Econ 1000 Ch 1 Quiz

Brian recently attended a concert by the rapper 2 Chainz at the Mississippi Coast Coliseum in Biloxi, MS. His total benefits from seeing this show were $125, while his total costs were $75. From this information, it follows that his economic surplus from attending the show was

$125-$75= $50

The incentive principle states that

if the marginal benefit of an activity increases, then a rational person will engage in more of the activity.

In 2015, walmart made cash donations of ___________ to private charities.

$301 million

Positive statements

Attempt to describe how the world actually functions; are scientific in nature, in that given enough research, evidence, and data, they can potentially be shown to be either true or false, and are supposed by the principles, goals; and value judgments of the person making the statement.

A "Self-Interested" person

Cares about his own well-being more than the well-being of others

In 2017 High School graduates earned $9,984 per year more than non-high school graduates. If this difference had instead been $15,000 per year, then we would expect

Fewer people to drop out of school before graduation high school

Which of the following statements is a "positive statement"?

Kennesaw state university was established on October 9, 1963

________________ is the branch of economics which studies how individual decision-makers behave and interact with each other, often with a focus on how households and firms behave and interact with each other in markets

Microeconomics

Economics is

The social science that studies decision making in the face of scarcity and the resulting impact of such decisions on both society as a whole and on the individual members therein

Consider the following two statements. Statement 1: "Tariffs and important quotas always increase the general welfare of society." Statement 2: "A ceiling on rents reduces the quantity and quality of available housing." Most economists would

agree with Statement 2, but disagree with Statement 1

Armen Albhain and Gordon Tullock

argued that automobile accident rates could be decreased by installing a sharp, irremovable, foot long, iron spike to the steering wheel of every car

The quote by Milton Freidman on page 17 suggests that he believed Mother Theresa was

rational and self-interested

Mike Ditka's suggestion that football related injuries could likely be reduced by have participants without helmets (or atlas without facemarks on their helmets)

relies heavily upon the incentive principle

A "Rational Decision Maker" should

take an action if and only if the marginal benefit of the action is at least as great as the marginal cost of the action

Trent enjoys going to the movies. In June he saw 6 movies in the theatre. His marginal benefit of the 6th movie was $20, while his marginal cost of the 6th movies was $14. Based upon this information alone, his economic surplus

would have been smaller if he had instead gone to the movies 5 times