Exam 1: What Is Economics

A scatter diagram with the price of vacations to Mexico on the vertical axis and the price of vacations to California on the horizontal axis shows a positive relationship. If the price of vacations to Mexico were placed on the horizontal axis, and the price of vacations to California on the vertical axis, the relationship would be

The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions.

The slope of a line equals the

Which factor of production earns profit?

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

As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve

Studying the determination of prices in individual markets is primarily a concern of

From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the symphony. Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony. Then the opportunity cost of attending the hockey match is

When China builds a dam using few machines and a great deal of labor, it is answering the ________ part of one of the two big economic questions.

Define marginal cost and marginal benefit.

According to economists

-The slope of the line in the above figure is

Scarcity is

Suppose you are working four nights per week at your courses and your grade point average is 3.5. You want a higher grade and decide to study an extra night each week. Your GPA now rises to 3.8. What is your marginal benefit from studying for one additional night a week?

Factors of production include

A curve is plotted with y measured on the vertical axis and x measured on the horizontal axis. The slope of the curve equals

Which of the following is a positive statement?

All economic questions arise because we

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

Copper falls into which factor of production category?