Exam 1: An Introduction to the Economic Way of Thinking

This type of cost is irrelevant when making decisions at the margin.

Each of the following is an economic resource except

The study of how prices for a good is determined is an example of

Which of the following statements is most correct?

Diminishing marginal benefits is reflected in

Which of the following would represent a microeconomic question?

Engaging in an activity until marginal benefits equal marginal costs is known as

This forces us to allocate resources

Ceteris paribus, as more and more of an activity is done, the additional benefits derived from the activity decreases represents

Utility is all of the following except

Explain why money would not be considered an economic resource.

The additional or incremental benefit associated with a choice is known as

The value of the next-best alternative forgone is the

Economics is