Exam 1: First Principles

Marla will make $10 by tutoring for an additional hour,but she will lose an hour of studying for her economics test.Marla decides to study rather than tutor.Marla's choice indicates that she:

The federal government regulates how much carbon dioxide a factory can emit.Which economic principle does this statement BEST represent?

If Allison drives to a large city 100 kilometres from her small community to do her back-to-school shopping,this will:

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 friend comes up to you and offers you a free ticket to a Toronto Blue Jays game that night.You decide to attend the game.The game takes 5 hours and costs you $15 for transportation.If you had not attended the game,you would have worked at your part-time job for $8 an hour.What would be the cost to you of attending the game?

Some baseball fans leave the game in the seventh or eighth inning to avoid the postgame traffic.These fans are:

In equilibrium,there will be no further opportunities for gains from trade.

Economists define an efficient use of resources as a situation in which:

Gains from trade arise because of:

In baseball,when one manager decides to send in a pinch hitter,the other manager often changes pitchers.This sometimes causes the first manager to send in a new pinch hitter.Once both managers decide that no more player substitutions will benefit their team,the situation has reached:

Resources are being used efficiently when:

Suppose small business owners decide to spend less.How will this affect an economy?

For which decision 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 concept called:

Economists make predictions about individual behaviour based on the assumption that people exploit opportunities to make themselves better off.The fact that different individuals make different choices when confronted with the same situation implies that this assumption is often violated.

Which of the following questions would NOT involve marginal analysis:

Margo spends $30 000 on 1 year's university tuition.The opportunity cost of spending 1 year in university for Margo is:

Marginal analysis studies how individuals decide: