Exam 1: The Scope and Method of Economics

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 a slope that is first positive and then negative?

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

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

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

It always rains about an hour after you finish washing your car.Concluding that washing your car caused it to rain is an example of the

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.

That which we forgo,or give up,when we make a choice or decision is called

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?

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 increasing?

Opportunity costs arise due to scarce resources.

Opportunity cost is

Which of the following is a normative question?

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

The amount of education that one has is an important factor in the determination of his or her wage rate.This is best described as

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)

An efficient market is a market

Normative economics is an approach to economics that

A formal statement of a theory is known as a(n)

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 NOT an opportunity cost of attending college?