Exam 2: Economics: Eight Powerful Ideas

The marginal benefit to Lasca of weekend vacations during the year at a local resort are given by the following schedule: If the marginal cost of a weekend vacation at the local resort is constant and equal to $350,how many weekends at the local resort is Lasca likely to enjoy?

Mike can wash a car in 5 minutes and wax a car in 15 minutes.Tony can wash a car in 10 minutes and wax a car in 20 minutes.Which of the following is true?

Government price controls make communication of information between buyers and sellers more effective.

Positive incentives:

The opportunity cost of an action:

Unemployment can be caused by downswings in the business cycle,people changing jobs,different skills needed by employers,or seasonal fluctuations in demand.

In order to acquire more of a good we must sacrifice production of another good (because resources are in limited supply).This illustrates the concept of:

The price of a ticket to the latest Broadway musical is $80.You will purchase a ticket if:

Land as a resource can include all of the following except:

Human capital consists of computers,tools,and equipment owned by private individuals.

Which of the following is an example of a positive incentive?

The following table shows the marginal benefit to a consumer from viewing theatrical-release films each month. If the price of a movie ticket is $8,a consumer following the rule of rational choice will purchase:

All of the following are intangible except:

You lose $20 from your wallet and decide to miss an hour from work in order to search for it.To an economist,this means that:

The opportunity cost of an airplane flight:

An entrepreneur organizes the other factors of production and bears the business risk.

Which of the following is an example of a resource?

In a market economy,the amount of a good that is produced is primarily decided by the interaction of:

Which of the following observations regarding economic goods is incorrect?

Tom is a castaway who washes up on a remote island.He can kill eight birds per hour or catch ten fish per day.The natives on the island can kill ten birds per day or catch twenty fish per day.The natives have a comparative advantage in: