Exam 1: Getting Started

In New State,the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer,be sure to mention the role played by rational choice.

What is the relationship between wants,resources,scarcity,and choices? Discuss the relationship for an individual and for a society.

A positive statement I.makes a statement about how the world operates. II.is a true statement. III.can be tested against the facts.

John decides to leave college early and play professional sports.Which of the following economic principles does John use? i.personal economic policies ii.marginal cost versus marginal benefit analysis iii.normative versus positive economics

-The slope of the curve at point B

A choice made by comparing all relevant alternatives systematically and incrementally is

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Why do economists use graphs?

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line equals

-In the above figure,as the y variable increases,

The question "Should economics majors or sociology majors earn more after they graduate?" is an example of a ________ question.

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

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

An independent relationship between two variables is shown in a graph by

If the marginal benefit of getting a college degree rises,rational people will

All economic questions and problems arise from

To graph a relationship that involves more than two variables,we use

Your economics professor offers 10 points extra credit if you attend a review session before your next exam.This extra credit is an example of

Which of the following is a positive statement?