Exam 1: The Scope and Method of Economics

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 first positive and then negative?

If as the variable on the Y-axis rises the variable on the X-axis rises, the relationship between X and Y is said to be a positive relationship.

When an economist states that "price changes cause quantity changes ceteris paribus", she is stating that price changes cause quantity changes

Which of the following is an example of a positive statement?

The decrease in exports from the United States is in part due to the strength of the U.S. dollar relative to foreign currencies. This statement is best described as

Normative economics

You have observed that every time you do 30 minutes of cardio exercise before taking an exam you get an A. You therefore conclude that to get an A on an exam, all you have to do is 30 minutes of cardio exercise before you take an exam. You have committed the

The slope of a straight line is not constant unless the line is vertical or horizontal.

If you eat at a Las Vegas casino that charges $12 for its all you can eat buffet, then the marginal cost of your third trip to the buffet line is

Which of the following is the best definition of economics?

Opportunity cost is

The rate of unemployment is a topic of microeconomics.

Studying how the management of Hewlett Packard decides how many computers to produce and the price to charge for its computers would be considered

Refer to the information provided in Figure 1.5 below to answer the question(s) that follow. Figure 1.5 -Refer to Figure 1.5. Panel B shows a curve with a slope that is

Refer to the information provided in Figure 1.5 below to answer the question(s) that follow. Figure 1.5 -Refer to Figure 1.5. As firms produce additional units, average costs declines by a smaller and smaller amount. If output is graphed on the horizontal axis and average costs are graphed on the vertical axis, the relationship between average costs and output would be like which of the following Panels?

Refer to the information provided in Figure 1.1 below to answer the question(s) that follow. Figure 1.1 -Refer to Figure 1.1. There is ________ relationship between the daily temperature and the number of gallons of ice cream purchased.

Economists use the phrase ceteris paribus to express the assumption

If the slope of a straight line is 6 and if Y (the variable on the vertical axis) decreases by 60, then X (the variable on the horizontal axis)

Normative economics questions "What ought to be?" Positive economics predicts the consequences of alternative actions, answering the questions "What is?" or "What will be?"

If the slope of a straight line is 4 and if X (the variable on the horizontal axis) increases by 12, then Y (the variable on the vertical axis) will