module 2 econ

Due to limits on our time, money, and effort, we are best off when we allocate our time, money, and effort...

according to the opportunity costs of our choices.

Which of the following is NOT an example of economic capital?

money

If Kendrick decides to watch t.v. instead of go to the gym, the ________ is a missed workout.

opportunity cost

Which of the statement is positive?

social security benefits are not taxed

In the case of an inverse relationship between two variables, all else remaining constant...

the value of the two variables will move in opposite directions from each other.

A nation that bans trade with other nations

will be unable to specialize in what they are good at and therefore end up consuming less.

According to this pie chart, which age group population has been continually shrinking since 1970?

19 and under.

consider the production possibility frontier for county X producing 2 groups of goods, MP3 players and watches. the opportunity cost of moving from the combination of MP3 players and watches B to C is...

2 watches.

Shella currently studies 3 hours per week, attends class 4 out of 4 possible hours per week and had a GPA of 2.0 last semester. Using the equation grade = (.50 x hours spent studying) + (.25 x class attendance) + (.25 x prior GPA), determine how many total hours per week Shella needs to study if she wishes to get a 4.0.

5 hours

Given X = 52+27-((3/15)*100), X is _____

59

Macroeconomic topics can be impacted by which of the following microeconomic topics...

How do people decide how much to save for the future, or whether they should borrow to spend beyond their current means?

A combination of clothing and cell phones that would meet the allocative efficiency would be:

a combination on the production possibilities frontier that brings the highest level of satisfaction to the people in the economy.

Dawnell is a skilled dancer. She is currently teaching modern dance full time for three high schools and makes $44,000 a year. She is now giving up her work and joining a touring dance company for the next two years. She will make $24,000 a year dancing, but gain much more in experience and connections. Dawnell's decision will result in...

a two year opportunity cost of $40,000 after leaving her teaching position.

Assume two variables Z and Y have the following relationship: Z = 10, where Z is on the horizontal axis and Y on the vertical axis. The relationship between Z and Y is...

an independent relationship because as Y changes, Z remains constant at 10.

in economics, functions often describe cause and effect. in an economic function, the variable being describe on the left-hand side represents an ....

effect

An Uber driver estimates that he will make $300 on Fridays if he works all evening. He decides to stay home because $300 will not be enough to pay his car loan. His reasoning is ________ because ________.

incorrect; he should work and pay down his debt even if he cannot earn the entire car payment in one night.

the theory of rational behavior...

is an assumption that economists make to have a useful model for how decisions are made.

Congress must vote whether to increase the government budget so as not to shut down the government this year. The vote passed and the budget celling has been increased to keep the government running. This is an example of what type of policy?

macroeconomic fiscal policy.

To make an economically rational decision, marginal cost should be compared to...

marginal benefit

When certain assumptions are used to create an economic model, the value of the model can be tested by its ability to...

predict outcomes.

Trade brings advantages to society because through trade...

specialization can occur.

The musician was known for multiple encore performances but had limited stamina and a rational mind. Even she would eventually call it a night when by her judgment...

the marginal cost is greater than the marginal benefit of an additional encore.

a restaurant chain sponsors a charity that provides support to the parents of children being treated for cancer. how would the use of company funds for the purpose be justified by a business whose goal is to maximize point..

the money spent is worth the boost it gives to corporate image.

when picking up a rental car at an airport car rental agency, some travelers stand in line waiting to sign paperwork and pick up car keys at the rental desk while other travelers can go right to their rental car by using their rental car loyalty club card. in this example, the travelers who move quickly through to the parking lot pick up their car are probably...

travelers who value convenience more than those waiting in line and are willing to pay additional club fees for the option of avoiding them.

Given that total spending for a certain household will always include a base amount of $1000/month, and that additional spending is equal to half of any income earned, we can predict total household spending with a model y=b+mx, where ...

x represents income earned.