Exam 1: Ten Principles of Economics

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3. What is the minimum price the company will charge for the 701th calculator?

Which of the following statements best characterizes a basic difference between market economies and centrally- planned economies?

What does the "invisible hand" refers to?

Debbie quits her job, which pays $30,000 a year, to finish her college degree. Her annual college expenses are $10,000 for tuition, $2,000 for books, and $700 for food. What is her opportunity cost of attending college for the year?

A rational decisionmaker takes an action if and only if

Scenario 1-6 It costs a company $30,000 to produce 600 heart rate monitors. The company's cost will be $30,070 if it produces an additional heart rate monitor. The company is currently producing 600 heart rate monitors. -Refer to Scenario 1-6. What is the company's average cost?

Senator Jackson argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Feldman objects that this policy would benefit the rich at the expense of the poor.

Ashley eats two bananas during a particular day. The marginal benefit she enjoys from eating the second banana

If Faith attends college, it will take her four years, during which time she will earn no income. She will pay $50,000 for tuition, $12,000 for room and board, and $5,000 for books. If she spends the four years working rather than attending college, she will pay $18,000 for room and board, pay no intuition, and buy no books. Based on this information, Faith's economic cost of attending college would be $67,000 if, over the four years, she could earn

Prices direct economic activity in a market economy by

Economics is the study of how society allocates its unlimited resources.

In the short run, which of the following rates of growth in the money supply is likely to lead to the highest level of unemployment in the economy?

When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included?

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3. What is the company's marginal cost?

President Gerald Ford referred to inflation as

The opportunity cost of going to college is

Market power refers to the

In the short run, an increase in the money supply is likely to lead to inflation and unemployment.

Over the past century, the average income in the United States has risen about

Thousands of people develop lung cancer from second-hand exposure to cigarette smoke. This is an example of