Exam 1: What Is Economics?

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

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is equal to 1. This slope means that

An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions.

The fact that wants cannot be fully satisfied with available resources reflects the definition of

-Which of the following CORRECTLY describes the above figure?

Economics can be defined as the social science that explains the ________.

What is the difference between microeconomics and macroeconomics?

-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

Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the

The opportunity cost of attending college includes the cost of

The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital.

"As part of the financial crisis bailout plan in 2009, the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of

The problem of "scarcity" applies

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

"The difference between positive and normative statements is that a positive statement is always true while a normative statement might or might not be true." True or false? Explain.

-Graph the data in the table above in the figure. Label the axes. a)Is the relationship between X and Y positive or negative? b)What is the slope when X = 4? c)What is the slope when X = 8?

When a firm decides to produce more electric cars and conventional gas powered cars, it is most directly answering the ________ part of one of the two big economic questions.

Opportunity cost is defined as the

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.

-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of