Economics Chapter 1
Which statement uses the term ceteris paribus correctly? - If you exercise regularly, you will
be healthier, ceteris paribus.
Which of the following pairs of variables is most likely to be directly related? - the number of
children in a family and the number of toys the family owns
The purpose of the ceteris paribus assumption is to allow economists to - isolate the
relationship between two variables.
To an economist, the terms factor and output are synonyms. - false
Positive economics is concerned with - cause-effect relationships
In every economy people vie for the economy's rationing device, a process called -
competition
Ceteris paribus means - "all other things constant" or "nothing else changes."
By looking at the different slices of a pie chart, and comparing one slice to another, it is possible to
quickly estimate - relative relationships.
Normative economics is concerned with - both a and b
Refer to Exhibit 1-2. According to the data provided in this table, what is the slope of the line
between points A and B, if these data were graphed with X on the horizontal axis and Y on the
vertical axis? - 3.00
Which of the following statements is false? - Labor consists of the physical, but not mental,
talents of people who contribute to the production process
Which of the following is least likely to be an effect of scarcity? - utility
, Scarcity is defined as the condition in which - wants are infinite and resources finite
"If you hadn't gone to dinner with your friends, you would have stayed home and watched
television." It follows that - watching television is the opportunity cost of having dinner with
your friends.
Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-
variable diagram the result would be ______________ sloping ____________________. - an
upward; (straight) line
Refer to Exhibit 1-3. Based on the data provided in this table, what type of relationship exists
between variables X and Y? - inverse
In general, there is a ______________ relationship between the number of hours spent studying for
a test and the grade earned on the test. - direct
Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be
your chances of winning the Wednesday night state lottery. What kind of a relationship do you most
likely expect between X and Y? - independent
A mandatory seat-belt law ends up raising the number of traffic fatalities if it lowers fatalities per
accident from 0.05 to 0.03 while raising the number of accidents per period from 30,000 to greater
than ___________ accidents per period. - 50,000
A rationing device is a method used to resolve who gets what of available goods and resources. -
True
In a two-variable diagram, there is a straight line which is parallel to the horizontal axis. The slope of
this line is - zero
Efficiency is consistent with - a and b
Price is the only rationing device that can be used in a modern economy. - false
Which statement uses the term ceteris paribus correctly? - If you exercise regularly, you will
be healthier, ceteris paribus.
Which of the following pairs of variables is most likely to be directly related? - the number of
children in a family and the number of toys the family owns
The purpose of the ceteris paribus assumption is to allow economists to - isolate the
relationship between two variables.
To an economist, the terms factor and output are synonyms. - false
Positive economics is concerned with - cause-effect relationships
In every economy people vie for the economy's rationing device, a process called -
competition
Ceteris paribus means - "all other things constant" or "nothing else changes."
By looking at the different slices of a pie chart, and comparing one slice to another, it is possible to
quickly estimate - relative relationships.
Normative economics is concerned with - both a and b
Refer to Exhibit 1-2. According to the data provided in this table, what is the slope of the line
between points A and B, if these data were graphed with X on the horizontal axis and Y on the
vertical axis? - 3.00
Which of the following statements is false? - Labor consists of the physical, but not mental,
talents of people who contribute to the production process
Which of the following is least likely to be an effect of scarcity? - utility
, Scarcity is defined as the condition in which - wants are infinite and resources finite
"If you hadn't gone to dinner with your friends, you would have stayed home and watched
television." It follows that - watching television is the opportunity cost of having dinner with
your friends.
Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-
variable diagram the result would be ______________ sloping ____________________. - an
upward; (straight) line
Refer to Exhibit 1-3. Based on the data provided in this table, what type of relationship exists
between variables X and Y? - inverse
In general, there is a ______________ relationship between the number of hours spent studying for
a test and the grade earned on the test. - direct
Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be
your chances of winning the Wednesday night state lottery. What kind of a relationship do you most
likely expect between X and Y? - independent
A mandatory seat-belt law ends up raising the number of traffic fatalities if it lowers fatalities per
accident from 0.05 to 0.03 while raising the number of accidents per period from 30,000 to greater
than ___________ accidents per period. - 50,000
A rationing device is a method used to resolve who gets what of available goods and resources. -
True
In a two-variable diagram, there is a straight line which is parallel to the horizontal axis. The slope of
this line is - zero
Efficiency is consistent with - a and b
Price is the only rationing device that can be used in a modern economy. - false
