Exam 1: Ten Principles of Economics

Scenario 1-6 It costs a company $30,000 to produce 600 heart rate monitors. The company's cost will be $30,070 if it produces an additional heart rate monitor. The company is currently producing 600 heart rate monitors. -Refer to Scenario 1-6. What is the company's marginal cost?

Government policies that improve equality usually increase efficiency at the same time.

In a market economy, who makes the decisions that guide most economic activity?

Which of the following can policy do?

Give an example of government intervention that is intended to improve equality.

Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor,

Trade between countries tends to

Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-year graduate program?

To say that government intervenes in the economy to promote efficiency is to say that government is attempting to

The balance between maximizing a society's income and an equal distribution of that income is an illustration of

A company that formerly produced music CDs went out of business because too many potential customers bought illegally-produced copies of the CDs instead of buying the product directly from the company. This instance serves as an example of

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3. What is the company's marginal cost?

Which of the following statements about markets is most accurate?

Which of the following rates of growth in the money supply is likely to lead to the highest level of inflation in the economy?

If the government were to intervene and set the price of a dozen eggs above the market price, then we would expect, relative to the market outcome,

Economics is the study of ______ .

A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff between

Which of the following examples does not illustrate the principle represented by the adage, "There is no such thing as a free lunch"?

The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanooga. In advance of a particular trip, four seats remain unsold. The bus company could increase its profit only if it

What does the "invisible hand" refers to?