Foundations of Macroeconomics Volume 1, 7th Edition By Robin Bade - Test Bank

Foundations of Macroeconomics Volume 1, 7th Edition By Robin Bade – Test Bank

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Sample Questions Are Posted Below

Chapter 1 Getting Started
1.1 Definition and Questions
1) Scarcity exists because
A) human wants exceed the resources available to satisfy them.
B) some individuals have low income.
C) the costs of production are high.
D) some people make bad economic decisions.
E) people take too much leisure time.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

2) Scarcity
A) is the inability to satisfy all our wants.
B) leads to higher prices.
C) applies only to people living in poverty.
D) is not something that affects very rich people.
E) used to exist everywhere but has been eliminated in advanced economies.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

3) Scarcity requires that we
A) produce efficiently.
B) learn to limit our wants.
C) have the most rapid economic growth possible.
D) have unlimited resources.
E) make choices about what goods and services to produce.
Answer: E
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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4) Scarcity means that
A) what we can produce with our resources is greater than our material wants.
B) resources are unlimited.
C) wants are greater than what we can produce with our resources.
D) governments must make up for shortages in resources.
E) choices made in self-interest cannot be the same as those made in the social interest.
Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Revised
AACSB: Reflective thinking

5) Because human wants are insatiable and unlimited while available resources are limited,
people are said to face the problem of
A) scarcity.
B) why to produce.
C) macroeconomics.
D) microeconomics.
E) social interest versus self-interest.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

6) Which of the following statements best describes the study of economics? Economics studies
how
A) to organize production so that scarcity does not occur.
B) firms make profits.
C) we make choices in the face of scarcity.
D) to create incentives so that scarcity does not exist.
E) businesses reach decisions.
Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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7) Scarcity forces people to
A) choose among available alternatives.
B) cheat and steal.
C) be unwilling to help others.
D) live at a low standard of living.
E) consume as much as they can as quickly as they can.
Answer: A
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

8) Scarcity means we must
A) consume less.
B) produce less.
C) make choices.
D) earn more.
E) work more.
Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

9) What is the reason that all economic issues and problems occur?
A) All nations use some form of money to buy and sell goods and services.
B) Humans are always wasteful and inefficient in production and consumption.
C) Powerful governments are able to control production and consumption.
D) Human wants exceed the resources available to satisfy them.
E) People seek only their own self-interest.
Answer: D
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

10) The study of economics is best described as a study of
A) the factors that influence the stock and bond markets.
B) capitalism.
C) the choices made in producing goods and services.
D) coping with scarcity, and choices made as a result of scarcity in a society.
E) how people earn a living.
Answer: D
Topic: Definition of economics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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11) Which of the following statements best describes the study of economics? Economics studies
how
A) to organize production so that scarcity does not occur.
B) firms make profits.
C) we make choices in the face of scarcity.
D) to create incentives so that scarcity does not exist.
E) businesses reach decisions.
Answer: C
Topic: Definition of economics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

12) Which of the following best defines economics?
A) Economics teaches how to limit our wants.
B) Economics studies how to choose the best alternative when coping with scarcity.
C) Economics helps you earn as much money as possible.
D) Economics analyzes all aspects of human behavior in general.
E) Economics is concerned with prices and quantities of goods and services, both at the
individual level and at the industry level.
Answer: B
Topic: Definition of economics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

13) Economics is the social science that studies
A) the real reasons people buy goods and services.
B) the psychology of individuals and businesses.
C) whether a nation has enough natural resources.
D) how people make choices to cope with scarcity.
E) how choices made in the social interest could eliminate scarcity.
Answer: D
Topic: Definition of economics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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14) Economics is best defined as the social science that studies
A) how a person can get everything he or she wants.
B) the reason money exists.
C) the way to eliminate choices in our decisions.
D) the choices that societies, and the people and institutions that make up societies, make in
dealing with the issue of scarcity.
E) how choices made in the social interest must conflict with choices made in the
self-interest.
Answer: D
Topic: Definition of economics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

15) Microeconomics includes the study of the
A) aggregate effects on the national economy.
B) recessions and inflation in the global economy.
C) choices made by individuals and businesses.
D) reasons why the government changes interest rates.
E) nationwide unemployment rate.
Answer: C
Topic: Microeconomics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

16) The primary focus of microeconomics is
A) to examine the operation of the entire (aggregate) economy.
B) to examine the behavior and operation of the individual units or sectors that make up the
economy.
C) our governmentʹs monetary policy.
D) the levels of employment and inflation.
E) to study how we managed to eliminate scarcity.
Answer: B
Topic: Microeconomics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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17) Which of the following is a microeconomic issue?
A) The price of gasoline increases in the United States this year.
B) The Brazilian economy experiences rapid economic growth.
C) The unemployment rate soars in Spain.
D) Inflation skyrockets in Russia.
E) The U.S. government cuts taxes to combat a recession.
Answer: A
Topic: Microeconomics
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

18) Which of the following is a microeconomic issue?
A) Growth in the U.S. economy slowed.
B) Increased federal government expenditures have lowered the unemployment rate.
C) The inflation rate fell this year.
D) The quantity of wheat grown in the United States increases this year.
E) The U.S. government cuts taxes to combat a recession.
Answer: D
Topic: Microeconomics
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

19) Which of the following is a microeconomic topic?
i. K-Martʹs decision to close stores that are not making a profit
ii. Home Depotʹs choice to hire more full-time employees because its sales increased
iii. Delta Airlines changes its fares.
A) i only
B) ii only
C) i and iii
D) ii and iii
E) i, ii, and iii
Answer: E
Topic: Microeconomics
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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20) Which of the following is a microeconomic topic?
A) Northwest Airlines analyzes the benefits of adding one more flight to Salt Lake City.
B) Unemployment soars as taxes increase.
C) The government leaves interest rates unchanged as the economy improves.
D) Germanyʹs government increases taxes to avoid a budget deficit.
E) Chinese economic growth slows.
Answer: A
Topic: Microeconomics
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

21) 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.
A) i, ii and iii
B) i only
C) ii and iii
D) ii only
E) i and ii
Answer: A
Topic: Microeconomics
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

22) Macroeconomics is the study of
A) the actions of individual consumers.
B) national or global economies.
C) the actions of individual businesses.
D) the government.
E) how ceteris paribus affects causation.
Answer: B
Topic: Macroeconomics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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23) Which of the following BEST describes macroeconomics?
A) It analyzes the aggregate effects on the national economy of the choices made by
individuals, firms, and governments.
B) It studies the choices that individuals and businesses make when coping with scarcity.
C) It examines how the choices that individuals affect governments.
D) It is not a social science because its predictions cannot be tested.
E) Proving causation is never a problem for macroeconomics.
Answer: A
Topic: Macroeconomics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

24) Which of the following is a topic studied in macroeconomics?
A) the pricing decisions in the computer hardware industry
B) the effect on economic growth if the government raises taxes
C) how the wheat industry determines how much wheat to grow
D) the impact of labor unions on wages
E) the impact of higher prices for gasoline on the number of SUVs people buy
Answer: B
Topic: Macroeconomics
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

25) Which of the following is a macroeconomic topic?
A) The federal governmentʹs decision to spend more on environmental protection
B) The county governmentʹs decision to increase the sales tax for your county
C) Why did production and jobs expand slowly in 2011?
D) General Motors decides what prices to set for their new models.
E) The effect of floods in agricultural areas on the price and quantity of wheat
Answer: C
Topic: Macroeconomics
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Revised
AACSB: Reflective thinking

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26) Which of the following is a macroeconomic issue?
A) The price of a ticket to Walt Disney World in Orlando is increased.
B) The National Football League signs a new television contract.
C) The number of jobs and production in Zimbabwe increase.
D) The Iowa corn harvest is smaller than normal.
E) Utilities are required to install more anti-pollution devices.
Answer: C
Topic: Macroeconomics
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

27) Which of the following is a macroeconomic topic?
i. China increases interest rates to slow its economic growth.
ii. Congress lowers tax rates to try and lower the unemployment rate.
iii. Nissan decides to produce more electric Leaf models and fewer Altima sedans.
A) i and ii
B) i, ii and iii
C) iii only
D) i and iii
E) ii and iii
Answer: A
Topic: Macroeconomics
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

28) When you make the decision to spend your time attending class, which economic question are
you answering?
A) What?
B) How?
C) For whom?
D) Why?
E) Is this in the social interest?
Answer: A
Topic: Economic questions, what
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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29) Of the three major economic questions, which of the following is the best example of a ʺWhat?ʺ
question?
A) Should automobiles be produced using workers or robots?
B) Should higher-income or lower-income people buy SUVs?
C) Should we make faster microprocessors or pest-resistant corn?
D) Should migrant workers or domestic workers be used to pick grapes?
E) What should doctors be paid?
Answer: C
Topic: Economic questions, what
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

30) When Ford decides to increase production of hybrid cars, it directly answers the ________
question.
A) what
B) how
C) for whom
D) where
E) why
Answer: A
Topic: Economic questions, what
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

31) When Delta decides to quit flying to Lithuania, it directly answers the ________ question.
A) what
B) why
C) for whom
D) how
E) when
Answer: A
Topic: Economic questions, what
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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32) The question of ʺWhat goods and services get produced?ʺ most closely relates to which of the
following issues?
A) the distribution of goods and services in the economy
B) producing goods and services in the least costly manner
C) building a missile defense system, or putting a computer in every elementary school
classroom
D) obtaining specialized training to increase oneʹs income
E) taxing high income workers to give payments to poor households
Answer: C
Topic: Economic questions, what
Skill: Level 3: Using models
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

33) When a home builder decides to computerize all of its production schedules, it directly
answers the ________ question.
A) for whom
B) what
C) where
D) how
E) why
Answer: D
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

34) When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly answers
the ________ question.
A) what
B) how
C) for whom
D) where
E) when
Answer: B
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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35) When the power company decides to use manpower to bury its lines, it directly answers the
________ question.
A) what
B) for whom
C) how
D) why
E) when
Answer: C
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

36) The question of ʺHow are goods and services produced?ʺ most closely addresses which of the
following issues?
A) Should Ford build SUVs or luxury cars?
B) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to
produce SUVs?
C) Should contractors build residential housing or shopping malls?
D) Is income distributed fairly in the United States?
E) Why are Christmas trees popular only in December?
Answer: B
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Revised
AACSB: Reflective thinking

37) Of the three major economic questions, which of the following is the best example of a ʺHow?ʺ
question?
A) Should we produce more heavy fleece coats?
B) Should we collect tolls on turnpikes using human toll collectors or mechanized toll
machines?
C) Should we build log homes or build factories from bricks?
D) Should we spend more on health care?
E) Should we eat more oatmeal?
Answer: B
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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38) Which economic question depends on the incomes that people earn and the prices they pay for
goods and services?
A) What?
B) How?
C) For whom?
D) Why?
E) Where?
Answer: C
Topic: Economic questions, for whom
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

39) When the federal government decides to pay senators more than it pays soldiers, it answers
the ________ question.
A) why
B) how
C) for whom
D) what
E) where
Answer: C
Topic: Economic questions, for whom
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

40) When a third string NFL quarterback earns more than a police officer, society answers the
________ question.
A) for whom
B) what
C) how
D) why
E) social interest vs. self-interest
Answer: A
Topic: Economic questions, for whom
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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41) When unskilled teens earn less than college graduates, society answers the ________ question.
A) how
B) what
C) for whom
D) why
E) social interest versus self-interest
Answer: C
Topic: Economic questions, for whom
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

42) Canada has nationalized health care, so that everyone, regardless of their ability to pay, has
some access to health care. Based on this observation, Canada has decided that ʺeveryone,
regardless of their ability to payʺ is the answer to what microeconomic question?
A) What type of health care will be produced and in what quantity?
B) How will health care be produced?
C) For whom will health care be produced?
D) Why will we offer health care?
E) Must we offer health care?
Answer: C
Topic: Economic questions, for whom
Skill: Level 3: Using models
Section: Checkpoint 1.1
Status: Old
AACSB: Analytical thinking

43) Choices that are best for the individuals that make them are choices in pursuit of
A) the social interest.
B) efficiency.
C) incentives.
D) self-interest.
E) equity.
Answer: D
Topic: Self interest
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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44) Self interest
A) reflects choices that are best for society as a whole.
B) reflects choices that are best for the individual who makes them.
C) has nothing to do with determining what goods are produced.
D) occurs only when wants exceed available resources.
E) cannot be used to determine how goods are produced.
Answer: B
Topic: Self interest
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

45) Choices that are best for the society as a whole are choices in pursuit of
A) answering the ʺhowʺ question.
B) the social interest.
C) self-interest.
D) incentives.
E) answering the ʺfor whomʺ question.
Answer: B
Topic: Social interest
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

46) The characteristic from which all economic problems arise is
A) political decisions.
B) providing a minimal standard of living for every person.
C) how to make a profit.
D) hunger.
E) scarcity.
Answer: E
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

47) All economic questions and problems arise from
A) the fact that society has more than it needs.
B) turmoil in the stock market.
C) the unequal distribution of income.
D) a societyʹs wants exceeding what its scarce resources can produce.
E) the difference between self-interest and social interest.
Answer: D
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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48) Scarcity results from the fact that
A) peopleʹs wants exceed the resources available to satisfy them.
B) not all goals are desirable.
C) we cannot answer the major economic questions.
D) choices made in self-interest are not always in the social interest.
E) the population keeps growing.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Revised
AACSB: Reflective thinking

49) To economists, scarcity means that
A) limited wants cannot be satisfied by the unlimited resources.
B) a person looking for work is not able to find work.
C) the number of people without jobs rises when economic times are bad.
D) there can never be answers to the what, how or for whom questions.
E) unlimited wants cannot be satisfied by the limited resources.
Answer: E
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

50) Which of the following statements is true regarding scarcity?
A) Scarcity affects poorer countries only.
B) An economy experiences scarcity only when the incomes of its citizens decline.
C) Poor people experience scarcity more often than do rich people.
D) All citizens in a wealthy economy experience scarcity.
E) Scarcity could be overcome if people would make all choices in the social interest.
Answer: D
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

51) People must make choices because
A) most people enjoy shopping.
B) of scarcity.
C) there are many goods available.
D) the question ʺWhat goods and services are produced?ʺ is not adequately answered.
E) making choices is in the social interest.
Answer: B
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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52) Which of the following is a microeconomic issue?
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 consumersʹ 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?
Answer: C
Topic: Microeconomics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

53) Microeconomics includes the study of
A) how countries decide to fund their budget deficits.
B) the choices that individuals and businesses make.
C) how a nation promotes economic growth.
D) the effect on the national economy of the choices that individuals make.
E) the overall amount of production within the economy.
Answer: B
Topic: Microeconomics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

54) The question ʺShould we produce LCD televisions or computer monitors?ʺ is an example of a
________ question.
A) what
B) how
C) for whom
D) where
E) why
Answer: A
Topic: Economic questions, what
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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55) When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the
________ question.
A) for whom
B) how
C) what
D) why
E) scarcity
Answer: C
Topic: Economic questions, what
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

56) Whether a company produces fishing rods mostly by hand or using high -tech machinery is a
question of
A) ʺFor whom will goods be produced?ʺ
B) ʺWhen will the goods be produced?ʺ
C) ʺWhere will the goods be produced?ʺ
D) ʺHow will the goods be produced?ʺ
E) ʺWhy will the goods be produced?ʺ
Answer: D
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

57) 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.
A) how
B) what
C) for whom
D) opportunity cost
E) why
Answer: A
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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58) The question ʺShould we produce houses using bricks or wood?ʺ is an example of a ________
question.
A) what
B) how
C) for whom
D) where
E) why
Answer: B
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

59) The question ʺShould economics majors or sociology majors earn more after they graduate?ʺ is
an example of a ________ question.
A) what
B) how
C) for whom
D) where
E) why
Answer: C
Topic: Economic questions, for whom
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

60) If a decision is made and it is the best choice for society, the decision is said to be
A) a valid economic choice.
B) made in self-interest.
C) made in social interest.
D) consistent with scarcity.
E) a want-maximizing choice.
Answer: C
Topic: Social interest
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking

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1.2 The Economic Way of Thinking
1) Rational choice
A) is a choice that uses the available resources to best achieve the objective of the person
making the choice.
B) is always efficient.
C) is what you must give up to get what you want.
D) is made by comparing different incentives.
E) provides the answer to only the ʺhowʺ question.
Answer: A
Topic: Rational choice
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

2) A rational choice is one that
A) always turns out for the best for the decision maker.
B) creates no costs for the decision maker.
C) must be made with perfect information.
D) uses the available resources to most effectively satisfy the wants of the person making
the choice.
E) is made in the social interest rather than the self-interest.
Answer: D
Topic: Rational choice
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

3) What is NOT true about rational choice?
A) It can result in different decisions for different individuals.
B) It involves comparing costs and benefits.
C) It might turn out not to have been the best choice after the event.
D) It is a choice that uses the available resources to best achieve the objective of the person
making the choice.
E) It is the same for all individuals.
Answer: E
Topic: Rational choice
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

Page 20
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4) In economics, cost is measured as ________, and benefit is measured as ________.
A) what you must give up to get something; what you are willing to give up to get it
B) what you are willing to give up to get it; what you must give up to get something
C) the amount of money that you pay for something; the amount of money that someone
else is willing to pay you
D) what you are willing to pay on the margin; what the government pays you when you are
unemployed or retired
E) the amount of money that you pay on the margin; the amount of money that you receive
on the margin
Answer: A
Topic: Benefits and costs
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

5) An opportunity cost is
A) the dollar amount that is paid.
B) anything the decision maker believes costs to be.
C) the benefits of the highest-valued alternative forgone.
D) whatever is paid out and cannot be reduced or reversed.
E) another term for all the sunk costs.
Answer: C
Topic: Opportunity cost
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

6) Economists measure opportunity cost
A) only when it is on the margin.
B) as the best thing given up.
C) as the sum of all forgone opportunities.
D) as the same as marginal benefit.
E) as equal to the sum of all the sunk costs.
Answer: B
Topic: Opportunity cost
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

Page 21
Copyright © 2015 Pearson Education, Inc.

