Question 1

Macroeconomics deals with issues involving large corporations,while microeconomics exclusively deals with issues involving small businesses.

Accepted Answer

A) True 
 B)False

Question 2

Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be your chances of winning the Wednesday night state lottery.What kind of a relationship do you most likely expect between X and Y?

Accepted Answer

A)  direct
B)  inverse
C)  linear
D)  45-degree line
E)  independent

Question 3

Which of the following is an example of a positive economic statement?

Accepted Answer

A)  The U.S.public should devote more resources to education.
B)  The poor should pay lower taxes and the rich should pay higher taxes.
C)  Soap operas should be taken off television.
D)  If you drop a ball from the top of a building,it will fall to the ground.

Question 4

Attempts to determine "what is" are part of __________ economics.

Accepted Answer

A)  positive
B)  normative
C)  positive and normative
D)  neither positive nor normative

Question 5

The slope of a horizontal line is always equal to zero.

Accepted Answer

A) True 
 B)False

Question 6

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

Accepted Answer

A)  watching television is the opportunity cost of having dinner with your friends.
B)  the price of having dinner with your friends is more than the price you would have had to pay to watch television.
C)  the opportunity cost of having dinner with your friends is lower than the opportunity cost of watching television.
D)  it is less costly to watch television than to have dinner with your friends.

Question 7

Variables A and B are directly related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

Accepted Answer

A)  parallel to the horizontal axis.
B)  downward-sloping (left to right) .
C)  parallel to the vertical axis.
D)  upward-sloping (left to right) .
E)  a or c

Question 8

A line is parallel to the horizontal axis.The slope of the line is

Accepted Answer

A)  infinite.
B)  indicative of an inverse relationship between two variables.
C)  indicative of a direct relationship between two variables.
D)  zero.
E)  b and d

Question 9

The slope of a (nonlinear)curve varies from one point to another.

Accepted Answer

A) True 
 B)False

Question 10

In an interview an economist states,"This problem should be of greater concern to the federal government." We can explicitly put this statement in the category of

Accepted Answer

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

Question 11

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 12

Economists use the terms resource and input as synonyms.

Accepted Answer

A) True 
 B)False

Question 13

The __________ the opportunity cost of doing something,the __________ likely a person will do that something.

Accepted Answer

A)  lower;less
B)  lower;more
C)  higher;more
D)  higher;less
E)  b and d

Question 14

In all cases,microeconomics deals with

Accepted Answer

A)  what is.
B)  what should be.
C)  relatively small units in the economy.
D)  the entire economy.

Question 15

The higher the opportunity cost of making a new friend,the more likely one is to make a new friend,​ceteris paribus​.

Accepted Answer

A) True 
 B)False

Question 16

In all cases,macroeconomics deals with

Accepted Answer

A)  what is.
B)  what should be.
C)  relatively small units in the economy.
D)  the entire economy.

Question 17

Which of the following statements is false?

Accepted Answer

A)  There are always opportunity costs to making choices.
B)  Because of scarcity,choices must be made.
C)  Elementary education at public schools is free.
D)  When government builds a new highway,taxpayers end up with less of some of the things they would otherwise have.

Question 18

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 19

If scarcity didn't exist,neither would

Accepted Answer

A)  rationing devices.
B)  competition.
C)  labor.
D)  capital.
E)  a and b

Question 20

Opportunity cost is the __________ alternative forfeited when a choice is made.

Accepted Answer

A)  least-valued
B)  most highly-valued
C)  most convenient
D)  most recently considered

Exam 1: What Economics Is About

A good provides __________ and a bad provides __________.

Correct AnswerverifiedShow Answer

A line is parallel to the horizontal axis.The slope of the line is

Correct AnswerverifiedShow Answer

Variables A and B are directly related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

If scarcity didn't exist,neither would

Correct AnswerverifiedShow Answer

The slope of a (nonlinear)curve varies from one point to another.

Correct AnswerverifiedShow Answer

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

Correct AnswerverifiedShow Answer

Economists use the terms resource and input as synonyms.

Correct AnswerverifiedShow Answer

In all cases,microeconomics deals with

Correct AnswerverifiedShow Answer

Attempts to determine "what is" are part of __________ economics.

Correct AnswerverifiedShow Answer

In an interview an economist states,"This problem should be of greater concern to the federal government." We can explicitly put this statement in the category of

Correct AnswerverifiedShow Answer

The slope of a horizontal line is always equal to zero.

Correct AnswerverifiedShow Answer

The higher the opportunity cost of making a new friend,the more likely one is to make a new friend,​ceteris paribus​.

Correct AnswerverifiedShow Answer

Macroeconomics deals with issues involving large corporations,while microeconomics exclusively deals with issues involving small businesses.

Correct AnswerverifiedShow Answer

The opportunity cost of attending college is

Correct AnswerverifiedShow Answer

Which of the following is an example of a positive economic statement?

Correct AnswerverifiedShow Answer

In all cases,macroeconomics deals with

Correct AnswerverifiedShow Answer

The __________ the opportunity cost of doing something,the __________ likely a person will do that something.

Correct AnswerverifiedShow Answer

Opportunity cost is the __________ alternative forfeited when a choice is made.

Correct AnswerverifiedShow Answer

Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be your chances of winning the Wednesday night state lottery.What kind of a relationship do you most likely expect between X and Y?

Correct AnswerverifiedShow Answer

A good provides and a bad provides .

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The higher the opportunity cost of making a new friend,the more likely one is to make a new friend,ceteris paribus.

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The the opportunity cost of doing something,the likely a person will do that something.

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