Exam 2: The Key Principles of Economics

What is the opportunity cost of investing $10,000 of your own money in a business you wish to start?

If you remove resources from factory production,the quantity of factory goods will:

Table 2.3 -Refer to Table 2.3.The marginal product of the 2nd worker is:

If real salaries increase but nominal salaries do not,this means that:

Figure 2.2 -Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year.The figure shows that as more highways are built,the opportunity cost of building each additional highway is:

When economists use the term "marginal," they usually refer to:

Suppose that you lend $1,000 to a friend who pays you back $1,100 the next year.Suppose that prices that year rose by 8% and the real rate of return in the stock market was 4%.Your friend says that he or she was being more than fair by giving you more than the rate of inflation as a return.What do you think?

According to the marginal principle,a rational firm will introduce a movie sequel as long as:

When referring to "marginal" changes,the economic focus is on:

When deciding whether to engage in an activity or how much to do,people should follow:

Five years ago Tammy always took a big envelope full of coupons to the grocery store.Now she has a child in pre-school,she rarely brings coupons.Which of the following is NOT a possible explanation of this change in her behavior?

The principle that "as one input increases while the other inputs are held fixed,output beyond some point will exhibit increases at a decreasing rate" is known as the:

Figure 2.1 -On the production possibilities curve in Figure 2.1 the gain from decreasing manufacturing production from 500 tons to 300 tons is:

Spending money on a fixed budget is an example of:

The economic reason why you voluntarily pay tuition to get into the university/college that you are in right now is because:

Figure 2.1 -The production possibilities curve in Figure 2.1 illustrates the notion of:

The weekly income earned in 1974 at that time could buy ________ standard baskets of goods and services in 2011.

What is the real value of money?

The opportunity cost of getting a master's degree in engineering equals the tuition plus the cost of books.

A firm produces its product using both capital and labor.When it does not change its capital usage,but doubles its labor input,its output increases by less than 50%.Which of the following is the most likely explanation of this finding?