econ2 quiz 1

Given X = 52+27-((3/15)*100), X is _____

59

How would the equation x=0 and y=5 be represented in a XY graph, and what does it say about the relationship between X and Y?

A single point y=5 on the Y-axis has a horizontal line to the right from that point. This graph indicates that y is not dependent upon x.

Lynn sat down to calculate the economic equation, y= 12+7x18, for her economics course. What should she remember to do in order to find y?

Follow the correct order of operations.

Identify which of the following microeconomic topics can have an impact on macroeconomic topics

How do people decide how much to save for the future, or whether they should borrow to spend beyond their current means?

Macroeconomic topics can be impacted by which of the following microeconomic topics?

How do people decide how much to save for the future, or whether they should borrow to spend beyond their current means?

If Cece is trying to solve an equation, which step should she take first?

Multiply from left to right.

Every day, 500 airplanes in San Francisco incur an additional 30 minutes of airport delays when flying into or out of the airport. In Chicago, the delays amount to 15 minutes for 1,200 airplanes. If the price of time is $30/hour in San Francisco and $20/hour in Chicago, which airport incurs the largest opportunity cost?

San Francisco

Which topic below best applies to microeconomics

The price that a farmer asks for her watermelons.

Which assumption below best reflects a basic understanding economists have about the world?

The world has limited productive resources.

According to this graph, which age group will experience the greatest decline in population growth between 2000 and 2030?

between 20-64

Natural resources, or land, can include the fertility of the land, minerals below it, and what other aspects?

climate

In economics, functions often describe cause and effect. In an economic function, the variable being described on the left-hand side represents a(n) ________?

effect

If Stan's Shoemaker Shop practices the division of labor and employees concentrate on one step of the shoe-making process, this will likely result in

greater production output.

If a graph data line indicates that there is a zero slope, this means there

is a constant relationship between x and y.

What are the factors of production?

land, economic capital, labor, entrepreneurship

A bill was introduced into Congress last year suggesting changes to the income tax code. Congress now passed this new tax reform act in the last session and over the next few years the new laws will begin to impact the nation. This is an example of what type of policy?

macroeconomic fiscal policy

If an economist is trying to predict the outcome from particular causes and effects, what is the best tool(s) for her to use in order to test out her economic model?

mathematical functions

Macroeconomic policies that focus on banking and interest rates or controlling the money supply are called

monetary policies.

What is NOT included in economic capital?

money

If all else remains constant and the values of two variables move in the same direction it indicates a

positive slope relationship.

The advantages that society gains through trade lie in the ability to

specialize resources to the uses where opportunity cost is minimized.

The ability of a model to predict outcomes (accurately) is an indicator that

the assumptions of the model are generally accurate.

The ________ simplifies the economy into two groups, firms and households, and allows us to make predictions about economic behavior.

the circular flow diagram

Scarcity is a condition that is everywhere and always, since it is based upon two assumptions that reflect permanent universal conditions. The assumptions are that more output will satisfy more wants and

the world has limited productive resources.

When decisions need to be made, economists assume a decision will be influenced by its

trade-offs.

What combination of model characteristics are frequently used in the most effective models

useful and simple.

A graph in the xy plane with a single point at 4 on the x (horizontal) axis and a vertical line upwards from that point to infinity would be represented by the equation

x=4

Charlie searched for a model and discovered one on which to base his theory. For his model he used the circular flow diagram, applied math functions to predict economic actions, and identified the economic aspects and associations used in the model. All of his actions are in line, but what has Charlie forgotten to do with his model?

Charlie forgot to explain assumptions he used to simplify the model.

In order to calculate an economic equation to understand its economic implications, what must one remember to do?

Follow the correct order of operations.

What can be assumed if a model can accurately predict outcomes?

The assumptions of the model are generally accurate.

An equation where Y=6 could be represented on a graph where Y is on the vertical axis and X is on the horizontal axis as

a single point (Y=6) and a horizontal line rightwards from that point.

According to this graph, which age group will make up most of the population in the United States in 2030?

between 20-64

Because of our limited money, time, and effort, we are best off when we allocate things

by constantly assessing the opportunity costs of our choices.

