Question 1

Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice,

Accepted Answer

When making a rational choice, you consider the marginal cost and marginal benefit to determine if the benefits outweigh the costs.

Question 2

A positive statement

Accepted Answer

A positive statement is objective and can be tested or verified, meaning it might be right or wrong based on evidence.

Question 3

An independent relationship between two variables is shown in a graph by

Accepted Answer

An independent relationship between two variables is represented by a horizontal or vertical line, indicating that one variable does not change as the other changes.

Question 4

A rational choice is one that

Accepted Answer

A rational choice is one that uses available resources to most effectively satisfy the wants of the person making the choice, considering the costs and benefits.

Question 5

Scarcity exists because

Accepted Answer

Scarcity exists because human wants are unlimited while resources are limited, leading to a situation where not all wants can be satisfied.

Question 6

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

Accepted Answer

Ceteris paribus is a Latin phrase meaning "all other things being equal." In the context of a graph showing the relationship between x and y, it implies that other variables not shown on the graph are held constant to isolate the effect of x on y.

Question 7

Most economic graphs have two lines perpendicular to each other. Where these lines meet is called the

Accepted Answer

The answer of Most economic graphs have two lines perpendicular...

Question 8

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

Comparing all other activities you could undertake involves evaluating the additional benefits and costs of each option, which is making a choice on the margin.

Question 9

When people make rational choices, they

Accepted Answer

Rational choice theory suggests that individuals weigh the costs and benefits of their options to make decisions that maximize their satisfaction or utility, but it does not imply that these decisions are always the best, selfish, emotionless, or socially optimal.

Question 10

Choices that are best for the individuals that make them are choices in pursuit of

Accepted Answer

Choices made in pursuit of self-interest are typically those that individuals believe will best satisfy their personal needs and desires.

Question 11

When a home builder decides to computerize all of its production schedule, it directly answers the _{--------------------}question.

Accepted Answer

The question asks about the purpose of computerizing the production schedule. The answer is "how", which refers to the process or method of computerizing the schedule.

Question 12

The benefit of a one-unit increase in an activity

Accepted Answer

As you do more of an activity, the benefit of an additional unit typically decreases due to the law of diminishing marginal returns.

Question 13

To show how a variable _{--------------------}, we typically use a_{--------------------} .

Accepted Answer

A time series graph is used to show how a variable changes over time.

Question 14

The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line is_{--------------------} the slope of the line between points B and C.

Accepted Answer

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

Question 15

Which of the following is true?
I. A rational choice is made on the margin.
Ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy.
Iii. Economists try to understand how the economic world works by testing normative statements.

Accepted Answer

A rational choice is made on the margin, meaning decisions are made by comparing additional benefits and costs. The other statements are incorrect: microeconomics studies individual and business decisions, while macroeconomics studies national and global economies; economists test positive statements, not normative ones.

Question 16

Which of the following is a microeconomic topic?
i.Gas prices increase after a hurricane hits the gulf coast.
ii.Xavier starts a new business designing web pages.
iii.Abby decides to practice an extra hour of soccer instead of studying.

Accepted Answer

Microeconomics deals with individual and business decisions. All three options involve individual or business-level decisions and changes.

Question 17

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the_{--------------------} question.

Accepted Answer

The decision to use drafting software and computers instead of hiring designers to draw plans by hand addresses the "how" question, which pertains to the methods and processes used in production.

Question 18

The question "Should we produce LCD televisions or computer monitors?" is an example of a_{--------------------}question.

Accepted Answer

The answer of The question "Should we produce LCD televisions...

Question 19

In the above figure, a negative relationship between x and y is shown in Figure

Accepted Answer

The answer of

In the above figure, a negative relationship...

Question 20

In a graph, a straight line has a negative slope if the line

Accepted Answer

A line with a negative slope falls from left to right, indicating a decrease in the y-value as the x-value increases.

Quiz 1: Getting Started