Exam 1: Limits, Alternatives, and Choices

When firms give away "freebies" like free apps, free checking accounts, free maps, or free toothbrushes, they are contradicting economists' contention that "there is no free lunch."

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule. Which of the following output-combinations is unattainable?

Matt observes that "there is a high correlation between educational attainment and the level of income." Jean concurs and adds that "high school graduates should all proceed to college."

Microeconomics is concerned with

If you knew that the vertical intercept for a straight line was 150 and that the slope of the line was 4, then the dependent variable would be 250 when the value of the independent variable is

If a linear relation is described by the equation C = 35 - 5D, then the vertical intercept of the graph (where C is on the vertical axis) is

In a graph of the production possibilities curve, the two axes of the graph indicate the

Other things equal, an increase in a consumer's money income

If a nation is operating at a point inside the production possibilities curve, it indicates that the nation could

(Last Word) Which of the following best illustrates the post hoc, ergo propter hoc fallacy?

From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the

A budget line is a graph that shows the various combinations of two products that a

Which of the following is considered to be an entrepreneur?

The idea in economics that "there is no free lunch" means that

Economic growth may be represented by

The study of economics is not useful for consumers, because economic analysis focuses only on businesses and the economy.

Which of the following statements regarding people's wants is true?

The slope of the typical production possibilities curve

Although sleeping in on a work day or school day has an opportunity cost, sleeping late on the weekend does not.

Opportunity costs exist because