Exam 1: Ten Principles of Economics

If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75.

The "invisible hand" works to promote general well­being in the economy primarily through

Which of the following principles is not one of the four principles of individual decisionmaking?

Germany could have avoided the high inflation that it experienced in the 1920s by

Benefits from trade would not include

When a government program is justified not on its merits but on the number of jobs it will create,

Economists use the term to refer to a situation in which the market on its own fails to produce an efficient allocation of resources.

An increase in the overall level of prices in an economy is referred to as

High-school athletes who skip college to become professional athletes

It costs a company $35,000 to produce 500 graphing calculators. The company's cost will be $35,080 if it produces an additional graphing calculator. If the company produces 501 graphing calculators then

Consider two countries, Muria and Zenya. In Muria total annual output is worth $800 million and people work 40 million hours. In Zenya total annual output is worth $900 million and people work 50 million hours. In which country is productivity higher?

Melinda quits her job at a bank, which pays $30,000 a year, to enroll in a two-year graduate program. Her annual school expenses are $22,000 for tuition and fees and $2,000 for books. What is her opportunity cost of attending the two-year graduate program?

Slow growth in US incomes during the 1970s and 1980s was primarily due to

Rational people make decisions "at the margin" by comparing .

Guns and butter are used to represent the classic societal tradeoff between spending on

Barb's aunt gave her $100 for her birthday with the condition that Barb buy herself something. In deciding how to spend the money, Barb narrows her options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally she decides on Option B. The opportunity cost of this decision is

Which of the following is a principle concerning how people interact?

In the short run, which of the following is not correct?

Which of the following is correct concerning opportunity cost?

The phrase "no such thing as a free lunch" means