Question 1

If the marginal cost of an activity exceeds the marginal benefit, then

Accepted Answer

A)  the activity will occur because the high marginal cost means it must be highly valued. 
B)  the forgone alternatives' costs must be increased. 
C)  an alternative action will be selected. 
D)  the person must concentrate on the activity's total benefits. 
A)  the activity will occur because the high marginal cost means it must be highly valued. 
B)  the forgone alternatives' costs must be increased. 
C)  an alternative action will be selected. 
D)  the person must concentrate on the activity's total benefits.

Question 2

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

Accepted Answer

A)  scarcity. 
B)  ceteris paribus. 
C)  choosing at the margin. 
D)  productivity. 
A)  scarcity. 
B)  ceteris paribus. 
C)  choosing at the margin. 
D)  productivity.

Question 3

-Household consumption depends on both income and interest rates. In the above figure

Accepted Answer

A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant. 
A)  household consumption is held constant. 
B)  interest rates are held constant. 
C)  household income is held constant. 
D)  no variable is held constant.

If the marginal cost of an activity exceeds the marginal benefit, then

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

-Household consumption depends on both income and interest rates. In the above figure

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 1: What Is Economics

If the marginal cost of an activity exceeds the marginal benefit, then

Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of

-Household consumption depends on both income and interest rates. In the above figure

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters