Exam 1: What Is Economics

Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500. If you didn't go to school, you'd live in your parents' house for free, but your other living expenses would be about the same. Also, if you didn't go to school you'd work full time and could earn $8,000. You can still work part time while attending the summer school, but you will earn only $3,000. a) What will the summer school cost you in terms of money explicitly paid? b) What are the opportunity costs of going to summer school that you don't pay explicitly? Explain. c) What is your total opportunity costs of going to school this summer? Explain your answer.

-The figure above shows ________ relationship between the two variables.

You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is

-The slope of the line in the above figure is

In every economic system, choices must be made because resources are ________ and our wants are ________.

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

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

"As you devote more hours to studying, your GPA increases." A graph of this relationship would show

-In the above figure, the slope across the arc between c and d is

-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

-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?

-In the table above, y is measured along the y-axis and x along the x-axis. What is the value of the slope between the x = 8 and x = 6?

-In the above figure, using the slope across an arc, the slope of the curve between points b and c is

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes. Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

All economic questions arise because we

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

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

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie. Therefore, the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

China's population is over 1.5 billion, while the population of the United States is about 300 million. This fact means that China has much more human capital than the U.S. does. True or false? Explain your answer.

-In the above table, the relationship between x and y is ________ and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to ________.