Question 1

Suppose you produce 10 bikes a day for a total cost of $1000.Total costs increase to $1100 when you produce 15 bikes.Finally,total costs increase to $1300 if you make 20 bikes.A graph showing the relationship between total costs and the number of bikes produced would be

Accepted Answer

A)   a negatively-sloped line that becomes steeper.
B)   a positively-sloped line that becomes steeper.
C)   a negatively-sloped line that becomes flatter.
D)   a positively-sloped line that becomes flatter.E) A) and D)
F) None of the above

Question 2

When Susan makes the statement,"The government should spend less money to take care of national parks," she is

Accepted Answer

A)   making a normative statement.
B)   making a positive statement.
C)   testing an economic model.
D)   not dealing with scarcity.E) C) and D)
F) All of the above

Question 3

Which of the following is NOT an investment in human capital?

Accepted Answer

A)   a business student takes a seminar in using a laptop computer
B)   a student purchases a laptop computer
C)   a computer science student learns how to repair a laptop computer
D)   a computer science student takes a course on programming a laptop computerE) A) and B)
F) C) and D)

Question 4

As a firm produces more and more CDs,the average cost of producing each CD falls.A curve showing the behavior of the average cost of a CD as more CDs are produced

Accepted Answer

A)   would be positively and then negatively-sloped.
B)   would be positively sloped.
C)   would be horizontal.
D)   would be negatively sloped.E) All of the above
F) A) and B)

Question 5

What is the difference between microeconomics and macroeconomics?
Give an example of an issue each studies.

Accepted Answer

Essentially microeconomics studies indiv...

Question 6

From 8 P.M.to 10 P.M.,Susan can attend a movie,study,or talk with friends.Suppose that Susan decides to go to the movie but thinks that,if she hadn't,she would otherwise have talked with friends.The opportunity cost of attending the movie is

Accepted Answer

A)   talking with friends and studying.
B)   studying.
C)   talking with friends.
D)   two hours of time.E) None of the above
F) A) and B)

Question 7

The value of the x-coordinate of a point in a graph is the length of a line from the point to the

Accepted Answer

A)   origin.
B)   scalar.
C)   x-axis.
D)   y-axis.E) C) and D)
F) None of the above

Question 8

-In the above figure,the relationship between x and y is

Accepted Answer

A)   positive, and the curve becomes flatter as x increases.
B)   positive, and the curve becomes steeper as x increases.
C)   positive and linear.
D)   negative and linear.E) A) and D)
F) A) and C)

Question 9

Ben Bernanke,Chairman of the Federal Reserve,must choose whether tomorrow he meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

Accepted Answer

A)   fact that Bernanke faces scarcity.
B)   concept of entrepreneurship.
C)   fact that Bernanke responds to incentives
D)   use of capital.E) A) and D)
F) B) and C)

Question 10

If there is an inverse relationship between variable x and variable y,then an increase in the value of variable x will be accompanied by

Accepted Answer

A)   an increase in the value of variable y.
B)   a decrease in the value of variable y.
C)   no change in the value of variable y.
D)   variable y reaching its maximum value.E) A) and C)
F) None of the above

Question 11

-In the above,which figure shows a linear relationship?

Accepted Answer

A)   Figure A
B)   Figure B
C)   both Figure A and Figure B
D)   neither Figure A nor Figure BE) None of the above
F) A) and D)

Question 12

What is a normative statement?
Give an example.

Accepted Answer

A normative statement is a statement abo...

Question 13

-In the figure above,the value on the y-axis decreases as we move from

Accepted Answer

A)   point G to point A.
B)   point C to point A.
C)   point F to point A.
D)   point E to point A.E) A) and B)
F) None of the above

Question 14

-In the above figure,the axis break in the x-axis

Accepted Answer

A)   reflects the fact that for the years covered in the figure, the unemployment rate was never less than 3 percent.
B)   shows that there is no relationship between inflation and unemployment.
C)   misleadingly shows that inflation has changed very little even though the unemployment rate has increased a great deal.
D)   implies that for the years covered in the figure, the inflation rate was always greater than 1 percent.E) None of the above
F) All of the above

Question 15

Factors of production include

Accepted Answer

A)   the economic system.
B)   land, labor, capital and entrepreneurship.
C)   labor and capital (not land, which is fixed) .
D)   only capital, land, and labor.E) C) and D)
F) A) and D)

Question 16

Explain whether the statement,"There is life on Mars," is a normative or positive statement.

