Exam 1: What Is Economics

The use of abstraction in economic analysis is one of its primary weaknesses.

Greater economic efficiency often leads to greater economic inequality.

When variable A rises by 10 units, variable B rises by 15 units. The slope of the line describing this relationship is

Suppose that one can read a graph that shows information about price and quantity of some product. Relying solely on the graph, is it possible to explain the relationship between the two variables?

The dramatic increase in the standard of living since the Industrial Revolution

In international trade, one country's gain is another country's loss.

The rationale for rent control is that it protects moderate- to low-income families from the burden of rapidly rising rents and from eviction if they are unable to pay. It also prevents landlords from reaping windfalls as property values rise. Opponents note that rent controls usually lead to a reduced supply of rental housing and shortages. The proponents of rent controls support them primarily on the grounds of

A graph's origin is the point of intersection of all lines or curves in the graph.

If a government enacts a price floor on agricultural products to protect wheat farmers, the result is likely going to be

A price floor on the sale of wheat would be likely to benefit

Government controls over market prices frequently "backfire."

A theory is an abstraction used often by economists to

Which of the following mathematical expressions represents the equation of a straight line with a slope of zero at all points on a graph with Y on the vertical axis and X on the horizontal axis?

Economics is a social science in the sense that it

If a rent control policy is enacted to protect apartment renters, this is likely to lead to

A large factory pours its toxic wastewater into a nearby river, and as a result, the residents of a downstream community experience high rates of illness and birth defects. The economic problem illustrated by this example is

Slope is measured as rise\run.

Comparative advantage explains how two nations can benefit from trade.

An "opportunity cost" may be described as

Dryden Press can produce 10,000 textbooks using 10 machines and 100 workers or using 5 machines and 300 workers. It can produce 20,000 textbooks using 10 machines and 300 workers or 5 machines and 600 workers. Construct a two-dimensional contour-type graph to show the relationship between the output of textbooks and the labor and machinery inputs.