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A direct relationship is one for which

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d. the dependent and independent variables change in the same direction

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According to the figure below, the slope of the line on the left is ___ while the slope of the line on the right is _____.

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a. -1;-1

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According to the figure above, the shift RIGHT from the solid line to the solid line could have been the result of

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c. a change in a variable unrelated to the price per PC and not shown on the graph

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According to the text, the objective of economics is

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a. to understand why the real world is what it is

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Consider the equation of a straight line, Y=a + bx. If b = +1,which of the following statements is true?

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c. b is the slope

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Each of the following is a factor of production except

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d. the government

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Economic data are typically positive numbers.Because of this, according to the text,

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e. only the upper right of the coordinate system can be used

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Economics has long been known as the "dismal science." Based on your understanding of economics, why do you believe this is true?

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b. Economists recognize that, due to scarcity, every action has a cost

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The attendance at WOSC games is related to the number of games the team has won during the season. Therefore, the attendance at WOSC games is the _____________ variable and the number of games won is the _____________ variable.

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a. dependent, independent

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Joe's lemonade stand sells more lemonade when afternoon temperatures are higher and less when the temperatures are lower. This suggests that

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c. a direct relationship exists between lemonade sales and afternoon temperatures

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Macroeconomics includes the study of

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c. how much output will be produced in the U.S. economy

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Microeconomics is concerned primarily with

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b. individual entities such as firms and households

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Oil found underground in Oklahoma is an example of

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b. land or a natural resource

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"Since a household cannot afford to keep adding indefinitely to its debt, a country cannot afford to do so either." This statement is an example of

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d. the fallacy of composition

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The category of economics that contains statements about "what ought to be" is known as

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b. normative economics

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The heart of the economic problem is to

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d. allocate limited resources among unlimited wants

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The payment for capital is called

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d. interest

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The slope of an inverse relationship

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b. must be negative

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This past year, whenever you wore your college's colors, the football team won. During the last two weeks you have continued to wear the college colors and bet a lot of money on your team, but your college's baseball team lost both games. Your mistaken belief is a result of

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c. association as causation

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When an individual is behaving according to "rational self-interest," this means that the individual

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d. is making choices that provide him or her with the greatest amount of satisfaction possible

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In economics, the concept of opportunity cost is

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b. defined to be the highest-valued alternative that must be forgone when a choice is made

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In the figure above, under utilization of resources is represented by point

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e. E

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In the figure above, if you moved from point C to point A, you would increase or decrease consumer or capital goods?

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e. Increase consumer goods and decrease capital goods

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Point D in the figure above represents

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d. a combination of consumer and capital products that may be obtainable sometime in the future but is impossible to produce now

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Which of the following should not be considered an opportunity cost of attending college?

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a. Money spent on living expenses that are the same whether or not you attend college

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Economists say that making choices involves comparing

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e. marginal benefits and marginal costs

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Refer to the table above. If Sweden is using combination C and it wants 2 more pounds of chocolate, it must give up

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c. 4 plates of caviar

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According to the table above, to produce 6 pounds of chocolate and 14 pounds of caviar

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b. the PPC of Sweden must shift out

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According to the table above Sweden can make

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c. 4 pounds of chocolate and 12 plates of caviar

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The production possibilities curve in the figure above indicates that

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d. it is possible to produce more of one good without sacrificing some of the other good only if production is occurring at a point inside the PPC

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Refer to the figure above. Assume the economy is operating at point C. This indicates that

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d. it is possible for the economy to produce more X and Y with the given resources

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An economy that produces only bread and petroleum jelly, operating on a bowed-out PPC, now discovers a new source of oil. Assume oil is an input only in the production of petroleum jelly. Which of the graphs in the figure above depicts the resulting shift of the PPC?

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c. Figure C

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In the figure below, if the economy only produces corn and planes and there is a 20% drop in the work force, graph____ describes the change in the economy's PPC.

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a. A

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In the above figure, if the economy only produces corn and planes and there is an increase in the effectiveness of pesticides, which graph(s) represents the shift in the PPC

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c. C

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In the above figure, if the economy only produces corn and planes and there is an increase in the education level of the population, graph _____ best illustrates what will happen to the PPC.

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c. C

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If the general education level within a country rises significantly over time, it would be likely that

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d. the country's production possibilities curve will likely shift out

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Which economic concept is the closest parallel to the saying, "There's no free lunch"?

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d. Opportunity costs

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What accounts for specialization?

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b. People specialize where their opportunity costs are lowest

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Bill and Beth are freelance journalists who write both travel and business articles. In a year, Beth can produce 8 business articles or 20 travel articles, while Bill can produce 1 business article or 5 travel articles.

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a. 5 travel articles for Bill and 2.5 travel articles for Beth

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A person has a comparative advantage in producing a good if

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b. that person can produce the good at a lower opportunity cost than anyone else

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