Exam 1: First Principles

One day,Martha wakes up and in frustration yells,"Decisions,decisions,decisions! Why do I have to make decisions about everything?" Martha's frustrations stem from the fact that:

If all of the opportunities to make someone better off (without making someone else worse off)have been exploited,an economy is:

Which resource is NOT one that pertains to the production of rice?

To encourage people to retire later,given that people usually exploit opportunities to make themselves better off,the government could:

The problem of determining what goods and services society should produce:

Which statement is TRUE?

Owen had a typewriter shop,but he went out of business because no one buys typewriters anymore.Which economic principle does this statement BEST represent?

According to standard economic theory,markets usually lead to efficiency.

The problem of scarcity is confronted by:

If you decide to go to Cancún with your friends during spring break,you cannot go to Paris with your sister in the summer.Which economic principle does this statement BEST represent?

Who wrote The Wealth of Nations,a book that many credit with establishing economics as a discipline?

For which decision would marginal analysis be MOST relevant?

Your health club is offering a free one-year membership for the person who attends the most yoga classes in March.This results in more people attending yoga.Which economic principle does this statement BEST represent?

The existence of government intervention often suggests that:

The Taco Hut charges the same price for everything on its menu: $3 will buy a taco,a burrito,or nachos.You buy the taco and think that if you had not purchased the taco,you would have purchased the burrito.The opportunity cost of the taco is:

Khalil is offered a free ticket to the opera,which he cannot resell.His opportunity cost of going to the opera is:

If in Equitania,20% of the population receive 80% of the income and the remaining 80% of the population receive 20% of the income,Equitania's economy:

Corner offices in high-rise office buildings usually cost more to rent than other offices.This BEST illustrates the economic concept of:

A new startup airline is offering a free round-trip ticket to Hawaii to the first 600 people who enter the airline's main office on the airline's first day of business.You arrive 24 hours before it is scheduled to open to be sure to get the free ticket,and you buy food from vendors while waiting in line.You successfully obtain the ticket.What was the cost to you for obtaining the ticket?