Exam 1: Exploring Economics

Use the following to answer questions Figure: Sales and Advertising -(Figure: Sales and Advertising)The graph shows the advertising expenditures and the resulting sales (in bottles)of a new caffeinated beverage called Jump.If a new health advisory is released warning consumers about problems associated with too much caffeine consumption and the level of base sales of Jump decreases by 2,000 bottles,what is the equation of this "shifted" line?

Economists like to use graphs and equations primarily because:

To be useful,an economic model must include every detail possible and not be an abstraction.

Scarcity refers to the fact that:

Scarcity:

Economists create simplistic models in order to explain complex economic topics.

Efficiency in markets is generally increased by the "discipline" of:

What would be a possible opportunity cost of you going to a doctor for a check-up?

Economic analysis gives us a structure for making decisions in a rational manner.

The main difference between macroeconomics and microeconomics is that:

Why are markets efficient?

The opportunity costs of attending college do NOT include:

A society that is able to produce goods and services at the lowest cost possible is experiencing:

In the equation Y = b - aX,a is the intercept.

People use _____ to determine how many hours to work,and businesses use _____ to determine how much of their product they are willing to supply to the market.

The economics of uranium mining would be studied in:

Use the following to answer questions Figure: Graph Examples -(Figure: Graph Examples)Which graph is an example of a scatter plot?

When goods are produced at the lowest possible cost,the economy is experiencing:

Use the following to answer questions Figure: Interpreting Equations on a Graph -(Figure: Interpreting Equations on a Graph)In the graph,if y stands for inflation,and x stands for the money supply,then:

The ceteris paribus assumption holds some variables constant to aid in model building.