Exam 1: Ten Principles of Economics

A marginal change is a small incremental adjustment to an existing plan of action.

If the government were to intervene and set a wage for unskilled labor above the market wage, then we would expect, relative to the market outcome,

Which of the following is a decision that economists study?

Which of the following would a permanent increase in the growth rate of the money supply change permanently?

To promote good economic outcomes, policymakers should strive to enact policies that

Communist countries worked on the premise that government officials were in the best position to allocate the economy's scarce resources.

College-age athletes who drop out of college to play professional sports

A species of snakes became extinct due to pollution in a river where the snakes once lived. This is an example of

Rational people make decisions at the margin by

A market economy cannot produce a socially desirable outcome because individuals are motivated by their own selfish interests.

The word "economy" comes from the Greek word oikonomos, which means

Incomes of U.S. households in the 1970s and 1980s

Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight. The marginal cost per room per night

What are the two basic types of economies?

In the context of decisionmaking, the word "marginal" is most closely associated with the word

In the 1990s, inflation in the United States was

In a centrally-planned economy, economic activity is guided by .

Congressman Dearmark justified spending $3 million on a new entertainment complex in his district because it will create 450 new jobs for his residents. As a student of economics, you know that

You have driven 800 miles on a vacation and then you notice that you are only 15 miles from an attraction you hadn't known about, but would really like to see. In computing the opportunity cost of visiting this attraction you had not planned to visit, you should include