7) The opportunity cost of a decision is measured in terms of
A) time.
B) the price of the alternative we choose.
C) the next best thing given up.
D) the price of a new opportunity that arises.
E) sunk cost.
Answer: C
Topic: Opportunity cost
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

8) You have chosen to take a trip during spring break. If you had not gone, you would either
have worked at a temporary job or studied for exams. The opportunity cost of your trip is
A) the wages you would have earned from working.
B) the lower grade earned by not studying.
C) the wages you would have earned from working and the lower grade earned by not
studying.
D) the value of the trip.
E) We cannot determine what the opportunity cost is without knowing which alternative,
working or studying, you would have preferred.
Answer: E
Topic: Opportunity cost
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

9) If Jessie studies economics for two hours instead of going to the movies with her friends, then
A) the benefit of studying is the missed movie.
B) the opportunity cost of studying is the missed movie.
C) Jesse definitely is making a rational choice.
D) Jessie is ignoring a sunk cost.
E) Jessie is not responding to any incentives.
Answer: B
Topic: Making rational choices
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

10) The value of the best thing that a person must give up when making a decision is known as
the ________ cost.
A) direct
B) benefit
C) opportunity
D) explicit
E) sunk
Answer: C
Topic: Opportunity cost
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

11) Ali decides to attend the one-hour review session for microeconomics instead of working at
his job. His job pays him $10 per hour. Aliʹs opportunity cost of attending the review session is
A) the $10 he could have earned at his job.
B) the value of the session minus the $10 he could have earned at his job.
C) nothing, because the review session does not cost anything.
D) equal to the benefit he gets from the review session.
E) the one-hour review session.
Answer: A
Topic: Opportunity cost
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Analytical thinking

12) Suppose that, instead of taking this test, you could either have worked and earned income or
partied and had a pleasurable time. Your opportunity cost of taking the test is the
A) forgone work.
B) forgone party.
C) forgone working and partying.
D) forgone working or partying, depending on which was your next best choice.
E) test because you are taking it.
Answer: D
Topic: Opportunity cost
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

13) The benefit from a good or service that you purchase is measured by
A) the dollar amount that is paid for the good or service.
B) the dollar amount you can get by selling the good or service.
C) what you are willing to give up to obtain the good or service.
D) how strong the incentives were that lead to buying the good or service.
E) None of the above answers is correct because there is no way to measure the benefit you
receive from purchasing a good or service.
Answer: C
Topic: Benefit
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

14) Suppose you take a trip during spring break. To determine the benefit of taking the trip, you
A) calculate the opportunity cost of the trip.
B) measure what you are willing to give up to take the trip.
C) determine the sunk cost of taking the trip.
D) calculate the value of the next best alternative foregone.
E) must measure what the trip is worth to you and then subtract the cost of the trip.
Answer: B
Topic: Benefit
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

15) The cost of a one-unit increase in an activity is called the
A) opportunity benefit.
B) rational cost.
C) marginal cost.
D) marginal benefit.
E) margin.
Answer: C
Topic: Marginal cost
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

16) The opportunity cost of a one-unit increase in an activity
A) is greater than the marginal benefit.
B) is called rational cost.
C) decreases as you do more of it.
D) is called marginal cost.
E) is measured by what the person is willing to give up to get one more unit of the activity.
Answer: D
Topic: Marginal cost
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

17) Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk
driving. This successful campaign ________ of drunk driving.
A) increased the marginal benefit
B) decreased the marginal benefit
C) increased the marginal cost
D) decreased the marginal cost
E) had no effect on the marginal cost or marginal benefit but did affect the total benefit
Answer: C
Topic: Marginal cost
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

18) The marginal cost of an activity ________ as you do more of it.
A) increases
B) decreases
C) doesnʹt change
D) changes only if the marginal benefit of the activity does not change
E) changes only if the marginal benefit of the activity changes
Answer: A
Topic: Marginal cost
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

19) A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting
an F in the course. The professor has
A) increased the marginal cost of cheating.
B) decreased the marginal benefit of cheating.
C) made all the students act in the social interest.
D) recognized that students donʹt respond to incentives.
E) recognized that students donʹt make rational choices.
Answer: A
Topic: Marginal cost
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

20) The benefit of a one-unit increase in an activity
A) is called marginal cost.
B) is always greater than the opportunity cost of that activity.
C) decreases as you do more of it.
D) is measured by what you must give up.
E) is called rational-choice benefit.
Answer: C
Topic: Marginal benefit
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

21) Huey has eaten two hamburgers and is considering a third. The marginal benefit in his
decision is the pleasure from consuming
A) the two previous hamburgers.
B) all three hamburgers.
C) just the third hamburger.
D) just the second hamburger.
E) the third hamburger minus the pleasure from consuming zero hamburgers.
Answer: C
Topic: Marginal benefit
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Analytical thinking

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Copyright © 2015 Pearson Education, Inc.

22) What typically happens to benefits as the amount of an activity is increased?
A) Total benefits remain constant.
B) Marginal benefit increases.
C) Marginal benefit remains constant.
D) Marginal benefit decreases.
E) The marginal benefit changes only if the marginal cost changes.
Answer: D
Topic: Marginal benefit
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

23) Suppose you eat two hamburgers for lunch. The marginal benefit of the first burger is
________ of the second burger.
A) larger than the marginal benefit
B) smaller than the marginal benefit
C) equal to the marginal benefit
D) not related to the marginal benefit
E) equal to the marginal cost and the marginal benefit
Answer: A
Topic: Marginal benefit
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Analytical thinking

24) A choice made by comparing all relevant alternatives systematically and incrementally is
A) an opportunity cost.
B) a choice on the margin.
C) a benefit.
D) a sunk cost.
E) a choice made in the social interest.
Answer: B
Topic: On the margin
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

25) Making choices on the margin means
A) scribbling on the edges of your notebook paper.
B) comparing all relevant alternatives systematically and incrementally.
C) making a decision based on emotions.
D) making decisions in the largest possible increments.
E) taking account of all marginal benefits, all opportunity costs, and all sunk costs.
Answer: B
Topic: On the margin
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

26) Decision making on the margin involves
A) comparing the marginal cost and marginal benefits when making a decision.
B) comparing the total cost and the total benefit when making a decision.
C) eliminating the additional cost when making a decision.
D) determining the total benefits of a decision.
E) comparing the benefits from the social interest to the benefits from the personʹs
self-interest.
Answer: A
Topic: On the margin
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

27) 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
A) are making a choice on the margin.
B) limit the cost and the benefits you can gain.
C) are not making a rational choice.
D) do not face an opportunity cost.
E) must have made a choice in the social interest.
Answer: A
Topic: On the margin
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

Page 28
Copyright © 2015 Pearson Education, Inc.

28) To make a rational choice, a person
A) compares the extra benefits of one more unit to the extra costs of one more unit.
B) adds the total benefits and the total costs and then compares the two totals.
C) adds the total benefits to determine if the total is large enough.
D) adds the total costs to determine if the total is small enough.
E) takes account of all benefits and all opportunity costs, including both marginal costs and
sunk costs.
Answer: A
Topic: Making rational choices
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

29) In order to determine whether to major in economics, a rational individual compares the
________ of the decision.
A) marginal benefit and marginal cost
B) opportunity cost and the sunk cost
C) positive benefits and normative costs
D) normative benefits and positive costs
E) self-interest and social-interest
Answer: A
Topic: Making rational choices
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

30) In order to make a rational choice, people must
A) only know what they want.
B) be able to afford the choice decided upon.
C) decide quickly without wasting time.
D) compare marginal costs and marginal benefits.
E) determine what is in the social interest.
Answer: D
Topic: Making rational choices
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

Page 29
Copyright © 2015 Pearson Education, Inc.

