Question 1

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

Question 2

Exhibit 1-2
 
-Refer to Exhibit 1-2. According to the data provided in this table,what is the slope of the line between points A and B,if these data were graphed with X on the horizontal axis and Y on the vertical axis?

Accepted Answer

A)   -1.50
B)   -0.67
C)   1.50
D)   0.67

Question 3

How are changes in opportunity cost predicted to affect behavior?

Accepted Answer

A)   The lower the opportunity cost of doing X, the less likely X will be done.
B)   The higher the opportunity cost of doing X, the less likely X will be done.
C)   The lower the opportunity cost of doing X, the more likely X will be done.
D)   a and c
E)   b and c

Question 4

The opportunity cost of attending college is

Accepted Answer

A)   the money one spends on college tuition, books, and so forth.
B)   the highest valued alternative one forfeits to attend college.
C)   the least valued alternative one forfeits to attend college.
D)   equal to the salary one will earn when one graduates from college.

Question 5

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

Question 6

Deciding at the margin is __________ an all-or-nothing decision.

Accepted Answer

A)   consistent with
B)   inconsistent with
C)   the same as making
D)   conditioned upon making

Question 7

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

Accepted Answer

A)   relative relationships.
B)   absolute relationships.
C)   the slope of a line.
D)   the slope of a curve.
E)   none of the above

Question 8

The branch of economics that studies the decisions of individuals and firms is called

Accepted Answer

A)   macroeconomics.
B)   microeconomics.
C)   microeconomics and macroeconomics.
D)   positive economics.
E)   normative economics.

Question 9

Which of the following is a microeconomics topic?

Accepted Answer

A)   the study of how prices are determined in the computer industry
B)   the study of unemployment in the economy
C)   the study of how changes in the nation's money supply affect the nation's output
D)   a and c
E)   b and c

Question 10

Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

Accepted Answer

A)   an increase in the price of automobiles, further reducing fatalities.
B)   an increase in driving speed, reducing the number of accidents.
C)   a decrease in driving speed, further reducing fatalities.
D)   an increase in risky driving behavior, increasing fatalities.

Question 11

A good provides __________ and a bad provides __________.

Accepted Answer

A)   utility; satisfaction
B)   disutility; utility
C)   dissatisfaction; satisfaction
D)   utility; disutility
E)   satisfaction; utility

Question 12

Opportunity cost is the value of

Accepted Answer

A)   the best (or most highly valued)  forfeited alternative.
B)   the chosen alternative.
C)   a free good.
D)   all forfeited alternatives.

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

Question 14

A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than

Accepted Answer

A)   108,000.
B)   111,111.
C)   137,500.
D)   110,000.

Question 15

The slope of a straight line is always equal to either 1.0 or -1.0.

Accepted Answer

A) True 
 B)False

Question 16

Here are three things you could do if you choose not to go to class one day next week: sleep later (you value this at $15) ,hang out with friends (you value this at $14) ,or go in to work (you could earn $12 during class) .The opportunity cost of going to class is

Accepted Answer

A)   $12, because this is the only alternative of the three where you actually receive a monetary payment.
B)   $12, because this is the lowest valued alternative forfeited.
C)   $15, because this is the highest valued alternative forfeited.
D)   $41, because this is the total dollar sum of the alternatives forfeited.

Question 17

Which of the following is a possible rationing device?

Accepted Answer

A)   dollar price
B)   first-come-first-served
C)   brute force
D)   a and b
E)   a, b, and c

Question 18

Why do societies need rationing devices?

Accepted Answer

A)   Because people have too many needs and not enough wants.
B)   Because price exists.
C)   Because scarcity exists.
D)   Because people have opportunity costs.

Question 19

According to economists,competition exists because of

Accepted Answer

A)   scarcity.
B)   capitalism.
C)   money.
D)   unintended effects.

Question 20

Which of the following statements is false?

Accepted Answer

A)   To an economist, the resource land includes natural resources such as minerals, forests, water and unimproved land.
B)   To an economist, the resource capital consists of unproduced goods that can be turned into produced goods.
C)   To an economist, the resource labor consists of the physical and mental talents people contribute to the production process.
D)   To an economist, the resource entrepreneurship refers to a particular talent that some people have for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things.

Exam 1: What Economics Is About

The opportunity cost of attending college is

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The branch of economics that studies the decisions of individuals and firms is called

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Why do societies need rationing devices?

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A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than

Correct AnswerverifiedShow Answer

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

Correct AnswerverifiedShow Answer

Here are three things you could do if you choose not to go to class one day next week: sleep later (you value this at $15) ,hang out with friends (you value this at $14) ,or go in to work (you could earn $12 during class) .The opportunity cost of going to class is

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How are changes in opportunity cost predicted to affect behavior?

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Which of the following is a possible rationing device?

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The opportunity cost of attending college

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Opportunity cost is the value of

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According to economists,competition exists because of

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A good provides __________ and a bad provides __________.

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

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Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

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Exhibit 1-2 -Refer to Exhibit 1-2. According to the data provided in this table,what is the slope of the line between points A and B,if these data were graphed with X on the horizontal axis and Y on the vertical axis?

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The slope of a straight line is always equal to either 1.0 or -1.0.

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Deciding at the margin is __________ an all-or-nothing decision.

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Which of the following statements is false?

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

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Which of the following is a microeconomics topic?

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A good provides and a bad provides .

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