Question 1

-In the above figure, which curve shows a negative relationship between x and y?

Accepted Answer

A)   Only curve A.
B)   Only curve B.
C)   Only curve C.
D)   None of the curves show a negative relationship.E) A) and B)
F) A) and D)

Question 2

To see how variables evolve over time we use

Accepted Answer

A)   a scatter graph.
B)   a cross- section plot.
C)   a time- series graph.
D)   an evolution plot.E) None of the above
F) B) and C)

Question 3

Panasonic sends its HDTV salespeople to training sessions. This is an example of

Accepted Answer

A)   a macroeconomic decision.
B)   scarcity.
C)   entrepreneurship.
D)   a firm investing in workers' human capitalE) All of the above
F) A) and B)

Question 4

The slope of a straight line is 3. When x equals 10, y equals 33. When x equals 11, y equals

Accepted Answer

A)   39.
B)   30.
C)   36.
D)   27.E) A) and B)
F) A) and C)

Question 5

-In the above figure, the curve has a slope that is .

Accepted Answer

A)   positive and becoming smaller in magnitude
B)   positive and becoming larger in magnitude
C)   negative and becoming smaller in magnitude
D)   negative and becoming larger in magnitudeE) All of the above
F) A) and B)

Question 6

The branch of economics that deals with the analysis of the whole economy is called

Accepted Answer

A)   marginal analysis.
B)   metroanalysis.
C)   microeconomics.
D)   macroeconomics.E) A) and C)
F) None of the above

Question 7

-In the above table, the relationship between x and y is and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to .

Accepted Answer

A)   negative; 6
B)   positive; 5
C)   positive; 3
D)   negative; 8E) C) and D)
F) B) and D)

Question 8

Opportunity cost is defined as

Accepted Answer

A)   all the possible alternatives given up.
B)   the highest- valued alternative given up.
C)   the amount of money spent to take part in the activity chosen.
D)   the top two alternatives given up.E) A) and D)
F) A) and C)

Question 9

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Accepted Answer

Positive statements are statements that ...

Question 10

At least 7 out of every 10 economists agree with the following propositions. Which of these propositions is normative?

Accepted Answer

A)   The redistribution of income is a legitimate role for the U.S. government.
B)   Cash payments to welfare recipients make them better off than do transfers- in- kind of equal cash value.
C)   Tariffs and import restrictions make most people worse off.
D)   Rent controls cut the availability of housing.E) B) and D)
F) C) and D)

Question 11

Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is

Accepted Answer

A)   $1.75.
B)   $ .25.
C)   $1.50.
D)   $3.25.E) A) and B)
F) A) and C)

Question 12

Factors of production are grouped into four categories:

Accepted Answer

A)   land, capital, money, entrepreneurship
B)   labor, capital, money, entrepreneurship
C)   land, labor, capital, money
D)   land, labor, capital, entrepreneurshipE) B) and D)
F) C) and D)

Question 13

Positive and normative statements differ in that

Accepted Answer

A)   positive statements can be tested, whereas normative statements cannot.
B)   normative statements can be tested, whereas positive statements cannot.
C)   normative statements never use the word "should."
D)   normative statements depict "what is" and positive statements depict "what ought to be."E) A) and D)
F) A) and B)

Question 14

"As you devote more hours to studying, your GPA increases." A graph of this relationship would show

Accepted Answer

A)   a direct relationship.
B)   a positive relationship.
C)   an inverse relationship.
D)   Both answers A and B are correct.E) A) and B)
F) A) and C)

Question 15

If the change in y = - 4, and the change in x = 2, there is

Accepted Answer

A)   a negative relationship between y and x.
B)   an independent relationship between y and x.
C)   no relationship between y and x.
D)   a positive relationship between y and x.E) B) and C)
F) A) and C)

Question 16

In economics, the term "capital" refers to

Accepted Answer

A)   mineral resources.
B)   buildings and equipment.
C)   consumer goods.
D)   the money in one's pocket.E) A) and D)
F) A) and C)

Question 17

During the next hour John can play basketball, watch television, or read a book. The opportunity cost of reading a book

Accepted Answer

A)   equals how much John enjoys the book.
B)   is how much the book cost when it was purchased.
C)   is the value of playing basketball if John prefers that to watching television.
D)   is the value of playing basketball and the value of watching television.E) A) and C)
F) C) and D)

Question 18

Jon works in an automobile factory. He operates a machine that makes the fenders for automobiles. The machine Jon operates is what type of resource?

Accepted Answer

A)   capital
B)   labor
C)   land
D)   entrepreneurshipE) A) and B)
F) None of the above

Question 19

The economic resource that organizes the use of other economic resources is

Accepted Answer

A)   capital.
B)   labor.
C)   entrepreneurship.
D)   land.E) None of the above
F) A) and B)

Question 20

Which of the following is NOT a factor of production?

Accepted Answer

A)   wilderness areas that have yet to be developed
B)   175 shares of Microsoft stock
C)   a person developing a production schedule for a new product
D)   vans used by a bakery company for deliveriesE) None of the above
F) A) and C)

Exam 1: What Is Economics

Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is

Correct AnswerverifiedShow Answer

To see how variables evolve over time we use

Correct AnswerverifiedShow Answer

-In the above figure, the curve has a slope that is .

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At least 7 out of every 10 economists agree with the following propositions. Which of these propositions is normative?

Correct AnswerverifiedShow Answer

The economic resource that organizes the use of other economic resources is

Correct AnswerverifiedShow Answer

During the next hour John can play basketball, watch television, or read a book. The opportunity cost of reading a book

Correct AnswerverifiedShow Answer

The branch of economics that deals with the analysis of the whole economy is called

Correct AnswerverifiedShow Answer

Panasonic sends its HDTV salespeople to training sessions. This is an example of

Correct AnswerverifiedShow Answer

"As you devote more hours to studying, your GPA increases." A graph of this relationship would show

Correct AnswerverifiedShow Answer

Positive and normative statements differ in that

Correct AnswerverifiedShow Answer

In economics, the term "capital" refers to

Correct AnswerverifiedShow Answer

Factors of production are grouped into four categories:

Correct AnswerverifiedShow Answer

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Correct AnswerverifiedPositive statements are statements that ...View AnswerShow Answer

Opportunity cost is defined as

Correct AnswerverifiedShow Answer

If the change in y = - 4, and the change in x = 2, there is

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-In the above figure, which curve shows a negative relationship between x and y?

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Jon works in an automobile factory. He operates a machine that makes the fenders for automobiles. The machine Jon operates is what type of resource?

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The slope of a straight line is 3. When x equals 10, y equals 33. When x equals 11, y equals

Correct AnswerverifiedShow Answer

Which of the following is NOT a factor of production?

Correct AnswerverifiedShow Answer

-In the above table, the relationship between x and y is and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to .

Correct AnswerverifiedShow Answer

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Positive statements are statements that ...
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