Exam 1: What Economics Is About

When a person is making a decision at the margin he or she is comparing the total benefits from that activity to the total costs of the proposed action.

The headline in the newspaper reads "County Supervisors Debate Building New Schools." The headline relates closest to which economic concept?

Every time you make a __________, you incur a(n) __________.

Economists use the word utility to describe the satisfaction one receives from a good.

The synonym economists commonly use for additional is

Attempts to determine "what is" are part of __________ economics.

It usually takes less time to buy a six-pack of Pepsi, a loaf of bread, and a bag of potato chips at a small convenience store (such as 7-Eleven) than at a large, full-service grocery store. Which of the following persons is most likely to buy these items at a convenience store?

Explain why the ceteris paribus assumption is essential when assessing an economic theory. Give an example to help support your answer.

Minerals, water, and forests are all considered to be part of the broad resource category known as

The latest Taylor Swift album is available to be downloaded for $12.99. Is this price a rationing device?

Decision making "at the margin" means making a choice based on __________ of a decision.

According to economists, one of the four broad categories of resources is money.

Something that motivates or encourages people to take an action is referred to as a(n)

A theory is

How is scarcity related to competition?

In a two-variable diagram, there is a straight line which is parallel to the horizontal axis. The slope of this line is

If it is discovered that using drugs enhances a person's chance of contracting a fatal disease, the cost of using drugs

Which of the following is a positive economic statement?

In all cases, macroeconomics deals with

Economists use the terms resource and input as synonyms.