Question 1

Which of the following is NOT a normative economic statement?
A)Teenagers are responsible for most driving fatalities.
B)People over the age of 75 should not be allowed to drive cars.
C)States should reduce the tax on heating fuel oil during the winter.
D)The price of gasoline is too high.
E)We don't spend enough money on anti-smoking campaigns.

Accepted Answer

A normative economic statement expresses a value judgment about whether a situation is desirable or undesirable, which is not the case for choice A, as it is a factual statement.

Question 2

Which of the following is true?
I. A rational choice is always made in the pursuit of social interest.
Ii. Economics is a social science.
Iii. Economists try to understand how the economic world works by testing positive statements.
A)only i
B)i and ii
C)only ii
D)ii and iii
E)only iii

Accepted Answer

Economics is a social science, and economists use positive statements to test and understand how the economic world works. Rational choices are not always made in pursuit of social interest.

Question 3

The graph shows a
A)positive relationship that becomes less steep.
B)negative relationship that become less steep.
C)negative relationship that is linear.
D)positive relationship that is linear.
E)None of the above answers is correct.

Accepted Answer

The answer of

The graph shows a
A)positive relationship that becomes...

Question 4

When a third string NFL quarterback earns more than a police officer, society answers the_{--------------------} question. A)what B)why C)how D)social interest vs. self-interest E)for whom

Accepted Answer

The "for whom" question addresses the distribution of income and resources in society, determining who receives what share of the economic pie.

Question 5

To make a rational choice, a person
A)adds the total benefits to determine if the total is large enough.
B)adds the total costs to determine if the total is small enough.
C)compares the extra benefits of one more unit to the extra costs of one more unit.
D)adds the total benefits and the total costs and then compares the two totals.
E)takes account of all benefits and all opportunity costs, including both marginal costs and sunk costs.

Accepted Answer

A rational choice involves comparing the marginal benefits and marginal costs of an additional unit to make decisions.

Question 6

Amy can study for an hour or spend that hour sleeping or going out for dinner. If she decides to study for the hour, the opportunity cost of the hour spent studying is
A)definitely going out to dinner because she must eat at some time.
B)definitely going to sleep.
C)sleeping or going out for dinner, whichever she would have preferred the most.
D)sleeping and going out for dinner.
E)studying since this is the choice she opted for.

Accepted Answer

The opportunity cost is the value of the next best alternative that is foregone. In this case, it's the activity Amy would have preferred the most between sleeping or going out for dinner.

Question 7

Which of the following statements is correct?
A)When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related.
B)If two variables are directly related, a graph of the two variables has a negative slope.
C)When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related.
D)The higher the temperature, the more ice cream people consume. Thus the temperature and ice cream consumption are inversely related.
E)None of the above statements are correct.

Accepted Answer

When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related.

Question 8

A steep slope in a time series graph means the variable is
A)very close to its trend point.
B)rising or falling slowly.
C)rising or falling quickly.
D)falling.
E)high.

Accepted Answer

A steep slope in a time series graph indicates that the variable is changing rapidly, either increasing or decreasing quickly.

Question 9

The cost of a one-unit increase in an activity is called the
A)marginal cost.
B)opportunity benefit.
C)margin.
D)rational cost.
E)marginal benefit.

Accepted Answer

The cost of a one-unit increase in an activity is referred to as the marginal cost.

Question 10

Which of the following best defines economics?
A)Economics studies how to choose the best alternative when coping with scarcity.
B)Economics helps you earn as much money as possible.
C)Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.
D)Economics teaches how to limit our wants.
E)Economics analyzes all aspects of human behavior in general.

Accepted Answer

Economics is primarily concerned with how individuals and societies allocate scarce resources to satisfy unlimited wants, making choices about the best alternatives.

Question 11

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

Accepted Answer

A time series graph is specifically designed to show how a variable changes over time, typically using a line graph to connect data points at different time intervals.

Question 12

The question "Should economics majors or sociology majors earn more after they graduate?" is an example of a _{--------------------}question. A)for whom B)where C)why D)how E)what

Accepted Answer

The answer of The question "Should economics majors or sociology...