Accepted Answer

The statement is a positive statement be...

Question 17

In every economic system,choices must be made because resources are ________ and our wants are ________.

Accepted Answer

A)   unlimited; limited
B)   limited; unlimited
C)   unlimited; unlimited
D)   limited; limitedE) None of the above
F) A) and C)

Question 18

Overtime worked by a JCPenney associate is considered ________ and earns ________.

Accepted Answer

A)   labor; wages.
B)   entrepreneurship; profit.
C)   human capital; interest.
D)   labor; profit.E) A) and C)
F) None of the above

Question 19

In economics,the term "capital" refers to

Accepted Answer

A)   the money in one's pocket.
B)   buildings and equipment.
C)   mineral resources.
D)   consumer goods.E) None of the above
F) C) and D)

Question 20

Which of the following questions is NOT a microeconomic question?

Accepted Answer

A)   Can the Federal Reserve keep income growing by cutting interest rates?
B)   How would a tax on e-commerce affect eBay?
C)   What is Britney's opportunity cost of having another baby?
D)   Does the United States have a comparative advantage in information technology services?E) A) and B)
F) A) and C)

Exam 1: What Is Economics

Suppose you produce 10 bikes a day for a total cost of $1000.Total costs increase to $1100 when you produce 15 bikes.Finally,total costs increase to $1300 if you make 20 bikes.A graph showing the relationship between total costs and the number of bikes produced would be

Correct AnswerverifiedShow Answer

If there is an inverse relationship between variable x and variable y,then an increase in the value of variable x will be accompanied by

Correct AnswerverifiedShow Answer

Which of the following questions is NOT a microeconomic question?

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Factors of production include

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As a firm produces more and more CDs,the average cost of producing each CD falls.A curve showing the behavior of the average cost of a CD as more CDs are produced

Correct AnswerverifiedShow Answer

Which of the following is NOT an investment in human capital?

Correct AnswerverifiedShow Answer

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

Correct AnswerverifiedEssentially microeconomics studies indiv...View AnswerShow Answer

-In the above,which figure shows a linear relationship?

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Explain whether the statement,"There is life on Mars," is a normative or positive statement.

Correct AnswerverifiedThe statement is a positive statement be...View AnswerShow Answer

In every economic system,choices must be made because resources are ________ and our wants are ________.

Correct AnswerverifiedShow Answer

In economics,the term "capital" refers to

Correct AnswerverifiedShow Answer

Overtime worked by a JCPenney associate is considered ________ and earns ________.

Correct AnswerverifiedShow Answer

What is a normative statement? Give an example.

Correct AnswerverifiedA normative statement is a statement abo...View AnswerShow Answer

Ben Bernanke,Chairman of the Federal Reserve,must choose whether tomorrow he meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

Correct AnswerverifiedShow Answer

-In the above figure,the axis break in the x-axis

Correct AnswerverifiedShow Answer

From 8 P.M.to 10 P.M.,Susan can attend a movie,study,or talk with friends.Suppose that Susan decides to go to the movie but thinks that,if she hadn't,she would otherwise have talked with friends.The opportunity cost of attending the movie is

Correct AnswerverifiedShow Answer

When Susan makes the statement,"The government should spend less money to take care of national parks," she is

Correct AnswerverifiedShow Answer

The value of the x-coordinate of a point in a graph is the length of a line from the point to the

Correct AnswerverifiedShow Answer

-In the above figure,the relationship between x and y is

Correct AnswerverifiedShow Answer

-In the figure above,the value on the y-axis decreases as we move from

Correct AnswerverifiedShow Answer

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Essentially microeconomics studies indiv...
View Answer

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The statement is a positive statement be...
View Answer

In every economic system,choices must be made because resources are and our wants are .

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Overtime worked by a JCPenney associate is considered and earns .

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A normative statement is a statement abo...
View Answer

Correct Answer
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