Exam 1: What Is Economics

-The graph of two variables, x and y, is a horizontal line. This result indicates that x and y are

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is equal to 1. This slope means that

-The above figure depicts a

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

Which of the following is a normative statement?

-In the above figure, between x = 2 and x = 3, what is the slope of the line?

A normative statement is

-What does the slope of the line shown in the above figure equal?

-In the above table, when x increases from 4 units to 6 units, y changes by ________ units.

When an economist talks of scarcity, the economist is referring to the

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

An example of a question that might be explored in microeconomics is to determine

-The figure above shows

-The slope of the line shown in the above figure is

During the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000 and books and supplies cost $1,300. In terms of dollars, the opportunity cost of attending summer school is

Which of the following is a positive statement?

-Graphing the data in the above table with the number of workers on the horizontal axis and the average cost on the vertical axis, the graph would show

A linear relationship

One economist says that raising taxes on gas would be in the social interest. What does this economist mean?

-In the above, as the y variable increases