Exam 1: What Is Economics

You have the choice to go skiing during spring break, staying at the university to study, or spending the week visiting your family. If you decide to go skiing, the opportunity cost of the holiday is

Use the table below to answer the following questions. Table 1A.3.3 -Refer to Table 1A.3.3. If we were to draw a graph of this relationship, when would the slope be positive?

Which factor of production earns the most income?

Which of the following newspaper headlines concerns a macroeconomic issue?

Use the figure below to answer the following questions. Figure 1A.2.3 -Refer to Figure 1A.2.3. If you were told that economic theory predicts that higher levels of the rate of interest (x)lead to lower levels of sales of houses (y), which graph would you pick to represent this economic relationship?

When a farmer decides to harvest tomatoes using machines instead of migrant workers, the farmer is answering the ________ question.

A tractor is an example of which of the following factors of production?

In choosing among alternative models, economists generally have the strongest preference for models that

Use the figure below to answer the following questions. Figure 1A.3.3 -What is the slope across the arc between B and C in Figure 1A.3.3?

Use the table below to answer the following questions. Table 1A.4.1 -Consider the data in Table 1A.4.1. Suppose z increases from 4 to 5. What will happen to the graph of the relationship between x and y?

"The rich should face higher income tax rates than the poor." This is an example of

A normative statement is

A positive statement is

Which one of the following topics does macroeconomics study?

Use the figure below to answer the following questions. Figure 1A.2.4 -Which curve or curves in Figure 1A.2.4 shows a negative relationship between unemployment and inflation?

Use the figure below to answer the following question. Figure 1A.4.4 -Consider the following information on cola sales by number of cases for a typical university residence floor: Temp. Price (dollars per case) Cola sales and temperature are

Use the figure below to answer the following question. Figure 1A.5.4 -Refer to Figure 1A.5.4. The graph shows the relationship between two variables, x and y. This relationship is described by the equation

Use the figure below to answer the following questions. Figure 1A.3.10 -Refer to Figure 1A.3.10. The figure shows a relationship between two variables, x and y. The slope at point B is

Which one of the following is a necessary consequence of scarcity?

The two big economic questions