Exam 1: The Scope and Method of Economics

Refer to the information provided in Figure 1.3 below to answer the questions that follow. Figure 1.3 -Refer to Figure 1.3. The slope of the line between Points D and C is

The study of how benefits are determined for city employees would be considered

Positive economics looks at outcomes of economic behavior and evaluates them as good or bad.

There is a possibility that a national sales tax will be implemented. Many economists argue that items such as food and clothing should be exempt from such a tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over

Normative economics looks at outcomes of economic behavior and evaluates them as good or bad.

If the slope of a straight line is 4 and if Y (the variable on the vertical axis) decreases by 20, then X (the variable on the horizontal axis)

If your tuition is $5,000 this semester, your books cost $600, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $3000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is

Related to the Economics in Practice on page 10: A study on the effect of roommates on college grades found that there were strong roommate effects on grade point average, effort in school, and fraternity membership. Which of the following is an example of a normative statement concerning this study?

An efficient economy is one that produces what consumers demand and does so at the least possible cost.

Related to the Economics in Practice on page 5: According to the Economics in Practice, a majority of the $10 retail value of the Barbie doll

Studying how Joshua allocates his time between school and video games is an example of

Refer to Scenario 1.1 below to answer the questions that follow. SCENARIO 1.1: An economist wants to understand the relationship between minimum wages and the level of teenage unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that a 1% increase in minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers. -Refer to Scenario 1.1. A graph of the value of the minimum wage on one axis and the level of teenage unemployment on the other axis is an example of

Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the additional $15 you pay for parking is an example of

If information is less costly and more easily available, then usually this

The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This statement is best described as

The principle that irrelevant detail should not be included in a model is known as

Ceteris paribus literally translated means, "buyer beware."

The slope of a non-linear curve

To isolate the impact of one single factor, economists invoke the assumption of

Which of the following statements is NOT correct?