Chapter 1 Quiz

An opportunity cost is the monetary cost of engaging in an activity. True False

False

Some politicians want "tuition-free" college. If this were to happen, college eduction would be "free," meaning nobody would have to pay for it. True False

False

The Rationality Assumption assumes people never make choices that leave them worse off. True False

False

To be in the top 1 percent of all income-earners in the U.S., an American would need to earn at least $3 million per year True False

False

Opportunity cost

Not being able to watch a movie because you chose to go to the gym instead.

Which of the following are subjective statements? (check all that apply) Steven Manley is the best economics professor in the world the NBA's Steph Curry is paid too much money the unemployment rate increased to it's highest rate since the Great Depression in 2020 (due to the government lockdowns meant to slow the spread of SARS-Cov-2) elementary school teachers are underpaid

Steven Manley is the best economics professor in the world the NBA's Steph Curry is paid too much money elementary school teachers are underpaid

Marginal cost

The extra gas used when driving to the gym one more time.

Marginal utility

The extra physical gains from working out one more time.

Total utility

The increase in wellness that you receive from all of the times you have gone to the gym.

One of the major macroeconomic goals is economic growth (an increase in the country's production) True False

True

Positive analyses are fact-based and not based on opinions. True False

True

The Latin term "Ceteris Paribus" means all other things being equal. True False

True

The concept of equity (or fairness) is subjective to the beliefs, opinions, and experiences of different individuals. True False

True

________________ analyzes how we choose to use our resources on an aggregate (national) level and includes measures of performance such as inflation, unemployment, and federal government expenditures. normative economics macroeconomics positive economics microeconomics

macroeconomics

Microeconomics analyzes how we choose to use our resources on a smaller scale and includes measures of performance such as _____. unemployment business costs consumer utility patterns both business costs and consumer utility patterns

both business costs and consumer utility patterns

Economic freedom means that individuals have the freedom to engage in transactions largely free from government intervention and is characteristic of ___. socialism democratic socialism capitalism traditional economies

capitalism

The marginal utility of choosing to go to a particular concert is the additional _________________ that is gained. road rage price of the ticket sodas consumed enjoyment

enjoyment

A ________________ exists when we conclude that something that is good for an individual is also good for the entire society. rationality assumption marginal analysis ceteris paribus fallacy of composition

fallacy of composition

The statement, "The government should choose a policy to create a lower rate of inflation", is a __________ statement. microeconomic positive economic global economic normative economic

normative economic

Although most people want maximum attainment of every economic goal, there is the operating reality of ________________________ that causes us to give up some of one thing if we want more of another. opportunity costs marginal costs marginal utility none of these are correct

opportunity costs

The difference between wants and needs is ____. obvious objective none of these choices are correct subjective an example of positive economics

subjective

Which of the following are macroeconomic topics? (check all that apply) the annual revenue of Apple Inc. Steven Manley's huge income the federal government's tax revenue the U.S. unemployment rate

the federal government's tax revenue the U.S. unemployment rate

Which of the following could be a possible opportunity costs of attending college? (check all that apply) the things you could have bought with the tuition money you spent missing out on the chance to work more hours at your job room and board (food) the sleep you give up to study your car (that you started driving back in high school)

the things you could have bought with the tuition money you spent missing out on the chance to work more hours at your job the sleep you give up to study