Question 1

In all cases, positive economics deals with

Accepted Answer

A)  what is.
B)  what should be.
C)  relatively small units in the economy.
D)  aggregates or the entire economy.E) A) and B)
F) B) and C)

Question 2

If variable X falls as a result of variable Y falling, then X and Y are

Accepted Answer

A)  directly related.
B)  negatively related.
C)  inversely related.
D)  independent.E) A) and C)
F) A) and B)

Question 3

Exhibit 1-2
  ​
-Refer to Exhibit 1-2. According to the data provided in this table, what is the slope of the line between points C and D, if these data were graphed with X on the horizontal axis and Y on the vertical axis?

Accepted Answer

A)  -3.00
B)  -0.33
C)  3.00
D)  0.33
E)  none of the aboveF) C) and D)
G) D) and E)

Question 4

Explain what an economist means by the phrase "decisions made at the margin." Cite an example to support your answer.

Accepted Answer

When making a decision at the margin an ...

Question 5

The slope of a (nonlinear) curve varies from one point to another.

Accepted Answer

A) True 
 B)False

Question 6

The physical and mental talents people bring to production processes comprise the resource called

Accepted Answer

A)  entrepreneurship.
B)  natural resources.
C)  capital.
D)  labor.E) A) and D)
F) All of the above

Question 7

If someone gives you a free ticket to the movies, then there is no opportunity cost involved with going to the movies.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a positive economic statement?

Accepted Answer

A)  We should raise the minimum wage in order to provide a decent wage for more people.
B)  Consumers bought fewer cars when the relative price of cars increased.
C)  The budget deficit has been rising in recent years.
D)  Federal government spending ought to be curtailed.
E)  b and cF) None of the above
G) A) and E)

Question 9

Which statement uses the term ceteris paribus correctly?

Accepted Answer

A)  If you exercise regularly, you will be healthier, ceteris paribus.
B)  Blue is to green, ceteris paribus, as red is to purple.
C)  Most people consider Sunday to be the first day of the week, ceteris paribus.
D)  Interest rates usually rise in October, ceteris paribus.
E)  a and dF) B) and E)
G) C) and D)

Question 10

Which of the following is not one of the four broad categories of resources?

Accepted Answer

A)  labor
B)  money
C)  capital
D)  entrepreneurship
E)  landF) B) and D)
G) A) and D)

Question 11

Which of the following statements is false?

Accepted Answer

A)  Capital consists of produced goods that can be used as inputs for further production.
B)  The terms resources, inputs, and factors of production are synonyms.
C)  Labor consists of the physical, but not mental, talents of people who contribute to the production process.
D)  Entrepreneurship is one of the four categories of resources.
E)  The resource category land includes natural resources, such as minerals, forests, water, and unimproved land.F) C) and E)
G) A) and E)

Question 12

When economists speak of scarcity, they are referring to the

Accepted Answer

A)  condition in which society is not employing all its resources in an efficient way.
B)  condition in which people's wants outstrip the limited resources available to satisfy those wants.
C)  economic condition that exists in only very poor countries of the world.
D)  condition in which society produces too many frivolous goods and not enough socially desirable goods.E) A) and B)
F) All of the above

Question 13

Making a decision at the margin is __________ an all-or-nothing decision.

Accepted Answer

A)  consistent with
B)  inconsistent with
C)  the same as making
D)  conditioned upon makingE) C) and D)
F) B) and D)

Question 14

Exhibit 1-2
  ​
-Refer to Exhibit 1-2. Based on the data provided in this table, what type of relationship exists between variables X and Y?

Accepted Answer

A)  inverse
B)  direct
C)  independent
D)  There is no relationship between variables X and Y.E) B) and D)
F) None of the above

Question 15

Economists use the terms resource and input as synonyms.

Accepted Answer

A) True 
 B)False

Question 16

The coordinates of point A are 30 units of X and 26 units of Y. The coordinates of point B are 22 units of X and 30 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between points A and B is

Accepted Answer

A)  + 2.00
B)  + 0.50
C)  + 0.33
D)  - 2.00
E)  - 0.50F) C) and D)
G) None of the above

Question 17

Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world.

Accepted Answer

Economists view the world using a number...

Question 18

The need to make choices is most closely related to the economic concept of

Accepted Answer

A)  opportunity cost.
B)  efficiency.
C)  inefficiency.
D)  utility.
E)  disutility.F) B) and D)
G) B) and E)

Question 19

What does it mean if a person makes a "decision at the margin"?

Accepted Answer

A)  The person compares additional benefits and additional costs when deciding what to do.
B)  The person weighs the good against the bad and then decides what to do.
C)  The person is more likely to say yes than to say no.
D)  The person compares marginal benefits and total costs and then decides what to do.
E)  The person makes a decision based on a condition.F) C) and D)
G) A) and B)

Question 20

The question of how a tax change might impact U.S. economic output is most closely associated with the study of

Accepted Answer

A)  microeconomics.
B)  managerial economics.
C)  macroeconomics.
D)  consumer economics.E) C) and D)
F) None of the above

Exam 1: What Economics Is About

If variable X falls as a result of variable Y falling, then X and Y are

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The slope of a (nonlinear) curve varies from one point to another.

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Which statement uses the term ceteris paribus correctly?

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Exhibit 1-2 ​ -Refer to Exhibit 1-2. According to the data provided in this table, what is the slope of the line between points C and D, if these data were graphed with X on the horizontal axis and Y on the vertical axis?

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Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world.

Correct AnswerverifiedEconomists view the world using a number...View AnswerShow Answer

Making a decision at the margin is __________ an all-or-nothing decision.

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Which of the following is not one of the four broad categories of resources?

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The question of how a tax change might impact U.S. economic output is most closely associated with the study of

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Explain what an economist means by the phrase "decisions made at the margin." Cite an example to support your answer.

Correct AnswerverifiedWhen making a decision at the margin an ...View AnswerShow Answer

Which of the following statements is false?

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If someone gives you a free ticket to the movies, then there is no opportunity cost involved with going to the movies.

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Which of the following is a positive economic statement?

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The physical and mental talents people bring to production processes comprise the resource called

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Economists use the terms resource and input as synonyms.

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The need to make choices is most closely related to the economic concept of

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What does it mean if a person makes a "decision at the margin"?

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The coordinates of point A are 30 units of X and 26 units of Y. The coordinates of point B are 22 units of X and 30 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between points A and B is

Correct AnswerverifiedShow Answer

Exhibit 1-2 ​ -Refer to Exhibit 1-2. Based on the data provided in this table, what type of relationship exists between variables X and Y?

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In all cases, positive economics deals with

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When economists speak of scarcity, they are referring to the

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Exhibit 1-2 -Refer to Exhibit 1-2. According to the data provided in this table, what is the slope of the line between points C and D, if these data were graphed with X on the horizontal axis and Y on the vertical axis?

Correct Answer
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Correct Answer
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Economists view the world using a number...
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Correct Answer
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When making a decision at the margin an ...
View Answer

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Exhibit 1-2 -Refer to Exhibit 1-2. Based on the data provided in this table, what type of relationship exists between variables X and Y?

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Correct Answer
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Correct Answer
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