Exam 1: What Is Economics

You believe that the total amount of goods produced in the United States has generally increased over the years. In a time- series graph illustrating the total amount produced, you expect to find

A natural resource, such as fishing territories, is considered an example of

"Government should act to reduce poverty levels."

In the above figure, if the interest rate is negatively related to household expenditures for any given level of household income, an increase in the interest rate will

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

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

When Ben Bernanke, Chairman of the Federal Reserve, addresses Congress regarding the United States' role in the world economy, he is discussing

-In the above figure, tax revenue is at a maximum when the tax rate is

The question "Should CDs or DVDs be produced?" is an example of the

The horizontal axis on a time- series graph

-In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is

A scatter diagram shows the

A positive relationship exists between two variables if

The study of the decisions of individual units in the economy is known as

"When OPEC increases the supply of oil to the market, the price of gasoline falls." This is an example of

Opportunity cost is defined as the

Scarcity exists because

Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza. When graphing the relationship between the price of a pizza and the quantity of pizza consumed

Explain why both rich and poor people experience scarcity.

Which of the following is a normative statement?