Exam 1: Exploring Economics

All of the following involve thinking at the margin,EXCEPT:

Use the following to answer questions Figure: Interpreting Equations on a Graph -(Figure: Interpreting Equations on a Graph)The graph illustrates:

The idea that wants are virtually unlimited but the resources to meet those wants are limited is called:

A graph of a business cycle that plots output on the vertical axis and quarters of a year on the horizontal axis is an example of a:

Much of economic analysis is directed toward ensuring an efficient allocation of resources.

When consumers have no choice but to buy from one firm (local utility,etc. ):

Efficiency within economics focuses on:

Which of the following is a macroeconomic topic?

Opportunity cost involves nonmonetary costs rather than monetary costs.

Markets provide an incentive structure to:

Which of the following does NOT deal with microeconomics?

Rational behavior requires "thinking at the margin." Which of the following is an example of this type of thinking?

Economists never assume that people respond to economic incentives.

Which of the following is NOT true?

Which topic is MOST likely to be studied in a macroeconomics course?

What are some ways you use marginal analysis in your life?

Thinking at the margin is defined as maximizing a firm's or individual's well-being.

Employers give full-time employees that have been on the job more than three years employee stock options.This is an example of:

Evaluate: "There is more than one concept of economic efficiency."

Titles,labels for axes,and a statement of how the data are measured help with the interpretation of graphs.