Exam 1: What Is Economics

Scarcity applies to both the rich and the poor.

Which of the following is a normative statement?

-For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

"The rich should pay higher income tax rates than the poor" is an example of a

Explain whether the statement, "There is life on Mars," is a normative or positive statement.

In a graph, a line has a negative slope if

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

The relationship in the above figure indicates that

The analysis of the behavior of individual decision-making units is the definition of

Positive economic statements

The problem of "scarcity" applies

Which of the following is NOT an example of an opportunity cost?

Scarcity affects only those who are in need.

-Based on the information in the table above, what is the relationship between x and y?

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

Which of the following are true regarding "positive" statements? I. They describe what "ought to be." II) They describe what is believed about how the world appears. III) They can be tested as to their truthfulness.

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

Which of the following is a microeconomic topic?