Exam 1: What Is Economics

Which of the following is a positive statement?

x -variable (on the horizontal axis) y -variable (on the vertic al axis) 10 28 15 31 20 34 -The above table shows data on two variables. If these data were graphed, the slope of the line would be

Which of the following is NOT a factor of production?

-The relationship depicted in the above figure is

-The slope in the above figure is

-The slope of the line in the above figure is

-In the above figure, the slope across the arc between c and d is

-In the above figure, which curve shows a negative relationship between x and y?

From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadnʹt, she would otherwise have talked with friends. The opportunity cost of attending the movie is

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts. If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

If a curve rises and then falls, it shows a

ʺAs part of the financial crisis bailout plan in 2009, the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate.ʺ This is an example of

x y 0 0 1 3 2 6 3 9 4 12 5 15 -Using the data in the table above, with y measured on the vertical axis, the slope of the line relating y to x is

-In the figure above, when income equals $20,000, what does consumption equal?

Which of the following are true regarding ʺpositiveʺ statements? I. They describe what ʺought to be.ʺ II. They describe what is believed about how the world appears. III. They can be tested as to their truthfulness.

-The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are

-The figure above shows how the sales of the video game ʺTomb Raider Lara Retiresʺ change when the advertising spent on the game changes. Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

Consider the following events: i. Samsung hires associates to market their HDTV sets to Best Buy. ii. The Dallas Cowboys build a new football stadium. iii. Ebay fires 10 percent of its workforce. iv. Ten million stocks were traded on the New York Stock Exchange in one day. v. Pennsylvania builds a new state park. Which of the events describe use of factors of production?

During the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000 and books and supplies cost $1,300. In terms of dollars, the opportunity cost of attending summer school is