3) Microeconomics looks at particular markets within an economy.

True

False

7) The concept of equity relates to how quickly something can be produced.

False

True

9) Temperature Hot Chocolate SAles

25 100

30 90

35 80

40 70

45 60

50 50

55 40

(Table) Using the information in the table, the equation that represents the relationship between temperature (T) on the horizontal axis and hot chocolate (C) sales on the vertical axis would be

C= 50 - 1/2T

T= 75 - 2C

C= 150 - 2T

T= 25 - 1/2C

12) Which statement is NOT a key principle of economics?

People follow incentives.

Rational thinking requires perfect information.

Government can sometimes correct market failure.

Productivity determines the standard of living.