Exam 1: Economics: the Study of Opportunity Cost

Many forms of seafood (lobster, crab legs etc.)are consumed by dipping the meat in melted garlic butter. If someone suggested that it would therefore be equally appealing to drink melted butter after having eaten garlic and unseasoned seafood, you would know they had fallen victim to which of the following?

Points inside the Production Possibilities Frontier are

When analyzing a problem, if an economist is attempting to understand whether or not an action was fair or just, the economist is thinking

If you concluded from the fact that the last three recessions have occurred while Republicans were President that their fiscal policies create recessions then you would be

An example of an incentive designed to promote savings would be

Economists focus on "unlimited human wants" rather than _____ to describe our pursuit of goods and services.

The one word in the definition of economics that focuses on the fact that we have to make choices about who gets what and how much is

Every worker is better off making more money and having better benefits. If you concluded from that fact that all workers would be better off if a law were passed requiring a 25% increase in wages and benefits, then you would be

-Using Figure 1.4 above we know the production of 9 units of soda and 3 units of pizza is

The statement that Congress passed a tax bill and two months later a recession ended, so the bill must have been good policy is an example of

Large increases in educational attainment would likely be a source of

A production possibilities frontier is a simple model of

-Using Figure 1.7 we know the production of 5 units of soda and 2 units of pizza is

A resource

-Referring to Figure 1.9, if a point is attainable it is in

-Using Figure 1.5 above you can tell that

-Using Figure 1.6 we know the production of 90 units of soda and 1 units of pizza is

-In Figure 1.2, which labeled point indicates that there are sufficient resources and technology to produce the combination of goods represented by that point?

The fact that as snow accumulates, snow shovel sales rise suggests the two are

-Referring to Figure 1.4, the opportunity cost of producing the second unit of pizza is