Question 1

The graph shows a

Accepted Answer

A)  positive relationship that becomes less steep.
B)  negative relationship that become less steep.
C)  negative relationship that is linear.
D)  positive relationship that is linear.
E)  None of the above answers is correct.F) B) and E)
G) C) and D)

Question 2

The slope of the line shown in the above figure is

Accepted Answer

A)  -5.
B)  -10.
C)  -1.
D)  -3.
E)  -1/3.F) B) and E)
G) A) and B)

Question 3

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

Accepted Answer

A)  y - x.
B)  (change in y) /(change in x) .
C)  x/y.
D)  y/x.
E)  (change in x) /(change in y) .F) A) and B)
G) C) and D)

Question 4

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

Accepted Answer

A)  normative statement.
B)  rational-decision statement.
C)  marginal statement.
D)  macroeconomic statement.
E)  positive statement.F) D) and E)
G) B) and D)

Question 5

A graph shows the average SAT scores for males and females in 2012. The kind of graph used to show these data would be a

Accepted Answer

A)  trend figure.
B)  time-stationary graph.
C)  time-series graph.
D)  cross-section graph.
E)  scatter diagram.F) A) and B)
G) B) and C)

Question 6

If a curve rises and then falls, it has a

Accepted Answer

A)  constant slope relationship.
B)  slope that is negative and then positive.
C)  maximum.
D)  linear relationship.
E)  minimum.F) None of the above
G) B) and D)

Question 7

In the diagram above, which figure(s) show(s) an inverse relationship between the variables?

Accepted Answer

A)  only D
B)  only C
C)  both B and C
D)  both A and C
E)  only BF) A) and E)
G) All of the above

Question 8

Of the three major economic questions, which of the following is the best example of a "How?" question?

Accepted Answer

A)  Should we produce more heavy fleece coats?
B)  Should we spend more on health care?
C)  Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines?
D)  Should we eat more oatmeal?
E)  Should we build log homes or build factories from bricks?F) B) and D)
G) B) and E)

Question 9

Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice,

Accepted Answer

A)  you must ignore the problem of scarcity.
B)  you have made a positive statement.
C)  you considered the marginal cost and marginal benefit of your choice.
D)  you must have considered the social interest.
E)  you have used the ceteris paribus assumption.F) B) and C)
G) D) and E)

Question 10

Which of the following statements is correct?

Accepted Answer

A)  The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line.
B)  The slope of a straight line changes depending where on the line it is calculated.
C)  A straight line that slopes upward moving to the right has a positive slope.
D)  Answers A and B are correct.
E)  Answers A and C are correct.F) A) and C)
G) C) and E)

Question 11

Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk driving. This successful campaign-------------------- of drunk driving.

Accepted Answer

A)  decreased the marginal cost
B)  decreased the marginal benefit
C)  increased the marginal cost
D)  increased the marginal benefit
E)  had no effect on the marginal cost or marginal benefit but did affect the total benefitF) None of the above
G) A) and E)

Question 12

An incentive is

Accepted Answer

A)  what you must give up to get something.
B)  a good or service that satisfies wants.
C)  when people make rational choices by comparing costs and benefits.
D)  a reward or a penalty that encourages or discourages an action.
E)  a choice is made on the margin.F) D) and E)
G) A) and D)

Question 13

Which of the following is a positive statement?

Accepted Answer

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

Question 14

Which of the following statements best describes the study of economics? Economics studies how

Accepted Answer

A)  businesses reach decisions.
B)  we make choices in the face of scarcity.
C)  firms make profits.
D)  to organize production so that scarcity does not occur.
E)  to create incentives so that scarcity does not exist.F) B) and C)
G) C) and E)

Question 15

Two variables are unrelated if their graph is 
i. a vertical line.
Ii. a 45 degree line. 
iii. a horizontal line.

Accepted Answer

A)  i, ii, and iii
B)  ii only
C)  iii only
D)  i only
E)  i and iiiF) A) and C)
G) All of the above

Question 16

As a person increases his or her caloric intake, the person's weight increases, ceteris paribus. The relationship between the person's caloric intake and the person's weight is an example of

Accepted Answer

A)  a positive relationship.
B)  a trended relationship.
C)  a single point on a graph.
D)  unrelated variables.
E)  a negative relationship.F) B) and C)
G) A) and E)

Question 17

When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the

Accepted Answer

A)  opportunity costs of the candy bars to the scarcity of the candy bars.
B)  self-interest to the social interest.
C)  marginal benefits of the candy bars to the marginal costs of the candy bars.
D)  benefits of the candy bars to the scarcity candy bars.
E)  benefits of the candy bars to the desires he had for the candy bars.F) All of the above
G) B) and D)

Question 18

The question "Should economics majors or sociology majors earn more after they graduate?" is an example of a --------------------question.

Accepted Answer

A)  for whom
B)  where
C)  why
D)  how
E)  whatF) C) and E)
G) A) and E)

Question 19

A time series graph reveals whether there is a-------------------- , which represents-------------------- .

Accepted Answer

A)  relationship between two variables; a cross-section relationship
B)  trends in two variables; unrelated variables
C)  trend in a variable; a general tendency for the variable to rise or fall
D)  relationship between two variables; a trend in a variable
E)  cross-section relationship; a general tendency for the variables to rise or fallF) C) and E)
G) A) and B)

Question 20

Economics is best defined as the social science that studies

Accepted Answer

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

Exam 1: Getting Started

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

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If a curve rises and then falls, it has a

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The question "Should economics majors or sociology majors earn more after they graduate?" is an example of a --------------------question.

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Of the three major economic questions, which of the following is the best example of a "How?" question?

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Which of the following statements best describes the study of economics? Economics studies how

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A time series graph reveals whether there is a-------------------- , which represents-------------------- .

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The slope of the line shown in the above figure is

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Which of the following is a positive statement?

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A graph shows the average SAT scores for males and females in 2012. The kind of graph used to show these data would be a

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Economics is best defined as the social science that studies

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An incentive is

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In the diagram above, which figure(s) show(s) an inverse relationship between the variables?

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Which of the following statements is correct?

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The graph shows a

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Two variables are unrelated if their graph is i. a vertical line. Ii. a 45 degree line. iii. a horizontal line.

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When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the

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Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice,

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With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

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Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk driving. This successful campaign-------------------- of drunk driving.

Correct AnswerverifiedShow Answer

As a person increases his or her caloric intake, the person's weight increases, ceteris paribus. The relationship between the person's caloric intake and the person's weight is an example of

Correct AnswerverifiedShow Answer

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The question "Should economics majors or sociology majors earn more after they graduate?" is an example of a _{--------------------}question.

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A time series graph reveals whether there is a_{--------------------} , which represents_{--------------------} .

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Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk driving. This successful campaign_{--------------------} of drunk driving.

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