Exam 1: What Is Economics

Which of the following is an example of a microeconomic decision?

Suppose you produce 10 bikes a day for a total cost of $1000. Total costs increase to $1100 when you produce 15 bikes. Finally, total costs increase to $1300 if you make 20 bikes. A graph showing the relationship between total costs and the number of bikes produced would be

-In the above figure, the relationship between x and y is

ʺAs part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans.ʺ This is an example of

x y 0 0 2 6 4 12 6 18 8 24 10 30 -The above table indicates that variables x and y are

-In the above figure, which curve indicates that the level of food production does not affect the population growth rate?

A cross-section graph can show how economic variables for different groups of people vary over time.

What does the slope of the line shown in the above figure equal?

One economist says that raising taxes on gas would be in the social interest. What does this economist mean?

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

When I buy an $8.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy.

When y changes, x stays the same. The line depicting this relationship would be

Human capital is

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

-In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue

-The figure above shows relationship between the two variables.

If variables x and y move up and down together, they are

Studying the effects choices have on the individual markets within the economy is part of

Which of the following is a positive statement?

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