31) Instead of studying for an additional two hours for the economics final, Leann decides to
watch a movie. Leann is making
A) a decision that does not involve an opportunity cost.
B) a rational decision if her marginal cost from the movie is greater than her marginal
benefit.
C) a rational decision if her marginal benefit from the movie is greater than her marginal
cost.
D) an irrational decision because studying is more important than watching a movie.
E) a decision that is not on the margin because she will see the entire movie.
Answer: C
Topic: Making rational choices
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

32) When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by
comparing the
A) benefits of the candy bars to the desires he had for the candy bars.
B) marginal benefits of the candy bars to the marginal costs of the candy bars.
C) opportunity costs of the candy bars to the scarcity of the candy bars.
D) benefits of the candy bars to the scarcity candy bars.
E) self-interest to the social interest.
Answer: B
Topic: Making rational choices
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

33) As part of its proposal to win the 2012 Olympics, London developed a carbon offset plan to
reduce the Gamesʹ impact on the environment. In 2011, the organizers decided to drop this
plan to reduce emissions. We can conclude that
A) the marginal cost of reducing emissions exceeded the marginal benefits of reducing
emissions.
B) the organizers are not making a rational decision.
C) the organizers are ignoring a sunk cost.
D) there are no incentives to reduce carbon emissions.
E) it is difficult to calculate the cost of reducing emissions.
Answer: A
Topic: Making rational choices
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

Page 30
Copyright © 2015 Pearson Education, Inc.

34) Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to
take time off from work. Adam still decides to go skiing.
A) His decision is rational if Adamʹs marginal benefit of spending a day skiing is greater
than his marginal cost.
B) The $80 price of skiing is not an opportunity cost and so did not affect Adamʹs decision.
C) He loses a total of $120 per day, so his decision is irrational.
D) Adamʹs lost $40 per day in wages is not an opportunity cost and so did not affect his
decision.
E) Adam is definitely making a decision that is in the social interest.
Answer: A
Topic: Making rational choices
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

35) The decision to go to graduate school is a rational one for a college student if the
A) cost is not too great.
B) marginal cost exceeds the marginal benefit of graduate school.
C) marginal benefit of graduate school exceeds the marginal cost.
D) opportunity cost of graduate school equals zero.
E) student carefully compared the social benefits of this decision.
Answer: C
Topic: Making rational choices
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

36) An incentive is
A) an inducement to take a particular action.
B) the marginal cost of some course of action.
C) the marginal benefit of some course of action.
D) the net gain of some course of action.
E) a constraint that society imposes on those who make self-interested choices.
Answer: A
Topic: Incentives
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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37) An incentive is
A) a reward or a penalty that encourages or discourages an action.
B) when people make rational choices by comparing costs and benefits.
C) what you must give up to get something.
D) a choice is made on the margin.
E) a good or service that satisfies wants.
Answer: A
Topic: Incentives
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

38) A change in a marginal benefit or cost will
A) increase consumption.
B) decrease production.
C) cause an individual to make a rational choice.
D) increase sunk costs.
E) change incentives.
Answer: E
Topic: Incentives
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

39) Proponents of cuts in income tax rates argue that when income tax rates are cut, workers have
an incentive to increase their work hours. This argument is based on the assumption that
A) workers are irrational.
B) workers make decisions based on the marginal benefit of each hour worked compared to
the marginal cost of work.
C) the opportunity cost of working is negative.
D) the marginal cost of each additional work hour is not important to most workers.
E) workers make decisions based on the social interest.
Answer: B
Topic: Incentives
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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40) Your economics professor offers 10 points extra credit if you attend a review session before
your next exam. This extra credit is an example of
A) a decrease in marginal benefit to attend the review session.
B) an increase in marginal cost to attend the review session.
C) a rational choice.
D) an incentive to attend the review session.
E) None of the above answers is correct.
Answer: D
Topic: Incentives
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

41) If the marginal benefit of getting a college degree rises, rational people will
A) attend college in greater numbers.
B) drop out of college.
C) not change their behavior.
D) require that college get easier.
E) raise the marginal cost of attending college.
Answer: A
Topic: Incentives
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

42) Correlation means
A) ʺafter this, therefore because of this.ʺ
B) other things remaining the same.
C) a natural experiment has been conducted.
D) the tendency for the values of two variables to move in a predictable and related way.
E) ʺon the margin.ʺ
Answer: D
Topic: Correlation
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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43) Correlation means
A) holding everything else constant.
B) after this, therefore because of this.
C) the values of two variables move in a predictable and related way.
D) making statements about how the world should be.
E) the same as causation.
Answer: C
Topic: Correlation
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

44) In examining two variables, we find that as one variable changes, the other changes. These
variables are said to be
A) independent.
B) correlated.
C) statistics.
D) significantly related.
E) casually related.
Answer: B
Topic: Correlation
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

45) When economists use the term ʺcorrelation,ʺ they are referring to
A) cause and effect relationships between variables.
B) how two variables move together in a predictable way.
C) positive economics.
D) normative economics.
E) economic policy.
Answer: B
Topic: Correlation
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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46) The tendency for the values of two variables to move in a predictable and related way is
known as
A) a natural experiment.
B) a normative relationship.
C) an economic model.
D) correlation.
E) a policy relationship.
Answer: D
Topic: Correlation
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

47) A positive statement
i. makes a statement about how the world operates.
ii. is a true statement.
iii. can be tested against the facts.
A) i and ii
B) i and iii
C) ii and iii
D) i, ii and iii
E) i only
Answer: B
Topic: Positive statements
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

48) Which of the following is a positive statement?
A) An increase in college tuition is not fair to students.
B) A recession leads to higher enrollments at universities.
C) University bookstore prices are too high.
D) Parking tickets on campus impose an excessive fee.
E) The school needs more parking for students.
Answer: B
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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49) The statement that ʺincreases in the tax on gasoline increase the price of gasolineʺ is an
example of a
A) normative statement.
B) positive statement.
C) macroeconomic statement.
D) rational-decision statement.
E) marginal statement.
Answer: B
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

50) ʺLower ticket prices would lead to more people attending ballgames.ʺ This statement is a
A) statement assessing the social interest versus the private interest.
B) normative statement.
C) positive statement.
D) macroeconomic statement.
E) statement that confuses marginal cost and sunk cost.
Answer: C
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

51) A statement that argues that ʺif taxes on gasoline increase, gasoline consumption will
decreaseʺ is an example of what kind of statement?
A) a marginal statement
B) a macroeconomic statement
C) a normative statement
D) a positive statement
E) a statement that violates rational choice
Answer: D
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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52) Which of the following statements is a positive statement?
A) Our country must increase military spending.
B) There should be a computer in every elementary school classroom.
C) We need to spend less on luxury items for the wealthy, and more on necessities for the
less fortunate.
D) Online shopping increased by 50 percent this Christmas season.
E) Too many people are unemployed.
Answer: D
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

53) Which of the following is an example of a positive economic statement?
A) Voter ID laws should be strictly enforced in all states.
B) Illegal immigration is the biggest threat to national security that we face today.
C) Medicare recipients should only be allowed to visit a doctor for non-emergency reasons
on Mondays, Wednesdays, and Fridays.
D) The death penalty is a strong deterrent to violent criminal activity.
E) The Affordable Care Act should be repealed.
Answer: D
Topic: Positive and normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: New
AACSB: Reflective thinking

54) Increasing income tax rates will solve the ʺSocial Security time bomb issueʺ is an example of
A) business economic policy.
B) a positive economic statement.
C) marginal cost exceeding marginal benefit.
D) answering the ʺhowʺ question.
E) globalization.
Answer: B
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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55) Which of the following is a positive statement?
A) The rich should pay more in taxes.
B) Everyone should have some knowledge of economics.
C) Taxes on gasoline should be lower so that gasoline is more affordable to the poor.
D) If we reduce welfare payments given to the poor, they will find jobs.
E) Social Security must be reformed.
Answer: D
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

56) Normative statements
i. describe how the world is.
ii. describe how the world ought to be.
iii. depend on peopleʹs values and cannot be tested.
A) i only.
B) ii only.
C) iii only.

D) ii and iii.

E) i and iii.

