Exam 1: What Is Economics

-In the above figure, the slope across the arc between c and d is

-The above table gives data on two variables. If these data were graphed, the slope of the line would be

What does the slope of a straight line equal? How is the slope of a curved line calculated at a point on the curve?

In economics, the term "capital" refers to

Which of the following best defines capital as a factor of production?

Which of the following questions is a macroeconomic issue?

Your student association is looking for an auditorium to rent for an all-day conference. The university's Performing Arts Center is vacant on that day, so the association wants to rent it. The physical plant manager tells you that the daily rent is $660, which includes $400 to cover part of the cost paid to build the Center, $40 to cover part of its regular maintenance cost, $50 to help pay for the building's insurance, $100 to cover the extra cost of electricity that the university would incur because of the conference, and $70 to pay for additional janitorial services for the conference. You know that no one else wants to rent the Center on that day and you think that the price that the manager charges is too high. But how much should you pay? Use the economic way of thinking to answer this question and to convince the manager to accept your offer: a) If you rent the Center, what will be the university's marginal cost of renting the center to you? b) If you rent the Center, what will be the university's marginal benefit of renting the center to you? c) What amount of rent should you offer? Convince the manager to accept your offer.

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this roommate's comment correct?

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

One economist says that raising taxes on gas would be in the social interest. What does this economist mean?

Macroeconomic topics include

Macroeconomics is the study of aggregate variables such as national production and unemployment.

Scarcity can be eliminated through

Normative statements are statements about

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

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions.

A benefit from an increase in activity is called the

When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions.