Exam 1: What Is Economics

Suppose you produce 10 bikes a day for a total cost of $1,000. Total costs increase to $1,100 when you produce 15 bikes. Finally, total costs increase to $1,300 if you make 20 bikes. A graph showing the relationship between total costs and the number of bikes produced would be

Explain whether the statement, "There is life on Mars," is a normative or positive statement.

Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve

When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing

What is the difference between scarcity and poverty?

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

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

-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

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

Factors of production are grouped into four categories

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

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

Why do economists use graphs?

Which of the following is NOT an investment in human capital?

Overtime worked by a JCPenney associate is considered ________ and earns ________.

If the slope of the relationship between savings and interest rates is 0.5, then

A cost due to an increase in activity is called

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

The formula for the slope across an arc is used to approximate the slope for

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's