Exam 1: The Scope and Method of Economics

You have decided that you want to attend a costume party as Black Panther. You estimate that it will cost $40 to assemble your costume. After spending $40 on the costume, you realize that the additional pieces you need will cost you $25 more. The marginal cost of completing the costume is

Debbie observes that leaves fall from trees before the fist day of winter, and concludes that the falling leaves cause winter to begin. This is an example of

Which of the following is not listed in the book as a reason to study economics?

Refer to Scenario 1.1 below to answer the question(s) that follow. SCENARIO 1.1: An economist wants to understand the relationship between minimum wages and the level of teenage unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that a 1% increase in minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers. -Refer to Scenario 1.1. The statement that a 1% increase in the minimum wage causes a 0.2% increase in teenage unemployment is an example of

Studying how Joshua allocates his time between school and video games is an example of

Which of the following is a question answered with normative economic reasoning?

Related to the Economics in Practice on page 3: According to the Economics in Practice, when rains in rural India are plentiful, the opportunity cost of having children attending school instead of working on harvesting the larger agricultural output

The government should increase the minimum age for collecting Social Security benefits. This statement is best described as

Refer to the information provided in Figure 1.4 below to answer the question(s) that follow. Figure 1.4 -Refer to Figure 1.4. Which of the Panels shows a curve or line that has a slope that is negative and then positive?

The study of economics

Health insurance should be provided to every citizen in a wealthy nation such as the United States. This statement is best described as

Marco observed that every time the temperature rises above 90 degrees, he forgets to take out the trash. Based on this observation he concluded that temperatures above 90 degrees result in temporary memory loss. In actuality, Marco

Because all workers should be able to earn a living wage, the minimum wage should be raised to $11.50 per hour in the United States. This statement is best described as

Related to the Economics in Practice on page 4: Economists estimate that over one's lifetime, a college degree holder will earn on average ________ someone with only a high school degree.

Economics is the study of

A market in which profit opportunities are eliminated almost instantaneously is

You always have math problems to work in class whenever you forget to bring your calculator to school. Concluding that forgetting your calculator causes your professor to assign math problems is an example of the

The slope of a vertical line is

The mistake of inferring causality from two events happening one after the other is called

Better insurance benefits increase the incentive of some individuals to work. This statement is best described as