Exam 1: What Is Economics

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the part of one of the two big economic questions.

-The figure above shows that in 1996, unemployment was equal to about and the inflation rate was equal to about .

In economics, normative statements are about

Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

x y 100 500 200 300 300 100 400 -100 -Using the information in the table above, what does the slope of the line between x and y equal?

To graph a relationship that involves more than two variables, we use the ceteris paribus assumption.

Opportunity cost is defined as the

The fact that wants cannot be fully satisfied with available resources reflects the definition of

Quantity Price 50 40 16 30 24 20 32 10 36 5 -Using the data in the above table,

Jed had an exam score of 50 percentage points. There is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. Jed has determined that the extra credit assignment will take 10 hours of his time. Jed will complete the assignment he values the

ʺAs interest rates rise, people save more money.ʺ A graph displaying this relationship would show

Factors of production are grouped into four categories:

Economics is best defined as

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

Suppose that for a curve, as the variable measured on the x-axis increases, the variable measured on the y-axis decreases. The curve has a slope.

What is the difference between scarcity and poverty?

-In the above, as the y variable increases

Which of the following is a positive statement?

A curve is plotted with y measured on the vertical axis and x measured on the horizontal axis. The slope of the curve equals

-The above figure plots income and consumption in a nation. In 2007