Exam 1: What Is Economics

Your employer has asked you to start working overtime and has offered to pay $18 per hour for every hour you work beyond forty hours a week.The wage rate for each of the first forty hours will continue to be the usual $15 per hour.In terms of dollars,what is the marginal benefit of working each hour of overtime?

-In the above figure,the x-coordinate of point b is

What is a tradeoff? Give an example.

Differences in income are most directly related to which of the following economic question?

You notice that when interest rates increases,new residential housing prices tend to decrease.This observation indicates that

You decide to take a vacation and the trip costs you $2,000.While you are on vacation,you do not go to work where you could have earned $750.In terms of dollars,the opportunity cost of the vacation is

In a graph,a line has a negative slope if

-The above figure graphs the price of a bushel of wheat and housing starts.The graph shows the variables are

-In the above figure,the y-coordinate of point b is

When the government chooses to use resources to build a dam,these sources are no longer available to build a highway.This choice illustrates the concept of

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship.If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis,the relationship would be a

The formula for the slope across an arc is used to approximate the slope for

A scatter diagram will be most useful

Along a curved line,the slope at the maximum

-As a firm expands its output,cost per unit of output (average cost) decreases and then increases.Average cost and output have

x y 0 0 2 6 4 12 6 18 8 24 10 30 -The above table indicates that variables x and y are

-In the above figure,the slope across the arc between a and b is

The night before a midterm exam,you decide to go to the movies instead of studying for the exam.You score 60 percent on your exam.If you had studied the night before,you'd have scored 70 percent.What was the opportunity cost of your evening at the movies?

An economic system in which the government decides what,how,and for whom to produce,directs workers to jobs,and owns all the land and capital is

Which of the following is a normative statement?