Answer: D
Topic: Normative statements
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

57) A normative statement
A) depends on someoneʹs values.
B) cannot use the word ʺshould.ʺ
C) says what is currently believed about the way the world operates.
D) must be tested to determine if it is correct.
E) can be tested to determine if it is correct.
Answer: A
Topic: Normative statements
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

58) The important characteristic of normative statements is that they
A) explain what really exists.
B) are based on somebodyʹs values and cannot be tested.
C) explain what normally happens in the real world.
D) help guide us to what will normally occur if some economic variable changes its value.
E) do not use the ceteris paribus assumption.
Answer: B
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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59) A normative statement
i. can be tested as to whether it is true or false.
ii. is considered negative.
iii. depends on a personʹs values.
A) i only
B) iii only
C) i and iii
D) ii and iii
E) i, ii, and iii
Answer: B
Topic: Normative statements
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

60) Which of the following is a normative statement?
A) Flood victims should pay for their own rebuilding.
B) When the price of kiwi fruit increases, fewer people eat kiwi fruit.
C) An increase in the supply of computers has caused computer prices to fall.
D) Recessions lead to increases in the unemployment rate.
E) Hurricanes strike mainly Florida and North Carolina.
Answer: A
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

61) Which of the following is an example of a normative economic statement?
A) Universal access to quality health insurance is the most important domestic policy issue
of our time.
B) Extending the time in which laid-off workers are eligible to receive government
unemployment compensation has increased the unemployment rate.
C) Lowering marginal income tax rates depresses consumer spending.
D) Prices rise when the government prints too much money.
E) Interest rates rise when the government runs persistent budget deficits.
Answer: A
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: New
AACSB: Reflective thinking

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62) A statement that ʺAll children should receive free health careʺ is an example of what kind of
statement?
A) a fair statement
B) a natural experiment statement
C) a normative statement
D) a positive statement
E) a statement on the margin
Answer: C
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

63) Which of the following statements is a normative statement?
A) Inflation has been at an all-time low this year.
B) The minimum wage should be increased to $8.50 per hour.
C) Unemployment this month has increased by less than 0.5 percentage point..
D) Additional spending on education has not produced any rise in test scores.
E) Pepsi is less expensive than Coke this week.
Answer: B
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

64) Which of the following is an example of a normative statement?
A) If cars become more expensive, fewer people will buy them.
B) Car prices should be affordable.
C) If wages increase, firms will fire some workers.
D) Fewer people die in larger cars than in smaller cars.
E) Cars emit pollution.
Answer: B
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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65) Which of the following statements is a normative statement?
A) Every American household should have health care insurance coverage.
B) Military spending as a percent of government spending decreased by 5 percent in the
1990s.
C) Welfare reform has decreased the amount the government spends on welfare.
D) The price of computers fell last year.
E) Fewer people are unemployed this year than last year.
Answer: A
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

66) Congress and the President passed a national health care policy. This is an example of
A) the government using economic tools to make policy decisions.
B) answering the ʺhowʺ question.
C) increasing the marginal cost of health care.
D) increasing the marginal benefit of health care.
E) normative versus positive economics.
Answer: A
Topic: Government economic policy
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

67) Opportunity cost is best defined as
A) how much money is paid for something.
B) how much money and time it takes to consume something.
C) the value of the highest-valued alternative that is forgone in making a choice.
D) the total of all other alternatives that are forgone in making a choice.
E) the sunk cost of any decision.
Answer: C
Topic: Opportunity cost
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

68) John has two hours of free time this evening. He ranked his alternatives, first go to a concert,
second go to a movie, third study for an economics exam, and fourth answer his e -mail. What
is the opportunity cost of attending the concert for John?
A) attending a movie
B) studying for an economics exam
C) answering his e-mail
D) attending a movie, studying for an economics exam, and answering his e -mail
E) going to the concert because that is what John chooses to do
Answer: A
Topic: Opportunity cost
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Analytical thinking

69) Jamie has enough money to buy either a Mountain Dew, or a Pepsi, or a bag of chips. He
chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is
A) the Pepsi and the bag of chips.
B) the Pepsi or the bag of chips, whichever is the highest-valued alternative forgone.
C) the Mountain Dew.
D) the Pepsi because it is a drink, as is the Mountain Dew.
E) zero because he enjoys the Mountain Dew.
Answer: B
Topic: Opportunity cost
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Analytical thinking

70) Amy can study for an hour or spend that hour sleeping or going out for dinner. If she decides
to study for the hour, the opportunity cost of the hour spent studying is
A) definitely going to sleep.
B) studying, since this is the choice she opted for.
C) sleeping or going out for dinner, whichever she would have preferred the most.
D) sleeping and going out for dinner.
E) definitely going out to dinner because she must eat at some time.
Answer: C
Topic: Opportunity cost
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Analytical thinking

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Copyright © 2015 Pearson Education, Inc.

71) If there is no scarcity,
A) the opportunity cost of an action would be greater than its sunk cost.
B) an action would have zero opportunity cost.
C) choices are no longer rational.
D) marginal cost of an action is greater than its marginal benefit.
E) all marginal benefits would equal zero.
Answer: B
Topic: Opportunity cost
Skill: Level 3: Using models
Section: Checkpoint 1.2
Status: Old
AACSB: Analytical thinking

72) The benefit of an activity is
A) purely objective and measured in dollars.
B) the gain or pleasure that it brings.
C) the value of its opportunity cost.
D) measured by what must be given up to get one more unit of the activity.
E) not measurable on the margin.
Answer: B
Topic: Benefit
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

73) The ________ of something is the gain or pleasure that it brings.
A) opportunity cost
B) benefit
C) marginal cost
D) rational choice
E) rational margin
Answer: B
Topic: Benefit
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

74) The cost of a one-unit increase in an activity
A) is called the total one-unit cost.
B) is called the marginal cost.
C) decreases as more of the activity is done.
D) is called the marginal benefit/cost.
E) is called the unit cost.
Answer: B
Topic: Marginal cost
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

75) The marginal benefit of an activity is
i. the benefit from a one-unit increase in the activity.
ii. the benefit of a small, unimportant activity.
iii. measured by what the person is willing to give up to get one additional unit of the
activity.
A) i only
B) ii only
C) iii only
D) i and iii
E) ii and iii
Answer: D
Topic: Marginal benefit
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

76) The additional benefit of increasing some activity by one-unit is called the
A) marginal benefit.
B) opportunity cost.
C) total benefit.
D) scarcity.
E) unit cost/benefit.
Answer: A
Topic: Marginal benefit
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

77) If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will
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.
Answer: A
Topic: Making rational choices
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

78) When people make rational choices, they
A) behave selfishly.
B) do not consider their emotions.
C) weigh the costs and benefits of their options and act to satisfy their wants.
D) necessarily make a decision in the social interest.
E) are necessarily making the best decision.
Answer: C
Topic: Rational choice
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

79) By donating $1,000 to the Salvation Army, Caroline reduces her taxable income. To Caroline,
the reduction in her taxable income is
A) a marginal benefit.
B) an opportunity cost.
C) an incentive.
D) a marginal cost.
E) the margin.
Answer: C
Topic: Incentives
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

80) When the Dallas Cowboys score more than 30 points in a game, they win the game. This is an
example of
A) an economic theory.
B) a correlation.
C) an incentive to win the game.
D) a normative statement.
E) a statement on the margin.
Answer: B
Topic: Correlation
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

81) A positive statement
A) must always be right.
B) cannot be tested.
C) might be right or wrong.
D) depends on someoneʹs value judgment.
E) cannot be negative.
Answer: C
Topic: Positive statements
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

82) Which of the following is a positive statement?
A) Taxes should be lower because then people get to keep more of what they earn, so they
will work more.
B) My economics class should last for two terms because it is my favorite class.
C) A 10 percent increase in income leads to a 4 percent increase in the consumption of beef.
D) Given their negative impact on productivity, the government should eliminate labor
unions.
E) The class average on this test should be more than 80 percent.
Answer: C
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

83) Which of the following is NOT a normative economic statement?
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 donʹt spend enough money on anti-smoking campaigns.
E) The price of gasoline is too high.
Answer: C
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking

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Copyright © 2015 Pearson Education, Inc.

1.3 Appendix: Making and Using Graphs
1) The horizontal axis in a graph
A) measures time on a scatter diagram.
B) measures the quality of a variable.
C) is named the y-axis.
D) is named the x-axis.
E) is called the origin.
Answer: D
Topic: Axes
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

2) Most economic graphs have two lines perpendicular to each other. The vertical line is called
the
A) origin.
B) y-axis.
C) x-axis.
D) variable.
E) time axis.
Answer: B
Topic: Axes
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

3) The vertical axis in a graph
A) is named the y-axis.
B) is named the x-axis.
C) measures time in a cross-section and time series graph.
D) has no origin.
E) measures time only in a time series graph.
Answer: A
Topic: Axes
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

4) Most economic graphs have two lines perpendicular to each other. Where these lines meet is
called the
A) origin.
B) y-axis.
C) x-axis.
D) variable.
E) point of beginning.
Answer: A
Topic: Origin
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

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Copyright © 2015 Pearson Education, Inc.

