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 -If the slope of a straight line is -2. and if X (the variable on the horizontal axis) decreases by 8, then Y (the variable on the vertical axis) will

Which of the following is a question answered with positive economic analysis?

Opportunity cost is

The Latin phrase economists use that means all else equal is

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

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

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

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 phrase "there's no such thing as a free lunch" is a common way of expressing the concept of efficient markets.

A change in economic output is ________ if the value of the resulting gains exceeds the value of the resulting losses.

You have decided that you want to attend a costume party as Iron Man. You estimate that it will cost $40 to assemble your costume. After spending $40 on the costume, you realize that the additional pieces you need will cost you $25 more. The marginal cost of completing the costume is

The rate of economic growth is a topic of microeconomics.

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

You own American Sniper on DVD. The opportunity cost of watching this DVD for the fourth time

Which of the following is an example of a positive statement?

The post hoc, ergo propter hoc fallacy is the belief that

Empirical economics refers to the

Positive economics questions "What ought to be?" Normative economics predicts the consequences of alternative actions, answering the questions "What is?" or "What will be?"

There is great concern over the fact that global warming is causing permanent damage to the global environment. A study of the costs and benefits of purchasing carbon offsets to combat global warming is an example of

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