Exam 1: First Principles

Katherine has a physics exam tomorrow. However, a free lecture by one of her favorite authors is taking place this evening. Katherine decides to attend the lecture instead of studying for her exam. Katherine's opportunity cost is:

Because people usually exploit opportunities to make themselves better off, if the price of gasoline falls and stays low for an extended period, we expect people to:

A college student is faced with a difficult decision of how to spend one hour tonight. She could babysit her professor's child at an hourly wage of $7; she could work at the college library at a wage of $6; or she could finish her economics homework assignment. If she chooses to complete her homework assignment, she has incurred an opportunity cost equal to:

The federal government regulates how much carbon dioxide a factory can emit. This statement best represents this economic concept:

For which of the following decisions would marginal analysis be MOST relevant?

After eating three slices of pizza, you decide to eat one more piece. Your decision is an example of the economic principle called:

Gains from trade arise because of:

Many college freshmen describe themselves as pre-med, but a very small percentage of these freshmen will ever attend medical school. After the first course in biology or chemistry, many decide to major in something other than the natural sciences. Which of the 12 principles is at work here?

Your neighbor is mowing her yard one afternoon when she stops to have some lemonade. She drinks one glass and is considering having a second glass. This is an example of:

You like to read Vogue and Sports Illustrated. You have only $5 to spend, so you buy only Sports Illustrated. This statement best represents this economic concept:

You can spend $100 on either a new economics textbook or a new CD player. If you choose to buy the new economics textbook, the opportunity cost is:

Trade allows people to get more of what they want.

The basic concern of microeconomics is:

When a chef prepares a dinner for a customer, which of the following is physical capital?

Owen had a typewriter shop, but he went out of business because no one buys typewriters anymore. This statement best represents this economic concept:

Which of the following is an example of marginal analysis?

Which of the following is NOT one of the five principles for understanding how individual choices interact?

When we are forced to make choices, we are facing the concept of:

At various times, the nations that constitute the Organization of Petroleum Exporting Countries (OPEC) have restricted the supply of oil to increase their profits. This is an example of:

How people choose among the alternatives available to them is: