Exam 1: Limits, Alternatives, and Choices

One major part of the opportunity costs of one's decision to go to college after high school graduation is the

You observe that when stock prices rise, interest rates soon fall, and therefore conclude that higher stock prices lead to lower interest rates. This would be an example of

The economic perspective focuses largely on marginal analysis, which means analyzing

An economy cannot produce at a point outside of its production possibilities curve because human economic wants are insatiable.

Assume that a consumer purchases only two products. Suppose that the consumer's money income doubles, and the prices of the two products also double. These changes in income and prices will result in

From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the

In recent years the economy of Japan has grown, despite the fact that the population of Japan has declined. Which of the following would best explain Japan's economic growth despite having a smaller population?

If two variables are inversely related, then as the value of one variable

Which of the following is the best synonym for "marginal" in economics?

Which of the following lists includes only capital resources (and therefore no labor or land resources)?

A linear relationship only refers to one whose graph is either vertical or horizontal.

If the marginal benefit of a good is less than its marginal cost, then the nation should

When a state government chooses to build more roads, the resources used are no longer available for public education programs. This dilemma illustrates the concept of

(Consider This) The economic perspective used in customer decision making at fast-food restaurants is reflected in

Economic models do not reflect the full complexity of reality, but instead are based on

A point outside (to the right of) the production possibilities curve of a nation

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?

A country can achieve some combination of goods outside its production possibilities curve by

If economic resources were perfectly adaptable to alternative uses, then there would be constant opportunity costs along the production possibilities curve.

In moving along a given budget line,