Question 1

-Marginal analysis is the valuation of insignificant or small benefits from doing things.

Accepted Answer

A) True 
 B)False

Question 2

Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.

Accepted Answer

A) True 
 B)False

Question 3

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. If the consumer decides to buy 4 apples, how many bananas can she also buy with the remainder of her budget, assuming she exhausts her income?

Accepted Answer

A) 8 bananas 
B) 4 bananas 
C) 6 bananas 
D) 10 bananas 
A) 8 bananas 
B) 4 bananas 
C) 6 bananas 
D) 10 bananas

Question 4

Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina.   Refer to the tables. If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be

Accepted Answer

A) cannot be achieved because resources are fully employed. 
B) will cost 2 units of computers. 
C) will cost 1/2 of a unit of computers. 
D) will cause some resources to become unemployed. 
A) cannot be achieved because resources are fully employed. 
B) will cost 2 units of computers. 
C) will cost 1/2 of a unit of computers. 
D) will cause some resources to become unemployed.

Question 5

The budget line shows the various incomes that an individual can earn from different jobs.

Accepted Answer

A) True 
 B)False

Question 6

According to economists, economic self-interest

Accepted Answer

A) is a reality that underlies economic behavior. 
B) has the same meaning as selfishness. 
C) means that people never make wrong decisions. 
D) is usually self-defeating. 
A) is a reality that underlies economic behavior. 
B) has the same meaning as selfishness. 
C) means that people never make wrong decisions. 
D) is usually self-defeating.

Question 7

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. For this consumer, the opportunity cost of buying one more apple is

Accepted Answer

A) 0.5 of a banana. 
B) 0.8 of a banana. 
C) 1 banana. 
D) 2 bananas. 
A) 0.5 of a banana. 
B) 0.8 of a banana. 
C) 1 banana. 
D) 2 bananas.

-Marginal analysis is the valuation of insignificant or small benefits from doing things.

Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.

Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina. Refer to the tables. If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be

The budget line shows the various incomes that an individual can earn from different jobs.

According to economists, economic self-interest

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. For this consumer, the opportunity cost of buying one more apple is

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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Exam 1: Limits, Alternatives, and Choices

-Marginal analysis is the valuation of insignificant or small benefits from doing things.

Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.

Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina. Refer to the tables. If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be

The budget line shows the various incomes that an individual can earn from different jobs.

According to economists, economic self-interest

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. For this consumer, the opportunity cost of buying one more apple is

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters