Exam 1: The Scope and Method of Economics

You have noticed that there is an increase in the number of homeless people in your city. At the same time you observe that there are also a number of vacant apartments. You believe that the government could reduce the number of homeless people if landlords were required to rent their apartments for less than they are currently charging. This policy recommendation would be motivated by concerns over

Related to the Economics in Practice on page 5: The opportunity cost to Mattel of having its Barbie doll assembled in China is

Experimental research in small cities suggests that mandating work for welfare recipients increases their income. Therefore, we should mandate work requirements for all welfare recipients. This statement is an example of

You have observed that every time you do 30 minutes of cardio exercise before taking an exam you get an A. You therefore conclude that to get an A on an exam, all you have to do is 30 minutes of cardio exercise before you take an exam. You have committed the

A change in economic output is potentially efficient

There is great concern over the fact that millions of Americans do not have health insurance. A study of the costs and benefits of implementing a national health-insurance program is an example of

Refer to the information provided in Figure 1.3 below to answer the questions that follow. Figure 1.3 -Refer to Figure 1.3. At Point A, what is the value of Y?

The rate of economic growth is a topic of microeconomics.

The concept of opportunity cost

Which of the following is NOT an opportunity cost of attending college?

Health insurance should be provided to every citizen in a wealthy nation such as the United States. This statement is best described as

Refer to the information provided in Figure 1.4 below to answer the questions that follow. Figure 1.4 -Refer to Figure 1.4. Which of the following curves or lines has a zero slope throughout?

The slope of a vertical line is

Opportunity cost is

The Latin phrase economists use that means all else equal is

Positive economics is an approach to economics that

If as the variable on the Y-axis rises the variable on the X-axis rises, the relationship between X and Y is said to be a positive relationship.

If you eat at a sushi restaurant that charges $20 for its all you can eat sushi special, then the marginal cost of your 10th piece of sushi is

A government policy that tries to minimize inflation and unemployment can best be described as trying to achieve economic

Refer to the information provided in Figure 1.5 below to answer the questions that follow. Figure 1.5 -Refer to Figure 1.5. As income increases, consumption increases, but for each additional increase in income, consumption increases by a larger and larger amount. If consumption is graphed on the vertical axis and income is graphed on the horizontal axis, the relationship between consumption and income would look like which of the following panels?