Exam 1: Economics: the Study of Opportunity Cost

Logging companies are always more profitable if they are able to harvest more (rather than less)lumber in a month. If you concluded from that fact that the logging industry is more profitable if all of the firms in the industry harvest more then you would be

Economic incentives can come from

-In Figure 1.3 A, B and C, which depicts the existence of scarcity?

Figure 1.11 -Referring to the Production Possibilities Frontiers in Figure 1.11 A and B, which depicts generalized growth

If the (steadily decreasing)marginal benefit of another day spent in the hospital is smaller than the (steadily increasing)marginal cost of an additional day spent in the hospital, the

The fact that we are operating at a point inside a bowed out production possibilities frontier, indicates there is

-Using Figure 1.4 you can tell that

-Using Figure 1.5 above you can tell that

Any mechanism by which buyers and sellers negotiate an exchange is a

-In Figure 1.1, which labeled points are unattainable?

-Using Figure 1.5 above we know the production of 3 units of soda and 2 units of pizza is

-In Figure 1.1, which labeled point indicates that there are sufficient resources and technology to produce the combination of goods represented by that point?

The optimization assumption suggests that people make

Large increases in the availability of labor would likely be a source of

If you were to conclude, after carefully examining data and using proper evaluation techniques, that a tax credit for attending college benefits the poor more than a tax deduction (of equal total cost to the government)would, you would have engaged in _________ analysis to reach that conclusion.

Economics is the study of

-Referring to Figure 1.5, the opportunity cost of producing the third unit of pizza is

The underlying reason production possibilities frontiers are likely to be bowed out (rather than linear)is

Suppose you heard a person speaking about two graphs. You couldn't make out quite what they were saying but you saw that since 1920, the variable on the left graph showed a decreasing value and the variable on the right graph showed an increasing value. If they asserted that the left graph variable's decrease therefore caused the right variable's increase you would be

-In Figure 1.3 A, B and C, which depicts the existence of constant opportunity cost?