Exam 2: The Key Principles of Economics

Table 2.3 -Refer to Table 2.3.The marginal product of the 1st worker is:

Figure 2.1 -On the production possibilities curve in Figure 2.1 the opportunity costs of increasing agricultural production from 200 tons to 400 tons is:

The opportunity cost of going to a particular college is not the same for everyone.

Figure 2.3 -In Figure 2.3,the move from production possibility curve XV to production possibility curve YZ could be caused by:

Suppose it costs a firm $200 million to produce and promote a sequel.If the firm follows the marginal principle and decides not to produce the movie,which of the following must be true?

The principle that what matters to people is the real value or purchasing power of money is the:

Figure 2.3 -In Figure 2.3,an efficient production point on production possibility curve YZ is:

Table 2.2 -Julianne runs a business and needs to decide how many hours to stay open.Table 2.2 illustrates her marginal costs of staying open for each additional hour.Suppose that we observe Julianne staying open 2 hours per day.If she is following the marginal principle,what must her marginal benefit be?

A major league baseball player signs a contract that pays $50 million over five years.The $50 million is its ________ value.

Figure 2.3 -In Figure 2.3,an efficient production point on production possibility curve XV is:

According to the marginal principle,a rational individual should undertake an economic activity as long as the:

If the price level falls faster than the wage rate,then the real wage decreases.

Table 2.2 -Julianne runs a business and needs to decide how many hours to stay open.Table 2.2 illustrates her marginal costs of staying open for each additional hour.Suppose that Julianne's marginal benefit of staying open per hour is $28.If she is following the marginal principle,how many hours should Julianne stay open?

According to the principle of diminishing returns,if all factors of production but one are held constant and if that one factor is doubled,then eventually output will most likely:

Table 2.4 -Refer to Table 2.4.The marginal product of the 3rd tank of fertilizer is:

If the weekly income from 1974 to 2011 increased from $80 to $290,but the number of standard baskets of goods that the weekly income decreased from 1.70 to 1.29 in 2011,then we can conclude that:

When prices rise,increases in real income are greater than increases in nominal income.

Nancy and Melissa both have broken light fixtures in their living rooms.Nancy opts to hire an electrician,while Melissa spends two hours replacing the fixture herself.Which of the following is a possible explanation of this behavior?

Basically,the marginal principle teaches us to evaluate the factors involved in taking an action to decide if the action it is worth the effort.

What do economists mean when they say that there is "no such thing as a free lunch"?