Exam 1: What Is Economics

Income (dollars per month) Amount spent on restaurant meals (dollars per month) 50 20 100 40 150 60 200 80 -Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the graph of the two variables would be

Entrepreneurs directly do all of the following except

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

Studying the determination of prices in individual markets is primarily a concern of

The economic resource that organizes the use of other economic resources is called

In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

Jane is deciding whether to go to school for 8 weeks this summer. The cost of tuition and textbooks is $1,700 and housing and other expenses will cost her $600. If she does not go to school, she will live in her parentsʹ house for free and they will cover her food and other expenses for her. Also, if Jane does not go to summer school she could work fulltime. But the best job she can get pays only $600 per week, and Jane would only agree to give up her free time for no less than $750 per week. However, if she goes to summer school, sheʹll have to spend 40 hours a week attending classes and studying. a) What will the summer school cost Jane in terms of money spent? b) What are the opportunity costs of going to summer school that Jane does not pay explicitly? Explain. c) What is Janeʹs total opportunity cost of going to school this summer? Explain your answer. d) Suppose that if Jane does not go to summer school, she will eventually take the classes anyway. What is Janeʹs marginal benefit of going to summer school? e) Suppose Jane decides to go to school in the summer. Explain her decision using the concepts of marginal cost and marginal benefit.

x -variable (on the horizontal axis) y -variable (on the vertic al axis) 8 14 10 18 12 22 -The above table gives data on two variables. If these data were graphed, their relationship would

If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by

-The slope of the line in the above figure is

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this roommateʹs comment correct?

The slope of a line equals the

ʺGovernment should act to reduce poverty levels.ʺ

An analyst on a local news channel argues that the recent corporate scandals ʺdemonstrated very clearly that self interest always contradicts social interest.ʺ Do you agree or disagree? Substantiate your answer.

Ceteris paribus when graphing a relationship refers to

A scatter diagram will be most useful

Explain what entrepreneurship is and why it is considered a factor of production.

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

Most income in the United States is earned by business owners as profit.)

Point X Y a 100 50 b 200 75 c 300 100 d 400 100 e 500 75 f 600 50 -In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points a and b is