Exam 1: What Is Economics?

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?

-The relationship between two variables, x and y, is a vertical line. Thus x and y are

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

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

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.

Economics is best defined as the science of choice and how people cope with

Normative statements are statements about

Which factor of production earns profit?

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

The term "opportunity cost" points out that

If variable x always increases when variable y decreases, x and y are said to be

Macroeconomics differs from microeconomics in that

-The figure above shows

Which of the following is a normative statement?

-In the above figure, x is

In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is

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

-In the above figure, the slope at point b is