Question 1

Which of the following is a positive statement?

Accepted Answer

A)   Low rents decrease the amount of housing landlords make available for rent.
B)   Low rents are good because they make apartments more affordable.
C)   Housing costs too much.
D)   Owners of apartment buildings ought to be free to charge whatever rent they want.

Question 2

An economic model is

Accepted Answer

A)   a generalization that summarizes all the normative assumptions we make about a particular issue.
B)   a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand.
C)   a statement that describes how the world should be.
D)   a collection of facts that describe the real world.

Question 3

Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5. Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?

Accepted Answer

Marginal benefit is the benefit that ari...

Question 4

-In the above figure, the slope across the arc between points a and b equals

Accepted Answer

A)   5.
B)   4.
C)   2.
D)   1.

Question 5

After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal-Mart for $38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

Accepted Answer

A)   the $45,000 you are paid for working at the Bureau of Labor Statistics
B)   the $42,000 you would have been paid working for Ernst and Young
C)   the $38,000 you would have been paid working for Wal-Mart
D)   the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart

Question 6

Human capital is

Accepted Answer

A)   all capital owned by individuals, but not by corporations or governments.
B)   all capital owned by individuals or corporations, but not by governments.
C)   machinery that meets or exceeds federal safety standards for use by humans.
D)   the skill and knowledge of workers.

Question 7

As an economic concept, scarcity applies to

Accepted Answer

A)   both money and time.
B)   money but not time.
C)   time but not money.
D)   neither time nor money.

Question 8

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

Accepted Answer

A)   "what"
B)   "how"
C)   "for whom"
D)   "where"

Question 9

-In the above figure, which curve shows a negative relationship between x and y?

Accepted Answer

A)   only curve A
B)   only curve B
C)   only curve C
D)   None of the curves show a negative relationship.

Question 10

Which of the following is a microeconomic topic?

Accepted Answer

A)   how a trade agreement between the United States and Mexico affects both nations' unemployment rates
B)   comparing inflation rates across countries
C)   how rent ceilings impact the supply of apartments
D)   how a tax rate increase will impact total production

Question 11

-The slope of the line shown in the above figure is

Accepted Answer

A)   0.90.
B)   1.5.
C)   1.11.
D)   2.

Question 12

-The slope of the line shown in the above figure is

Accepted Answer

A)   5.
B)   2/5.
C)   2/3.
D)   5/2.

Question 13

An economic model includes

Accepted Answer

A)   only normative statements.
B)   no use of marginal concepts.
C)   all known details in order to increase its accuracy.
D)   only details considered essential.

Question 14

Macroeconomics differs from microeconomics in that

Accepted Answer

A)   macroeconomics studies the decisions of individuals.
B)   microeconomics looks at the economy as a whole.
C)   macroeconomics studies the behavior of government while microeconomics looks at private corporations.
D)   macroeconomics focuses on the national economy and the global economy.

Question 15

-The above table gives data on two variables. If these data were graphed, the slope of the line would be

Accepted Answer

A)   1.
B)   -2.
C)   2.
D)   -4.

Question 16

Which of the following is a normative statement?

Accepted Answer

A)   Studying more hours leads to an increase in your GPA.
B)   An increase in tax rates means people work fewer hours.
C)   Taking extra vitamin C prevents catching a cold.
D)   States should require all motorcycle riders to wear helmets to reduce the number of riders killed.

Question 17

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

Accepted Answer

A)   "for whom"
B)   "when"
C)   "where"
D)   "how"

Question 18

If there is a direct relationship between two variables

Accepted Answer

A)   the graph of the relationship will be upward-sloping.
B)   the graph of the relationship will be downward-sloping.
C)   the slope of the line (or the slope of a tangent line to the curve)  will be negative.
D)   Both answers A and C are correct.

Question 19

Which of the following is a microeconomic topic?

Accepted Answer

A)   the reasons why Kathy buys less orange juice
B)   the reasons for a decline in average prices
C)   the reasons why total employment decreases
D)   the effect of the government budget deficit on inflation

Question 20

When the government chooses to spend the tax dollars that it collects on homeland security, its choice

Accepted Answer

A)   involves a tradeoff of other goods and services such as education for more homeland security.
B)   illustrates that scarcity does not always exist.
C)   involves no tradeoff because the defense is necessary.
D)   primarily affects who gets the goods and services produced.

Exam 1: What Is Economics

Macroeconomics differs from microeconomics in that

Correct Answer
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As an economic concept, scarcity applies to

Correct Answer
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If there is a direct relationship between two variables

Correct Answer
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-The slope of the line shown in the above figure is

Correct Answer
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Which of the following is a microeconomic topic?

Correct Answer
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An economic model is

Correct Answer
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Which of the following is a positive statement?

Correct Answer
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-In the above figure, which curve shows a negative relationship between x and y?

Correct Answer
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-The above table gives data on two variables. If these data were graphed, the slope of the line would be

Correct Answer
verified

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

Correct Answer
verified

Which of the following is a microeconomic topic?

Correct Answer
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An economic model includes

Correct Answer
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When the government chooses to spend the tax dollars that it collects on homeland security, its choice

Correct Answer
verified

-The slope of the line shown in the above figure is

Correct Answer
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Which of the following is a normative statement?

Correct Answer
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-In the above figure, the slope across the arc between points a and b equals

Correct Answer
verified

Correct Answer
verified
Marginal benefit is the benefit that ari...
View Answer

Human capital is

Correct Answer
verified

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

Correct Answer
verified

Exam 1: What Is Economics

Macroeconomics differs from microeconomics in that

Correct AnswerverifiedShow Answer

As an economic concept, scarcity applies to

Correct AnswerverifiedShow Answer

If there is a direct relationship between two variables

Correct AnswerverifiedShow Answer

-The slope of the line shown in the above figure is

Correct AnswerverifiedShow Answer

Which of the following is a microeconomic topic?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An economic model is

Correct AnswerverifiedShow Answer

Which of the following is a positive statement?

Correct AnswerverifiedShow Answer

-In the above figure, which curve shows a negative relationship between x and y?

Correct AnswerverifiedShow Answer

-The above table gives data on two variables. If these data were graphed, the slope of the line would be

Correct AnswerverifiedShow Answer

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

Correct AnswerverifiedShow Answer

Which of the following is a microeconomic topic?

Correct AnswerverifiedShow Answer

An economic model includes

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When the government chooses to spend the tax dollars that it collects on homeland security, its choice

Correct AnswerverifiedShow Answer

-The slope of the line shown in the above figure is

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Which of the following is a normative statement?

Correct AnswerverifiedShow Answer

-In the above figure, the slope across the arc between points a and b equals

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMarginal benefit is the benefit that ari...View AnswerShow Answer

Human capital is

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When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

Correct AnswerverifiedShow Answer

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Marginal benefit is the benefit that ari...
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