Exam 1: What Is Economics?

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

For the Jones household it has been estimated that for every ten degrees increase in the outdoor temperature the consumption of ice tea increases by 5 glasses. What type of relationship exists between temperature change and the consumption of ice tea?

Which of the following is a normative statement?

Because we face scarcity, every choice involves

If the quantity of wood purchased decreases when the price of wood rises, a graph representing these variables would have

-In the above table, the relationship between x and y is ________ and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to ________.

What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies.

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

The economic resource that organizes the use of other economic resources is called

Which of the following is a normative statement?

A cross-section graph can show how economic variables for different groups of people vary over time.

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

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

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

Scarcity is a situation in which

Explain what entrepreneurship is and why it is considered a factor of production.

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 relationship between costs and quantity is negative

In broad terms the difference between microeconomics and macroeconomics is that

The faster an automobile is driven (speed), the lower the miles per gallon (mpg)for that automobile. Given this information, we say that an automobile's speed and mpg have