Exam 1: Ten Principles of Economics

After much consideration, you have chosen Ireland over Spain for your Study Abroad program next year. However, the deadline for your final decision is still months away and you may reverse this decision. Which of the following events could prompt you to reverse this decision?

The term ______ refers to a small incremental adjustment to an existing plan of action.

Which of the following is not an example of a group responding to an incentive?

In the long run the primary effect of increasing the quantity of money is higher prices.

Suppose the cost of operating a 75-room hotel for a night is $6,000 and there are five empty rooms for tonight. If the marginal cost of operating one room for one night is $40, the hotel manager should rent one of the empty rooms only if a customer is willing to pay

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3. What is the company's marginal cost?

Scenario 1-1 You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for three hours. If you go to the movies, you will spend $8.00 on a ticket and $4.50 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 10 points. -Refer to Scenario 1-1. What is your opportunity cost of studying economics?

Suppose that in Germany total annual output is worth $600 million and people work 40 million hours. In France total annual output is worth $700 million and people work 50 million hours. In which country do people enjoy a higher standard of living?

In the short run, an increase in the money supply is likely to lead to ______ inflation and ______ unemployment.

Equality means distributing society's resources in the most efficient manner.

The "invisible hands" ability to coordinate the decisions of the firms and households in the economy can be hindered by

Which of the following is an important cause of inflation in an economy?

The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour.​

The business cycle is the

Trade between countries tends to

Chloe's college raises the cost of room and board per semester. This increase raises Chloe's opportunity cost of attending college

The slow growth of U.S. incomes during the 1970s and 1980s can best be explained by

Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires.

Inflation and unemployment both increase as the money supply increases.

For a very long time the country of Tofu has had an inflation rate of 8 percent. Suddenly its inflation rate drops to 3 percent. The drop in the inflation rate