Exam 1: First Principles

A popular train station has free parking for commuters who take the train.This often results in many people being unable to find a parking spot and missing their train.To solve this problem,all commuters should be:

We are forced to make choices because of:

Buying vegetables at a farmers' market benefits the community because:

If in Equitania,20% of the population receive 80% of the income and the remaining 80% of the population receive 20% of the income,Equitania's economy:

If resources are scarce,it means that they:

Equity means that:

Which statement is one of the four principles of individual choice?

Which statement is NOT true?

An increase in efficiency means that an economy has:

The BEST measure of the opportunity cost of any choice is:

Which statement is CORRECT?

If an economy is efficient:

When a chef prepares a dinner for a customer,which factor is physical capital?

Which statement demonstrates one of the three principles of economy-wide interactions?

An economy is efficient if it is:

Which question is an example of marginal analysis?

Overall,trade between Canada and the United States will:

Which statement is TRUE?

Because one person's spending is another person's income,if one group in the economy spends more,the incomes of other groups will increase.

The trade-off between equity and efficiency occurs because: