ecn practices 1
When we contribute to an organization that gives presents to needy families during the holiday season, we face ______. A. a for whom tradeoff B. a what tradeoff C. a how tradeoff D. no tradeoff
A. a for whom tradeoff
The benefit of something is the _____. Benefit is determined by preferences - by what a person _____ and the intensity of those feelings. A. gain or pleasure it brings; likes and dislikes B. cost of the activity; likes and dislikes C. highest valued alternative that must be given up to get it wants to give up D. sum of the gain and loss that arises from the activity; prefers to gain or lose
A. gain or pleasure it brings; likes and dislikes
Think about the following news items. Which items involve a microeconomic issue and which involve a macroeconomic issue? A. U.S. economy adds 227,000 jobs in January B. Pay to rise for millions as 19 states increase minimum wage C. The U.S. is borrowing less from China, more from everybody else D. Why are incomes growing much faster in China and India than in the United States? Statement A involves a ______ issue. Statement B involves a ______ issue.
B. Pay to rise for millions as 19 states increase minimum wage
Which of the following is the opportunity cost of attending a ball game? A. Only the things you would alternatively have done with your time if you had been working. B. The things you would have bought with what you spent on the ticket and bus fare getting to the game plus the things you would alternatively have done with your time. C. Only the ticket price and bus fare. D. Only the things you would alternatively have done with your time.
B. The things you would have bought with what you spent on the ticket and bus fare getting to the game plus the things you would alternatively have done with your time.
All of the following are consequences of scarcity faced by people in the United States except deciding _______. Question content area bottom Part 1 A. how to study for both an economics exam and a chemistry exam that take place on the same day B. whether a tomato is a fruit or a vegetable C. whether to go skiing during spring break or to catch up on your course work D.
B. whether a tomato is a fruit or a vegetable
Which of the following examples describes microeconomics? A. Germany is a country in Western Europe. B. The Federal Reserve is increasing interest rates. C. People prefer buying iPhones over Nokia phones. D. The Yukon territory of Canada has extreme cold weather.
C. People prefer buying iPhones over Nokia phones. D.
You can stay in school or you can quit school and get a full-time job. You have an incentive to stay in school if ______. A. no tradeoff occurs by staying in school B. the marginal benefit from staying in school is greater than the marginal cost of getting a full-time job C. the marginal benefit from staying in school is greater than the marginal cost of staying in school D. the marginal benefit from getting a full-time job is less than the marginal benefit from staying in school
C. the marginal benefit from staying in school is greater than the marginal cost of staying in school
Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park ______. The operators' decision is a _______ decision. Question content area bottom Part 1 A. changes; macroeconomic B. remains the same; microeconomic C. changes; microeconomic D. remains the same; macroeconomic
C. changes; microeconomic
A choice on the margin is a choice that is made by comparing all the relevant _____ systematically and _____. Marginal cost is the _____ that arises from one unit _____ in an activity. Marginal benefit is the _____ that arises from one unit _____ in an activity. A. profits; totally; total cost; increase; opportunity cost; decrease B. prices; incrementally; opportunity cost; decrease; revenue; increase C. costs; incrementally; total cost; decrease; benefit; decrease D. alternatives; incrementally; opportunity cost; increase; benefit; increase
D. alternatives; incrementally; opportunity cost; increase; benefit; increase
Which of the following illustrates scarcity? A. Megan wants to buy a CD that costs $25 but has only $10 to spend. B. Mary loves watching movies. C. I got a new dress from my mother. D. Ron will travel to New York City for Thanksgiving.
Megan wants to buy a CD that costs $25 but has only $10 to spend.
Pam, Pru, and Pat are deciding how they will celebrate the New Year. Pam prefers to go on a cruise, is happy to go to Hawaii, but does not want to go skiing. Pru prefers to go skiing, is happy to go to Hawaii, but does not want to go on a cruise. Pat prefers to go to Hawaii or to take a cruise but does not want to go skiing. Part 2 Who faces a tradeoff? A. Pam, Pat, and Pru face a tradeoff. B. Pat and Pru face a tradeoff but Pam does not face a tradeoff C. Pam and Pru face a tradeoff but Pat does not face a tradeoff D. Pam and Pat face a tradeoff but Pru does not face a tradeoff
Pam, Pat, and Pru face a tradeoff.
Every week, Hassan skates for three hours, and his grade on each econ test is 85 percent. Last week, after skating for three hours, Hassan considered skating for another hour. He decided to skate for another hour and cut his study time by one hour. But last week, his econ grade fell to 70 percent. Given that Hassan spent a fourth hour skating, what can you conclude about the marginal benefit and marginal cost of the third hour of skating? Question content area bottom Part 1 A. The marginal benefit from the third hour of skating exceeded its marginal cost. B. The marginal cost of the third hour of skating exceeded its marginal benefit. C. The marginal cost of dropping 15 percentage points on an econ test exceeded the marginal benefit from a fourth hour of skating. D. The marginal benefit from the third
The marginal benefit from the third hour of skating exceeded its marginal cost.
Choose the correct statement. A. The opportunity cost of something is the highest-valued alternative that must be given up to get it. B. The opportunity cost of an activity you do not enjoy is zero. C. The opportunity cost of an activity is constant, regardless of the time of day at which you pursue the activity. D. The opportunity cost of doing more of an activity is the opportunity cost of the activity.
a. The opportunity cost of something is the highest-valued alternative that must be given up to get it.
Rational choice is a choice that uses the available resources to _____ of the person making the choice. A. best achieve the objective B. minimize the opportunity cost C. maximize the benefit d. increase the marginal benefit
a. best achieve the objective
The night before a calculus test, you decide to go to a club with friends instead of working problem sets. You get 70 percent on your test compared with the 80 percent that you normally score. You ______, and the opportunity cost of your evening at the club was ______. Question content area bottom Part 1 A. faced a tradeoff between a higher test score and an evening at the club; the 10 percent fall in your grade B. did not face a tradeoff because you made the best choice; zero C. faced a tradeoff between a higher test score and an evening at the club; the mark of 70 percent on your exam D. did not face a tradeoff because your roommates agreed you should go to a club with friends and not study; zero
a. faced a tradeoff between a higher test score and an evening at the club; the 10 percent fall in your grade
When you choose to spend more on going to the movies and less on going to concerts, you _______. A. get the additional going to the movies free B. must tradeoff going to concerts for going to the movies, and you are facing a what tradeoff C. avoid scarcity by making the best choice D. do not need to tradeoff going to concerts for
b. must tradeoff going to concerts for going to the movies, and you are facing a what tradeoff
A tradeoff is _______. A. the key to reconciling self-interest and social interest B. the benefit you receive from an increase in an activity C. giving up one thing to get something else D. always in the social interes
c. giving up one thing to get something else
Economics is the _____ the choices that individuals, businesses, governments, and entire societies make as they _____, and the influences on those choices, and the arrangements that coordinate them. A. set of personal opinions about; cope with scarcity B. social science that studies; cope with scarcity C. social science that studies; settle disagreements D. set of personal opinions about; settle disagreements
social science that studies; cope with scarcity
Macroeconomics
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
Microeconomics
the study of the economic behavior and decision making of small units, such as individuals, families, and businesses