Exam 1: First Principles

The BEST example of making a choice at the margin is whether to:

Which statement demonstrates how people respond to incentives to make themselves better off?

For which decision would marginal analysis be MOST relevant?

After swimming 100 laps at the pool, Erik decides to swim 10 more before lifting weights. Which economic principle does this statement BEST represent?

When a factory closes, why is it bad news for the local restaurants?

Scarcity exists when:

In equilibrium, there will be no further opportunities for gains from trade.

If an economy has NOT achieved efficiency, there must be ways to:

In Colorado, there has been a drought, and rural communities are fighting with urban areas over water. Which economic concept does this statement BEST represent?

The problem of scarcity is confronted by:

One person's spending is another person's:

The fact that individuals in a market economy act so as to make themselves better off is a major reason a market equilibrium is usually efficient.

When the nations that constitute the Organization of Petroleum Exporting Countries (OPEC) restrict the supply of oil to increase their profits, the oil market:

Margo spends $30,000 on one year's college tuition. The opportunity cost of spending one year in college for Margo is:

A grocery store benefits when a new furniture factory moves to town and hires workers because the:

The problem of determining what goods and services society should produce:

If the state government allocates additional spending on education programs, the opportunity cost is:

Everyone benefits from street lighting, yet the marginal benefit to any one individual usually falls short of the marginal cost. This is an example of:

Which method of encouraging recycling is likely to be MOST effective given that people usually exploit opportunities to make themselves better off?

A choice made _____ is a choice whether to do a little more or a little less of an activity.