Exam 1: What Is Economics

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

-The slope of the line in the above figure is

Which of the following is a positive statement?

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

-The above figure depicts a

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

A good economic model

Which of the following is an example of a positive statement?

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

The term "direct relationship" means the same as

Which of the following is a positive statement?

Which of the following is a normative statement?

A benefit from an increase in activity is called the

-The relationship in the above figure indicates that

The slope of a straight line is

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

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

Microeconomics is the study of

You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

A normative statement concerns