Exam 1: What Is Economics

Which of the following is an example of a positive statement?

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

In every economic system, choices must be made because resources are ________ and our wants are ________.

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points a and b is

Positive and normative statements differ in that

During the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000 and books and supplies cost $1,300. In terms of dollars, the opportunity cost of attending summer school is

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a vertical line. From this fact we know that

-In the above figure, while moving along the line showing the relationship between household income and expenditure

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

Economists point out that scarcity confronts

When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions.

Which of the following is a microeconomic topic?

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have

Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement.

Macroeconomics is concerned with

-In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?

A graph of two variables is a vertical line. What is the interpretation of this result?

To graph a relationship that involves more than two variables, we use the "ceteris paribus" assumption.

-If two points on a line are x = 2, y = 5 and x = 7, y = 10, what is the slope of this line?

As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced