Question 1

The vertical axis in a graph

Accepted Answer

A)  is named the y-axis.
B)  is named the x-axis.
C)  measures time in a cross-section and time series graph.
D)  has no origin.
E)  measures time only in a time series graph. A

Question 2

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

Question 3

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases.The graph of these two variables is a

Accepted Answer

A)  vertical line.
B)  horizontal line.
C)  line that has positive slope.
D)  line that has a negative slope.
E)  non-existent because the two variables are not related. B

Question 4

The horizontal axis in a graph

Accepted Answer

A)  measures time on a scatter diagram.
B)  measures the quality of a variable.
C)  is named the y-axis.
D)  is named the x-axis.
E)  is called the origin.

Question 5

Pumpkins are grown in New Mexico with the aid of fertilizer.Hence, fertilizer is a partial answer to which of the three economic question?

Accepted Answer

The answer of Pumpkins are grown in New Mexico with...

Question 6

If the marginal benefit of getting a college degree rises, rational people will

Accepted Answer

A)  attend college in greater numbers.
B)  drop out of college.
C)  not change their behavior.
D)  require that college get easier.
E)  raise the marginal cost of attending college.

Question 7

As the price of home heating oil rises, families buy less home heating oil.Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ________ relationship.

Accepted Answer

A)  positive
B)  linear
C)  time-series
D)  negative
E)  cross-sectional

Question 8

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The relationship between the price and the quantity the florist can sell is

Accepted Answer

A)  positive.
B)  negative.
C)  nonexistent.
D)  linear.
E)  cross-sectionally trended.

Question 9

Which of the following is a positive statement?

Accepted Answer

A)  An increase in college tuition is not fair to students.
B)  A recession leads to higher enrollments at universities.
C)  University bookstore prices are too high.
D)  Parking tickets on campus impose an excessive fee.
E)  The school needs more parking for students.

Question 10

Opportunity cost is best defined as

Accepted Answer

A)  how much money is paid for something.
B)  how much money and time it takes to consume something.
C)  the value of the highest-valued alternative that is forgone in making a choice.
D)  the total of all other alternatives that are forgone in making a choice.
E)  the sunk cost of any decision.

Question 11

Which of the following is a microeconomic topic?
I∙K-Mart's decision to close stores that are not making a profit
Ii∙Home Depot's choice to hire more full-time employees because its sales increased
Iii∙Delta Airlines changes its fares.

Accepted Answer

A)  i only
B)  ii only
C)  i and iii
D)  ii and iii
E)  i, ii, and iii

Question 12

What is the difference between positive and normative statements?

Accepted Answer

The answer of What is the difference between positive and...

Question 13

The cost of a one-unit increase in an activity is called the

Accepted Answer

A)  opportunity benefit.
B)  rational cost.
C)  marginal cost.
D)  marginal benefit.
E)  margin.

Question 14

Shaniq can spend the next hour studying for a finance test, hiking along the Oregon coast, watching reruns of Lost on television, or napping.If she decides to study, what is the opportunity cost of her choice: hiking, watching television, or napping?

Accepted Answer

The answer of Shaniq can spend the next hour studying...

Question 15

-The minimum point of a U-shaped curve,

Accepted Answer

A)  is a point where the variable is neither increasing nor decreasing.
B)  has a slope equal to zero.
C)  has the maximum slope possible.
D)  Both answers A and B are correct.
E)  Both answers A and C are correct.

Question 16

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

Accepted Answer

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

Question 17

-What is the slope of the line in the graph?

Accepted Answer

A)  +1/2
B)  -1/2
C)  + 2
D)  -2
E)  -3/4

Question 18

When the Dallas Cowboys score more than 30 points in a game, they win the game.This is an example of

Accepted Answer

A)  an economic theory.
B)  a correlation.
C)  an incentive to win the game.
D)  a normative statement.
E)  a statement on the margin.

Question 19

As the number of days without rain increases, the amount of wheat grown per acre declines.A graph showing this relationship shows

Accepted Answer

A)  a horizontal line.
B)  a vertical line.
C)  a positive relationship.
D)  a line with a positive slope.
E)  None of the above answers is correct.

Question 20

Economics is best defined as the social science that studies

Accepted Answer

A)  how a person can get everything he or she wants.
B)  the reason money exists.
C)  the way to eliminate choices in our decisions.
D)  the choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity.
E)  how choices made in the social interest must conflict with choices made in the self-interest.

Exam 1: Getting Started