B) a direct relationship.
C) a negative relationship.
D) ceteris paribus.
E) movement up along one of the lines showing the relationship between x and y.
Answer: D
Topic: Relationships among more than two variables
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
129) In the figure above, an increase in z leads to a
A) movement up along one of the lines showing the relationship between x and y.
B) movement down along one of the lines showing the relationship between x and y.
C) rightward shift of the line showing the relationship between x and y.
D) leftward shift of the line showing the relationship between x and y.
E) trend change in both x and y.
Answer: D
Topic: Relationships among more than two variables
Skill: Level 3: Using models
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
130) In the figure above, ceteris paribus, an increase in x is associated with
A) an increase in y.
B) a decrease in y.
C) an increase in z.
D) a random change in z.
E) no change in either y or z.
Answer: B
Topic: Ceteris paribus
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
1.4 Integrative Questions
1) Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice,
A) you must ignore the problem of scarcity.
B) you considered the marginal cost and marginal benefit of your choice.
C) you have used the ceteris paribus assumption.
D) you have made a positive statement.
E) you must have considered the social interest.
Answer: B
Topic: Integrative
Skill: Level 2: Using definitions
Section: Integrative
Status: Old
AACSB: Reflective thinking
2) John decides to leave college early and play professional sports. Which of the following economic principles does John use?
i. personal economic policies
ii. marginal cost versus marginal benefit analysis
iii. normative versus positive economics
A) i and ii
B) i, ii and iii
C) ii only
D) i and iii
E) ii and iii
Answer: A
Topic: Integrative
Skill: Level 2: Using definitions
Section: Integrative
Status: Old
AACSB: Reflective thinking
3) Which of the following is true?
i. A rational choice is always made in the pursuit of social interest.
ii. Economics is a social science.
iii. Economists try to understand how the economic world works by testing positive statements.
A) ii and iii
B) only i
C) only ii
D) only iii
E) i and ii
Answer: A
Topic: Integrative
Skill: Level 2: Using definitions
Section: Integrative
Status: Old
AACSB: Reflective thinking
4) Which of the following is true?
i. A rational choice is made on the margin.
ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy.
iii. Economists try to understand how the economic world works by testing normative statements.
A) only i
B) i and iii
C) only ii
D) only iii
E) i and ii
Answer: A
Topic: Integrative
Skill: Level 2: Using definitions
Section: Integrative
Status: Old
AACSB: Reflective thinking
5) Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV. Which of the following statements is correct?
A) The benefit the three students receive must be the same because they all make the same choice.
B) The students made a rational choice as long as they face no scarcity.
C) The students could each have different opportunity costs.
D) The marginal cost of the decision is the same if they make the same score on the exam.
E) Going out to eat, playing football, and watching TV are all called sunk costs.
Answer: C
Topic: Integrative
Skill: Level 2: Using definitions
Section: Integrative
Status: Old
AACSB: Reflective thinking