Exam 1: What Is Economics

Opportunity cost is measured in terms of

In economics, positive statements are about

If the quantity of wood purchased decreases when the price of wood rises, a graph representing these variables would have

Microeconomics is the study of topics such as national production and unemployment.

If the marginal cost of an activity falls or the marginal benefit rises, then you would

For cross- section graphs

The "how" tradeoff occurs when

You notice that when the inflation rate increases, the interest rate tends to increase. This observation indicates that

Ceteris paribus when graphing a relationship refers to

Suppose that you are spending two hours a day studying economics, and your grade is 85 percent. You want a higher grade and decide to study for an extra hour a day. As a result, your grade rises to 90 percent. Your marginal benefit is the

The slope of a line

When a farmer decides to raise hogs instead of cattle, the farmer is answering the _ _ question.

Which of the following is correct? Factors of production are

The study of the choices made by individuals is part of the definition of

An economic model includes

A graph shows the wages of factory workers. The slope of the line is positive for periods when the wage rate is

Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state. This policy on the part of the state constitutes , to make the of the firm remaining in New York.

A graph cannot be used to show that two variables are unrelated.

The statement "Unemployment should be kept at or below a level of 6 percent" is

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the question.