Exam 1: What Is Economics

Using a graph to plot family incomes against food expenditures results in

-The above figure depicts a

"If you hire 1 worker, the worker can produce 20 pizzas a day. If you hire a 2nd worker, that worker can produce 10 more pizzas. If you hire a 3rd worker, that worker can produce 2 more pizzas a day." A graph displaying this relationship between the number of employees and total pizza output per day would show

Suppose that for a curve, as the variable measured on the x- axis increases, the variable measured on the y- axis decreases. The curve has a slope.

-On a graph, high correlation between the variable measured along the x- axis and the variable measured along the y- axis

Entrepreneurs directly do all of the following EXCEPT

Whenever one variable increases, another variable decreases. The two variables are

"The difference between positive and normative statements is that a positive statement is always true while a normative statement might or might not be true." True or false? Explain.

-In the figure above, an increase in z leads to a

Microeconomics focuses on all of the following EXCEPT the

A normative statement is

If consumption expenditures are positively related to non- labor income, then if non- labor income were higher than that corresponding to the function in the above figure,

A _ _ shows relative values for different groups at a certain point in time.

When a farmer decides to harvest oranges by huge machines instead of by migrant workers, the farmer is answering the question.

"As interest rates fall, people spend more." A graph showing the relationship between interest rates and spending would have

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

Scarcity is experienced by

On the horizontal axis of a graph, generally

Opportunity cost is best defined as

-The figure above shows a