Econ 1.1

What was the main provision of this​ act?

. Firms whose employees received assistance from government​ benefits, including Medicaid and the Supplemental Nutrition Assistance Program​ (SNAP), would be required to pay a tax equal to cost of the assistance.

Corporations and universities are willing to pay employees to take care of themselves because a healthier workforce

A and B only.

Economists assume that the only reason people take the actions they do is in response to economic incentives.

false

Despite this​ finding, many banks have been reluctant to install these barriers.​ Wouldn't banks have a strong incentive to install bandit barriers to deter​ robberies? Why,​ then, do so many banks not do​ so?

Banks have no economic incentive to install the barriers.

Consider the following​ statement: ​ "The problem with economics is that it assumes that consumers and firms always make the correct decisions. But we know that everyone makes​ mistakes." What is the most correct response to this​ statement?

Economics assumes that consumers and firms are​ rational, not that they always make the right decisions.

Why might studying economics be particularly good preparation for being the top manager of a corporation or a leader in​ government?

Economics teaches us how to look at the tradeoffs involved in every decision.

Why would the columnist argue that the act was more likely to hurt than help​ low-income families?

Firms that might otherwise have hired a​ low-wage worker may now be reluctant to do so because the firms could be liable for paying the tax.

Late in the​ semester, a friend tells​ you, ​"I was going to drop my psychology course so I could concentrate on my other​ courses, but I had already put so much time into the course I decided not to drop​ it." Is your​ friend's reasoning correct or​ incorrect?

Incorrect

Which of the following statements about the idea that people are rational is​ correct?

The idea assumes that consumers and firms use all available information as they act to achieve their goals.

If the columnist is​ correct, why did the sponsors of the act in Congress write the act the way that they​ did?

The sponsors of the legislation may have hoped that firms would raise the wages of​ low-income workers, which would make it unnecessary for these workers to apply for government benefits.

Which of the following best describes​ scarcity?

Unlimited wants exceed the limited resources available.

The grading system used by a teacher can affect the incentives of students to learn the course material by

altering the payoffs to achieving success on the various components of the course.

If teachers put too much weight in the grading scale on a certain part of the​ course, like readings outside the​ textbook, students might respond by ----- other parts of the course.

de-emphasizing

When an employer offers a wellness program to its​ employees, the health insurance premiums the employer pays on behalf of the employees are likely to

decrease

Scarcity is central to the study of economics because it implies that

every choice involves an opportunity cost.

What do economists mean by the word​ "marginal"?

extra or additional

President Obama was likely to have recommended changes that would

increase the payments that borrowers would have to make so that the government would be paid back sooner.

As a result of these changes in the federal student loan​ program, you would predict that the total amount​ students' borrowed under these programs would have

increased because the terms of repayment have been made more generous.

Teachers often wish that students came to class prepared having read the upcoming material. A teacher could design the grading system to motivate students to come to class prepared by ---- the grade weight assigned to being prepared.

increasing

The incentive of employees to improve or maintain their health once they obtain health insurance may be ---- impacted.

negatively

Economists believe that an activity should be continued up to the point where

the marginal benefit from the activity is equal to the marginal cost.

Economists assume that people are rational in the sense that

they use all available information as they take actions intended to achieve their goals.

President Obama and his advisers have failed to correctly forecast the effects of the 2011 changes to the loan programs because they

underestimated the number of students who would take advantage of the programs.

What does the writer mean by​ "incremental revenue" and​ "incremental cost"? Why would he focus on incremental revenue and incremental cost rather than on total revenue and total​ cost? ​"Incremental" means the same thing as

​"marginal." If the marginal revenue exceeds the marginal​ cost, the​ USPS's profit will increase. If the marginal cost exceeds the marginal​ revenue, the​ USPS's profit will decrease.