Exam 1: First Principles

Your elderly grandma tells you: "I haven't been taking my beloved walks because I'm concerned about falling and getting hurt.See,there is always a cost to doing something.But if you don't do anything,then there is no cost." Your grandma does not understand the economic concept of:

Nara has gone to three movies this week.She has some extra money,so she decides to go to another.Which economic principle does this statement BEST represent?

A resource is anything that:

If the value of homes in University City increases and,as a result,the people of University City spend more,incomes in University City will:

Economists use the term equilibrium to describe situation when:

Handicapped-designated parking spaces are an example of the market economy achieving efficiency.

Because people usually exploit opportunities to make themselves better off,to encourage young people to go to college in their home state,state universities can:

In Ventura County,California,strawberry production is limited by the number of acres available for agriculture production.Which economic concept does this statement BEST represent?

When markets fail:

You can spend $100 on either a new economics textbook or a new tablet computer.If you choose to buy the new economics textbook,the opportunity cost is:

When markets don't achieve efficiency:

When we are forced to make choices,we are facing the concept of:

Florida schools offered cash bonuses to students who scored high on the state's standardized exams.The cash bonuses are motivated by which economic principle?

Specialization in production was the starting point for:

In 2003,Congress passed a tax cut.The country did NOT incur any opportunity cost from this decision.

A dozen friends got together to celebrate a birthday.If the birthday cake is cut into 12 pieces of the same size and each of the 12 partygoers gets a slice,this cake distribution is:

A central and fundamental theme in economics is that:

Economists define an efficient use of resources as a situation in which:

Gains from trade exist for:

For a student who owns his or her own home and doesn't plan to live in the dorm,the cost of going to college is: