Exam 1: Introduction: What Is Economics

Recall the Application about housing prices in Cuba to answer the following question(s). -According to the Application, in 1960 the Cuban government

Figure 1A.1 -Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

Describe the field of economics known as microeconomics.

Congestion taxes tend to cause an increase in traffic volume during rush hours.

Scarcity can best be defined as a situation in which

One example of a microeconomic question is, "How will prices in the clothing industry change if the government bans imports from China?"

Adam Smith

To increase income by $120 when the slope of the curve showing the relationship between your income and work hours is 8, how many extra hours will you need to work?

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

The effort used to coordinate the factors of production is a description of

Recent housing reforms in Cuba should give homeowners ________ incentives to repair their homes and therefore ________ construction of new homes.

The slope of a nonlinear curve

List and briefly describe the five factors of production.

Most modern economic analysis is normative in nature, but involves questions with positive aspects.

When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine

Positive economic analysis answers what question?

We can use macroeconomic analysis to

Figure 1A.1 -Refer to Figure 1A.1. If the hours worked per week are 20, the income per week is

The origin of a graph is the intersection of the two axes, where the value of both variables is zero.

Figure 1A.2 -Refer to Figure 1A.2. The slope of the curve