Question 1

-The relationship between x and y in the above figure is

Accepted Answer

A)   positive with an increasing slope.
B)   positive with a decreasing slope.
C)   negative with an increasing slope.
D)   negative with a decreasing slope.

Question 2

Scarcity is a situation in which

Accepted Answer

A)   people cannot satisfy all their wants.
B)   most people can get only bare necessities.
C)   people can satisfy all their wants.
D)   some people can get all they want and some cannot.

Question 3

Most people with jobs in economics are

Accepted Answer

A)   market research analysts.
B)   financial analysts.
C)   budget analysts.
D)   economists.

Question 4

Most income in the United States is earned by business owners as profit.

Accepted Answer

A) True 
 B)False

Question 5

Suppose you are working four nights per week at your courses and your grade point average is 3.5. You want a higher grade and decide to study an extra night each week. Your GPA now rises to 3.8. What is your marginal benefit from studying for one additional night a week?

Accepted Answer

Marginal benefit is the benefit that ari...

Question 6

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

Accepted Answer

A)   making a normative statement.
B)   making a positive statement.
C)   testing an economic model.
D)   facing the standard of living tradeoff.

Question 7

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

Accepted Answer

A)   is the benefit she gets from all the hours she's worked out all week.
B)   is the benefit she receives from exercising the additional hour.
C)   is less than the marginal cost of the additional hour.
D)   depends on the cost of the workout.

Question 8

-In the above figure, the curve's slope is

Accepted Answer

A)   positive and is becoming steeper.
B)   positive and is becoming less steep.
C)   negative and is becoming steeper.
D)   negative and is becoming less steep.

Question 9

Opportunity cost means the

Accepted Answer

A)   accounting cost minus the marginal cost.
B)   highest-valued alternative forgone.
C)   accounting cost minus the marginal benefit.
D)   monetary costs of an activity.

Question 10

-In the above figure, which curve indicates that the level of food production does NOT affect the population growth rate?

Accepted Answer

A)   F
B)   G
C)   H
D)   I

Question 11

If an increase in x (the variable on the horizontal axis)  from 6 to 8 units causes a decrease in y (the variable on the vertical axis)  from 4 to 3 units, the slope equals

Accepted Answer

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

Question 12

-In the above figure, x is

Accepted Answer

A)   positively related to y and negatively related to z.
B)   positively related to both y and z.
C)   negatively related to y and positively related to z.
D)   negatively related to both y and z.

Question 13

Macroeconomics is concerned with

Accepted Answer

A)   individual consumers.
B)   government decision making concerning farm price supports.
C)   economy-wide variables.
D)   the effects on Ford Motor of a strike by the United Auto Workers.

Question 14

What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

Accepted Answer

A person faces scarcity whenever his or ...

Question 15

In the U.S. economy, which of the following statements is TRUE?

Accepted Answer

A)   More goods are produced than services.
B)   More services are produced than goods.
C)   Production is divided evenly between goods and services.
D)   The economy is too complex to determine the proportion of production that is devoted to producing services.

Question 16

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 17

The slope of a curved line can be approximated by

Accepted Answer

A)   the average of the variable measured along the y-axis divided by the average of the variable measured along the x-axis.
B)   the inverse of the straight-line method.
C)   the average of the variable measured along the x-axis divided by the average of the variable measured along the y-axis.
D)   the slope across an arc from one point on the curve to another point on the curve.

Question 18

The slope of a positive relationship is

Accepted Answer

A)   positive.
B)   undefined.
C)   positive to the right of the maximum point and negative to the left.
D)   constant as long as the relationship is nonlinear.

Question 19

When an economist talks of scarcity, the economist is referring to the

Accepted Answer

A)   ability of society to employ all of its resources.
B)   ability of society to consume all that it produces.
C)   inability of society to satisfy all human wants because of limited resources.
D)   ability of society to continually make technological breakthroughs and increase production.

Question 20

A scatter diagram plots the value of one economic variable against time.

Accepted Answer

A) True 
 B)False

Exam 1: What Is Economics

When an economist talks of scarcity, the economist is referring to the

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The slope of a curved line can be approximated by

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-In the above figure, x is

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Opportunity cost means the

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If an increase in x (the variable on the horizontal axis) from 6 to 8 units causes a decrease in y (the variable on the vertical axis) from 4 to 3 units, the slope equals

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Macroeconomics is concerned with

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-The relationship between x and y in the above figure is

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The slope of a positive relationship is

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What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society.

Correct AnswerverifiedA person faces scarcity whenever his or ...View AnswerShow Answer

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions.

Correct AnswerverifiedShow Answer

Most people with jobs in economics are

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Most income in the United States is earned by business owners as profit.

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-In the above figure, which curve indicates that the level of food production does NOT affect the population growth rate?

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In the U.S. economy, which of the following statements is TRUE?

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When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

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A scatter diagram plots the value of one economic variable against time.

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-In the above figure, the curve's slope is

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Suppose you are working four nights per week at your courses and your grade point average is 3.5. You want a higher grade and decide to study an extra night each week. Your GPA now rises to 3.8. What is your marginal benefit from studying for one additional night a week?

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

A student athlete is deciding whether to work out for an extra hour. Her marginal benefit from another hour of exercise

Correct AnswerverifiedShow Answer

Scarcity is a situation in which

Correct AnswerverifiedShow Answer

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A person faces scarcity whenever his or ...
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Marginal benefit is the benefit that ari...
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