Question 1

All economic questions and problems arise from

Accepted Answer

A)   the fact that society has more than it needs.
B)   turmoil in the stock market.
C)   the unequal distribution of income.
D)   a society's wants exceeding what its scarce resources can produce.
E)   the difference between self-interest and social interest.

Question 2

If the marginal benefit of getting a college degree rises,rational people will

Accepted Answer

A)   attend college in greater numbers.
B)   drop out of college.
C)   not change their behavior.
D)   require that college get easier.
E)   raise the marginal cost of attending college.

Question 3

To graph a relationship that involves more than two variables,we use

Accepted Answer

A)   a positive relationship.
B)   a direct relationship.
C)   a negative relationship.
D)   ceteris paribus.
E)   movement up along one of the lines showing the relationship between x and y.

Question 4

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

Accepted Answer

A)   direct
B)   benefit's
C)   opportunity
D)   explicit
E)   sunk

Question 5

-In the above figure,as the y variable increases,

Accepted Answer

A)   the x variable is constant.
B)   the x variable increases.
C)   the x variable decreases.
D)   the x variable at first increases but then decreases.
E)   the x variable probably changes, but more information is needed to determine if it increases, decreases, or stays the same.

Question 6

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

Accepted Answer

A)   This is a normative statement.
B)   The federal government does not face scarcity.
C)   This topic would be studied in microeconomics.
D)   Social interest must always be more important than self-interest.
E)   Ceteris paribus does not apply to the government.

Question 7

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line equals

Accepted Answer

A)   -5.
B)   -4.
C)   -3.
D)   -1.
E)   -2

Question 8

An independent relationship between two variables is shown in a graph by

Accepted Answer

A)   an upward-sloping line.
B)   a horizontal or a vertical line.
C)   a downward-sloping line.
D)   a steeply sloped line.
E)   any straight line curve.

Question 9

In New State,the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer,be sure to mention the role played by rational choice.

Accepted Answer

Policy makers know that people making ra...

Question 10

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

Accepted Answer

A)   what
B)   how
C)   for whom
D)   where
E)   why

Question 11

A positive statement
I.makes a statement about how the world operates.
II.is a true statement.
III.can be tested against the facts.

Accepted Answer

A)   i and ii
B)   i and iii
C)   ii and iii
D)   i, ii and iii
E)   i only

Question 12

Which of the following is a positive statement?

Accepted Answer

A)   The rich should pay more in taxes.
B)   Everyone should have some knowledge of economics.
C)   Taxes on gasoline should be lower so that gasoline is more affordable to the poor.
D)   If we reduce welfare payments given to the poor, they will find jobs.
E)   Social Security must be reformed.

Question 13

John decides to leave college early and play professional sports.Which of the following economic principles does John use?
i.personal economic policies
ii.marginal cost versus marginal benefit analysis
iii.normative versus positive economics

Accepted Answer

A)   i and ii
B)   i, ii and iii
C)   ii only
D)   i and iii
E)   ii and iii

Question 14

Why do economists use graphs?

Accepted Answer

Graphs help economists,and others,to vis...

Question 15

A choice made by comparing all relevant alternatives systematically and incrementally is

Accepted Answer

A)   an opportunity cost.
B)   a choice on the margin.
C)   a benefit.
D)   a sunk cost.
E)   a choice made in the social interest.

Question 16

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

Accepted Answer

A)   What?
B)   How?
C)   For whom?
D)   Why?
E)   Where?

Question 17

-The slope of the curve at point B

Accepted Answer

A)   is greater than the slope at point A.
B)   is less than the slope at point A.
C)   is equal to the slope at point A.
D)   cannot be compared with the slope at point A.
E)   can be compared with the slope at point A, but more information is needed to determine if the slope is greater than, less than, or equal to the slope at point A.

Question 18

Your economics professor offers 10 points extra credit if you attend a review session before your next exam.This extra credit is an example of

Accepted Answer

A)   a decrease in marginal benefit to attend the review session.
B)   an increase in marginal cost to attend the review session.
C)   a rational choice.
D)   an incentive to attend the review session.
E)   None of the above answers are correct.

Question 19

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Accepted Answer

A)   attending a movie
B)   studying for an economics exam
C)   answering his e-mail
D)   attending a movie, studying for an economics exam, and answering his e-mail
E)   going to the concert because that is what John choose to do.

Question 20

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

Accepted Answer

A person faces scarcity whenever his or ...

Exam 1: Getting Started

A choice made by comparing all relevant alternatives systematically and incrementally is

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Your economics professor offers 10 points extra credit if you attend a review session before your next exam.This extra credit is an example of

Correct AnswerverifiedShow Answer

A positive statement I.makes a statement about how the world operates. II.is a true statement. III.can be tested against the facts.

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-In the above figure,as the y variable increases,

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Which of the following is a positive statement?

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The value of the best thing that a person must give up when making a decision is known as the ________ cost.

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An independent relationship between two variables is shown in a graph by

Correct AnswerverifiedShow Answer

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

Correct AnswerverifiedShow Answer

John decides to leave college early and play professional sports.Which of the following economic principles does John use? i.personal economic policies ii.marginal cost versus marginal benefit analysis iii.normative versus positive economics

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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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To graph a relationship that involves more than two variables,we use

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All economic questions and problems arise from

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In New State,the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer,be sure to mention the role played by rational choice.

Correct AnswerverifiedPolicy makers know that people making ra...View AnswerShow Answer

-The slope of the curve at point B

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Why do economists use graphs?

Correct AnswerverifiedGraphs help economists,and others,to vis...View AnswerShow Answer

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

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-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line equals

Correct AnswerverifiedShow Answer

If the marginal benefit of getting a college degree rises,rational people will

Correct AnswerverifiedShow Answer

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

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

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

Correct AnswerverifiedShow Answer

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Policy makers know that people making ra...
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Correct Answer
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Correct Answer
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Graphs help economists,and others,to vis...
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Correct Answer
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Correct Answer
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Correct Answer
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A person faces scarcity whenever his or ...
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Correct Answer
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