Question 1

What is a marginal benefit?

Accepted Answer

Marginal benefit is

Question 2

Economists assume that rational people

Accepted Answer

A) never use all available information as they act to achieve their goals. 
B) undertake activities that benefit others and hurt themselves. 
C) only weigh the benefits and costs of the most desirable alternative actions. 
D) respond to economic incentives. 
A) never use all available information as they act to achieve their goals. 
B) undertake activities that benefit others and hurt themselves. 
C) only weigh the benefits and costs of the most desirable alternative actions. 
D) respond to economic incentives.

Question 3

In economics,the term ________ means "additional" or "extra."

Accepted Answer

A) allocative 
B) marginal 
C) equity 
D) optimal 
A) allocative 
B) marginal 
C) equity 
D) optimal

Question 4

Consider the following statements:
a.Consumers buy more MP3 players from an electronics store that sells MP3 players at a lower price than other rival electronics stores in the area.
b.Schools take steps to increase security since they believe it is more costly to allow vandalism than to hire additional security guards.
c.Citrus growers produce more oranges when the selling price of oranges falls.
Which of the above statements demonstrates that economic agents respond to incentives?

Accepted Answer

A) a only. 
B) b only. 
C) c only. 
D) a and b. 
E) a, b, and c. 
A) a only. 
B) b only. 
C) c only. 
D) a and b. 
E) a, b, and c.

Question 5

What is a centrally planned economy?

Accepted Answer

A centrally planned economy is

Question 6

Marginal benefit refers to the additional benefit that your activity provides to you.

Accepted Answer

A) True 
 B)False

Question 7

When voluntary exchange takes place,neither party gains from the exchange.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following questions or statements regarding medical school is normative?

Accepted Answer

A) How do changes in expected future incomes affect the decisions of medical students about which specialty to choose? 
B) Medical students who enter specialized fields make a larger contribution to society than do student who enter primary care. 
C) What role does tuition play in a student's decision about whether to attend medical school? 
D) Have tuition increases had a large effect or a small effect on the number of applications to medical school? 
A) How do changes in expected future incomes affect the decisions of medical students about which specialty to choose? 
B) Medical students who enter specialized fields make a larger contribution to society than do student who enter primary care. 
C) What role does tuition play in a student's decision about whether to attend medical school? 
D) Have tuition increases had a large effect or a small effect on the number of applications to medical school?

Question 9

Normative analysis is concerned with "what ought to be," while positive analysis is concerned with "what is."

Accepted Answer

A) True 
 B)False

Question 10

Figure 1-6
  
-Refer to Figure 1-6.Calculate the area of the trapezoid X.

Accepted Answer

A) $361 
B) $450 
C) $1,020 
D) $1,140 
A) $361 
B) $450 
C) $1,020 
D) $1,140

Question 11

Trade-offs force society to make choices when answering what three fundamental questions?

Accepted Answer

1.What goods and services will

Question 12

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200.Then,the doctor should stay open for the extra hour even if he can generate additional revenue of $200 for that hour.

Accepted Answer

A) True 
 B)False

Question 13

What is the difference between physical capital and human capital?

Accepted Answer

Physical capital includes manu

Question 14

Suppose that some investors have decided that economic and financial uncertainty have made the prospect of investing in domestic stock markets more risky than investing in foreign stock markets,and therefore choose to invest in foreign markets.By using all available information as they act to achieve their goals,these investors are exemplifying the economic idea that

Accepted Answer

A) people are rational. 
B) people respond to economic incentives. 
C) optimal decisions are made at the margin. 
D) equity is more important than efficiency. 
A) people are rational. 
B) people respond to economic incentives. 
C) optimal decisions are made at the margin. 
D) equity is more important than efficiency.

Question 15

Human capital refers to the accumulated skills and training that workers possess.

Accepted Answer

A) True 
 B)False

Question 16

One example of human capital is the amount of savings that you have.

Accepted Answer

A) True 
 B)False

Question 17

Scarcity is a problem that will eventually disappear as technology advances.

Accepted Answer

A) True 
 B)False

Question 18

In 2010,Hooverville consumed 205,000 tons of sugar.In 2011,sugar consumption rose to 245,000 tons.Calculate the percentage change in sugar consumption.

Accepted Answer

A) 8.37% 
B) 11.95% 
C) 19.51% 
D) 26.33% 
A) 8.37% 
B) 11.95% 
C) 19.51% 
D) 26.33%

Question 19

In economics,the difference between a firm's revenues and its costs is referred to as

Accepted Answer

A) physical capital. 
B) profit. 
C) capital gains. 
D) factor payments. 
A) physical capital. 
B) profit. 
C) capital gains. 
D) factor payments.

Question 20

Which of the following is an example of a "how much" decision?

Accepted Answer

A) The Pleasantville movie theatre is open only in the evenings.The theatre's manager is debating whether to add daily matinee shows. 
B) The Zhous have demolished their old home and are debating whether to build a ranch-style house or a Craftsman home. 
C) You're planning to hold a graduation party and must decide between having your party catered or having a pot-luck. 
D) Chelsea has withdrawn from the swim team to take up a full-time job. 
A) The Pleasantville movie theatre is open only in the evenings.The theatre's manager is debating whether to add daily matinee shows. 
B) The Zhous have demolished their old home and are debating whether to build a ranch-style house or a Craftsman home. 
C) You're planning to hold a graduation party and must decide between having your party catered or having a pot-luck. 
D) Chelsea has withdrawn from the swim team to take up a full-time job.

What is a marginal benefit?

Economists assume that rational people

In economics,the term ________ means "additional" or "extra."

What is a centrally planned economy?

Marginal benefit refers to the additional benefit that your activity provides to you.

When voluntary exchange takes place,neither party gains from the exchange.

Which of the following questions or statements regarding medical school is normative?

Normative analysis is concerned with "what ought to be," while positive analysis is concerned with "what is."

Figure 1-6 -Refer to Figure 1-6.Calculate the area of the trapezoid X.

Trade-offs force society to make choices when answering what three fundamental questions?

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200.Then,the doctor should stay open for the extra hour even if he can generate additional revenue of $200 for that hour.

What is the difference between physical capital and human capital?

Human capital refers to the accumulated skills and training that workers possess.

One example of human capital is the amount of savings that you have.

Scarcity is a problem that will eventually disappear as technology advances.

In 2010,Hooverville consumed 205,000 tons of sugar.In 2011,sugar consumption rose to 245,000 tons.Calculate the percentage change in sugar consumption.

In economics,the difference between a firm's revenues and its costs is referred to as

Which of the following is an example of a "how much" decision?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 1: Economics: Foundations and Models

What is a marginal benefit?

Economists assume that rational people

In economics,the term ________ means "additional" or "extra."

What is a centrally planned economy?

Marginal benefit refers to the additional benefit that your activity provides to you.

When voluntary exchange takes place,neither party gains from the exchange.

Which of the following questions or statements regarding medical school is normative?

Normative analysis is concerned with "what ought to be," while positive analysis is concerned with "what is."

Figure 1-6 -Refer to Figure 1-6.Calculate the area of the trapezoid X.

Trade-offs force society to make choices when answering what three fundamental questions?

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200.Then,the doctor should stay open for the extra hour even if he can generate additional revenue of $200 for that hour.

What is the difference between physical capital and human capital?

Human capital refers to the accumulated skills and training that workers possess.

One example of human capital is the amount of savings that you have.

Scarcity is a problem that will eventually disappear as technology advances.

In 2010,Hooverville consumed 205,000 tons of sugar.In 2011,sugar consumption rose to 245,000 tons.Calculate the percentage change in sugar consumption.

In economics,the difference between a firm's revenues and its costs is referred to as

Which of the following is an example of a "how much" decision?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters