Exam 1: The Economic Approach

While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents,Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $3.For Jordan,the marginal cost of the third taco would be

"If income were redistributed in favor of the poor,we would eliminate scarcity." The preceding statement is

A rational decision maker takes an action if and only if

The economic way of thinking stresses that

Which of the following is part of the economic way of thinking?

Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions.This person has

If scarcity were eliminated,

In economics,man-made resources such as tools,equipment,and structures that are used to produce other goods and services are referred to as

According to marginal analysis,you should spend more time studying economics if the extra benefit from an additional hour of study

Economics is the study of how

In economics,the term marginal refers to

People are willing to pay more for a diamond than for a bottle of water because

Which one of the following is a positive economic statement?

A restaurant offers an "all you can eat" lunch buffet for $12.Jim has eaten three servings and is trying to decide whether or not to go back for a fourth.The economic way of thinking suggests that Jim should go back for the fourth serving if and only if

The difference between a positive economic statement and a normative statement is that

Which of the following actions is consistent with the basic economic postulate (the guidepost)that incentives matter?

"The resources now going into the War on Terrorism and into improved airport security would save more lives if they were invested in medical research." This statement most clearly reflects which of the following?

Which of the following is a positive economic statement?

While waiting in line to buy two tacos at 75 cents each,and a medium drink for 80 cents,Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50.For Jordan,the marginal cost of purchasing the third taco would be

Positive economics differs from normative economics in that