Economics midterm

According to the Cost-Benefit Principle, you should go see the latest Star Wars movie with your friends this weekend if

the extra benefits of seeing the movie are greater than the extra costs of seeing the movie

Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. What is the opportunity cost of using the coupon for the Miami trip?

$450

If Smith and Jones devote all of their resources to producing computers, then the maximum number of computers they can produce in an hour is

16 (the combined total of computers per hour)

If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. According to The Principle of Comparative Advantage, Ana and Leo will be able to produce more overall if:

Ana specializes in fudge and leo specializes in toffee

The downward slope of the production possibilities curve illustrates the

Scarcity Principle

The maximum number of skirts that Becky can make in a day is represented by point

V (the x-intercept)

The marginal benefit of an activity is the

extra benefit associated with an extra unit of the activity

Which branch of economics is most likely to study the differences in countries' growth rates?

macroeconomics

On a graph of a production possibilities curve, an inefficient point is

necessarily an attainable point

Normative economic principles are concerned with how people _______ make decisions while positive economic principles are concerned with how people ______ make decisions

should; do

Whether studying the output of the U.S. economy or how many classes a student will take, a unifying concept is that

wants are unlimited and resources are scarce, so trade-offs have to be made

The Scarcity Principle says that

with limited resources, having more of one thing means having less of another

If you have a comparative advantage in a particular task, then:

you give up less to accomplish that task than do others