Exam Name___________________________________ Chapter 1 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) If the equation of a straight line is y = 6 + 3x, then the slope is 1) _______ A) 3 and the y-axis intercept is -6. B) 3 and the y-axis intercept is -2. C) -3 and the y-axis intercept is 6. D) -3 and the y-axis intercept is -2. E) 3 and the y-axis intercept is 6. 2) An incentive 2) _______ A) could be either a reward or a penalty. B) could be a reward but could not be a penalty. C) occurs in the macroeconomy but not in the microeconomy. D) could be a penalty but could not be a reward. E) is the opposite of a tradeoff. 3) Sue, who has a law degree, earns $200,000 a year, while Chris, a high-school dropout, earns $15.00 an hour. This is an example of an economy facing the ________ question. 3) _______ A) "for whom" B) "what" C) "where" D) "when" E) "how" 4) You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is 4) ______