Exam 1: The Principles and Practice of Economics

Maria has to choose between driving and taking a train to destination A. Traveling by train will cost her $400 and will take 4 hours. Driving to destination A takes 6 hours, and the required amount of gasoline costs $250. Her opportunity cost of time is $15 per hour. -Refer to the scenario above.If Maria's opportunity cost of time increases to $80 per hour,the cost of driving to destination A is ________.

Which of the following statements is true?

A decision or choice that is made after optimization analysis ________.

When the market for a commodity is in equilibrium,________.

Which of the following statements is true of data?

Feasible options are options that are ________.

Which of the following statements is true?

Which of the following statements is true of economic reasoning?

The relationship between the unemployment rate and inflation is studied under ________.

Out of a set of feasible alternatives,an optimizer should choose the alternative with the ________.

A student has two options: she can either surf the web or work part-time.Working part-time pays her $20 per hour.What is the student's opportunity cost of surfing the web for 5 hours?

Which of the following is a topic studied by microeconomists?

The following table shows the various combinations of rugs and chairs that the consumer can buy with $100: -Suppose workers decide to work more and consume less leisure when their hourly wage rate increases.What could explain this behavior?

Which of the following is an example of a positive economic statement?

Define opportunity cost.A student who has just graduated from college has three job offers: the first job pays $35,000 a year,the second job pays $23,000 a year,and the third one pays $15,000 a year.What is the student's opportunity cost of taking the first job?

What is the rationale behind empiricism in economic analysis?

Empiricism refers to the process of ________.

Why an economy contracts during slowdowns and the analysis of appropriate policies is studied under ________.

Which of the following statements is true?

Why do trade-offs occur? How are budget constraints related to trade-offs?