Economics Chapter 2 Quiz

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:

$44

Referring to Table 2-1: A student has only a few hours to prepare for two different exams this afternoon. The above table shows alternative possible exam scores with three alternative uses of the student's time. The opportunity cost of scoring a 94 on the economics exam rather than a 77 is:

15 points on the history exam

Refer to Figure 2-1. Along the production possibilities frontier, the most efficient point of production depicted is:

All points on the PPF are equally efficient

Why is there scarcity?

Because our unlimited wants exceed our limited resources

Refer to Figure 2-1. An economy is operating at full employment, and then workers in the bread industry are laid off. This change is portrayed in the movement from:

C to F

The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.

diminishing marginal utility

Most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good.

marginal analysis

Attending college is a case where the ________________ exceeds the monetary cost.

opportunity cost

As depicted in _________________________________, it is necessary to give up some of one good to gain more of the other good.

the productive possibilities frontier

The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person than consumption of later units is a common pattern.

utility