Question 1

Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises?

Accepted Answer

A) The opportunity cost of producing soybeans decreases. 
B) The opportunity cost of producing soybeans increases. 
C) There will be no change in the opportunity cost of producing soybeans. 
D) The opportunity cost of producing corn increases. 
A) The opportunity cost of producing soybeans decreases. 
B) The opportunity cost of producing soybeans increases. 
C) There will be no change in the opportunity cost of producing soybeans. 
D) The opportunity cost of producing corn increases.

Question 2

The opportunity cost of an option

Accepted Answer

A) measures the undesirable aspects of the option. 
B) includes only the monetary cost of the option. 
C) is the highest-valued alternative that must be given up as the result of choosing the option. 
D) is objective, and it will be the same for all individuals. 
A) measures the undesirable aspects of the option. 
B) includes only the monetary cost of the option. 
C) is the highest-valued alternative that must be given up as the result of choosing the option. 
D) is objective, and it will be the same for all individuals.

Question 3

The opportunity cost to the United States of placing a man on the moon was

Accepted Answer

A) the loss of government revenues that were allocated to the mission. 
B) the cost of all production involved in the space program. 
C) the loss of utility from the highest valued bundle of products that had to be forgone because of the moon mission. 
D) less than zero, because the long-run benefit of the project will be greater than the cost. 
A) the loss of government revenues that were allocated to the mission. 
B) the cost of all production involved in the space program. 
C) the loss of utility from the highest valued bundle of products that had to be forgone because of the moon mission. 
D) less than zero, because the long-run benefit of the project will be greater than the cost.

Question 4

If the Internet makes it easier for sellers to find buyers and makes it easier for buyers to learn about the products that are available for sale, we would expect that

Accepted Answer

A) the volume of trade will decline. 
B) transaction costs will rise. 
C) the gains from trade will increase. 
D) buyers and sellers will be worse off. 
A) the volume of trade will decline. 
B) transaction costs will rise. 
C) the gains from trade will increase. 
D) buyers and sellers will be worse off.

Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises?

The opportunity cost of an option

The opportunity cost to the United States of placing a man on the moon was

If the Internet makes it easier for sellers to find buyers and makes it easier for buyers to learn about the products that are available for sale, we would expect that

The Economic Approach

B: Some Tools of the Economist

A: Supply, Demand, and the Market Process

B: Supply, Demand, and the Market Process

A: Supply and Demand: Applications and Extensions

B: Supply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Consumer Choice and Elasticity

A: Costs and the Supply of Goods

B: Costs and the Supply of Goods

A: Price Takers and the Competitive Process

B: Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

A: Price-Searcher Markets With High Entry Barriers

B: Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Appendix: Government Spending and Taxation

Appendix: the Economics of Social Security

Appendix: the Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Appendix: Great Debates in Economics: Keynes Versus Hayek

Appendix: the Crisis of 2008: Causes and Lessons for the Future

Appendix: Lessons From the Great Depression

Appendix: the Economics of Healthcare

Appendix:education: Problems and Performance

Appendix: Earnings Differences Between Men and Women

Appendix: the Question of Resource Exhaustion

Appendix: Do Labor Unions Increase the Wages of Workers

Appendix: Difficult Environmental Cases and the Role of Government

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Exam 2: A: Some Tools of the Economist

Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises?

The opportunity cost of an option

The opportunity cost to the United States of placing a man on the moon was

If the Internet makes it easier for sellers to find buyers and makes it easier for buyers to learn about the products that are available for sale, we would expect that

The Economic Approach

B: Some Tools of the Economist

A: Supply, Demand, and the Market Process

B: Supply, Demand, and the Market Process

A: Supply and Demand: Applications and Extensions

B: Supply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Consumer Choice and Elasticity

A: Costs and the Supply of Goods

B: Costs and the Supply of Goods

A: Price Takers and the Competitive Process

B: Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

A: Price-Searcher Markets With High Entry Barriers

B: Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Appendix: Government Spending and Taxation

Appendix: the Economics of Social Security

Appendix: the Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Appendix: Great Debates in Economics: Keynes Versus Hayek

Appendix: the Crisis of 2008: Causes and Lessons for the Future

Appendix: Lessons From the Great Depression

Appendix: the Economics of Healthcare

Appendix:education: Problems and Performance

Appendix: Earnings Differences Between Men and Women

Appendix: the Question of Resource Exhaustion

Appendix: Do Labor Unions Increase the Wages of Workers

Appendix: Difficult Environmental Cases and the Role of Government

Filters