Microeconomics, Chapter 1

Which demonstrates a scenario with no opportunity cost

All of these scenarios have an opportunity cost

Which of the following is the best definition of the opportunity cost of a decision

Benefits from that best for gone alternative

Which statement accurately describes the impact of the Atlantic investment tax credit

Firms and more investments are profitable and increase the demand for loanable funds. As a result, the interest rate rises.

What does the term ceteris paribus mean in this context?

Holding all else equal (unchanged)

Why is this restriction so useful in economic analysis

If every variable is allowed to change, it would be impossible to isolate the impact of one variable on another

Which scenario would Least likely change an individual's behavior

In an effort to make people eat healthier, the city of Bakersfield tells its residents to eat wheat bread instead of white bread

Which type of tax accounts for almost half of the United States federal government revenue?

Individual income taxes

Which of the following economic activities have led to an increase in the standard of living worldwide over the last century?

Investment in education and infrastructure, increases in international trade, increases in farm productivity, and increases in technology

Why, if at all, is the ceteris paribus condition Important in economic analysis?

It allows the analysis of how a single change affects an economic environment.

Megan has a one hour gap in her courseload for the fall semester. There are two courses available for her to take at the time reading piano sheet music and beginning rock climbing. She does not have any experience with piano or a rock climbing. In the end, she decide to enroll in the rock climbing course, despite her fear of heights. Identify which activity exhibits a potential trade off with enrolling in rock climbing

Learning to read piano sheet music

What does it mean to peg currency to the US dollar

Maintain a fixed exchange rate with the US dollar

Social welfare spending in Sweden occupies two large a portion of the national budget

Normative economics

The richest 1% of Americans should pay more taxes than the rest of the 99%

Normative economics

A decrease in the supply of coconut will increase the price of German chocolate cake, A good which requires coconut shavings as a key ingredient

Positive economics

As minimum wage increases, the prices of all goods and services also tends to increase

Positive economics

How does this tax reduction impact investment and why The tax reduction

Reduces investment because during the GST reduces savings

People have limited resources

Scarcity

What is the misery index?

The unemployment rate plus the inflation rate

Everything you do requires giving up something

Tradeoffs

According to the textbook, which state has a minimum wage that is higher than Oregon?

Washington

Which of the following questions would be studied in the area of micro economics?

What determines the number of hours an individual works?

What is the best definition of efficiency

When nobody can be made better off without making someone worse off

Not a primary goal

• Eliminating political conflict • Getting the local grocery store to set the optimal price to charge per pound of peaches • Calculating the willingness to pay of urban residence for an income in biodiversity • Removing economic differences between countries •Determining the fairest entrance fee to a new national park

Primary macro economic goal

• Low unemployment • A sustainable trade balance • Growth in the standard of living •Low level of inflation