Question 1

Opportunity cost is:

Accepted Answer

A)  about half of the monetary cost of a product. 
B)  the dollar payment for a product. 
C)  the benefit derived from a product. 
D)  the value of the best alternative forgone in making any choice. 
A)  about half of the monetary cost of a product. 
B)  the dollar payment for a product. 
C)  the benefit derived from a product. 
D)  the value of the best alternative forgone in making any choice.

Question 2

Economists believe that resources should be used as efficiently as possible to:

Accepted Answer

A)  achieve society's goals. 
B)  eliminate scarcity. 
C)  reduce inequity. 
D)  maximize profits. 
A)  achieve society's goals. 
B)  eliminate scarcity. 
C)  reduce inequity. 
D)  maximize profits.

Question 3

Which decision is the BEST example of making a choice at the margin?

Accepted Answer

A)  buying a new car 
B)  quitting your job 
C)  drinking another cup of coffee 
D)  attending college 
A)  buying a new car 
B)  quitting your job 
C)  drinking another cup of coffee 
D)  attending college

Opportunity cost is:

Economists believe that resources should be used as efficiently as possible to:

Which decision is the BEST example of making a choice at the margin?

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 1: First Principles

Opportunity cost is:

Economists believe that resources should be used as efficiently as possible to:

Which decision is the BEST example of making a choice at the margin?

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters