Microeconomics

Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie. Leann is making -a rational decision if her marginal benefit from the movie is greater than her marginal cost -a decision that does not involve an opportunity cost -an irrational decision because studying is more important than watching a movie

-a rational decision if her marginal benefit from the movie is greater than her marginal cost

If the marginal benefit of getting a college degree rises. rational people will -attend college in greater numbers -drop out of college -require that college gets easier -not change their behavior

-attend college in greater number

Which of the following is a positive statement? -parking tickets on campus impose an excessive fee -a recession leads to higher enrollments at universities university bookstore prices are too high

a recession leads to high enrollments at universities

Your economics professor offers 10 points extra credit if you attend a review session before your next exam.. This extra credit is an example of -an incentive to attend the review session -a rational choice -an increase in the marginal cost to attend the review session

an incentive to attend the review session

Microeconomics includes the study of the -reasons why the government changes interest rates -choices made by individuals and businesses -recessions and inflation in the global economy

choices made by the individuals and businesses.

The benefit of one - unit increase in an activity. -is always greater than the opportunity cost of the activity -is called marginal cost -decreases as you do more of it -is called "sunk benefit:

decreases as you do more of it

A normative statement -says what is currently believed about the way the world operates -can be tested to determine if it is correct -depends on someones values

depends on someones values

Economics is the social science that studies -how people make choices to cope with scarcity -the real reasons people buy goods and services -the psychology of individuals and businesses

how people make choices to cope with scarcity

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in course. The professor has -increased the marginal cost the cheating -recognized that students don't respond to incentives -decreased the marginal benefit of cheating -recognized that students don't make rational choices

increased the marginal cost of cheating

The marginal cost of an activity ____________ as you do more of it. -changes only if the marginal benefit of the activity changes -changes only if the marginal benefit of the activity does not change -decreases -increases

increases

In order to determine whether to major in economics, a rational individual compares the ________ of the decision. -positive benefits and normative costs -marginal benefit and marginal cost -self - interest and social - interest

marginal benefit and marginal cost

The cost of a one - unit increase in an activity is called the -opportunity benefit -marginal cost -sunk cot -marginal benefit -margin

marginal cost

Whenever one variable increases, another variable decreases. The two variable are -positively related -negatively related -unrelated to other other

negatively related

The Latin term "ceteris paribus" means -obviously true -other things remaining the same -after this, therefore because of this -what is true of the whole is not necessarily true of the parts

other things remaining the same

If jessie studies economics for two hours instead of going to the movies with her friends, then -Jessie is ignoring a sunk cost -Jessie is not responding to any incentives -the opportunity cost of studying in the missed movie

the opportunity cost of studying is the missed movie