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 -Refer to Figure 1.5. As income decreases, consumption decreases by a decreasing amount. If consumption is graphed on the vertical axis and income is graphed on the horizontal axis, the relationship between consumption and income would look like which of the following Panels?

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

Health insurance should be provided to every citizen in a wealthy nation such as the United States. This statement is best described as

The decrease in exports from the United States is in part due to the strength of the U.S. dollar relative to foreign currencies. This statement is best described as

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

Refer to the information provided in Figure 1.3 below to answer the questions that follow. Figure 1.3 -Refer to Figure 1.3. At Point A, what is the value of Y?

When an economist states that "price changes cause quantity changes ceteris paribus", she is stating that price changes cause quantity changes

The concept of opportunity cost

As the variable on the Y-axis rises the variable on the X-axis falls. The relationship between X and Y is said to be positive.

Related to the Economics in Practice on page 9: 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?

Rent control laws are imposed when city officials believe landlords have been exploiting tenants. Which of the following criteria are they using to guide their actions?

If you observe that Event A happens before Event B happens, and you erroneously conclude that Event A caused Event B, you would be guilty of an error called 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.

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

Stability implies a steady rate of economic growth with full employment of resources.

Opportunity cost is

Macroeconomics is best described as the study of

The four criteria that are frequently used in judging the outcome of economic policy are

Opportunity costs are another name for marginal costs.

Inflation and unemployment