Econ 2301 ch 1 questions
A surge in cocoa prices is __ an effect the cause and a pest attack on the cocoa crop is __ the cause an effect.
an effect, the cause
Lower infant mortality is ___ the cause an effect and an improvement in nutrition is ___ the cause an effect.
an effect, the cause
Since the inputs used to produce goods are scarce, the total amount produced of most goods is __ the amount that consumers would like to buy. To allocate the goods produced to the people who value them the most, we use the __.
below, the price mechanism
Equilibrium describes a situation where
no one would benefit from changing his or her behavior
Optimization describes a situation where
people weigh costs and benefits when making a decision
Free riding occurs when __ firm's external benefits people's private benefits are out of sync with __ the public interest government policies.
people's private benefits, the public interest
Which of the following is more susceptible to the free-rider problem: fishing in public lakes or street lights?
Use of street lights is more susceptible since even those who don't pay taxes still benefit, blah blah
In which of the following areas will taking an economics course help benefit you throughout your life? *It will instil the concept that what activity is given up by a decision plays an important role when making choices. *It will help you analyse and predict human behavior in a variety of situations. *It will give you a the logic behind using cost-benefit analysis when evaluating decisions *all of the above
all of the above
Which of the following is subject to the free-rider problem? *public libraries *national security *a neighborhood watch *all of the aboveve
all of the above
Which of the following would be considered a scarce resource for producers? an effect, *machinery * land * high - skill labor. * all of the above
all of the above.
The table above shows that for a given budget if you increase the amount of one type of good that you buy, you must __ the amount of the other good that you buy. Therefore, a budget constraint implies that the consumer faces __.
decrease, trade offs.
Empiricism describes a situation where
economists use data to analyze what is happening in the world .
A budget constraint represents _________.
the bundles of goods or activities that a consumer can choose given her limited budget.