Question 1

To graph a relationship among several variables, we hold all but ________ variable(s) constant and use the ________ assumption.

Accepted Answer

A)  one; scarcity
B)  two; ceteris paribus
C)  three; scarcity
D)  one; ceteris paribus
E)  one; absence of trendF) B) and E)
G) A) and C)

Question 2

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

Accepted Answer

A)  trend in a variable; a general tendency for the variable to rise or fall
B)  relationship between two variables; a cross-section relationship
C)  trends in two variables; unrelated variables
D)  relationship between two variables; a trend in a variable
E)  cross-section relationship; a general tendency for the variables to rise or fallF) None of the above
G) C) and E)

Question 3

As the number of days without rain increases, the amount of wheat grown per acre declines. A graph showing this relationship shows

Accepted Answer

A)  a horizontal line.
B)  a vertical line.
C)  a positive relationship.
D)  a line with a positive slope.
E)  None of the above answers is correct.F) A) and B)
G) All of the above

Question 4

-The graph shows

Accepted Answer

A)  a relationship with a minimum.
B)  a relationship with a maximum.
C)  no relationship.
D)  a relationship that becomes less steep.
E)  a cross-section relationship.F) A) and B)
G) C) and D)

Question 5

A graph that shows the value of an economic variable for different groups in a population at a given time is called a

Accepted Answer

A)  scatter diagram.
B)  times-series graph.
C)  pie chart.
D)  cross-section graph.
E)  fixed-time diagram.F) B) and D)
G) B) and E)

Question 6

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.F) A) and E)
G) B) and C)

Question 7

The minimum point of a U-shaped curve,

Accepted Answer

A)  is a point where the variable is neither increasing nor decreasing.
B)  has a slope equal to zero.
C)  has the maximum slope possible.
D)  Both answers A and B are correct.
E)  Both answers A and C are correct.F) B) and C)
G) D) and E)

Question 8

In examining two variables, we find that as one variable changes, the other changes. These variables are said to be

Accepted Answer

A)  independent.
B)  correlated.
C)  statistics.
D)  significantly related.
E)  casually related.F) A) and E)
G) A) and D)

Question 9

If two variables are unrelated, their graph is

Accepted Answer

A)  either a horizontal or a vertical line.
B)  a downward-sloping line.
C)  an upward-sloping line.
D)  a curved line.
E)  None of the above answers is correct because it is not possible to graph unrelated variables.F) B) and D)
G) A) and E)

Question 10

When analyzing graphically the relationship between more than two variables, which of the following must be used?

Accepted Answer

A)  positive slope assumption
B)  assumption of little change
C)  ceteris paribus
D)  negative slope assumption
E)  the assumption that only relevant factors changeF) D) and E)
G) B) and C)

Question 11

The Latin term "ceteris paribus" means

Accepted Answer

A)  "false unless proven true."
B)  "other things remaining the same."
C)  "after this, therefore because of this."
D)  "what is true of the whole is not necessarily true of the parts."
E)  "obviously true."F) D) and E)
G) C) and E)

Question 12

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.

Accepted Answer

A)  for whom
B)  what
C)  where
D)  how
E)  whyF) All of the above
G) None of the above

Question 13

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

Accepted Answer

The slope equals the change in...

Question 14

A statement that argues that "if taxes on gasoline increase, gasoline consumption will decrease" is an example of what kind of statement?

Accepted Answer

A)  a marginal statement
B)  a macroeconomic statement
C)  a normative statement
D)  a positive statement
E)  a statement that violates rational choiceF) C) and D)
G) A) and C)

Question 15

An incentive is

Accepted Answer

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

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

Question 17

Which of the following statements is correct?

Accepted Answer

A)  The slope of a straight line changes depending where on the line it is calculated.
B)  The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line.
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) B) and E)
G) B) and C)

Question 18

Scarcity results from the fact that

Accepted Answer

A)  people's wants exceed the resources available to satisfy them.
B)  not all goals are desirable.
C)  we cannot answer the major economic questions.
D)  choices made in self-interest rare not always in the social interest.
E)  the population keeps growing.F) A) and B)
G) B) and D)

Question 19

In the diagram below, label the x-axis, the y-axis, and the origin.

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 above ha...

Question 20

List and explain the three fundamental economic questions that must be answered by all economic systems.

Accepted Answer

First, all economic systems must answer ...

Exam 1: Getting Started

The Latin term "ceteris paribus" means

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In the diagram below, label the x-axis, the y-axis, and the origin.

Correct Answerverified The figure above ha...View AnswerShow Answer

A statement that argues that "if taxes on gasoline increase, gasoline consumption will decrease" is an example of what kind of statement?

Correct AnswerverifiedShow Answer

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.

Correct AnswerverifiedShow Answer

If two variables are unrelated, their graph is

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

Correct AnswerverifiedShow Answer

A graph that shows the value of an economic variable for different groups in a population at a given time is called a

Correct AnswerverifiedShow Answer

An incentive is

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When analyzing graphically the relationship between more than two variables, which of the following must be used?

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Which of the following statements is correct?

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In examining two variables, we find that as one variable changes, the other changes. These variables are said to be

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The minimum point of a U-shaped curve,

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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

Which of the following is a positive statement?

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-The graph shows

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To graph a relationship among several variables, we hold all but ________ variable(s) constant and use the ________ assumption.

Correct AnswerverifiedShow Answer

As the number of days without rain increases, the amount of wheat grown per acre declines. A graph showing this relationship shows

Correct AnswerverifiedShow Answer

List and explain the three fundamental economic questions that must be answered by all economic systems.

Correct AnswerverifiedFirst, all economic systems must answer ...View AnswerShow Answer

Scarcity results from the fact that

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

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The figure above ha...
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A time series graph reveals whether there is a , which represents .

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To graph a relationship among several variables, we hold all but variable(s) constant and use the assumption.

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First, all economic systems must answer ...
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The slope equals the change in...
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