eco ch2 HW2

The slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price of one good and dividing it by the price of the other good. opportunity set personal preference utility level budget constraint

budget constraint

The lesson of __________ is to forget about the money that's irretrievably gone and instead to focus on the marginal costs and benefits of future options. budget constraints sunk costs marginal utility marginal analysis

sunk costs

Figure 2-2 Refer to Figure 2-2. At Point A in the production possibilities graph shown above, the economy: is using its resources efficiently while producing clothing but no food. is not using its resources efficiently. is using its resources efficiently while producing food but no clothing. is using its resources efficiently to produce both food and clothing.

is not using its resources efficiently.

The choice of efficiently utilizing more resources until reaching to a point along the production possibilities will display _____________________. population productive efficiency scarcity allocative efficiency

productive efficiency

The choice on a production possibilities frontier that is socially preferred will display _____________________. population scarcity productive efficiency allocative efficiency

allocative efficiency

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost (i.e., implicit opportunity cost) of attending class this evening is: $0 $4 $40 $44

$44

Figure 2-2 Refer to Figure 2-2. When the economy moves from Point A to Point B in the diagram above: All of the above occur. the economy increases production of both clothing and food. the economy begins using its resources efficiently to produce both food and clothing. the economy operates at its productive capacity once it reaches Point B. Question 170.2 / 0.2 points

All of the above occur.

Figure 2-1 Refer to Figure 2-1. An economy is operating at full employment, and then workers in the bread industry are laid off. This change is portrayed in the movement from: B to E G to F A to B C to F

C to F

Figure 2-1 Refer to Figure 2-1. The most inefficient point depicted is: Point C Point A Point G Point D

Point G

Which of the following is a normative statement? Unemployment rate should be higher next year than this year. the demand model in economics can predict the actions of reaction of rational consumers to a change in the price of a normal product only when everything else is unchanged. In average, prices of goods and services were higher in 2019 than in 2018. Unemployment rate was lower in 2019 than in 2018.

Unemployment rate should be higher next year than this year.

Scarcity implies that: at the current market price, consumers are willing to purchase more of a good than suppliers are willing to produce. consumers are too poor to afford the goods and services available. consumers would be willing to purchase the same quantity of a good at a higher price. it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available.

it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available.

As a person receives more of a good, the _______________ from each additional unit of the good declines. utility sunk costs marginal utility budget constraint

marginal utility

The marginal benefit of a slice of pizza is the: maximum amount that a consumer is willing to pay for the slice. total amount that a consumer is willing to pay for a whole pizza, divided by the number of slices. difference between the value of the slice to the consumer and the price of the slice. price of the slice of pizza

maximum amount that a consumer is willing to pay for the slice.

As depicted in _________________________________, it is necessary to give up some of one good to gain more of the other good. the production possibilities frontier scarcity utility allocative efficiency

the production possibilities frontier

Figure 2-1 Refer to Figure 2-1. Along the production possibilities frontier, the most efficient point of production depicted is: Point D All points on the production possibilities frontier are equally efficient Point C Point B

All points on the production possibilities frontier are equally efficient

Marginal thinking is best demonstrated by: acquiring the information relevant to a choice before making that choice. deciding to never purchase coats made with animal skins or furs. choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.

choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time.

The law of ____________________________ explains why people and societies rarely make all-or-nothing choices. consumption diminishing marginal utility marginal analysis utility

diminishing marginal utility

Philosophers draw a distinction between positive statements, which describe the world as it is, and ___________________s, which describe how the world should be. trade-off opportunity cost normative statement budget constraint

normative statement

Table 2-1 Referring to Table 2-1: A student has only a few hours to prepare for two different exams this afternoon. The above table shows alternative possible exam scores with three alternative uses of the student's time. The opportunity cost (i.e., implicit opportunity cost) of scoring a 94 on the economics exam rather than a 77 is: 15 points on the history exam. 8 points on the history exam. 17 points on the history exam. 14 points on the history exam.

15 points on the history exam.

Table 2-1 Refer to Table 2-1. A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. The opportunity cost of scoring an 84 on the history exam rather than 76 is: 10 points on the economics exam. 12 points on the economics exam. 8 points on the history exam. 7 points on the economics exam.

7 points on the economics exam.