Exam 1: What Is Economics?

-The data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies

Below is a student's answer to the question "What is microeconomics?" If you were the instructor, how would you correct the student's answer? "Microeconomics is the study of how government influences the choices made by individuals and businesses and of the performance of the whole national economy."

u.S. producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises. Producers are answering the ________ part of one of the two big economic questions.

-In the above figure, the relationship between income and expenditures is

In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy.

Microeconomics is the study of ________.

In economics, the term "capital" refers to

-In the above figure, which curve shows a negative relationship between x and y?

The slope of a curved line can be approximated by

-Using the data in the above table

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts. If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

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

A normative statement is

Most income in the United States is earned by business owners as profit.

The opportunity cost of something you decide to get is

Bill Bonecrusher graduates from college with a choice of playing professional football at $2 million a year or coaching for $50,000 a year. He decides to play football, but eight years later, though he could continue to play football at $2 million a year, he quits football to make movies for $3 million a year. His opportunity cost of playing football at graduation was ________ and eight years later the opportunity cost of making movies was ________.

-Which of the following CORRECTLY describes the above figure? I.There is no relationship between the price of an avocado and a student's grade in economics. II.The value of variable measured on the y-axis is constant as the variable measured on the x-axis increases. III.As a student's grade in economics increases, the price of an avocado increases.

In economics we learn that

-In the above, a positive relationship between price and quantity is shown in