Econ Final

Which of the following is an example of an externality?

. Antonio's dog barks loudly during the night, waking his neighbors.

Market economies are distinguished from other types of economies largely on the basis of

. the ways in which scarce resources are allocated.

An example of a firm with market power is a

cable TV provider in Tulsa.

The economy of the former Soviet Union is best described as a

centrally-planned economy

In a particular country in 1998, the average worker needed to work 40 hours to produce 100 units of output. In that same country in 2008, the average worker needed to work 36 hours to produce 72 units of output. In that country, the productivity of the average worker

decreased between 1998 and 2008, so we would expect the standard of living to have decreased accordingly.

Economists use the word equality to describe a situation in which

each member of society has the same income

Central planning refers to

government guiding economic activity. Today many countries that had this system have abandoned it.

In a particular country in 2000, the average worker needed to work 40 hours to produce 55 units of output. In that same country in 2008, the average worker needed to work 30 hours to produce 45 units of output. In that country, the productivity of the average worker

increased by about 9 percent between 2000 and 2008.

Maureen's college raises the cost of room and board per semester. This increase raises Maureen's opportunity cost of attending college

only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Maureen's incentive to attend college.

Market power refers to the

power of a single person or small group to influence market prices.

The government enforces property rights by

providing police and courts.

When the government attempts to improve equality in an economy the result is often

reduction in efficiency.

The overriding reason why households and societies face many decisions is that

resources are scarce

In a market economy, economic activity is guided by

self-interest and prices.

In an economy in which decisions are guided by prices and individual self-interest, there is

the potential to achieve efficiency in production.

when computing the opportunity cost of attending a basketball game you should include

the price you pay for the ticket and the value of your time