Exam 1: Getting Started

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer, be sure to mention the role played by rational choice.

Increasing income tax rates will solve the "social security time bomb issue" is an example of

Decision making on the margin involves

To economists, scarcity means that

Scarcity means we must

The additional benefit of increasing some activity by one-unit is called the

As a curve approaches a maximum point, the slope will

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.

-A graph shows the average wage of various demographic groups in 2012.The kind of graph used to show these data would be a

-In the above, which figure(s)show relationship between the variables that is always positive?

To graph a relationship involving more than two variables, we use which assumption?

The study of economics is best described as a study of

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie.Leann is making

To show how a variable ________, we typically use a ________.

Scarcity forces people to

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

Choices that are best for the society as a whole are choices in pursuit of

Scarcity

When two variables in a graph are related to a third, changing the third causes