chap 1 quiz
Statement 3 deals with ___________
empiricism, because it describes behavior using real-world data.
Statement 2 deals with __
equilibrium, because your friend presumes everyone is behaving optimally
Which of the following would not be considered one of the possible opportunity costs of a recent high school graduate backpacking across Europe for a year.
All of these is a possible opportunity cost.
Which of the following is not an example of causation?
Driving without car insurance will lead to getting into an accident.
Which of the following is true regarding the concept of causation
It describes how one event can bring about change in another.
How does microeconomics differ from macroeconomics? (2)Which of the following is not an item studied under microeconomics?
Microeconomics is the study of how individuals, households, firms, and governments make choices, while macroeconomics is the study of the economy as a whole. (2) The unemployment rate.
Free riding occurs because _________.
people sometimes pursue their own private interests and don't contribute voluntarily to the public interest.
The concept of opportunity cost is a measure of _________
the value of the best alternative use of a resource
Suppose there are three activities in which you could participate: 1. The opportunity cost of the first activity is missing 3 hours of work. 2. The opportunity cost of the second activity is missing a concert that you have tickets to. 3. The opportunity cost of the third activity is missing the afternoon nap that you take every day. Given this information, for which of these activities would you be able to compare opportunity costs?
you can compare all the activities after you translate all the missed activities into dollar amounts
Consider the following three statements: Statement 1: You can either stand during a college football game or you can sit. You believe that you will see the game very well if you stand and others sit but that you will not be able to see at all if you sit and others stand. You therefore decide to stand. Statement 2: Your friend tells you that he expects many people to stand at football games. Statement 3: An economist studies photos of many college football games and estimates that 75 percent of all fans stand and 25 percent sit. Statement 1 deals with ____________.
optimization, because you are choosing your best feasible option.