Exam 1: What Is Economics

Bill Bonecrusher graduates from college with a choice of playing professional football at $2 million a year or coaching for $50,000 a year. He decides to play football, but eight years later, though he could continue to play football at $2 million a year, he quits football to make movies for $3 million a year. His opportunity cost of playing football at graduation was ________ and eight years later the opportunity cost of making movies was ________.

As an economic concept, scarcity applies to

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this roommate's comment correct?

In part, microeconomics is concerned with the study of

-In the above figure, using the slope across an arc, the slope of the curve between points a and c is

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

"Government should act to reduce poverty levels."

-In the above figure, the y-coordinate of point b is

Along a curved line, the slope at the maximum

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

Economists point out that scarcity confronts

In economics, the term "land" means

When China builds a dam using few machines and a great deal of labor, it is answering the ________ part of one of the two big economic questions.

-In the figure above, what can you deduce about the slope of the curve?

When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions.

Entrepreneurs directly do all of the following except

All economic questions are about

-The slope of the line in the above figure is