Exam 1: Ten Principles of Economics: How People Make Decisions

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Your professor loves her work,teaching economics.She has been offered other positions in the corporate world that would increase her income by 25 percent,but she has decided to continue working as a professor.Her decision would not change unless the marginal

(Multiple Choice)

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Question 21

Ramona decides to spend two hours taking a nap rather than attending her classes.Her opportunity cost of napping is

(Multiple Choice)

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Question 22

The adage,"There is no such thing as a free lunch," means

(Multiple Choice)

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Question 23

Hamid spends an hour studying instead of watching TV with his friends.The opportunity cost to him of studying is

(Multiple Choice)

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Question 24

Suppose the cost of flying a 200-seat plane for an airline is $100,000 and there are 10 empty seats on a flight.If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300,the airline should

(Multiple Choice)

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Question 25

A barber currently cuts hair for 50 clients per week and earns a profit.He is considering expanding his operation in order to serve more clients.Should he expand?

(Multiple Choice)

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Question 26

When the government redistributes income from the wealthy to the poor,

(Multiple Choice)

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Question 27

Which of the following can policy do?

(Multiple Choice)

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Question 28

Suppose after graduating from college you get a job working at a bank earning $30,000 per year.After two years of working at the bank earning the same salary,you have an opportunity to enroll in a one-year graduate program that would require you to quit your job at the bank.Which of the following should not be included in a calculation of your opportunity cost?

(Multiple Choice)

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Question 29

Maureen's college raises the cost of room and board per semester.This increase raises Maureen's opportunity cost of attending college

(Multiple Choice)

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Question 30

If Jane attends graduate school,it will take her two years,during which time she will earn no income.She will pay a total of $100,000 for tuition,$20,000 for room and board,and $2,000 for books.If she spends the two years working rather than attending college,she will pay a total of $18,000 for room and board,pay no intuition,and buy no books.Based on this information,Jane's economic cost of attending graduate school would be $175,000 if,over the two years,she could earn a total of

(Multiple Choice)

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Question 31

Evidence indicates that seat belt laws have led to

(Multiple Choice)

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Question 32

A construction company has built 30 houses so far this year at a total cost to the company of $7.5 million.If the company builds a 31^st house,its total cost will increase to $7.76 million.Which of the following statements is correct?

(Multiple Choice)

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Question 33

Rational people make decisions "at the margin" by comparing

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Question 34

When calculating the cost of college,which of the following should you probably include?

(Multiple Choice)

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Question 35

When the government attempts to improve equality in an economy the result is often

(Multiple Choice)

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Question 36

A typical society strives to get the most it can from its scarce resources.At the same time,the society attempts to distribute the benefits of those resources to the members of the society in a fair manner.In other words,the society faces a tradeoff between

(Multiple Choice)

4.8/5

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Question 37

A bagel shop sells fresh baked bagels from 5 a.m.until 7 p.m.every day.The shop does not sell day-old bagels,so all unsold bagels are thrown away at 7 p.m.each day.The cost of making and selling a dozen bagels is $1.00;there are no costs associated with throwing bagels away.If the manager has 8 dozen bagels left at 6:30 p.m.on a particular day,which of the following alternatives is most attractive?

(Multiple Choice)

4.7/5

(75)

Question 38

Suppose the state of Illinois passes a law that bans smoking in restaurants.As a result,residents of Wisconsin who do not like breathing second-hand smoke begin driving across the border to Illinois to eat at restaurants there.Which of the following principles does this best illustrate?

(Multiple Choice)

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Question 39

Which of the following is true?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 139

Exam 1: Ten Principles of Economics: How People Make Decisions

Your professor loves her work,teaching economics.She has been offered other positions in the corporate world that would increase her income by 25 percent,but she has decided to continue working as a professor.Her decision would not change unless the marginal

Ramona decides to spend two hours taking a nap rather than attending her classes.Her opportunity cost of napping is

The adage,"There is no such thing as a free lunch," means

Hamid spends an hour studying instead of watching TV with his friends.The opportunity cost to him of studying is

Suppose the cost of flying a 200-seat plane for an airline is $100,000 and there are 10 empty seats on a flight.If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300,the airline should

A barber currently cuts hair for 50 clients per week and earns a profit.He is considering expanding his operation in order to serve more clients.Should he expand?

When the government redistributes income from the wealthy to the poor,

Which of the following can policy do?

Maureen's college raises the cost of room and board per semester.This increase raises Maureen's opportunity cost of attending college

Evidence indicates that seat belt laws have led to

A construction company has built 30 houses so far this year at a total cost to the company of $7.5 million.If the company builds a 31st house,its total cost will increase to $7.76 million.Which of the following statements is correct?

Rational people make decisions "at the margin" by comparing

When calculating the cost of college,which of the following should you probably include?

When the government attempts to improve equality in an economy the result is often

A typical society strives to get the most it can from its scarce resources.At the same time,the society attempts to distribute the benefits of those resources to the members of the society in a fair manner.In other words,the society faces a tradeoff between

Suppose the state of Illinois passes a law that bans smoking in restaurants.As a result,residents of Wisconsin who do not like breathing second-hand smoke begin driving across the border to Illinois to eat at restaurants there.Which of the following principles does this best illustrate?

Which of the following is true?

Ten Principles of Economics

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B

Measuring a Nations Income

Measuring a Nations Income: The Economy's Income and Expenditure

A construction company has built 30 houses so far this year at a total cost to the company of $7.5 million.If the company builds a 31^st house,its total cost will increase to $7.76 million.Which of the following statements is correct?