Exam 1: What Is Economics

On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is

Marginal benefit is the benefit

What is the difference between positive and normative statements?

Copper falls into which factor of production category?

If there is an inverse relationship between two variables, the graph of this relationship

-In the above figure, how does the slope of the line between x = 4 and x = 5 compare with the slope between x = 2 and x = 3?

The slope of a negative relationship is

-The slope of the line shown in the above figure is

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

Which of the following is NOT a normative statement?

The 2010 Patient Protection and Affordable Care Act (Obamacare) contains a provision that may require individuals to either purchase private health insurance or pay a tax. This is an example of

Economics can be defined as the social science that explains the

Scarcity affects only those who are in need.

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

A positive statement is

-In the above figure, the curve has a slope that is

Normative economic statements

If the quantity of wood purchased decreases when the price of wood rises, a graph representing these variables would have

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by GM on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is

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