5) A graph of the value of one variable against the value of another variable is known as a
A) two-dimensional graph.
B) three-dimensional graph.
C) time-series graph.
D) scatter diagram.
E) two-variable graph.
Answer: D
Topic: Scatter diagrams
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

6) A scatter diagram can be used to see
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.
Answer: C
Topic: Scatter diagrams
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

7) To show how a variable ________, we typically use a ________.
A) relates to another variable; time series graph
B) relates to another variable; pie chart
C) changes over time; time series graph
D) changes over time; cross section graph
E) changes over time; cross time chart
Answer: C
Topic: Scatter diagrams
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

8) Which type of graph is most useful in determining if two variables are correlated?
A) time-series
B) scatter diagram
C) cross-section
D) variable-correlation figure
E) None of the above answers is correct.
Answer: B
Topic: Scatter diagrams
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

Page 48
Copyright © 2015 Pearson Education, Inc.

9) The figure above shows a
A) time-series graph.
B) scatter diagram.
C) cross-section graph.
D) slope.
E) trend diagram.
Answer: B
Topic: Scatter diagrams
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

10) A time-series graph measures
A) the value of one variable against the value of another variable.
B) the value of an economic variable for different groups in a population at a point in time.
C) time on the x-axis and the variable or variables in which we are interested on the y-axis.
D) time on the y-axis and the variable or variables in which we are interested on the x-axis.
E) time on both the x-axis and y-axis and the variable or variables in which we are
interested in the rest of the figure.
Answer: C
Topic: Time-series graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

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Copyright © 2015 Pearson Education, Inc.

11) A time series graph
A) shows how a variable changes over time.
B) uses bars rather than lines.
C) shows points in a scatter diagram.
D) is similar to a cross-section graph because both can show trends over time.
E) is in the shape of a pie.
Answer: A
Topic: Time-series graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

12) A steep slope in a time series graph means the variable is
A) high.
B) falling.
C) rising or falling quickly.
D) rising or falling slowly.
E) very close to its trend point.
Answer: C
Topic: Time-series graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

13) Which type of economic graph reveals trends in data?
A) cross-section graph
B) time-series graph
C) scatter diagram
D) Answers A and C are correct.
E) Answers A, B, and C are all correct.
Answer: B
Topic: Time-series graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

14) A time series graph
A) shows how a certain variable changes over time.
B) uses bars rather than lines.
C) shows points that are scattered.
D) depicts a series of good economic times a nation had.
E) is not useful if the goal is to determine a variableʹs trend.
Answer: A
Topic: Time-series graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

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Copyright © 2015 Pearson Education, Inc.

15) A time-series graph displays the price of gold. The slope of the line is negative for periods
when the
A) price of gold is falling.
B) price of gold is rising.
C) quantity of gold is falling.
D) price of gold is low and not changing.
E) price of gold fluctuates.
Answer: A
Topic: Time-series graph
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

16) A graph shows the wage rate of factory workers. The slope of the line is positive for periods
when the wage rate is
A) falling.
B) rising.
C) high and not changing.
D) low and falling.
E) high and falling.
Answer: B
Topic: Time-series graph
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

17) A trend is
A) a measure of closeness on a scatter diagram.
B) a general tendency for a variable to rise or fall.
C) the maximum value of a variable.
D) the minimum value of a variable.
E) the difference between the maximum value of a variable and the minimum value of the
variable.
Answer: B
Topic: Trend
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

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18) A time series graph reveals whether there is a ________ , which represents ________.
A) trend in a variable; a general tendency for the variable to rise or fall
B) relationship between two variables; a cross-section relationship
C) trends in two variables; unrelated variables
D) relationship between two variables; a trend in a variable
E) cross-section relationship; a general tendency for the variables to rise or fall
Answer: A
Topic: Trend
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

19) Trend refers to
A) the scale used on the x- and y-axes.
B) increases but not decreases of a variable.
C) decreases but not increases of a variable.
D) a general tendency for a variable to rise or fall.
E) the difference between the maximum value of the variable and the minimum value of the
variable.
Answer: D
Topic: Trend
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

Page 52
Copyright © 2015 Pearson Education, Inc.

20) In the above figure, the diagram shows
A) a downward trend in x.
B) an upward trend in x.
C) a scatter diagram.
D) a two-variable scatter diagram.
E) a cross-section graph between x and time.
Answer: A
Topic: Trend
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

21) A cross-section graph
A) is divided into different sections.
B) shows the values of an economic variable for different groups in a population at a point
in time.
C) measures time on the x-axis and the variable in which we are interested on the y-axis.
D) Both answers A and C are correct.
E) Both answers A and B are correct.
Answer: B
Topic: Cross-section graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

Page 53
Copyright © 2015 Pearson Education, Inc.

22) A graph that shows the value of an economic variable for different groups in a population at a
given time is called a
A) scatter diagram.
B) time-series graph.
C) pie chart.
D) cross-section graph.
E) fixed-time diagram.
Answer: D
Topic: Cross-section graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

23) A graph shows the average wage of various demographic groups in 2012. The kind of graph
used to show these data would be a
A) scatter diagram.
B) time-series graph.
C) cross-section graph.
D) Venn diagram.
E) fixed-year figure.
Answer: C
Topic: Cross-section graph
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

24) A graph showing the values of an economic variable for different groups in a population at a
point in time is called a
A) cross-section graph.
B) time-series graph.
C) scatter diagram.
D) Venn diagram.
E) None of the above answers is correct.
Answer: A
Topic: Cross-section graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

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Copyright © 2015 Pearson Education, Inc.

25) ________ shows the values of a variable for different groups in the population at a certain
point in time.
A) A time-series graph
B) The origin
C) A cross-section graph
D) A scatter plot
E) A trend-line graph
Answer: C
Topic: Cross-section graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

26) A cross-section graph
A) is divided into different sections.
B) shows values of an economic variable for different groups in a population at a point in
time.
C) measures time on the x-axis and the variable in which we are interested on the y-axis.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
Answer: B
Topic: Cross-section graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

27) You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to
best display these data would be a
A) time-series graph.
B) multi-variable time series graph.
C) cross-section graph.
D) scatter diagram.
E) trend-line diagram.
Answer: C
Topic: Cross-section graph
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

28) You have data for sales of pizza for each of the 50 states in 2011. The type of graph to best
display these data would be a
A) cross-section graph.
B) time-series graph.
C) scatter diagram.
D) multi-variable time-series graph.
E) trend-line diagram.
Answer: A
Topic: Cross-section graph
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

29) A graph shows the average SAT scores for males and females in 2012. The kind of graph used
to show these data would be a
A) scatter diagram.
B) time-series graph.
C) cross-section graph.
D) time-stationary graph.
E) trend figure.
Answer: C
Topic: Cross-section graph
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

30) Demonstrating how an economic variable changes from one year to the next is best illustrated
by a
A) scatter diagram.
B) time-series graph.
C) linear graph.
D) cross-section graph.
E) Venn diagram.
Answer: B
Topic: Time-series graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

31) To show the values of an economic variable for different groups in a population at a point in
time, it is best to use a
A) scatter diagram.
B) time-series graph.
C) linear graph.
D) cross-section graph.
E) trend-section diagram.
Answer: D
Topic: Cross-section graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

32) A graph that shows how the amount of advertising expenditure differs among various
industries can be shown
A) by a cross-section graph.
B) by a time-series graph.
C) as a trend.
D) by a scatter diagram.
E) by a trend-section graph.
Answer: A
Topic: Cross-section graph
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 1
Status: Old
AACSB: Analytical thinking

33) A linear relationship
A) when graphed, is a straight line.
B) when graphed, is a line whose slope changes.
C) can be a positive or a negative relationship.
D) Both answers A and C are correct.
E) Both answers A and B are correct.
Answer: D
Topic: Linear relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

34) A positive relationship exists between two variables if
A) one variable has ʺpositivelyʺ no effect on the other variable.
B) a decrease in one variable is associated with an increase in the other variable.
C) a decrease in one variable is associated with a decrease in the other variable.
D) an increase in one variable is associated with both a decrease and an increase in the other
variable.
E) None of the above answers is correct.
Answer: C
Topic: Positive relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

35) If two variables are positively related, then
A) one variable causes the other.
B) an increase in one variable is accompanied by a decrease in the other.
C) an increase in one variable is accompanied by an increase in the other.
D) they change together, but not necessarily in the same direction.
E) neither variable can be positively related to any other variable.
Answer: C
Topic: Positive relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

