Exam 1: What Is Economics

From 8 P.M. to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. The opportunity cost of attending the movie is

Scarcity is a situation in which

Which of the following is a normative statement?

If variables x and y move up and down together, they are

Overtime worked by a JCPenney associate is considered ________ and earns ________.

Which of the following statements are CORRECT? I. The "highest-valued alternative given up to get something" is the opportunity cost. II) Wealthy economies don't experience opportunity costs. III) Scarcity creates opportunity costs.

Opportunity cost is defined as the

You notice that when the inflation rate increases, the interest rate tends to increase. This observation indicates that

-In the above figure, the axis breaks are used

Which of the following is NOT a factor of production?

Suppose that for a curve, as the variable measured on the x-axis increases, the variable measured on the y-axis decreases. The curve has a ________ slope.

Which of the following statements is CORRECT?

What is a tradeoff? Give an example.

-In the above figure, the relationship between x and y is

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

The term human capital refers to

-The slope of the line shown in the above figure is

In economics, positive statements are about

Which of the following is CORRECT? Factors of production are

-Which of the following CORRECTLY describes the above figure? I) There is no relationship between the price of an avocado and a student's grade in economics. II) The value of variable measured on the y-axis is constant as the variable measured on the x-axis increases. III) As a student's grade in economics increases, the price of an avocado increases.