Exam 2: Economics: Eight Powerful Ideas

Explain why each of the following is considered an economic issue: a.whether to spend Saturday afternoon at a football game b.obtaining tickets to a U2 concert c.your university considers your application for one of 25 available scholarships

When considering whether or not to consume a second slice of cake,an individual is following marginal thinking if she compares the total cost of consuming both the first and second slices with their total benefit before making a decision.

Positive incentives do not:

Which of the following is true of resources?

The additional cost incurred as a result of undertaking an action is:

Specialization:

An economy's resources:

A university offers a free shuttle service around campus.The opportunity cost of the shuttle service is equal to:

Which of the following is true?

Which of the following statements is true?

The following table shows the marginal benefit to an individual of consuming pints of ice cream. If the price of each pint is $4.00 at this establishment,a rational consumer would purchase

Explain the difference between poverty and scarcity.

Assume that Colombia can produce 1,000 pounds of coffee in one day or produce 200 pounds of bananas in one day.In addition,assume that Ecuador can produce 300 pounds of coffee in one day or produce 100 pounds of bananas in one day.Which country has the comparative advantage in coffee and which has the comparative advantage in bananas? Determine a pattern of trade regarding these countries and these goods that would benefit both countries.

The opportunity cost of an action is equal to:

Individuals will only pursue an activity if:

Why do people generally switch channels when a movie's final credits are being displayed?

Specialization is a way for:

Trent decides to spend an hour playing basketball rather than studying.His opportunity cost is:

Which of the following would be efficient from an economic perspective?

The rule of rational choice: