Exam 1: Getting Started

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care.Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.

Matt pays a $50 a month membership fee at Bruno's Gym.He can exercise at the gym as many times as he wishes.If the membership fee is measured along the vertical axis and the number of times he exercises is measured along the horizontal axis, the graph between his membership fee and the number of times he exercises will

Moving rightward along a straight line, the slope of the line

What do economists mean when they discuss "scarcity"?

Correlation means

-The graph shows a

-What is the slope of the line in the figure above?

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

-What does the slope of the line shown in the above figure equal?

Ceteris paribus means

Proponents of cuts in income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours.This argument is based on the assumption that

The marginal cost of an activity is a measure of ________ the activity.

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A equals

In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.

In examining two variables, we find that as one variable changes, the other changes.These variables are said to be

Katie's Income (dollars per year) Katie's purchases (books per year) 50,000 14 70,000 16 90,000 18 110,000 20 -The table above shows how the number of books Katie buys each year depends on her income a. What kind of relationship exists between Katie's income and the number of books she purchases? b. Plot the relationship between Katie's income and the number of books she purchases in the above figure.Measure income along the vertical axis and the number of books along the horizontal axis.Be sure to label the axes. c. What is the slope of the relationship between $50,000 and $70,000 of income? d. What is the slope of the relationship between $90,000 and $110,000 of income? e. Comment on the similarity or dissimilarity of your answers to parts (c) and (d).

Suppose you take a trip during Spring Break.To determine the benefit of taking the trip, you

Economists measure opportunity cost