Question 1

A rational decision maker takes an action if and only if the marginal benefit exceeds the marginal cost.

Accepted Answer

A) True 
 B)False

Question 2

In a particular country in 1999, the average worker had to work 20 hours to produce 55 units of output. In that same country in 2009, the average worker needed to work 28 hours to produce 77 units of output. In that country, the productivity of the average worker

Accepted Answer

A)  increased by 2 percent between 1999 and 2009.
B)  increased by 5 percent between 1999 and 2009.
C)  remained unchanged between 1999 and 2009.
D)  decreased by 3 percent between 1999 and 2009.E) All of the above
F) B) and C)

Question 3

Scenario 1-3
It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators.
-Refer to Scenario 1-3. What is the company's average cost?

Accepted Answer

The answer of Scenario 1-3
It costs a company $35,000 to...

Question 4

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

Accepted Answer

A)  people must face tradeoffs.
B)  rational people think at the margin.
C)  people respond to incentives.
D)  trade can make everyone better off.E) A) and D)
F) A) and C)

Question 5

For which of the following individuals would the opportunity cost of going to college be highest?

Accepted Answer

A)  a promising young mathematician who will command a high salary once she earns her college degree
B)  a student with average grades who has never held a job
C)  a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degree
D)  a student who is the best player on his college basketball team, but who lacks the skills necessary to play professional basketballE) B) and C)
F) A) and D)

Question 6

The term "invisible hand" was coined by

Accepted Answer

A)  Adam Smith.
B)  David Ricardo.
C)  Karl Marx.
D)  Benjamin Franklin.E) All of the above
F) A) and C)

Question 7

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

Accepted Answer

A)  cost of teaching increased.
B)  benefit of teaching increased.
C)  cost of a corporate job increased.
D)  benefit of a corporate job decreased.E) B) and C)
F) A) and C)

Question 8

Explain how trade with other countries is beneficial.

Accepted Answer

Trade allows countri...

Question 9

When computing the opportunity cost of attending a basketball game you should include

Accepted Answer

A)  the price you pay for the ticket and the value of your time.
B)  the price you pay for the ticket, but not the value of your time.
C)  the value of your time, but not the price you pay for the ticket.
D)  neither the price of the ticket nor the value of your time.E) B) and D)
F) None of the above

Question 10

The balance between efficiency and equality is an illustration of

Accepted Answer

A)  ​scarcity.
B)  ​trade-offs.
C)  ​the forces of supply and demand.
D)  ​none of the above.E) A) and C)
F) C) and D)

Question 11

Which of the following is correct?

Accepted Answer

A)  The word economy comes from the Greek word for "rational thinker."
B)  Economists study the management of scarce resources.
C)  Because economists believe that people pursue their best interests, they are not interested in how people interact.
D)  All of the above are correct.E) B) and C)
F) B) and D)

Question 12

What is the most important factor that explains differences in living standards across countries?

Accepted Answer

A)  the quantity of money
B)  the level of unemployment
C)  productivity
D)  equalityE) None of the above
F) B) and C)

Question 13

In communism, central planners decide which of the following?

Accepted Answer

A)  what goods and services will be produced
B)  how much will be produced
C)  who will produce and consume the goods and services
D)  All of the above are correct.E) B) and D)
F) B) and C)

Question 14

Katie is planning to sell her house, and she is considering making two upgrades to the house before listing it for sale. Replacing the carpeting will cost her $2,500 and replacing the roof will cost her $9,000. Katie expects the new carpeting to increase the value of her house by $3,000 and the new roof to increase the value of her house by $7,000.

Accepted Answer

A)  She should make both improvements to her house.
B)  She should replace the carpeting but not replace the roof.
C)  She should replace the roof but not replace the carpeting.
D)  She should not make either improvement to her house.E) C) and D)
F) B) and C)

Question 15

Productivity is defined as the

Accepted Answer

A)  amount of goods and services produced from each unit of labor input.
B)  number of workers required to produce a given amount of goods and services.
C)  amount of labor that can be saved by replacing workers with machines.
D)  actual amount of effort workers put into an hour of working time.E) A) and C)
F) B) and D)

Question 16

For a college student who wishes to calculate the true costs of going to college, the costs of room and board

