Exam 1: First Principles

Equilibrium exists when:

As long as individuals know that they can find the goods and services they want in the market,they are willing to forgo being self-sufficient and are willing to specialize.

In an attempt to reduce shooting deaths,some cities have offered money to people who turn in illegal guns.This programme is an example of the government using _____ to influence behaviour.

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

Which of the following policies is MOST likely to reduce traffic congestion in a large metropolitan area because people usually exploit opportunities to make themselves better off?

For which decision would marginal analysis be MOST relevant?

You like to read Vogue and Sports Illustrated.You have only $5 to spend,so you buy only Sports Illustrated.Which economic concept does this statement BEST represent?

Which decision is the BEST example of making a choice at the margin?

The incentives built into the market economy ensure that resources are put to good use and that opportunities to make people better off are not wasted.This means that:

For which decision would marginal analysis be MOST relevant?

Scarcity in economics means that:

Nate and Dylan are brothers.They have to mow the lawn and clean their rooms before they can go to a football game.Nate mows the lawn and Dylan cleans up the rooms,and they make it to the football game on time.Which economic concept does this statement BEST represent?

Corner offices in high-rise office buildings usually cost more to rent than other offices.This BEST illustrates the economic concept of:

The basic concern of microeconomics is to:

Because people usually exploit opportunities to make themselves better off,to encourage young people to go to university in their home province,provincial governments can:

You decide whether to eat one more slice of pizza based on how hungry you feel.Which economic principle does this statement BEST represent?

The university recently inherited a large mansion from a wealthy alumnus.The university plans to use the mansion for faculty parties and to house distinguished guests.The opportunity cost of the mansion to the university is:

Your health club is offering a free 1-year membership for the person who attends the most yoga classes in March.This results in more people attending yoga.Which economic principle does this statement BEST represent?

When markets fail:

If the value of homes in Montreal increases and,as a result,the people of Montreal spend more,incomes in Montreal will: