Exam 1: Ten Principles of Economics

It once took 90 percent of our population to grow our food. It now takes only 3 percent of the population to grow our food. Which of the following statements is true?

If the price of visiting a doctor were fixed below the current price, then we would expect

Which of the following statements exemplifies a principle of individual decisionmaking?

The business cycle refers to fluctuations in economic activity such as employment and production.

The average cost per seat on the 75-passenger Get-There-Safe Bus company's trip from Milwaukee to Minneapolis, on which no refreshments are served, is $37. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if it

For which of the following problems can well-designed public policy enhance economic efficiency?

High-school athletes who skip college to become professional athletes

George has spent $600 purchasing and repairing an old fishing boat, which he expects to sell for $900 once the repairs are complete. George discovers that, in addition to the $600 he has already spent, he needs to make an additional repair, which will cost another $400, in order to make the boat worth $900 to potential buyers. He can sell the boat as it is now for $400. What should he do?

The government can potentially improve market outcomes if market inequalities or market failure exists.

The adage, "There is no such thing as a free lunch," means

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

U.S. laws requiring that drivers wear seat belts have resulted in

Which is the most accurate statement about trade?

If Germany chooses to engage in trade, it

Suppose that the average income of a Costa Rican is higher than the average income of a Guatemalan. You might conclude that

The adage, "There is no such thing as a free lunch," is used to illustrate the principle that

In the long run the primary effect of increasing the quantity of money is higher prices.

When a species of fish dies off due to pollution in a river where it once lived, this is an example of

In which of the following decades was there both high inflation and rapid money supply growth in the US?

In the United States, incomes have historically grown