negative linear relationship. 
B)  a positive linear relationship. 
C)  a positive becoming less steep relationship. 
D)  a positive becoming steeper relationship.

Question 3

Economic models

Accepted Answer

A)  are essentially different from those used in other sciences. 
B)  always use graphs. 
C)  simplify reality. 
D)  include all relevant facts.

Question 4

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

Accepted Answer

A)  a normative statement. 
B)  a positive statement. 
C)  a decision at the margin. 
D)  OPEC overcoming scarcity.

Question 5

Scarcity requires that people must

Accepted Answer

A)  cooperate. 
B)  compete. 
C)  trade. 
D)  make choices.

Question 6

The 2010 Patient Protection and Affordable Care Act (Obamacare) contains a provision that may require individuals to either purchase private health insurance or pay a tax. This is an example of

Accepted Answer

A)  a mixed economy. 
B)  market capitalism. 
C)  centrally planned socialism. 
D)  the invisible hand.

Question 7

-In the above figure, using the slope across an arc, the slope of the curve between points a and b is

Accepted Answer

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

Question 8

-Which of the following CORRECTLY describes the above figure?

Accepted Answer

A)  There is no relationship between x and y. 
B)  There is a positive relationship between x and y. 
C)  There is a negative relationship between x and y. 
D)  None of the above answers are correct.

Question 9

Which of the following is a macroeconomic decision or concept?

Accepted Answer

A)  the price of oil 
B)  how many television sets to produce 
C)  the unemployment rate for the entire economy 
D)  the unemployment rate for each firm

Question 10

Which of the following statements are CORRECT? I. The "highest-valued alternative given up to get something" is the opportunity cost.
II) Wealthy economies don't experience opportunity costs.
III) Scarcity creates opportunity costs.

Accepted Answer

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

Question 11

Which of the following is a positive statement?

Accepted Answer

A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza.

Question 12

Which factor of production earns profit?

Accepted Answer

A)  land 
B)  human capital 
C)  money 
D)  entrepreneurship

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.

Question 14

Explain whether the statement, "Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement.

Accepted Answer

The answer of Explain whether the statement, "Hillary Clinton was...

Question 15

Explain why both rich and poor people experience scarcity.

Accepted Answer

The answer of Explain why both rich and poor people...

Question 16

-In the figure above, point B is

Accepted Answer

A)  on the x-axis. 
B)  on the y-axis. 
C)  at the origin. 
D)  a coordinate.

Question 17

-In the figure above, an increase in z leads to a

Accepted Answer

A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y.

Question 18

-The slope of the line in the above figure is

Accepted Answer

A)  positive. 
B)  negative. 
C)  direct. 
D)  independent.

Question 19

-In the above, which figure shows a linear relationship?

Accepted Answer

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

Question 20

If two variables are positively related, then

Accepted Answer

A)  they move in opposite directions. 
B)  they are independent of each other. 
C)  they move in the same direction. 
D)  their graph will have a negative slope.

Exam 1: What Is Economics