Exam 1: Getting Started

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

When economists use the term "correlation," they are referring to

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

If there is a positive relationship between two variables,

As a shoe factory adds more workers,shoe production grows,reaches a maximum,and then shrinks.In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis,the relationship between the number of workers and the number of shoes starts as ________ and then,after the maximum point,is ________.

Proponents of cuts in income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

Normative statements i.describe how the world is. ii.describe how the world ought to be. iii.depend on people's values and cannot be tested.

-The slope of the curve at point B

Gregory is considering attending a concert with a ticket price of $40.He estimates that the cost of driving to the concert and parking there will add an additional $20.In order to attend the concert,Gregory will have to take time off from his part-time job.He estimates that he will lose 5 hours at work,at a wage of $8 per hour.Gregory's opportunity cost of attending the concert equals

-A graph that shows the value of an economic variable for different groups in a population at a given time is called a

What is an opportunity cost? Give an example.

Of the three major economic questions,which of the following is the best example of a "How?" question?

If a small change in the x variable results in a large change in the y variable,the curve will be

If x increases and as a result y decreases,then x and y are

A linear relationship

-In the above figure,while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold,the

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases.The graph of these two variables is a

In New York City,Mayor Michael Bloomberg has recently recommend that the city,with the help of private donors,make cash payments to poor and underprivileged parents who can certify that their children are attending school on a regular basis.The payments would start after third grade and go through high school,rising each year as dropout rates get higher and a child's forgone earning potential is higher.What economic concept does this policy represent?