Exam 1: What Is Economics

To meet increased demand for its good, a firm decides to hire a few high-skilled workers, rather than hire many low-skilled workers. The firm is answering the ________ question.

Use the figure below to answer the following questions. Figure 1A.1.5 -Consider graph (b) of Figure 1A.1.5. Which one of the following statements is true?

Opportunity cost is

Use the information below to answer the following questions. Fact 1.4.1 Costco When Costco opened a gas bar just off Highway 401, the neighbourhood was swamped with cars as drivers lined up to get the discount of 10 cents a litre. -Refer to Fact 1.4.1. To control the crowd Costco hires traffic police. When Costco hires traffic police, it faces a tradeoff that could include all of the following except

Each of the following would be considered a macroeconomic topic except

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4, the slope across arc AB is

Use the table below to answer the following questions. Table 1A.3.2 -Refer to Table 1A.3.2. Suppose that w is measured along the x-axis. The slope of the line relating w and u is

Two variables are negatively related if

The equation of a line is y = 4 + 2x. What is the x-intercept of this line?

Use the figure below to answer the following questions. Figure 1A.4.5 -Consider the following information on cola sales by number of cases for a typical university residence floor: Temp. Price (dollars per case) Refer to Figure 1A.4.5. Which line shows the relationship of cola sales and its price when the temperature is 30°C?

Which of the following statements is normative?

The relationship between two variables that are negatively related is shown graphically by a line that

The two big economic questions

Use the figure below to answer the following question. Figure 1A.4.2 -Given the data in the following table, which one of the graphs in Figure 1A.4.2 correctly represents the relationship among x, y, and z?

Use the table below to answer the following questions. Table 1A.4.2 -Given the data in Table 1A.4.2, holding price constant, the graph of the purchases of strawberries, measured on the x-axis and family income, measured on the y-axis is a

In a world characterized by scarcity

Use the figure below to answer the following question. Figure 1A.5.1 -The equation of the line in Figure 1A.5.1 is

The branch of economics that studies the choices of individuals and businesses is

Use the figure below to answer the following question. Figure 1A.2.6 -Refer to Figure 1A.2.6. Consider the values for x and y given in the following table: Which one of the graphs in Figure A1.13 represents the relationship between x and y?

A positive statement is