Exam 1: First Principles

Who wrote The Wealth of Nations,a book that many credit with establishing economics as a discipline?

While buying refreshments for an upcoming party,you notice that a six-pack of Canadian Beer costs $2 and a six-pack of Bavarian Beer costs $4.You buy the six-pack of Bavarian Beer,although you wonder if maybe two six-packs of Canadian Beer would have been a better choice.The opportunity cost of the Bavarian Beer is:

One day,Martha wakes up and in frustration yells,"Decisions,decisions,decisions! Why do I have to make decisions about everything?" Martha's frustrations stem from the fact that:

The student centre on campus has burritos,bagels,or burgers for lunch,and they all cost the same.You decide to have a burger today,but if they were out of burgers,you would have bought a bagel.Your opportunity cost of buying a burger is your enjoyment of the:

If an economy's resources are used efficiently,then it is guaranteed that the economy will also achieve equity.

For a student who owns his or her own home and doesn't plan to live on campus,the cost of going to university is:

When people in Brazil engage in trade with people in Germany,all citizens in both nations are necessarily made better off.

A busy professor needs to decide whether to stay in his office to grade papers for another hour or to go home and go to bed.This is an example of:

Sometimes the government varies its spending,depending on the needs of the country.Which economic principle does this statement BEST represent?

During the Great Depression,consumers and producers in Canada dramatically reduced their spending relative to the quantity of goods and services available at the time.Which economic principle does this statement BEST represent?

Gains from trade exist for:

We have to make choices because:

You have $1 to spend on a vending machine snack.A bag of chips will cost you $1 and a candy bar will also cost you $1.If you choose the bag of chips,the opportunity cost of buying the chips would be:

You are analyzing a trade-off when you compare the _____ and _____ of doing something.

The principle that people will exploit opportunities to do what is best for others is the basis of all predictions by economists about individual behaviour.

The fact that individuals in a market economy act so as to make themselves better off is a major reason a market equilibrium is usually efficient.

Owen had a typewriter shop,but he went out of business because no one buys typewriters anymore.Which economic principle does this statement BEST represent?

Your neighbour is mowing her yard one afternoon when she stops to have some lemonade.She drinks one glass and is now deciding whether or not to have a second glass.This is an example of _____ analysis.

Too little spending in an economy often leads to:

Although freshwater is very abundant in most places,it is scarce because: