Exam 1: An Introduction to Microeconomics

Jane can either bake 10 mango tarts or clean 2 cars in one hour.If Jane decides to do both these jobs within the same hour,what would be her opportunity cost of cleaning one additional car? (Assume that Jane faces constant opportunity cost. )

"Goal-oriented behavior" can best be described as:

The test of a theory is whether:

When analyzing events across time,economists measure consumer behavior based on:

Opportunity cost is the equivalent of:

After spending $5 million developing a new MP3 player,you discover that a competitor is about to introduce a new model similar to yours at a lower per unit price.The $5 million development cost:

The downward slope of the production possibility frontier indicates that:

Differences in the _____ of resources in the production of various commodities explain the per-unit opportunity cost associated with a concave production possibility frontier.

Compare the behavior of a person who has a hobby of stamp collection with that of an athlete who undergoes regular training.Who do you think is more rational and why?

The assumption of rationality implies that market participants:

Relative to a linear production possibilities curve,one that is more concave to the origin indicates a(n):

Suppose the consumer price index was 100 in the year 2000 and 200 in the year 2010.If the nominal price of apples has increased from 100 to 150 over this period,the real price of apples has:

Consider the production possibility frontier of an economy in Figure 1-1.If the economy is governed by rational actors,it is likely to choose between how many of the production points labeled in the figure?

Which of the following economic decisions is not a part of the study of microeconomics?

Explain why ticket prices sold by scalpers near the venue where an event will take place increase the closer you get to the venue.

Which of the following steps in evaluating a public policy is not in the realm of positive analysis?

Choosing a combination of goods represented by a point inside the production possibilities frontier indicates:

Which of the following can be categorized as a sunk cost of a firm?

Using a real life example explain why price is an important element affecting consumer choice.

A linear production possibility frontier exhibits a(n)_____ opportunity cost of producing either good.