Question 1

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

Accepted Answer

Making a decision at the margin means weighing the additional benefits and additional costs of a decision. This allows individuals to make choices that maximize their overall satisfaction or utility.

Question 2

A line is parallel to the horizontal axis.The slope of the line is

Accepted Answer

A line parallel to the horizontal axis has no rise and only run, which means the change in y-coordinate is zero. Therefore, the slope of the line is zero.

Question 3

Is it possible for mandatory seatbelt laws to increase vehicle fatalities?

Accepted Answer

While wearing seatbelts decreases the number of deaths per accident, if the number of accidents increases by a greater percentage than the decrease in deaths per accident, overall fatalities could still increase. Therefore, it is possible for mandatory seatbelt laws to increase vehicle fatalities.

Question 4

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

Accepted Answer

Pie charts display data as proportions of a whole, so by comparing the different slices, it is possible to quickly estimate the relative relationships between different categories or groups. However, pie charts do not provide information on absolute relationships or the slope of a line or curve.

Question 5

How are changes in opportunity cost predicted to affect behavior?

Accepted Answer

Opportunity cost is the cost of sacrificing one opportunity to pursue another. Therefore, the higher the opportunity cost of doing X (i.e. the greater the cost of sacrificing other opportunities to do X), the less likely X will be done. Conversely, the lower the opportunity cost of doing X (i.e. the lesser the cost of sacrificing other opportunities to do X), the more likely X will be done. Therefore, both statement b and c are true. Therefore, option E is the correct choice.

Question 6

Which of the following is a positive economic statement?

Accepted Answer

Positive economic statements are objective and fact-based, whereas normative statements are subjective and value-based. Choice B, stating a fact about consumer behavior, and choice C, stating a fact about the budget deficit, are both examples of positive economic statements. Choices A and D express what ought to be done, making them normative statements.

Question 7

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

Accepted Answer

Making a decision at the margin involves evaluating the additional benefits and costs of a decision rather than making an all-or-nothing choice.

Question 8

Which of the following statements is false?

Accepted Answer

Positive economics attempts to determine what is, while normative economics addresses what should be. Therefore, option E is false as it states that both positive and normative economics address what should be, which is incorrect.

Question 9

Variables A and B are inversely related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

Accepted Answer

In an inverse relationship, as one variable increases, the other variable decreases, so the line connecting the combinations of A and B in a two-variable diagram would be downward-sloping from left to right.

Question 10

Variables X and Y are independent of each other.If we plot X on the horizontal axis and Y on the vertical axis,the line that connects combinations of X and Y in a two-variable diagram is

Accepted Answer

If X and Y are independent of each other, then the value of X does not affect the value of Y and vice versa. Therefore, the line that connects combinations of X and Y in a two-variable diagram would be a straight line that is parallel to either the horizontal axis (option A) or the vertical axis (option C). Thus, either option A or option C could be the correct answer.

Question 11

Which of the following is least likely to be an effect of scarcity?

Accepted Answer

Utility is not directly affected by scarcity. Utility is a subjective measure of satisfaction or happiness that a consumer derives from consuming a good or service. While scarcity can affect the availability and price of goods and services, it doesn't directly impact the level of utility that consumers derive from consuming them.

Question 12

In general,there is a ______________ relationship between the number of hours spent studying for a test and the grade earned on the test.

Accepted Answer

The relationship between the number of hours spent studying and the grade earned on a test is a direct relationship, meaning that as the number of hours spent studying increases, the grade earned on the test also increases.

Question 13

A line is parallel to the vertical axis.The slope of the line is

Accepted Answer

A line parallel to the vertical axis has an undefined slope, which is represented by an infinite value. This is because the vertical axis has no defined slope, as it runs parallel to the y-axis.

Question 14

Saying "the marginal costs are greater than the marginal benefits" is the same as saying

Accepted Answer

Marginal cost refers to the increase in cost by producing one more unit of a product, while marginal benefit refers to the increase in benefit by consuming one more unit of the product. If the marginal cost is greater than the marginal benefit, it means that the additional cost of producing one more unit is greater than the additional benefit obtained from consuming that unit. Hence, option D is the correct choice.

Question 15

In most societies,dollar price acts as the main rationing device.If dollar price weren't the main rationing device,would there still be a need for some rationing device to take its place?

Accepted Answer

Scarcity exists because resources are limited and demands are unlimited. In the absence of dollar prices, some other rationing device would be necessary to allocate these limited resources to meet the unlimited demands. Therefore, the need for a rationing device would still exist.

Question 16

Variables A and B are directly related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

Accepted Answer

When variables A and B are directly related, they tend to have a positive correlation, meaning as A increases, B also increases. Therefore, the line that connects combinations of A and B in a two-variable diagram would slope upward from left to right.

Question 17

The coordinates of point A are 20 units of X and 36 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

The answer of The coordinates of point A are 20...

Question 18

Which of the following statements is true?

Accepted Answer

The answer of Which of the following statements is true?
...

Question 19

Which of the following is most likely to be an unintended effect of placing safety caps on medicines?

Accepted Answer

Safety caps are intended to prevent children from accessing medicine, but if people leave containers open due to difficulty with the caps, it could inadvertently make it easier for children to access the medicine.

Question 20

Which of the following statements is false?

Accepted Answer

Labor includes both the physical and mental talents of people that contribute to the production process, not just the physical.

Quiz 1: What Economics Is About

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

A line is parallel to the horizontal axis.The slope of the line is

Is it possible for mandatory seatbelt laws to increase vehicle fatalities?

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

How are changes in opportunity cost predicted to affect behavior?

Which of the following is a positive economic statement?

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

Which of the following statements is false?

Variables A and B are inversely related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

Variables X and Y are independent of each other.If we plot X on the horizontal axis and Y on the vertical axis,the line that connects combinations of X and Y in a two-variable diagram is

Which of the following is least likely to be an effect of scarcity?

In general,there is a ______________ relationship between the number of hours spent studying for a test and the grade earned on the test.

A line is parallel to the vertical axis.The slope of the line is

Saying "the marginal costs are greater than the marginal benefits" is the same as saying

In most societies,dollar price acts as the main rationing device.If dollar price weren't the main rationing device,would there still be a need for some rationing device to take its place?

Variables A and B are directly related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

The coordinates of point A are 20 units of X and 36 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

Which of the following statements is true?

Which of the following is most likely to be an unintended effect of placing safety caps on medicines?

Which of the following statements is false?