Exam 1: Getting Started

A) must always be right.
B) cannot be tested.
C) might be right or wrong.
D) depends on someone's value judgment.
E) cannot be negative.

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A person faces scarcity whenever his or ...

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A) 4
B) 1
C) 3
D) -3
E) 0

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A) scatter diagram.
B) time-series graph.
C) linear graph.
D) cross-section graph.
E) Venn diagram.

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A) the graph of the relationship will be upward sloping.
B) the graph of the relationship will be downward sloping.
C) the slope of the line graphing the relationship will be negative.
D) Both answers A and C are correct.
E) Both answers B and C are correct.

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The statement is a positive statement be...

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A) x-axis divided by the change in the variable measured along the y-axis.
B) y-axis divided by the change in the variable measured along the x-axis.
C) x-axis minus the change in the variable measured along the y-axis.
D) x-axis multiplied by the change in the variable measured along the y-axis.
E) y-axis minus the change in the variable measured along the x-axis.

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Two variables are positively related whe...

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A) Figure A and Figure D
B) Figure B and Figure C
C) Figure C only
D) Figure D only
E) Figure A and Figure B

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A) scarcity.
B) why to produce.
C) macroeconomics.
D) microeconomics.
E) social interest versus self-interest.

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A) 0.75
B) -0.75
C) 1.33
D) -1.33
E) zero

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A) Why has unemployment risen nationwide?
B) Why has economic growth been rapid in China?
C) What is the impact on the quantity of Pepsi purchased if consumers' tastes change in favor of non-carbonated drinks?
D) Why is the average income lower in Africa than in Latin America?
E) Why did overall production increase within the United States last year?

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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.

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A) use the concept of opportunity costs.
B) must use the ceteris paribus assumption.
C) answer the "what" question.
D) answer the "how" question.
E) must use normative statements.

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A) a graph.
B) slope.
C) a curve.
D) a relationship.
E) a trend.

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A) a marginal benefit.
B) an opportunity cost.
C) an incentive.
D) a marginal cost.
E) the margin.

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

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A) if the value of a variable is rising or falling.
B) the value of a variable for different groups in a population.
C) if a relationship exists between two variables.
D) how a variable behaves over time.
E) whether a variable is positively or negatively related to itself.

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