Exam 1: The Scope and Method of Economics

Refer to the information provided in Figure 1.1 below to answer the questions that follow. Figure 1.1 -Refer to Figure 1.1.There is ________ relationship between the daily temperature and the number of gallons of ice cream purchased.

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

Which of the following is a normative question?

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

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

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

The collection and use of data to test economic theories is called empirical economics.

An efficient market is a market

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

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

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

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

The rate of economic growth is a topic of microeconomics.

Related to the Economics in Practice on p.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?

Dividing the change in quantity on the Y axis by the change in quantity on the X axis calculates the slope of a line.

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

Resources are unlimited in a wealthy society.

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

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:

The slope of a non-linear curve