Learning Curve Chapter 1

_____ refers to the problme that resources are limited.

Scarcity

An employer offers a potential employee 40,000 even though the employee would be willing to work for 350000. The employer will make 55,000 from the work that this employee takes the job for 40,000, what is the employers economic surplus?

15000

Which principle is sometimes best remembered by the conclusion that incentives matter?

Cost Benefit Principle

Suppose that as more families have two full time workers, more families put their children in day care. Which interdependence would explain the relationship here between labor and day care?

Dependencies between markets

Which one of these questions can be simplified further by applying the marginal principle?

How many workers should I hire?

Ayalon owns a fast food restaurant that is open 18 hours a day. He is considering the ids of having his restaurant remain open 24 hours a day, but he realizes that the success of this plan may be affected by the changing hours of his competitors. Ayalon is taking into account the ____ principle

Interdependence Principle

___ cost is the extra cost associated with one extra unit

Marginal

Which of these principles is not helpful when you face a decision with an either/or question?

Marginal Principle

Evie, a receptionist at a car dealership, asks herself the question, "should I go back to school, or should I continue to work at the dealership?" The face that she is comparing the idea of going to school with her next best option indicates that she is applying the ____ principle.

Opportunity Cost

According tot eh ___ if something is worth doing, you should keep doing it until your marginal beneftis equal your marginal costs

Rational Rule

Amancio is going into his fourth year of school when he is offered a prestigious position at a software company. Instead of applying the opportunity cost principle to see if he should quit school and take the job, he decides to stay in school, because he has already spent so much time and money on furthering his education. Amancio's hasty decision has been negatively affected by:

Sunk Costs

When you confront a problem, which of the four economic principles should you consider first?

The marginal principle

When properly applying the cost benefit principle, you must calculate the costs and benefits of a decision relative to:

The next best alternative

The way the question below is phrased implies that which of the core principles of economics is being applied? Should I go back to school or continue to work at my current job?

The opportunity cost principle

How do you know when you have broken. decision into its smallest components?

There will only be either/or choices left

You are thinking about quitting your job to go back to school. which of these is not associated with an opportunity cost?

Time spent

You are willing to pay 5$ for a medium sized bubble tea. According to the cost-benefit principle, when should you buy bubble tea?

When the cost is less than or equal to 5$