Exam 1: What Is Economics

After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal-Mart for $38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

-In the above figure, the slope across the arc between points a and b equals

Macroeconomics differs from microeconomics in that

Which of the following is a microeconomic topic?

An economic model includes

When the government chooses to spend the tax dollars that it collects on homeland security, its choice

-The above table gives data on two variables. If these data were graphed, the slope of the line would be

An economic model is

As an economic concept, scarcity applies to

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

If there is a direct relationship between two variables

Human capital is

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

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

Which of the following is a positive statement?

Which of the following is a microeconomic topic?

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5. Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?

Which of the following is a normative statement?

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