macro

Suppose you plan to buy a new pair of running shoes. IT's easier to buy them online, but the pair you want is $9 more expensive online than at the mall. If the value you place on the convenience of buying the shoes online is $12, then your economic surplus from buying the shoes online instead of at the mall is: $6 $8 $3

$3

---choose correct answer------ A) The study of the performance of a national economies and the policies that governments use to try to improve the performance. B)The study of individual choice under scarcity and its implications for the behavior of prices and quantities in in individual markets,

B

A cost that is beyond recovery at the moment a decision is made is a a) marginal cost b) sunk cost c) implicit cost

B) sunk cost

Microeconomics is a) the study of individual choice under scarcity and its implications for behavior of prices and quantities in individual markets b)the study of the performance of national economies and the policies that governments use to try to improve that performance

a

The total cost of carrying out n units of an activity divided by n is the activity's ___ cost

average

Economic models are useful in explaining and predictive behavior a) only to the extent that people are consciously aware of those models when making decisions. b) even if people aren't consciously using the models to make decisions

b

Learning more about economic models a) is only useful to the extent that people consciously use economic models to make decisions. b) can help us better decisions even if most people don't consciously use economic models to make decisions.

b

the ____ principle states that a person is more likely to take an action if its benefit rises, and less likely to take an action if its cost rises.

incentive

The increase in total cost that results from carrying out one additional unit of an activity is its ___________ cost.

marginal

The marginal benefit of an activity is the increase in total benefit that results from carrying out one additional unit of the activity

marginal

a ____ economic principle is one that says how people should behave.

normative

The value of what must be forgone in order to undertake an activity is the ________ cost of that activity.

opportunity

a ___ economic principle is one that predicts how people will behave.

positive

in economics, a _____ individual is someone with well-defined goals who tries to fulfill those goals as best he or she can.

rational

The _____ principle states that although we have boundless needs and wants, the resources available to us are limited so having more of one good thing usually means having less another.

scarcity

Economic ___ is the benefit of taking an action minus its cost.

surplus

A rational person is someone

with well define goals who tries to fulfill those goals as best he or she can

suppose Warren, who owns a bakery, is deciding whether to increase his daily production of cakes. All of Warren;s cakes sell for $40 each, and the average cost of making each cake is $35. Is this enough information to decide wether warren should increase his production of cakes? Y/N?

N

A normative economic principle a) says how people should behave. b) predicts how people will behave. c)says nothing about how people should or will heave.

a)

The cost benefit principle states that individual or society should only take an action if and only if: a) the extra cost of taking the action is close to zero b) the extra benefits from taking the action are at least as great as the extra costs c) they are abel to do so given their resource constraints

b

The Scarcity Principle captures the notion that although we have boundless needs and wants the resources available to us are limited, so a) people are destined to be unsatisfied b) having more of one good thing usually means having less of another. c) we must use our resources carefully

b) having more of one food thing usually means having less of another