Land, or natural resources, include(s) the fertility of the land, minerals below it, and

climate

The ________ shows the interaction between household and firms in the goods and services market as well as in the labor market. This simplifies a complex economy, enabling economists to better observe and understand behavior

the circular flow diagram

If a data line on a graph slopes upward as it goes to the right, it is depicting that

the relationship between the variables on the axes is direct.

When picking up a rental car at an airport car rental agency, some travelers stand in line waiting to sign paperwork and pick up car keys at the rental desk while other travelers can go right to their rental car by using their rental car loyalty club card. In this example, the travelers who move quickly through to the parking lot pick up their car are probably

travelers who value convenience more than those waiting in line and are willing to pay additional club fees for the option of avoiding them.

shows that in 1970, people 19 and under made up 77.2 million or 37.6% of the population; people between ages 20 and 64 made up 107.7 million or 52.5% of the population; and people 65 or older made up 20.1 million or 9.8% of the population. Image (b) shows that in 2000, people 19 and under made up 78.4 million or 28.5% of the population; people between ages 20 and 64 made up 162.2 million or 58.9% of the population; and people 65 or older made up 34.8 million or 12.6% of the population. Image (c) projects that in 2030, people 19 and under will make up 92.6 million or 26.4% of the population; people between ages 20 and 64 made up 188.2 million or 53.6% of the population; and people 65 or older made up 70.3 million or 20% of the population.) According to this pie chart, which age group population has been continually shrinking since 1970?

19 and under

When creating a graph for your economics course, which axis is most commonly used to represent quantity (q)?

Quantity is most commonly represented on the x-axis.

Which topic below best applies to microeconomics?

The price that a farmer asks for her watermelons.

In this time series graph, the unemployment rate fluctuates from around 4% to 10%. Given this information, 1987 had an unemployment rate of around 6%. Look at the year 2015 and compare whether it was easier or harder to find employment with 1986 and why?

Finding work was equally as effortful in 2015 as it was in 1986 because both of those years had economic conditions where unemployment was around 6%.

When creating a graph for your economics course, which axis is most commonly used to represent quantity (q)

Quantity is most commonly represented on the x-axis.

How would the equation where x=3 and y=4 be represented in a XY graph, and what does it say about the relationship between X and Y?

The beginning point y=4 on the Y axis has a horizontal line straight to the right, X-axis has a vertical line straight up from x=3. With the two points on the graph, there is an intersection point where the x and y will cross each other.

Imagine that a high school junior received a bonus check from his boss on the last day of his summer job. He decides to save all of that bonus check to pay for his senior trip coming up next year instead of purchasing a much needed new automobile. From an economist's perspective, which of the following statements about this decision is likely to be true?

The decision is rational in the sense that it reflects the junior's preference for a senior trip over new automobiles.

The town of Chester has an economy composed entirely of two equally sized food companies. Both company Q and company R produce peanut butter and jam. Company Q is better at producing jam than Company R which is better at producing peanut butter. In order to maximize output, Company R should

abandon the production of jam to fully specialize in the production of peanut butter and then trade with Company Q for jam.

Due to limits on our time, money, and effort, we are best off when we allocate things

by constantly assessing the opportunity costs of our choices.

When tasks involved with producing a good or service are divided, workers and businesses

can produce a greater quantity of those goods or services

Functions are often described as cause and effect in economics. In an economics function, if the variable is on the right-hand side and is doing the explaining, it represents a(n) ________?

cause

Some highways have commuter or express pass lanes. During rush hour lanes on the highway move slowly or often are stop and go, but the express lanes continue to move at a faster pace. Express pass users pay for a transponder and monthly fees to have express lane access even with no other people in their cars. In this example, the drivers who purchase these express passes are probably

drivers who value speed and convenience more than those in the stop and go lanes and are willing to pay additional express pass fees for the option of avoiding traffic jams.

In a world of scarcity, we will never

meet all of society's wants

The very best models have an unusual combination of characteristics. They are both

useful and simple

Given that total spending for a certain household will always include a base amount of $1000/month, and that additional spending is equal to half of any income earned, we can predict total household spending with a model y=b+mx, where

y represents total spending.