Question 1

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

Accepted Answer

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

Question 2

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the _ question.

Accepted Answer

A)   "for whom"
B)   "when"
C)   "why"
D)   "how"E) A) and B)
F) B) and D)

Question 3

"It is impossible to represent a three variable relationship in a two- dimensional graph." Is this statement true or false? Explain your answer.

Accepted Answer

The statement is false because it is pos...

Question 4

An autoworker is an example of _ and earns .

Accepted Answer

A)   entrepreneurship; wages.
B)   capital; rent.
C)   labor; wages.
D)   labor; rent.E) A) and B)
F) All of the above

Question 5

Which of the following is a positive statement?

Accepted Answer

A)   Low rents are good because they make apartments more affordable.
B)   Low rents decrease the amount of housing landlords make available for rent.
C)   Owners of apartment buildings ought to be free to charge whatever rent they want.
D)   Housing costs too much.E) A) and B)
F) A) and C)

Question 6

When a firm decides to produce computers using robots instead of people, it is answering the
Question.

Accepted Answer

A)   "scarcity"
B)   "why"
C)   "what"
D)   "how"E) All of the above
F) B) and D)

Question 7

-Graph the data in the table above in the figure. Label the axes.
a) Is the relationship between X and Y positive or negative?
b) What is the slope when X = 4?
c) What is the slope when X = 8?

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The figure labels the axes an...

Question 8

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour. The student's marginal benefit

Accepted Answer

A)   depends on the grade the student earns on the exam.
B)   is greater than the student's marginal cost.
C)   is the benefit the student receives from studying the extra hour.
D)   is the benefit the student receives from studying all 3 hours.E) A) and B)
F) A) and C)

Question 9

Scarcity is

Accepted Answer

A)   when a child wants a $1.00 can of soda and two 50¢ packs of gum and has $2.00 in her pocket.
B)   our inability to satisfy all our wants.
C)   an economic problem only for poor people.
D)   a situation that exists during economic recessions but not during economic booms.E) A) and D)
F) A) and C)

Question 10

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

Accepted Answer

A)   a direct relationship.
B)   a horizontal line.
C)   a positive relationship.
D)   a negative slope.E) A) and D)
F) B) and C)

Question 11

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Accepted Answer

You should disagree. The recent corporat...

Question 12

The slope of a straight line increases as the numbers on the x- axis become larger.

Accepted Answer

A) True 
 B)False

Question 13

You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to best display these data would be a

Accepted Answer

A)   scatter diagram.
B)   cross- section graph.
C)   time- series graph.
D)   multi- variable time- series graph.E) All of the above
F) A) and D)

Question 14

Which of the following is a macroeconomic topic?

Accepted Answer

A)   the reasons for the rise in average prices
B)   whether the army should buy more tanks or more rockets
C)   the reasons for a rise in the price of orange juice
D)   why plumbers earn more than janitorsE) A) and D)
F) A) and C)

Question 15

Which of the following is a positive statement?

Accepted Answer

A)   State lotteries are good methods to use for raising revenues.
B)   An increase in gas prices leads people to carpool more.
C)   Increased prison sentences are the best way to reduce the crime rate.
D)   Inflation is a more serious problem than is deflation.E) C) and D)
F) A) and D)

Question 16

The study of economics

Accepted Answer

A)   recognizes that scarcity does not affect rich nations.
B)   focuses mainly on individual consumers.
C)   arises from the fact that our wants exceed available resources.
D)   deals mainly with microeconomics.E) C) and D)
F) A) and B)

Question 17

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)   variable y reaching its maximum value.
C)   a decrease in the value of variable y.
D)   no change in the value of variable y.E) A) and B)
F) A) and C)

Question 18

-In the above figure, the axis breaks are used

Accepted Answer

A)   to create a misleading graph.
B)   to show that there are no data available for the omitted ranges.
C)   to indicate that there are jumps from the origin, 0, to the first values recorded along the axes.
D)   to indicate that there are not enough data to be included in the graph.E) None of the above
F) A) and B)

Question 19

Explain what entrepreneurship is and why it is considered a factor of production.

Accepted Answer

Entrepreneurship is the resource (the pe...

Question 20

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in...

Exam 1: What Is Economics

An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer.

Correct AnswerverifiedYou should disagree. The recent corporat...View AnswerShow 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

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

Correct AnswerverifiedShow Answer

An autoworker is an example of _ and earns .

Correct AnswerverifiedShow Answer

Scarcity is

Correct AnswerverifiedShow Answer

A student is studying for an exam 2 hours a day and is debating whether to study an extra hour. The student's marginal benefit

Correct AnswerverifiedShow Answer

-In the above figure, the axis breaks are used

Correct AnswerverifiedShow Answer

Explain what entrepreneurship is and why it is considered a factor of production.

Correct AnswerverifiedEntrepreneurship is the resource (the pe...View AnswerShow Answer

When a firm decides to produce computers using robots instead of people, it is answering the Question.

Correct AnswerverifiedShow Answer

You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to best display these data would be a

Correct AnswerverifiedShow Answer

Which of the following is a macroeconomic topic?

Correct AnswerverifiedShow Answer

"It is impossible to represent a three variable relationship in a two- dimensional graph." Is this statement true or false? Explain your answer.

Correct AnswerverifiedThe statement is false because it is pos...View AnswerShow Answer

-Graph the data in the table above in the figure. Label the axes. a) Is the relationship between X and Y positive or negative? b) What is the slope when X = 4? c) What is the slope when X = 8?

Correct Answerverified The figure labels the axes an...View AnswerShow Answer

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the _ question.

Correct AnswerverifiedShow Answer

-What does the slope of the line shown in the above figure equal?

Correct AnswerverifiedThe slope equals the change in...View AnswerShow Answer

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

Correct AnswerverifiedShow Answer

Which of the following is a positive statement?

Correct AnswerverifiedShow Answer

The slope of a straight line increases as the numbers on the x- axis become larger.

Correct AnswerverifiedShow Answer

Which of the following is a positive statement?

Correct AnswerverifiedShow Answer

The study of economics

Correct AnswerverifiedShow Answer

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You should disagree. The recent corporat...
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Entrepreneurship is the resource (the pe...
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Correct Answer
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The statement is false because it is pos...
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Correct Answer
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The figure labels the axes an...
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The slope equals the change in...
View Answer

Correct Answer
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Correct Answer
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