Question 13

Which of the following is a microeconomic issue?
A)Inflation skyrockets in Russia.
B)The price of gasoline increases in the United States this year.
C)The Brazilian economy experiences rapid economic growth.
D)The U.S. government cuts taxes to combat a recession.
E)The unemployment rate soars in Spain.

Accepted Answer

Microeconomics focuses on individual markets and prices, such as the price of gasoline, rather than broader economic trends like inflation or unemployment rates.

Question 14

Correlation means
A)the same as causation.
B)the values of two variables move in a predictable and related way.
C)holding everything else constant.
D)making statements about how the world should be.
E)after this, therefore because of this.

Accepted Answer

Correlation refers to a statistical relationship between two variables, where changes in one variable are associated with changes in another, but it does not imply causation.

Question 15

Moving rightward along a straight line, the slope of the line
A)always decreases.
B)stays the same.
C)always increases.
D)increases if the line slopes upward to the right.
E)decreases if the line slopes downward to the right.

Accepted Answer

The slope of a straight line is constant, meaning it stays the same regardless of the direction you move along the line.

Question 16

When unskilled teens earn less than college graduates, society answers the_{--------------------} question. A)why B)social interest versus self-interest C)for whom D)what E)how

Accepted Answer

The "for whom" question addresses the distribution of income and resources among different groups in society, such as unskilled teens versus college graduates.

Question 17

Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming
A)all three hamburgers.
B)the third hamburger minus the pleasure from consuming zero hamburgers.
C)just the second hamburger.
D)the two previous hamburgers.
E)just the third hamburger.

Accepted Answer

The marginal benefit refers to the additional satisfaction or pleasure gained from consuming one more unit of a good, in this case, the third hamburger.

Question 18

The figure above shows the relationship between distance sprinted and recovery time. The curve becomes steeper because as the distance sprinted increases,
A)the extra recovery time needed from sprinting another 100 yards increases.
B)the recovery time decreases.
C)the extra recovery time needed from sprinting another 100 yards decreases.
D)the relationship between distance sprinted and recovery time becomes more inverse.
E)the recovery time increases.

Accepted Answer

The answer of 
The figure above shows the relationship between...

Question 19

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?
A)What type of health care will be produced and in what quantity?
B)Why will we offer health care?
C)Must we offer health care?
D)For whom will health care be produced?
E)How will health care be produced?

Accepted Answer

The statement addresses the distribution of health care services, indicating that it is available to everyone, which answers the question of "for whom" the health care will be produced.

Question 20

Opportunity cost is best defined as
A)how much money and time it takes to consume something.
B)the sunk cost of any decision.
C)the total of all other alternatives that are forgone in making a choice.
D)how much money is paid for something.
E)the value of the highest-valued alternative that is forgone in making a choice.

Accepted Answer

Opportunity cost is the value of the next best alternative that is not chosen, representing the benefits that could have been gained by taking that alternative.

Quiz 1: Getting Started

Which of the following is NOT a normative economic statement?

Which of the following is true? I. A rational choice is always made in the pursuit of social interest. Ii. Economics is a social science. Iii. Economists try to understand how the economic world works by testing positive statements.

The graph shows a

When a third string NFL quarterback earns more than a police officer, society answers the-------------------- question.

To make a rational choice, a person

Amy can study for an hour or spend that hour sleeping or going out for dinner. If she decides to study for the hour, the opportunity cost of the hour spent studying is

Which of the following statements is correct?

A steep slope in a time series graph means the variable is

The cost of a one-unit increase in an activity is called the

Which of the following best defines economics?

A time series graph

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

Which of the following is a microeconomic issue?

Correlation means

Moving rightward along a straight line, the slope of the line

When unskilled teens earn less than college graduates, society answers the-------------------- question.

Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming

The figure above shows the relationship between distance sprinted and recovery time. The curve becomes steeper because as the distance sprinted increases,

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

Opportunity cost is best defined as

When a third string NFL quarterback earns more than a police officer, society answers the_{--------------------} question.

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

When unskilled teens earn less than college graduates, society answers the_{--------------------} question.