Exam 1: Ten Principles of Economics

With the understanding that people respond to incentives,outline the possible outcome for teachers if the K-12 school year is extended to 11 months per year instead of the existing 9 months per year.

The word that comes from the Greek word for "one who manages a household" is

Economics is the study of

Your professor loves her work,teaching economics.She has been offered other positions in the corporate world that would increase her income by 25 percent,but she has decided to continue working as a professor.Her decision would not change unless the marginal

To raise productivity,policymakers could

The U.S.president who referred to inflation as "public enemy number one" was

To say that "people respond to incentives" is to say that

One advantage market economies have over centrally-planned economies is that market economies

When a single person (or small group)has the ability to influence market prices,there is

A marginal change is a small incremental adjustment to an existing plan of action.

The opportunity cost of going to college is

Market failure refers to a situation in which the market does not allocate resources efficiently.

The basic principles of economics suggest that

If a copper refinery does not bear the entire cost of the smoke it emits,it will

Which is the most accurate statement about trade?

A rational decisionmaker

If education produces external benefits for society,which of the following might NOT be an appropriate policy for society to adopt regarding education?

The fact that different countries experience different standards of living is largely explained by differences in those countries'

Sarah buys and sells real estate.Two weeks ago,she paid $140,000 for a house on Oak Street,intending to spend $20,000 on repairs sell the house for $175,000.Last week,the city government announced a plan to build a "halfway house" for convicted criminals on Oak Street.As a result of the city's announced plan,Sarah is weighing two alternatives: She can go ahead with the $20,000 in repairs and then sell the house for $135,000,or she can forgo the repairs and sell the house as it is for $120,000.Sarah should

A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies