Exam 1: First Principles

How people choose among the alternatives available to them is:

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.

In the Niagara region,Ontario,strawberry production is limited by the number of hectares available for agriculture production.Which economic concept does this statement BEST represent?

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.

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

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

Your elderly grandma tells you: "I haven't been taking my beloved walks because I'm concerned about falling and getting hurt.See,there is always a cost to doing something.But if you don't do anything,then there is no cost." Your grandma does not understand the economic concept of:

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

Which statement is NOT one of the four principles that underlie individual choice?

Nara has gone to three movies this week.She has some extra money,so she decides to go to another.Which economic principle does this statement BEST represent?

The phrase gains from trade refers to the:

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:

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?

Which statement demonstrates how people respond to incentives to make themselves better off?

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

Which statement is an example of individual choice?

Increases in total output realized when individuals specialize in particular tasks and trade are known as:

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