Exam 1: Limits, Alternatives, and Choices

In a constructing the demand graph to show how the price of a good price affects how much of it the buyers will buy, the convention that economists follow is to measure price on the:

If a nation is operating at a point inside the production possibilities curve, it indicates that the nation could:

When studying human behavior, economists assume rational self-interest. This means that:

Economic principles are value judgments about what the economy should be like or the way the economic world ought to be.

What is the best economic explanation for why a person would drop out of college to take a job or start a business?

The notion of "purposeful behavior" in the economic perspective suggests that:

If an inverse relationship exists between two variables, then:

Variables X and Y in the above table are:

The quantity or supply of land resources available to a nation is pretty much fixed and cannot increase over time.

The following graph is the production possibilities curve of a nation: Refer to the above graph. The total opportunity cost of nine drill presses is:

Refer to the above graph. The selection of which point on the production possibilities curve is most like to result in the largest increase in economic growth over time?

Lauren makes $150 a day as a bank clerk. She takes two days off work without pay, to fly to another city to attend the concert of her favorite band. The cost of transportation and lodging for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Lauren's decision to attend the concert is:

Which of the following is the best synonym for "marginal" in economics?

Which of the following is considered an economic resource?

If economic resources were perfectly adaptable to alternative uses, then there would be constant opportunity costs along the production possibilities curve.

Suppose that a consumer purchases just two goods, X and Y. The Y-intercept of the budget line in this case would indicate the:

The role of the entrepreneur in society is to:

Which of the following indicates an inverse relationship between x and y?

The opportunity cost of doing or getting something is best and fully defined as:

One basic difference between "land" and "capital" resources is that land is: