Exam 1: What Is Economics

If you study 3 hours for an exam, you can raise your score by 30 points. If you study for another 3 hours your score increases by 10 points. And if you study for another 3 hours, your score will increase by 5 more points. A graph displaying this relationship between the number of hours studied and your total exam score would show

Economics is best defined as the science of choice and how people cope with

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

If an increase in x the variable on the horizontal axis) from 6 to 8 units causes a decrease in y the variable on the vertical axis) from 4 to 3 units, the slope equals

Economics can be defined as the social science that explains the .

Factors of production include

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

Along a straight line, when x equals 90, then y equals 30. When x equals 120, then y equals 40. The slope of the straight line is

The largest part of what the United States produces today is such as .

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

The graph of two variables, x and y, is a horizontal line. This result indicates that x and y are

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

In economics we learn that

Which of the following is an example of a positive statement?

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

Which of the following questions is NOT a microeconomic question?

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e -mail. What is the opportunity cost of attending the concert for John?

Macroeconomic topics include

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a vertical line. From this fact we know that

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the part of one of the two big economic questions.