Question 1

Which of the following is a macroeconomic issue?

Accepted Answer

A)   The price of a ticket to Walt Disney World in Orlando is increased.
B)   The National Football League signs a new television contract.
C)   The number of jobs and production in Zimbabwe increase.
D)   The Iowa corn harvest is smaller than normal.
E)   Utilities are required to install more anti-pollution devices.F) B) and C)
G) C) and E)

Question 2

-The figure above shows the relationship between the journey length and the cost of trip per mile.The curve becomes flatter because as the journey length increases,

Accepted Answer

A)   the fall in the cost per mile becomes smaller.
B)   the fall in the cost per mile becomes greater.
C)   the cost per mile decreases.
D)   the cost per mile increases.
E)   the cost per mile remains unchanged.F) All of the above
G) None of the above

Question 3

-The slope of the line shown in the above figure is

Accepted Answer

A)   -1/3.
B)   -5.
C)   -1.
D)   -3.
E)   -10.F) C) and D)
G) A) and D)

Question 4

Which of the following is a normative statement?

Accepted Answer

A)   Flood victims should pay for their own rebuilding.
B)   When the price of kiwi fruit increases, fewer people eat kiwi fruit.
C)   An increase in the supply of computers has caused computer prices to fall.
D)   Recessions lead to increases in the unemployment rate.
E)   Hurricanes strike mainly Florida and North Carolina.F) All of the above
G) None of the above

Question 5

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

Accepted Answer

A)   eat the slice of pizza.
B)   not eat the slice of pizza.
C)   be unable to choose between eating or not eating.
D)   eat half the slice.
E)   More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.F) C) and D)
G) A) and B)

Question 6

As a curve approaches a maximum point,the slope will

Accepted Answer

A)   be positive and then negative after the maximum point.
B)   be negative and then positive after the maximum point.
C)   remain constant on either side of the maximum point.
D)   increase before and after the maximum point.
E)   decrease before and after the maximum point.F) A) and B)
G) D) and E)

Question 7

The cost of a one-unit increase in an activity

Accepted Answer

A)   is called the total one-unit cost.
B)   is called the marginal cost.
C)   decreases as more of the activity is done.
D)   is called the marginal benefit/cost.
E)   is called the unit cost.F) B) and E)
G) B) and D)

Question 8

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)   whyF) A) and B)
G) A) and C)

Question 9

Kevin is re-finishing an antique grandfather clock that he purchased at a flea market for $300.He expects to be able to sell the clock for $450.At the last minute,Kevin discovers that he needs to repair the gears at a cost of $175 to make the clock worth $450 to potential buyers.It turns out that he could also sell the clock now,without completing the additional repairs,for $250.What should Kevin do?

Accepted Answer

A)   He should sell the clock now for $250.
B)   He should keep the clock but not make the repairs since the original $300 is a sunk cost.
C)   He should complete the additional repairs and sell the clock for $450.
D)   He should keep the clock after making the repairs since it is not rational to spend a total of $475 on an item that can only be sold for $450.
E)   Kevin is indifferent between selling the clock as is or selling it after completing the repairs.F) C) and D)
G) A) and E)

Question 10

The question of "How are goods and services produced?" most closely addresses which of the following issues?

Accepted Answer

A)   Should Ford build SUVs or luxury cars?
B)   Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs?
C)   Should contractors build residential housing or shopping malls?
D)   Is income distributed fairly in the United States?
E)   Why are Christmas trees popular only in December?F) B) and E)
G) A) and C)

Question 11

-The figure above shows the price of a DVD player from 1996 to 2000.
a.What type of graph is illustrated above?
b.What is the trend in the price of a DVD player?

Accepted Answer

a.The graph is a time-series graph becau...

Question 12

A time series graph

Accepted Answer

A)   shows how a variable changes over time.
B)   uses bars rather than lines.
C)   shows points in a scatter diagram.
D)   is similar to a cross-section graph because both can show trends over time.
E)   is in the shape of a pie.F) A) and B)
G) A) and C)

Question 13

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or ...

Question 14

In making your decision whether to take a trip during spring break,you compare all the other activities you could undertake.As a result,you

Accepted Answer

A)   are making a choice on the margin.
B)   limit the cost and the benefits you can gain.
C)   are not making a rational choice.
D)   do not face an opportunity cost.
E)   must have made a choice in the social interest.F) None of the above
G) A) and D)

Question 15

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

Accepted Answer

First,all economic systems must answer t...

