Exam 1: Introducing the Economic Way of Thinking

"Ceteris paribus" is a Latin expression that essentially means "holding everything else constant."

If the price of a textbook rises and then students purchase fewer textbooks, an economic model can show a cause-and-effect relationship only if which of the following conditions holds:

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

Exhibit 1A-6 Straight line -A change in a third variable not on either axis of a graph is illustrated with a:

Campaign speeches normally include normative economic statements.

The slope of a line parallel to the vertical axis is:

Exhibit 1A-1 Straight line ​ -In Exhibit 1A-1, as X increases along the horizontal axis, corresponding to points A-B on the line, the Y values increase. The relationship between the X and Y variables is:

A sub-discipline of economics that looks at the economy as a whole is:

In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements. Which of these is a normative statement?

The slope of a line is calculated as the ratio of the "rise" over the "run".

Exhibit 1A-6 Straight line -In Exhibit 1A-6, the slope of straight line A-D is:

Which of the following is used to illustrate an independent relationship between two variables?

Economists use models to:

A downward-sloping straight line exhibits a direct relationship between two variables.

Which of the following represents a positive statement?

When building a model, an economist must:

Normative economics deals with ____ and positive economics deals with ____.

"The government should provide health care for all citizens." This statement is an illustration of:

Money is one of our nation's resources (factors or means of production).

Which of the following is included in the study of macroeconomics?