Chapter 1 The Nature of economics

Given X = 22+10-((5/25)*100), X is ________.

12

According to this pie chart, which age group made up almost 38% of the population in the year 1970?

19 and under

Sam wants to improve his GPA. to earn a 4.0 this semester. His prior GPA was a 2.75. Imagine that there is an equation that says his new GPA could be calculated based on the number of hours he spends studying, his class attendance, and his prior GPA. Written as an equation, it is Grade = (0.50 x hours spent studying) + (0.25 x class attendance hours) + (0.25 x prior GPA). Sam plans to attend class for 4 out of 4 hours each week. Use the equation to determine approximately how many hours per week Sam needs to study to earn a 4.0.

4.6 Hours

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 experience the greatest decline in population growth between 2000 and 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

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 ________?

Cause

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?

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

Charlie is researching the relationship between the number of hours he spends on social media and his success in his classes. He sets up an equation to better understand the implications of this relationship. This describes a ________.

Mathematical function

Darryl is starting a company helping people put up and take down holiday lights on their homes. He determines that the larger the house, the more likely people are to use his company to put up their lights. If Darryl were to plot the relationship between home size and willingness to pay for holiday light installation services, the line on the graph would show a

Positive slope

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

Price is most commonly represented on the y-axis.

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

According to the order of operations in solving equations, which step should come first?

Simplify inside parentheses and brackets

Which topic below best applies to microeconomics?

The price that a farmer asks for her watermelons

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 positive

In the case of an negative relationship between two variables, all else remaining constant

The value of the two variables will move in opposite directions from each other

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

The world has limited productive resources.

From the graph above, one could conclude that, all else remaining constant

There is a trade-off between X and Y.

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 3 on the x (horizontal) axis and a vertical line upwards from that point to infinity would be represented by the equation

X=3

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

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?

b. 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.

What are the factors of production?

land, economic capital, labor, entrepreneurship

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

positive slope relationship.