Exam 1: Getting Started

Hours studied (per week) SAT Scores 2 900 4 1000 6 1050 8 1075 10 1090 -Jamie is preparing to take his SAT tests.The table above shows how Jamie's score depends on the number of hours a week Jamie studies a.Plot the relationship in the figure,putting the hours studied on the horizontal axis. b.Is the relationship you plotted positive or negative? c.What happens to the slope of the relationship as hours studied increase? d.Suppose Jamie can enroll in an SAT prep course and,by so doing,for every possible number of hours he studies,his score will be 100 points higher.Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure. e.How many variables are involved in the figure you just completed?

A slope is measured as the

The horizontal axis in a graph

When people make rational choices,they

A positive statement i.makes a statement about how the world operates. ii.is a true statement. iii.can be tested against the facts.

A linear relationship

The primary focus of microeconomics is

A normative statement i.can be tested as to whether it is true or false. ii.is considered negative. iii.depends on a person's values.

If a curve rises and then falls,it has a

-The graph shows a

A rational choice is one that

Trend refers to

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points C and D equals

-In the figure above,between points A and B,what is the slope of the line?

Which of the following is true regarding a normative statement? i.It uses the ceteris paribus assumption. ii.It is a value judgment. iii.It accounts for opportunity costs.

Kevin is re-finishing an antique grandfather clock that he purchased at a flea market for $300.He expects to be able to sell the clock for $450.At the last minute,Kevin discovers that he needs to repair the gears at a cost of $175 to make the clock worth $450 to potential buyers.It turns out that he could also sell the clock now,without completing the additional repairs,for $250.What should Kevin do?

Why is the benefit of something measured by what you are willing to give up?

-The graph shows

If x increases whenever y decreases,then x and y are