Exam 1: What Is Economics

The relationship between two variables, x and y, is a vertical line. Thus x and y are

The vertical axis of a graph shows only positive values.

Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement.

If two variables both increase at the same time or decrease at the same time, they are

You have data for sales revenues for all the pizza stores you own for the month of September. The type of graph to best display these data would be a

An independent relationship between two variables is shown in a graph by

In part, microeconomics is concerned with

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

You have data for real income per person for developing countries in 2002. The type of graph to best display these data would be a

-Using the above figure, during which of the following periods does the price of crude oil shows an upward trend?

Normative statements are statements about

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

On a time- series graph, time is typically shown

Which type of graph can mislead?

You hypothesize that more natural gas is sold in the Northeast when winters are colder. Which of the following possibilities would best reveal if your belief is correct?

-A linear relationship

The cost of an increase in an activity is called

Which of the following is a positive statement?

-In the figure above, point B is _ .

-In the above figure, the slope at point b