36) As a person increases his or her caloric intake, the personʹs weight increases, ceteris paribus. The
relationship between the personʹs caloric intake and the personʹs weight is an example of
A) unrelated variables.
B) a positive relationship.
C) a negative relationship.
D) a single point on a graph.
E) a trended relationship.
Answer: B
Topic: Positive relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

37) If there is a positive relationship between two variables,
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.
Answer: A
Topic: Positive relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

38) If the change in y = 10 and the change in x = 3, there is
A) a positive relationship between y and x.
B) a negative relationship between y and x.
C) an independent relationship between y and x.
D) no relationship between y and x.
E) a +0.33 relationship between the two variables.
Answer: A
Topic: Positive relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

39) Whenever peopleʹs incomes increase, they buy more guitars. Hence a scatter diagram shows
that the relationship between income and guitars purchased is
A) a positive relationship.
B) a linear relationship.
C) a negative relationship.
D) some sort of relationship, but whether it is positive or negative depends on whether
income is plotted on the vertical or horizontal axis.
E) a U-shaped relationship.
Answer: A
Topic: Positive relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

40) Which of the following statements is correct?
A) When a line slopes downwards moving to the right, the variable measured on the x-axis
and the variable measured on the y-axis are directly related.
B) When a line slopes upwards moving to the right, the variable measured on the x-axis
and the variable measured on the y-axis are directly related.
C) The higher the temperature, the more ice cream people consume. Thus the temperature
and ice cream consumption are inversely related.
D) If two variables are directly related, a graph of the two variables has a negative slope.
E) None of the above statements is correct.
Answer: B
Topic: Positive and negative relationships
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

41) If x increases whenever y decreases, then x and y are
A) not related.
B) positively related.
C) directly related.
D) negatively related.
E) related but whether positively or negatively related depends on whether the x variable or
the y variable is plotted on the vertical axis.
Answer: D
Topic: Negative relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

42) Whenever one variable increases, another variable decreases. The two variables are
A) definitely related through a third variable.
B) negatively related.
C) positively related.
D) unrelated to each other.
E) related but whether positively or negatively related depends on which variable is plotted
on the vertical axis.
Answer: B
Topic: Negative relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

43) If x increases and as a result y decreases, then x and y are
A) not related because the relationship is a causal one.
B) positively related.
C) negatively related.
D) directly related.
E) trend-line related.
Answer: C
Topic: Negative relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

44) ʺAs the price of gasoline increases, fewer people buy cars that are gas guzzlers.ʺ A graph
showing this relationship would
A) have a negative slope.
B) have a positive relationship.
C) have a direct relationship.
D) be a horizontal line.
E) be a vertical line.
Answer: A
Topic: Negative relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

45) As the number of days without rain increases, the amount of wheat grown per acre declines. A
graph showing this relationship shows
A) a horizontal line.
B) a vertical line.
C) a positive relationship.
D) a line with a positive slope.
E) None of the above answers is correct.
Answer: E
Topic: Negative relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

46) As the price of home heating oil rises, families buy less home heating oil. Hence a scatter
diagram with the price of home heating oil on the vertical axis and the quantity purchased on
the horizontal axis reveals a ________ relationship.
A) positive
B) linear
C) time-series
D) negative
E) cross-sectional
Answer: D
Topic: Negative relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

47) If the change in y = -4 and the change in x = 2, there is
A) an independent relationship between y and x.
B) a positive relationship between y and x.
C) a negative relationship between y and x.
D) no relationship between y and x.
E) a relationship between x and y but more information is needed to determine if it is a
negative or positive relationship.
Answer: C
Topic: Negative relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

48) An independent relationship between two variables is shown in a graph by
A) an upward-sloping line.
B) a horizontal or a vertical line.
C) a downward-sloping line.
D) a steeply sloped line.
E) any straight line curve.
Answer: B
Topic: Unrelated variables
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

49) If two variables are unrelated, their graph is
A) either a horizontal or a vertical line.
B) a downward-sloping line.
C) an upward-sloping line.
D) a curved line.
E) None of the above answers is correct because it is not possible to graph unrelated
variables.
Answer: A
Topic: Unrelated variables
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

50) Consider a diagram in which the variable measured on the y-axis remains constant while the
variable measured on the x-axis increases. The graph of these two variables is
A) a vertical line.
B) a horizontal line.
C) a line that has positive slope.
D) a line that has a negative slope.
E) non-existent because the two variables are not related.
Answer: B
Topic: Unrelated variables
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

51) A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new
cars sold by Honda on the horizontal axis. The price of a pound of cucumbers remains
constant as the quantity of new cars sold increases. The graph of these data is a
A) horizontal line.
B) vertical line.
C) curve with a maximum.
D) positively sloped line.
E) negatively sloped line.
Answer: A
Topic: Unrelated variables
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

52) Matt pays a $50 a month membership fee at Brunoʹs Gym. He can exercise at the gym as many
times as he wishes. If the membership fee is measured along the vertical axis and the number
of times he exercises is measured along the horizontal axis, the graph between his membership
fee and the number of times he exercises will
A) be a horizontal line.
B) be positively sloped.
C) be negatively sloped.
D) be a vertical line.
E) start out positively sloped and then, as Matt loses interest, become negatively sloped.
Answer: A
Topic: Unrelated variables
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

53) In the above figure, as the y variable increases,
A) the x variable is constant.
B) the x variable increases.
C) the x variable decreases.
D) the x variable at first increases but then decreases.
E) the x variable probably changes, but more information is needed to determine if it
increases, decreases, or stays the same.
Answer: A
Topic: Unrelated variables
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

54) In the above figure, a negative relationship between x and y is shown in Figure
A) A.
B) B.
C) C.
D) D.
E) B and Figure C.
Answer: B
Topic: Negative relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

55) In the above figure, no relationship between x and y is shown in Figure
A) A.
B) B.
C) C.
D) D.
E) A and Figure B.
Answer: C
Topic: Unrelated variables
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

56) In the diagram above, which figure(s) show(s) a direct relationship between the variables?
A) both B and C
B) both A and C
C) only A
D) only D
E) only B
Answer: B
Topic: Positive relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

57) In the diagram above, which figure(s) show(s) an inverse relationship between the variables?
A) both B and C
B) only B
C) both A and C
D) only D
E) only C
Answer: B
Topic: Negative relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

58) In the diagram above, which figure(s) show(s) no relationship between the variables?
A) both B and C
B) only B
C) both A and C
D) only D
E) both A and B
Answer: D
Topic: Unrelated variables
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

59) If a curve rises and then falls, it has a
A) maximum.
B) minimum.
C) linear relationship.
D) constant slope relationship.
E) slope that is negative and then positive.
Answer: A
Topic: Maximum
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

60) As a shoe factory adds more workers, shoe production grows, reaches a maximum, and then
shrinks. In a diagram that has the number of workers on the horizontal axis and the number of
shoes on the vertical axis, the relationship between the number of workers and the number of
shoes starts as ________ and then, after the maximum point, is ________.
A) positive; negative
B) negative; positive
C) linear; negative
D) positive; linear
E) positive; nonexistent
Answer: A
Topic: Maximum
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

61) As a curve approaches a maximum point, the slope will
A) be positive and then negative after the maximum point.
B) be negative and then positive after the maximum point.
C) remain constant on either side of the maximum point.
D) increase before and after the maximum point.
E) decrease before and after the maximum point.
Answer: A
Topic: Maximum
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

62) In the figure above, the relationship between the x variable and the y variable
A) is positive.
B) is negative.
C) starts by being positive and then becomes negative.
D) starts by being negative and then becomes positive.
E) is non-existent because the two variables are unrelated.
Answer: C
Topic: Maximum
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

63) If a curve falls and then rises, it
A) has a maximum.
B) has a minimum.
C) has a linear relationship.
D) has a constant slope relationship.
E) shows no relationship between the two variables.
Answer: B
Topic: Minimum
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

64) Moving from left to right, a U-shaped curve starts with a
A) positive slope, reaches a maximum, then ends with a negative slope.
B) positive slope, reaches a minimum, then ends with a negative slope.
C) negative slope, reaches a maximum, then ends with a positive slope.
D) negative slope, reaches a minimum, then ends with a positive slope.
E) negative slope, reaches a minimum, then ends with a negative slope.
Answer: D
Topic: Minimum
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

65) The minimum point of a U-shaped curve
A) is a point where the variable is neither increasing nor decreasing.
B) has a slope equal to zero.
C) has the maximum slope possible.
D) Both answers A and B are correct.
E) Both answers A and C are correct.
Answer: D
Topic: Minimum
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

