Exam 1: The Principles and Practice of Economics

Which of the following statements is true of data?

Which of the following best describes scarce resources?

Which of the following is a topic studied by macroeconomists?

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 the opportunity cost of time increases to $80 per hour,which of the following statements is true?

Which of the following statements is true?

Which of the following statements is true?

Which of the following correctly defines the term "equilibrium"?

Each member in a group might do what's best for himself or herself instead of behaving in a way that optimizes the well-being of the entire group.This gives rise to the problem of ________.

The term "free riders" refers to people who ________.

Robert and Janet are discussing the unemployment and inflation in their country.Robert,on the basis of a recent newspaper report,claims that a 5 percent reduction in unemployment will lead to a 2 percent rise in inflation.In contrast,Janet insists that inflation is a far bigger problem than unemployment and should be considered as of prime importance.Classify Robert's and Janet's statements as descriptive or advisory.Explain your answer.

Which of the following statements is true?

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

The net benefit of a particular alternative equals ________.

Which of the following statements is true of free riding?

If a job pays a wage of $50 per hour,but has a non-wage cost valued at $20 per hour,the net benefit of taking the job equals ________.

Wendy has to decide between taking a flight and driving to California.Air tickets cost $800 and will get her to California in 2 hours.If she decides to drive,she would need $300 worth of gasoline and 10 hours to reach her destination.Suppose Wendy's opportunity cost of time is $20 per hour. a)Assuming that there are no other costs involved,use cost-benefit analysis to decide whether she should fly or drive to California. b)If Wendy has an important business meeting to attend and this increases her opportunity cost of time to $200 per hour,will her optimum decision change? Explain.

Who among the following is an example of a free rider?

Which of the following statements is true?

Suppose that Jinelle,an engineer,has to choose between two jobs.Which of the following statements is true?

Empiricism refers to the process of ________.