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.