66) An economist observed that as more computers are added to a factory, the costs of production
initially decline, reach a minimum, and then rise. In a diagram that has costs on the vertical
axis and the number of computers on the horizontal axis, the relationship always is
A) negative and then linear after the minimum point.
B) positive and then negative after the minimum point.
C) negative and then positive after the minimum point.
D) linear and then positive after the minimum point.
E) negative both before and after the minimum point.
Answer: C
Topic: Minimum
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

67) If whenever one variable increases, another variable also increases, then these two variables
are ________ related.
A) positively
B) negatively
C) inversely
D) cross-sectionally
E) trend-line
Answer: A
Topic: Positive relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

68) The graph shows a
A) positive relationship that becomes steeper.
B) negative relationship that becomes steeper.
C) positive relationship that becomes less steep.
D) negative relationship that become less steep.
E) negative trend between the total cost of a cake and the output of cakes.
Answer: A
Topic: Positive relationship
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

69) A graph of the relationship between two variables is a line that slopes down to the right. These
two variables are ________ related.
A) positively
B) directly
C) negatively
D) not
E) trend-line
Answer: C
Topic: Negative relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

70) A graph shows that the number of U.S. tourists visiting a Caribbean island increases as the
temperature in the northeastern United States falls. The graph shows
A) a positive relationship.
B) a direct relationship.
C) a negative relationship.
D) no relationship.
E) an invalid relationship.
Answer: C
Topic: Negative relationship
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

71) The graph shows a
A) positive relationship that becomes less steep.
B) negative relationship that is linear.
C) positive relationship that is linear.
D) negative relationship that become less steep.
E) None of the above answers is correct.
Answer: B
Topic: Negative relationship
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

72) The graph shows
A) a relationship with a minimum.
B) a relationship with a maximum.
C) no relationship.
D) a linear relationship.
E) a cross-section relationship.
Answer: B
Topic: Maximum
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

73) The graph shows
A) a relationship with a minimum.
B) a relationship with a maximum.
C) no relationship.
D) a relationship that becomes less steep.
E) a cross-section relationship.
Answer: A
Topic: Minimum
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

74) Two variables are unrelated if their graph is
i. a vertical line.
ii. a 45 degree line.
iii. a horizontal line.
A) i only
B) ii only
C) iii only
D) i and iii
E) i, ii, and iii
Answer: D
Topic: Unrelated variables
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

75) The graph shows
A) a positive relationship that becomes less steep.
B) a negative relationship that is linear.
C) a positive relationship that is linear.
D) no relationship between the variables.
E) a trend relationship between the variables.
Answer: D
Topic: Unrelated variables
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 2
Status: Old
AACSB: Analytical thinking

76) A slope is measured as the
A) value of the variable measured on the y-axis divided by the value of the variable
measured on the x-axis.
B) value of the variable measured on the x-axis divided by the value of the variable
measured on the y-axis.
C) change in the value of variable on the y-axis divided by the change in the value of the
variable on the x-axis.
D) value of the variable measured on the y-axis minus the value of the variable measured
on the x-axis.
E) change in the value of variable on the x-axis divided by the change in the value of the
variable on the y-axis.
Answer: C
Topic: Slope
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

77) A slope is measured as the
A) value of the variable measured on the y-axis divided by the value of the variable
measured on the x-axis.
B) value of the variable measured on the x-axis divided by the value of the variable
measured on the y-axis.
C) change in the value of variable on the y-axis divided by the change in the value of the
variable on the x-axis.
D) value of the variable measured on the y-axis minus the value of the variable measured
on the x-axis.
E) value of the variable measured on the x-axis minus the value of the variable measured
on the y-axis.
Answer: C
Topic: Slope
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

78) ʺThe change in the value of the variable measured on the y-axis divided by the change in the
value of the variable measured on the x-axisʺ is the definition of
A) a graph.
B) slope.
C) a curve.
D) a relationship.
E) a trend.
Answer: B
Topic: Slope
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

79) The slope of a line equals the change in the variable measured along the
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.
Answer: B
Topic: Slope
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

80) The slope
A) of a straight line is the same regardless of where on the line it is calculated.
B) equals the change in the value of the variable measured on the x-axis divided by the
change in the variable measured on the y-axis.
C) will be small if a large change in the variable measured on the y-axis is associated with a
small change in the variable measured on the x-axis.
D) equals the change in the value of the variable measured on the y-axis minus the change
in the variable measured on the x-axis.
E) falls as the x variable increases if the line has a negative slope.
Answer: A
Topic: Slope
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

81) With y measured on the vertical axis and x measured on the horizontal axis, the slope of a
straight line is defined as
A) y/x.
B) x/y.
C) (change in y)/(change in x).
D) (change in x)/(change in y).
E) y – x.
Answer: C
Topic: Slope of a straight line
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

82) In a graph, a straight line has a negative slope if the line
A) is vertical.
B) is horizontal.
C) falls from left to right.
D) rises from left to right.
E) shows a trend.
Answer: C
Topic: Slope
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

83) A curve with a positive but decreasing slope represents a relationship where, every time the
variable measured along the horizontal axis increases by one unit, the variable measured along
the vertical axis
A) increases by a constant amount.
B) increases by an increasing amount.
C) increases by a decreasing amount.
D) decreases.
E) does not change by much.
Answer: C
Topic: Slope
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

84) The slope
A) of a straight line is the same regardless of where on the line it is calculated.
B) equals the change in the value of the variable measured on the vertical axis divided by
the change in the variable measured along the horizontal axis.
C) will be small if a large change in the variable measured on the vertical axis is associated
with a small change in the variable measured along the horizontal axis.
D) Answers A and B are correct.
E) Answers A and C are correct.
Answer: D
Topic: Slope
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

85) Which of the following statements is correct?
A) The slope of a straight line changes depending where on the line it is calculated.
B) The slope of a curved line is not defined because it is impossible to calculate the slope
along a curved line.
C) A straight line that slopes upward moving to the right has a positive slope.
D) Answers A and B are correct.
E) Answers A and C are correct.
Answer: C
Topic: Slope
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

86) If a small change in the x variable results in a large change in the y variable, the curve will be
A) positively sloped.
B) negatively sloped.
C) steep.
D) flat.
E) trended.
Answer: C
Topic: Slope
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

87) Suppose the relationship between a personʹs age and his or her height is plotted with the age
measured along the x-axis and the height measured along the y-axis. Then, the curve showing
this relationship is
A) a straight line with a positive slope.
B) positively sloped and becoming less steep.
C) a straight line with a negative slope.
D) negatively sloped and becoming less steep.
E) positively sloped and becoming more steep.
Answer: B
Topic: Positive slope
Skill: Level 3: Using models
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

88) If the quantity of the variable on the y-axis increases by 10 when the quantity of the variable
on the x-axis decreases by 2, then the slope of the curve equals
A) 2.
B) -10.
C) 10.
D) -5.
E) None of the above answers is correct.
Answer: D
Topic: Slope
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

89) If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on
the x-axis increases by 4, then the slope of the curve equals
A) 3.
B) 4.
C) 3/4.
D) 4/3.
E) 1.
Answer: C
Topic: Slope
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

90) 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 equals
A) -5.
B) -4.
C) -3.
D) -1.
E) -2
Answer: D
Topic: Slope
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

91) 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.
A) greater than
B) equal to
C) less than
D) unrelated to
E) not comparable to
Answer: B
Topic: Slope
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

92) Moving rightward along a straight line, the slope of the line
A) always increases.
B) always decreases.
C) stays the same.
D) increases if the line slopes upward to the right.
E) decreases if the line slopes downward to the right.
Answer: C
Topic: Slope of a straight line
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

93) A straight line falls when moving rightward along it. Hence the slope of the line is
A) positive.
B) negative.
C) undefined.
D) zero because it is a straight line.
E) perhaps positive, negative, or zero, but without more information it is impossible to
determine.
Answer: B
Topic: Slope of a straight line
Skill: Level 1: Definition
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

x variable
(on the horizontal axis)
100
200
300

y variable
(on the vertical axis)
50
125
200

94) The table above shows data on two variables. If these data were graphed, the slope of the line
would be
A) 1/2.
B) 4/3.
C) 2/3.
D) 3/4.
E) 2.
Answer: D
Topic: Slope of a straight line
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix – Checkpoint 3
Status: Old
AACSB: Analytical thinking

Foundations of Macroeconomics Volume 1, 7th Edition By Robin Bade - Test Bank

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Foundations of Macroeconomics Volume 1, 7th Edition By Robin Bade - Test Bank

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