Exam 1: What Is Economics

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

Differences in income are most directly related to which of the following big economic question?

To meet increased demand for its good, a firm decides to hire a few high- skilled workers rather than hire many low- skilled workers. The firm is answering the _ question.

Recording data about students' class year and GPA in a graph will yield

The above table gives data on two variables. If these data were graphed, their relationship would

A scatter diagram will be most useful

Carl, who is an attorney, earns $250 an hour while Ken, who is an auto mechanic, earns $25 an hour. This income difference is most directly an example of an economy answering the question.

To decide whether to go to the beach for spring break, you should

-In the above, as the y variable increases

Suppose that an economist tells you that people in the United States do not save enough out of their incomes. This is an example of statement.

A graph shows the average SAT scores for males and females in 2009. The kind of graph used to show this data would be

When graphed, variables that are unrelated are shown by either a horizontal or a vertical line.

Below is a student's answer to the question "What is microeconomics?" If you were the instructor, how would yo correct the student's answer? "Microeconomics is the study of how government influences the choices made by individuals and businesses an performance of the whole national economy."

The "gifts of nature" are included as part of which factor of production?

Why do economists use graphs?

-The above figure plots income and consumption in a nation. In 2003

"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of

-In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

A good economic model

The additional benefit of increasing some activity is called the