Exam 1: Limits, Alternatives, and Choices

The slope of a graph relating two variables is -5. This indicates that as one variable decreases, the other variable also decreases.

If A decreases, then B will also decrease. The graph relating the two variables A and B is:

When economists talk about the capital resources in the economy, they are referring to the amount of money circulating in the economy.

Which of the following is not a factor of production?

After graduating from high school, Adam is thinking about going to college. The college tuition is $15,000 a year. Instead of going to college, Adam could take a full-time job that pays $25,000. What is Adam's opportunity cost of attending college for one year?

Which of the following statements is not correct?

A nation can produce two products: tanks and autos. The table below is the nation's production possibilities: Refer to the above table. If the nation produces more and more tanks, the opportunity cost of each additional tank in terms of autos:

A movement from one point to another along the production possibilities curve would imply that:

A point outside (to the right of) the production possibilities curve of a nation:

The opportunity cost of constructing a new public highway is the:

The economizing problem for individuals arises from the conflict between having relatively unlimited time and relatively limited jobs to do.

Refer to the above graph. Which of the following movements would indicate a reduction in unemployment?

Refer to the above graph. All of the following development would allow a movement from point C to a point outside the production possibilities curve, except:

Which question is an illustration of a macroeconomic question?

The statement in a newspaper that "consumer prices rose last month by 1 percent, and if this trend continues, the annual rate of inflation will be 12 percent for the year" is an example of:

From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the:

The best output or the optimal production of the nation is:

A relationship illustrated by an upward-sloping graph means that an:

The purpose of the ceteris paribus assumption used in economic analysis is to:

In a linear equation relating income and consumption, you know that the intercept is $1,000 and the slope of the line is .4. If income is $20,000, then consumption is: