Exam 1: The Scope and Method of Economics

Refer to the information provided in Figure 1.3 below to answer the questions that follow. Figure 1.3 -Refer to Figure 1.3. If a 45-degree line were also graphed, the existing line shown on the graph would ________ it.

Which of the following is a normative question?

You have observed that every time you get a new tattoo the day before you take an exam you get an A. You therefore conclude that to get an A on an exam, all you have to do is get a new tattoo the day before. You have committed the

An efficient market is a market in which

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.

Which of the following is not one of the three fundamental concepts of economics?

A market in which profit opportunities are eliminated almost instantaneously is

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. The statement that an increase in the minimum wage causes an increase in teenage unemployment is an example of

If you eat at a sushi restaurant that charges $20 for its all-you-can-eat sushi special, then the marginal cost of your 10th piece of sushi is

You own the video game Grand Theft Auto V. The opportunity cost of playing this game for the second time

The reoccurrence of contagious diseases should be significantly lower in a technically advanced nation such as the United States. This statement is best described as

Refer to the information provided in Figure 1.2 below to answer the questions that follow. Figure 1.2 -If the slope of a straight line is -3. and if Y (the variable on the vertical axis) decreases by 6, then X (the variable on the horizontal axis) will

________ market is characterized by the fact that profit opportunities are eliminated almost instantaneously.

The government should increase the minimum age for collecting Social Security benefits. This statement is best described as

Whenever I go to the grocery store, I always stop at Starbucks on the way home. Therefore, going to the grocery store causes me to go to Starbucks. This statement is an example of the

An efficient market is characterized by the fact that

The rate of inflation is a topic of macroeconomics.

The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units is

If you can download 10 ring tones for your cell phone for $10 or you could download 11 ring tones for your cell phone for $10.50, then the marginal cost of the eleventh ring tone is

You have observed that every time you do 30 minutes of cardio exercise before taking an exam you get an A. You therefore conclude that to get an A on an exam, all you have to do is 30 minutes of cardio exercise before you take an exam. You have committed the