Ch1

If the equation F = 15 + 2N is graphed with F on the vertical axis and N on the horizontal axis, then the vertical intercept will be: Multiple choice question. N 2 15 F

15

Anita knits scarves that she sells on Etsy.com. When she knits 12 scarves a week her total cost is $144, and when she knits 13 scarves a week, her total cost is $169. Thus, her marginal cost of knitting the 13th scarf is

169-144 = 25

The table below shows how your daily parking charges, C, depend on the number of hours, H, you park each day. If your daily parking charges are a linear function of the number of hours you park, and you graph this line with charges on the vertical axis and hours on the horizontal axis, then the vertical intercept will be _____ and the slope will be _____. Charges($/day) Hours(hours/day) 2 2 3 4 4 6 5 8 1; .5 2; 2 .5; 1 1; 2

1; .5

Economists view scarcity as

an unavoidable fact of life

When assessing the costs and benefits associated with taking an action, it is generally best to consider costs and benefits Multiple choice question. as absolute dollar amounts rather than proportions. as proportions rather than absolute dollar amounts. as neither proportions nor absolute dollar amounts.

as absolute dollar amounts rather than proportions

earning more about economic models Multiple choice question. can help us make better decisions even if most people don't consciously use economic models to make decisions. is only useful to the extent that people consciously use economic models to make decisions.

can help us make better decisions even if most people don't consciously use economic models to make decisions.

In the graph of a straight line, the vertical intercept is the value taken by the: Multiple choice question. independent variable when the dependent variable is equal to one. dependent variable when the independent variable is equal to one. independent variable when the dependent variable is equal to zero. dependent variable when the independent variable is equal to zero.

dependent variable when the independent variable is equal to zero.

In standard economic models, a rational person

makes choices by weighing the extra benefits of an action against its extra costs.

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

opportunity

A positive economic principle ______. Multiple choice question. says nothing about how people will or should behave says how people should behave predicts how people will behave

predicts how people will behave

A normative economic principle Multiple choice question. says nothing about how people should or will behave. predicts how people will behave. says how people should behave.

says how people should behave

When making a decision, sunk costs ______. Multiple choice question. should only be ignored when sunk costs are less than sunk benefits are equal to zero by definition should not be ignored should be ignored

should be ignored

A cost that is beyond recovery at the moment a decision is made is a(n) Multiple choice question. sunk cost. implicit cost. marginal cost.

sunk cost

The total cost of carrying out n units of an activity divided by n is the activity's _ (one word) cost.

average

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

surplus

When people ignore the implicit cost of activities ______. Multiple choice question. they are acting rationally they tend to make the wrong choice they tend to make the right choice

they tend to make the wrong choice

Economic models are _____ if people do not consciously weigh costs and benefits when making decisions.

useful even

A quantity that is free to take on different values is a(n): variable equation constant

variable

A mathematical expression that describes the relationship between two or more variables is a(n) ______. Multiple choice question. independent variable equation dependent variable parameter

equation

The increase in total cost that results from carrying out one additional unit of an activity is its _ (one word) cost.

marginal

In the textbook, opportunity cost includes ______. Multiple choice question. explicit costs but not implicit costs implicit costs but not explicit costs neither explicit costs nor implicit costs both explicit costs and implicit costs

both explicit costs and implicit costs

A quantity that is fixed in value is known as a(n) ______. Multiple choice question. independent variable equation constant dependent variable

constant

A(n) _____ variable is a variable in an equation whose value is determined by the value taken by another variable in the equation. Multiple choice question. fixed constant dependent independent

dependent

The fact that people do not always consciously weigh costs and benefits when making decisions Multiple choice question. doesn't mean that economic models aren't useful for predicting behavior. implies that economic models are wrong. suggests that economic models are unlikely to be useful in explaining behavior.

doesn't mean that economic models aren't useful for predicting behavior.

A(n) _____ variable is a variable in an equation that determines the value taken by another variable in the equation. constant independent dependent

independent

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

individual choice under scarcity and its implications for the behavior of prices and quantities in individual markets

Suppose that each police officer hired by the City of Gotham generates an average benefit to the community of $500 per week, and the average salary of police officers is $600 per week. Should the City of Gotham hire more or fewer police officers? Multiple choice question. It should hire fewer officers. It's impossible to say. It should hire more officers.

its impossible to say

Suppose you are choosing between two jobs. Let H be the number of hours you work each week, and let E be your weekly earnings (in dollars). At the first job, your weekly earnings are computed as E = 50 + 12.5H, and at the second job your weekly earnings are computed as E = 200 + 5H. How many hours of work each week would lead to the same earnings at either job? Multiple choice question. 10 hours 15 hours 20 hours 40 hour None, the second job always pays more.

20 hours

Suppose you're trying to decide what to cook for dinner. Both the chicken and the salmon you have in your fridge are about to go bad, and whichever one you don't eat tonight, you'll have to throw away. In deciding which one to cook, should it matter to you that the salmon was slightly more expensive than the chicken? Multiple choice question. Yes. No.

No