Exam 1: Limits, Alternatives, and Choices

Entrepreneurship refers to a new college graduate who is looking for a job with a large company.

Assume that a consumer has a given budget or income of $12, and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. Refer to the information given above. If the consumer spent all of her budget on just apples or just bananas, how many apples or bananas maximum would she be able to buy?

Rational behavior implies that different people faced with similar choices will make the same decisions.

A reduction in the unemployment rate will cause the nation's production possibilities curve to shift outwards.

Matt observes that "there is a high correlation between educational attainment and the level of income." Jean concurs and adds that "high school graduates should all proceed to college."

The ceteris paribus assumption is employed in economic analysis, in order to:

The resource category called "land" includes forests, animals, and water resources.

Refer to the above graph. Which of the following movements would indicate economic growth?

Refer to the above graph. The slope of the line tangent to the curve at point A is:

The "other things equal" assumption is employed when:

Marginal analysis is the valuation of insignificant or small benefits from doing things.

Refer to the above graph. The slope of the tangent line at various points on the curve as the value of X increases (i.e., as we move to the right along the curve) is: (confusing)