Question 16

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

Accepted Answer

A)   a movement along the drawn curve.
B)   a shift in the curve.
C)   no impact on the curve because the variable is not measured on either of the axes.
D)   either a shift in the curve or a movement along the curve, but more information is needed to determine which.
E)   None of the above answers is correct.F) C) and D)
G) C) and E)

Question 17

An opportunity cost is

Accepted Answer

A)   the dollar amount that is paid.
B)   anything the decision maker believes costs to be.
C)   the benefits of the highest-valued alternative forgone.
D)   whatever is paid out and cannot be reduced or reversed.
E)   another term for all the sunk costs.F) A) and B)
G) A) and C)

Question 18

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The point is a maximum point.Examine th...

Question 19

Scarcity means that

Accepted Answer

A)   what we can produce with our resources is greater than our material wants.
B)   resources are unlimited.
C)   wants are greater than what we can produce with our resources.
D)   governments must make up for shortages in resources.
E)   choices made in self-interest cannot be the same as those made in the social interest.F) All of the above
G) None of the above

Question 20

-In the above figure,no relationship between x and y is shown in Figure

Accepted Answer

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

Exam 1: Getting Started

The question of "How are goods and services produced?" most closely addresses which of the following issues?

Correct Answer
verified

A time series graph

Correct Answer
verified

Scarcity means that

Correct Answer
verified

An opportunity cost is

Correct Answer
verified

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

Correct Answer
verified

Which of the following is a macroeconomic issue?

Correct Answer
verified

-The slope of the line shown in the above figure is

Correct Answer
verified

-The figure above shows the price of a DVD player from 1996 to 2000. a.What type of graph is illustrated above? b.What is the trend in the price of a DVD player?

Correct Answer
verified
a.The graph is a time-series graph becau...
View Answer

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

Correct Answer
verified

Which of the following is a normative statement?

Correct Answer
verified

Why do economists say that even very rich people face scarcity?

Correct Answer
verified
A person faces scarcity whenever his or ...
View Answer

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Correct Answer
verified
The point is a maximum point.Examine th...
View Answer

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

Correct Answer
verified
First,all economic systems must answer t...
View Answer

The cost of a one-unit increase in an activity

Correct Answer
verified

-The figure above shows the relationship between the journey length and the cost of trip per mile.The curve becomes flatter because as the journey length increases,

Correct Answer
verified

As a curve approaches a maximum point,the slope will

Correct Answer
verified

Correct Answer
verified

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

Correct Answer
verified

-In the above figure,no relationship between x and y is shown in Figure

Correct Answer
verified

In making your decision whether to take a trip during spring break,you compare all the other activities you could undertake.As a result,you

Correct Answer
verified

Exam 1: Getting Started

The question of "How are goods and services produced?" most closely addresses which of the following issues?

Correct AnswerverifiedShow Answer

A time series graph

Correct AnswerverifiedShow Answer

Scarcity means that

Correct AnswerverifiedShow Answer

An opportunity cost is

Correct AnswerverifiedShow Answer

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

Correct AnswerverifiedShow Answer

Which of the following is a macroeconomic issue?

Correct AnswerverifiedShow Answer

-The slope of the line shown in the above figure is

Correct AnswerverifiedShow Answer

-The figure above shows the price of a DVD player from 1996 to 2000. a.What type of graph is illustrated above? b.What is the trend in the price of a DVD player?

Correct Answerverifieda.The graph is a time-series graph becau...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a normative statement?

Correct AnswerverifiedShow Answer

Why do economists say that even very rich people face scarcity?

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

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Correct Answerverified The point is a maximum point.Examine th...View AnswerShow Answer

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

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

The cost of a one-unit increase in an activity

Correct AnswerverifiedShow Answer

-The figure above shows the relationship between the journey length and the cost of trip per mile.The curve becomes flatter because as the journey length increases,

Correct AnswerverifiedShow Answer

As a curve approaches a maximum point,the slope will

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

Correct AnswerverifiedShow Answer

-In the above figure,no relationship between x and y is shown in Figure

Correct AnswerverifiedShow Answer

In making your decision whether to take a trip during spring break,you compare all the other activities you could undertake.As a result,you

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a.The graph is a time-series graph becau...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
verified
A person faces scarcity whenever his or ...
View Answer

Correct Answer
verified
The point is a maximum point.Examine th...
View Answer

Correct Answer
verified
First,all economic systems must answer t...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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