Exam 1: What Economics Is About

Variables A and B are inversely related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B plotted in a two-variable diagram would be

When a person is making a decision at the margin he or she is comparing the total benefits from that activity to the total costs of the proposed action.

Which of the following is a positive microeconomics statement?

The effect of a decrease in interest rates upon economic growth is an example of positive economics.

In a two-variable diagram,there is a straight line which is parallel to the vertical axis.The slope of this line is

If someone gives you a free ticket to the movies,then there is no opportunity cost involved with going to the movies.

-Refer to Exhibit 1-4.If the student whose marginal benefits and costs of good health are noted in this table,how many units of good health should the student obtain in order to maximize her net benefits of good health?

The __________ the opportunity cost of doing something,the __________ likely a person will do that something.

-Refer to Exhibit 1-2.According to the data provided in this table,what is the slope of the line between points C and D,if these data were graphed with X on the horizontal axis and Y on the vertical axis?

A theory is an abstract representation of reality.This means a theory

The synonym economists commonly use for additional is

The coordinates of point A are 30 units of X and 26 units of Y.The coordinates of point B are 22 units of X and 30 units of Y.With X on the horizontal axis and Y on the vertical axis,the slope of the line between points A and B is

In all cases,positive economics deals with

Economists use the terms resource and input as synonyms.

In economics,something that provides utility is called a

Two variables are independent if as one variable __________,the other variable __________.

Which of the following is a microeconomics topic?

Minerals,water,and forests are all considered to be part of the broad resource category known as

The study of an economy's price level is explicitly a part of

Variables X and Y are independent of each other.If we plot X on the horizontal axis and Y on the vertical axis,the line that connects combinations of X and Y plotted in a two-variable diagram would be