Exam 1: The Scope and Method of Economics

Refer to the information provided in Figure 1.5 below to answer the questions that follow. Figure 1.5 -Refer to Figure 1.5. Which of the curves has a slope that is positive and decreasing?

Better insurance benefits increase the incentive of some individuals to work. 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 curves or lines has an infinite slope throughout?

Stability implies a steady rate of economic growth and low inflation.

Inflation and unemployment

You know that the computer lab at school gets very crowded at about 3:00 p.m. To avoid the crowds, you start going to the computer lab one hour earlier every day. However many students make the same decision, and now the computer lab becomes very crowded at 2:00 p.m. This is an example of the

If you can buy 9 DVDs for $126 or you could buy 10 DVDs for $130, then the marginal cost of the tenth DVD is:

Marginal cost refers to the incremental cost arising from a decision.

The rise of the modern factory system in England during the late eighteenth and early nineteenth centuries is known as the

Resources are unlimited in a wealthy society.

Studying how the management of Hewlett Packard decides how many computers to produce and the price to charge for its computers would be considered

Which of the following is a normative question?

A market is considered efficient if profit opportunities remain continually available.

If the slope of a straight line is 4 and if X (the variable on the horizontal axis) increases by 12, then Y (the variable on the vertical axis) will

A market in which profit opportunities are eliminated almost instantaneously is

Economists often refer to risk-free ventures as

The cost involved when choosing between alternatives is known as the

You own the Star Wars six DVD set. The opportunity cost of watching these DVDs for the second time

Whenever the Democrats gain control of the Congress, spending on social programs increases; whenever Republicans gain control of the Congress, spending on defense increases. Hence, we know what the next party in control will do. This statement is an example of

The mistake of inferring causality from two events happening one after the other is called