Econ201

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

12

In a world of scarcity, it is impossible to

Meet all of society's wants

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

Simplify inside parentheses and brackets.

Economists would say that individual decisions are determined by

trade-offs

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

wrong answer: the relationship between the variables on the axes is direct.

Suppose that the equation given above applies to you and that you currently study 2 hours per week and attend class on average 3 hours per week. Your previous semester's GPA is 2.0. If you are intent on getting a 4.0, how many more hours per week do you need to study?

3.5

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%.

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.

Which is NOT an example of economic capital? tools money buildings and equipment machinery

Money

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

The assumptions of the model are generally accurate.

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 sold her old car at the end of the summer and now has the funds from the sale in her bank. She decides to purchase a much needed new automobile instead of saving that money to pay for her senior trip coming up next year. 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 new automobile over a senior trip.

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 1,400 airplanes. If the price of time is $20/hour in San Francisco and $15/hour in Chicago, which airport incurs the largest opportunity cost?

Wrong Answer: San Francisco

In this time series graph, the unemployment rate fluctuates from around 4% to 10%. Given this information, if 2017 had an unemployment rate of around 4-5%, was 2017 a year where it was easier or harder to find employment than 1986 and why?

Wrong answer: It was easier to find work in the late 1980s than in 2017 because the unemployment rate was lower than 2017.

What is a function?

a function describes a relationship involving one or more variables

Consider the equation x=3. How would this be represented in an XY graph and what does it say about the relationship between X and Y?

a single point (x=3) on the x axis and a vertical line upwards from that point that says x is. not dependent upon y

Which of the following can be classified as a free good in the production process?

calculus

When tasks involved with producing a good or service are divided among many workers with different skills, businesses

can produce a greater quantity of those goods or services

A key feature of some economic models is linearity, or whether the variable of interest changes in constant proportion with another associated variable (meaning they exhibit a linear or constant straight line relationship) or whether the change in the variable is not a constant proportion but varies more or less depending on the level of the associated variable (meaning they have a non-linear or curved line relationship). Which of the following is the most effective way for an economist to support such a relationship?

conduct behavioral experiments and make quantitative observations that indicate the form of the relationship

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

economic goods:

goods or services a consumer must pay to obtain; also called scarce goods

free goods:

goods or services that a consumer can obtain for free because they are abundant relative to the demand

economic model

is a simplified version of reality that allows us to observe, understand, and make predictions about economic behavior

Society gains advantages through trade because

it allows specialization and increased production

Suppose two countries A and B possess the exact same amount and quality of land, labor, capital and entrepreneurship. Can we say that each country therefore produces the exact same level of output?

it cannot be determined with the informations given

Congress must vote whether to increase the government budget so as not to shut down the government this year. The vote passed and the budget ceiling has been increased to keep the government running. This is an example of what type of policy?

macroeconomic fiscal policy

If an economist is trying to predict the impact of a tax cut on economic activity in the U.S., what is/are the best tool(s) for her to use in order to test out her economic model?

mathematical functions

Sydney is an economist putting together an economic model to predict the outcome from particular causes and effects in the economy. What tool is best for testing out her model?

mathematical functions

The best way to determine the direction and magnitude of the relationship between the price of some good and the demand for it is ________.

mathematically

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

One important use of algebraic modeling of economic behavior is to determine the direction of the relationship between two economic variables—say the quantity of X that is purchased and the price paid for X. If, as the price of X rises, the quantity of purchases fall, the relationship can be said to be ________.

negative

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

positive slope relationship.

When certain assumptions are used to create a model of reality, its value can be tested and determined by its ability to

predict outcomes.

The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it is

productive

productive resources:

the inputs used in the production of goods and services to make a profit: land, economic capital, labor, and entrepreneurship; also called "factors of production"

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

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

Economists would say that the decisions we make are influenced by

trade-offs.

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