Exam 1: First Principles

Grades are low in class and your professor makes available a 10-point extra credit assignment. Most of the students turn in the assignment. This statement best represents this economic concept:

Which of these is one of the four principles of individual choice?

If an economy's resources are used efficiently, then it is guaranteed that the economy will also achieve equity.

The incentives built into the market economy ensure that resources are put to good use and that opportunities to make people better off are not wasted. This means that:

Katherine has a physics exam tomorrow. However, a free lecture by one of her favorite authors is taking place this evening. Katherine decides to attend the lecture instead of studying for her exam. Katherine's opportunity cost is:

A grocery store benefits when a new furniture factory moves to town and hires workers because:

Handicapped-designated parking spaces are an example of the market economy achieving efficiency.

A popular train station has free parking for commuters who take the train. This often results in many people being unable to find a parking spot and missing their train. To solve this problem, all commuters should be:

The student center on campus has burritos, bagels, or burgers for lunch, and they all cost the same. You love burgers and bagels, but you decide to have a burger today. If they were out of burgers, you would have bought a bagel. This statement best represents this economic concept:

Economists define an efficient use of resources as a situation in which:

In Thailand, the land, labor, and capital in society are used to exploit all opportunities to make everyone better off. This statement best represents this economic concept:

Which of the following is NOT one of the five principles for understanding how individual choices interact?

Microeconomics deals with:

Julie is getting ready for final exams. She has three exams during the first three days of the exam period. To prepare, she has outlined a schedule that includes reviewing for her first exam on one day, her next exam on the following day, and her third exam on the third day. On each day, she has also allocated some time when she can watch TV or basically do nothing. Which best explains why Julie provides some time for leisure?

Economists use the term equilibrium to describe when:

Individuals gain from trade because:

Because people usually exploit opportunities to make themselves better off, if the price of gasoline rises and stays high for an extended period, we expect people to:

Scarcity in economics means that:

Which of the following is an example of individual choice?

The best measure of the opportunity cost of any choice is: