Exam 1: Ten Principles of Economics

For most students,what is the largest single cost of a university education

Tuition is the single-largest cost of attending college for most students.

When does a rational decision maker take an action

What happens when the government prevents prices from adjusting naturally to supply and demand

What term refers to the amount of goods and services produced from each hour of a worker's time

Suppose your management professor has been offered a corporate job with a 30 percent pay increase.Why has he decided NOT to take the job

A donut shop sells fresh baked donuts from 5 a.m. until 3 p.m. every day but Sunday. The cost of making and selling a dozen glazed donuts is $1.00. Because this shop does not sell day-old donuts the next day, what should the manager do if he still has 10 dozen left at 2:30 p.m.?

What will pollution regulations do

Although the tenth principle of economics is controversial,what do most economists believe

According to an economic principle,what is the effect of government intervention in the presence of a market failure

Suppose you have your own pizza delivery business and receive a call to deliver to a remote client.You need to decide whether to take the call.If you don't,there are no consequences,since someone else will.Based on the distance to the client,you calculate that it would cost you $5 to deliver,and expect to receive $6 for the service.You also pay monthly rent for the car,which on average,based on past experience,comes down to about $2 per trip.Your time doesn't matter,as you have nothing more enjoyable or useful to do for the time being.How do you make this decision What economic principle is at work in your decision process

Which good best meets the definition of scarcity

What does the term "market failure" refer to

What will happen if a copper refinery does NOT bear the entire cost of the smoke it emits

Lisa buys a 1982 BMW,which she plans to restore and sell.She anticipates that the cost of the car and the repairs will be $11,000 and that she can sell it for $20,000.After she has spent $11,000,she discovers she needs to replace the engine,which will cost $5000.She can sell the car without the new engine for $14,000.What should Lisa do

Equity means everyone in the economy should receive an equal share of the goods and services produced.

What happened to prices in Germany during the early 1920s

What is one definition of equity

Trade allows each person to specialize in the activities he or she does best,thus increasing each individual's productivity.

Productivity is defined as the quantity of goods and services produced from each hour of a worker's time.