Exam 1: The Scope and Method of Economics

The economy was expanding during all of the years that I was a student, but as soon as I graduated, the economy contracted. Therefore, the labor market was waiting until I started looking for a job to contract. This statement is an example of the

It always rains about an hour after you finish washing your car. Concluding that washing your car caused it to rain is an example of the

A change in economic output is potentially efficient

Which of the following is a macroeconomics question?

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. A graph of the value of the minimum wage on one axis and the level of teenage unemployment on the other axis is an example of

Since the legal age to vote in the United States is 18, the legal drinking age in the United States should be lowered to 18. This statement is best described as

If your tuition is $5,000 this semester, your books cost $600, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $3,000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is

Economics is best defined as the study of

A graph illustrating how one variable changes over time is a Cartesian coordinate system.

The reasons to study economics include which of the following?

The principle that irrelevant detail should not be included in a model is known as

The amount of education that one has is an important factor in the determination of his or her wage rate. This is best described as

Related to the Economics in Practice on p. 6: The opportunity cost to Apple of having the hard drive produced in Japan by Toshiba is

Scarce resources give rise to the concept of

A formal statement of a theory is known as a(n)

You have noticed that there is an increase in the number of homeless people in your city. At the same time you observe that there are also a number of vacant apartments. You believe that the government could reduce the number of homeless people if landlords were required to rent their apartments for less than they are currently charging. This policy recommendation would be motivated by concerns over

The cost involved when choosing between alternatives is known as the

If your tuition is $20,000 this semester, your books cost $2,000, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $8,000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is

Which of the following is a microeconomics question?

Related to the Economics in Practice on page 6: The opportunity cost to Mattel of having its Barbie doll assembled in China is