Exam 1: What Is Economics

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?

Some college students think that because a college degree greatly increases their earning potential there is no opportunity cost of attending college.How would an economist look at the matter?

A contour map illustrates a cause and effect relationship among three variables.

It is possible to represent three dimensions on a two-dimensional graph by using

A ray through the origin always has a slope of one.

Models are used to describe cause-and-effect relationships.

The United States has been willing to trade off greater efficiency for greater wage equality.

If trade between two countries is voluntary, one can expect that

Which of the following is one source of disagreement between economists?

All two-dimensional graphs must have an origin, a horizontal axis, and a vertical axis.

Economists probably agree more often than they disagree.

When the economy experiences a bust, the government knows exactly which policies will spur an economic recovery.

Figure 1-2 -Identify the slope of the two curves A and B in Figure 1-2.

It has been said that "economics is the science of common sense." Is economics synonymous with common sense?

When residents surrounding an airport complain about noise from aircraft landings and takeoffs, the relevant economic analysis is that of

Tools used by economists include

Suppose that a curve has a slope equal to zero at some point A.To the right of A, the curve may

The tangent at point A on a curve has a positive slope.Therefore, the curve has a

How would you interpret (1) an upward sloping curve and (2) a zero slope curve in a two variable diagram?

Government controls over market prices frequently "backfire."