Exam 1: What Is Economics

The new products and processes introduced during the Information Revolution of the last twenty years were a result of a successful implementation of a strategic economic plan designed by the U.S. government.

Which of the following is NOT part of the first big economic question?

A positive statement is

-The slope of the line in the above figure is

-In the figure above, ceteris paribus, an increase in x is associated with

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is

If the change in the y- axis variable is 6 and the change in the x- axis variable is 5, the slope of this line is 6/5.

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

In which of the following cases is the slope of a line positive?

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

-The table above shows how the number of books Katie buys each year depends on her income. a) What kind of relationship exists between Katie's income and the number of books she purchases? b) Plot the relationship between Katie's income and the number of books she purchases in the above figure. Me income along the vertical axis and the number of books along the horizontal axis. Be sure to label the axes. c) What is the slope of the relationship between $50,000 and $70,000 of income? d) What is the slope of the relationship between $90,000 and $110,000 of income? e) Comment on the similarity or dissimilarity of your answers to parts (c) and (d).

Which of the following is NOT an investment in human capital?

Which of the following is a normative statement?

Which of the following is TRUE regarding a trend? I. A cross section graph shows trends. II. A time- series graph shows trends. III. A scatter plot shows trends over time.

When a firm decides to produce more electric cars and fewer gas guzzlers, it is most directly answering the question.

-In the above figure, a negative relationship is demonstrated in which of the graphs?

A student can spend the next hour studying for a finance test, hiking along the Oregon coast, watching a rerun of Buffy the Vampire Slayer on television, or napping. If the student decides to study, what is the opportunity cost of her choice: hiking, watching television, or napping?

Which of the following is a type of capital?

Which of the following best describe(s) opportunity costs? I. An opportunity cost is the next best alternative a person has given up when he or she makes a c to do something else. II. Opportunity costs are always measured in terms of dollars. III. Opportunity costs are higher for U.S.- made goods.

Because we face scarcity, every choice involves