Accepted Answer

A)  should be counted in full, regardless of the costs of eating and sleeping elsewhere.
B)  should be counted only to the extent that they are more expensive at college than elsewhere.
C)  usually exceed the opportunity cost of going to college.
D)  plus the cost of tuition, equals the opportunity cost of going to college.E) None of the above
F) A) and B)

Question 17

U.S. laws requiring that drivers wear seat belts have resulted in

Accepted Answer

A)  a reduction in both driver deaths and pedestrian deaths.
B)  fewer accidents and fewer deaths per accident.
C)  fewer driver deaths, fewer accidents and fewer pedestrian deaths.
D)  little change in the number of driver deaths, but more accidents and more pedestrian deaths.E) C) and D)
F) A) and B)

Question 18

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?

Accepted Answer

The answer of Consider two countries, Muria and Zenya. In...

Question 19

Almost all variation in living standards is attributable to differences in countries'

Accepted Answer

A)  population growth rates.
B)  productivity.
C)  systems of public education.
D)  taxes.E) A) and B)
F) None of the above

Question 20

Scenario 1-4 You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for three hours. If you go to the movies, you will spend $12.00 on a ticket and $4.75 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 15 points.
-Refer to Scenario 1-4. What is your opportunity cost of studying economics?

Accepted Answer

The enjoyment you wo...

Exam 1: Ten Principles of Economics

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Explain how trade with other countries is beneficial.

Correct Answer
verified
Trade allows countri...
View Answer

U.S. laws requiring that drivers wear seat belts have resulted in

Correct Answer
verified

In a particular country in 1999, the average worker had to work 20 hours to produce 55 units of output. In that same country in 2009, the average worker needed to work 28 hours to produce 77 units of output. In that country, the productivity of the average worker

Correct Answer
verified

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3. What is the company's average cost?

Correct Answer
verified

For a college student who wishes to calculate the true costs of going to college, the costs of room and board

Correct Answer
verified

The balance between efficiency and equality is an illustration of

Correct Answer
verified

The term "invisible hand" was coined by

Correct Answer
verified

For which of the following individuals would the opportunity cost of going to college be highest?

Correct Answer
verified

A rational decision maker takes an action if and only if the marginal benefit exceeds the marginal cost.

Correct Answer
verified

In communism, central planners decide which of the following?

Correct Answer
verified

Correct Answer
verified
The enjoyment you wo...
View Answer

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

Correct Answer
verified

When computing the opportunity cost of attending a basketball game you should include

Correct Answer
verified

What is the most important factor that explains differences in living standards across countries?

Correct Answer
verified

Productivity is defined as the

Correct Answer
verified

Almost all variation in living standards is attributable to differences in countries'

Correct Answer
verified

Exam 1: Ten Principles of Economics

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Explain how trade with other countries is beneficial.

Correct AnswerverifiedTrade allows countri...View AnswerShow Answer

U.S. laws requiring that drivers wear seat belts have resulted in

Correct AnswerverifiedShow Answer

In a particular country in 1999, the average worker had to work 20 hours to produce 55 units of output. In that same country in 2009, the average worker needed to work 28 hours to produce 77 units of output. In that country, the productivity of the average worker

Correct AnswerverifiedShow Answer

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3. What is the company's average cost?

Correct AnswerverifiedShow Answer

For a college student who wishes to calculate the true costs of going to college, the costs of room and board

Correct AnswerverifiedShow Answer

The balance between efficiency and equality is an illustration of

Correct AnswerverifiedShow Answer

The term "invisible hand" was coined by

Correct AnswerverifiedShow Answer

For which of the following individuals would the opportunity cost of going to college be highest?

Correct AnswerverifiedShow Answer

A rational decision maker takes an action if and only if the marginal benefit exceeds the marginal cost.

Correct AnswerverifiedShow Answer

In communism, central planners decide which of the following?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe enjoyment you wo...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

When computing the opportunity cost of attending a basketball game you should include

Correct AnswerverifiedShow Answer

What is the most important factor that explains differences in living standards across countries?

Correct AnswerverifiedShow Answer

Productivity is defined as the

Correct AnswerverifiedShow Answer

Almost all variation in living standards is attributable to differences in countries'

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Trade allows countri...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The enjoyment you wo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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