Question 1

Why is prediction in social sciences like economics more difficult than in physical sciences?

Accepted Answer

The major reason for the difference is t

Question 2

Explain the difference between poverty and scarcity.

Accepted Answer

People living in poverty have access to

Question 3

An airline having 5 unoccupied seats on a flight from California to Chicago decides to sell these tickets at $300, which is less than its average cost per ticket of $450.Which of the following might have prompted this decision to sell tickets below cost?

Accepted Answer

A) total costs 
B) average costs 
C) marginal costs 
D) traceable costs 
A) total costs 
B) average costs 
C) marginal costs 
D) traceable costs

Question 4

Indicate whether each of the following is a positive or normative economic statement:
 The impositun af a price ceiling below equulibrium price wril lead to a shortage of housing
II. The local government should contol the rate of increase in rents so that low-income refidents are not forced to move From the area

Accepted Answer

Statement I is a positive econ

Question 5

Individuals will only pursue an activity if:

Accepted Answer

A) E(M B) > E(M C) . B) E(M B) = E(M C) . C) E(M B) < E(M C) . D) none of these answers are true. A) E(M B) > E(M C) . B) E(M B) = E(M C) . C) E(M B) < E(M C) . D) none of these answers are true.

Question 6

A testable proposition that predicts how people will react to changed circumstances is called a hypothesis.

Accepted Answer

A) True 
 B)False

Question 7

How do we measure the slope of a linear curve?

Accepted Answer

A straight-line curve is called a linear

Question 8

How do we find the slope of a nonlinear curve?

Accepted Answer

We can find the slope at a given point b

Question 9

The rule of rational choice suggests that you will engage in more of an activity if:

Accepted Answer

A) the total benefit from that activity exceeds the total cost of the activity. 
B) the opportunity cost of your time is very low. 
C) the additional cost incurred as a result of the activity exceeds the additional benefit received. 
D) the additional benefit received as a result of the activity exceeds the additional cost incurred. 
E) the additional cost incurred as a result of the activity is equal to the average cost of the activity. 
A) the total benefit from that activity exceeds the total cost of the activity. 
B) the opportunity cost of your time is very low. 
C) the additional cost incurred as a result of the activity exceeds the additional benefit received. 
D) the additional benefit received as a result of the activity exceeds the additional cost incurred. 
E) the additional cost incurred as a result of the activity is equal to the average cost of the activity.

Question 10

Marginal cost is the additional cost incurred as a result of an economic decision.

Accepted Answer

A) True 
 B)False

Question 11

The expression, "There's no such thing as a free lunch" implies that:

Accepted Answer

A) everyone has to pay for his/her own lunch. 
B) the person consuming a good must always pay for it. 
C) costs are incurred when resources are used to produce goods and services. 
D) no one has time for a good lunch anymore. 
A) everyone has to pay for his/her own lunch. 
B) the person consuming a good must always pay for it. 
C) costs are incurred when resources are used to produce goods and services. 
D) no one has time for a good lunch anymore.

Question 12

"Government should do all it can to slow the process of global warming." Is this a positive or normative statement? Explain your answer.

Accepted Answer

This is a normative statement.

Question 13

Prices communicate information about the relative value of resources in the marketplace.Which of the following would cause the value and, hence, the price, of oranges to rise?
a.A freeze wipes out half of the Florida citrus groves.
b.Orange juice is shown to reduce blood cholesterol levels.
c.The price of grape, cranberry, and pineapple juice falls dramatically.

Accepted Answer

a. and b. would result in higher orange

Question 14

Everyone faces scarcity.

Accepted Answer

A) True 
 B)False

Question 15

The marginal cost of a vacation in the south of France is $4,500.The marginal benefit to Druscilla of a vacation in the south of France is $4,800.

Accepted Answer

A) Druscilla will lose $300 if she vacations in the south of France. 
B) Druscilla will experience a net gain of $300 if she vacations in the south of France. 
C) Druscilla will be worse off if she vacations in the south of France. 
D) Druscilla will enjoy a net gain of $4,800 if she vacations in the south of France. 
E) It is irrational for Druscilla to vacation in the south of France when she can stay home and keep $4,500 in the bank. 
A) Druscilla will lose $300 if she vacations in the south of France. 
B) Druscilla will experience a net gain of $300 if she vacations in the south of France. 
C) Druscilla will be worse off if she vacations in the south of France. 
D) Druscilla will enjoy a net gain of $4,800 if she vacations in the south of France. 
E) It is irrational for Druscilla to vacation in the south of France when she can stay home and keep $4,500 in the bank.

Question 16

If a local pizzeria charges $2.50 per slice or $8.00 for a small pizza equal in size to four slices, what would be the marginal cost of a 4th slice of pizza?

Accepted Answer

A) $0.50 
B) $2.00 
C) $2.50 
D) $8.00 
A) $0.50 
B) $2.00 
C) $2.50 
D) $8.00

Question 17

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:

Accepted Answer

A) $4. 
B) $40. 
C) $44. 
D) $0. 
E) dependent on the usefulness of the information learned in class. 
A) $4. 
B) $40. 
C) $44. 
D) $0. 
E) dependent on the usefulness of the information learned in class.

Question 18

Since it is possible to grow coffee in the United States, we should clearly create a U.S.coffee industry and no longer import coffee from Brazil.

Accepted Answer

A) True 
 B)False

Question 19

The additional benefit received as a result of undertaking an action is:

Accepted Answer

A) the opportunity cost. 
B) the average benefit. 
C) the marginal cost. 
D) the marginal benefit. 
E) the total benefit. 
A) the opportunity cost. 
B) the average benefit. 
C) the marginal cost. 
D) the marginal benefit. 
E) the total benefit.

Question 20

Explain why economists believe that an individual who commits a crime does so acting in his/her own self-interest.

Accepted Answer

It is expected that the indivi

Why is prediction in social sciences like economics more difficult than in physical sciences?

Explain the difference between poverty and scarcity.

An airline having 5 unoccupied seats on a flight from California to Chicago decides to sell these tickets at $300, which is less than its average cost per ticket of $450.Which of the following might have prompted this decision to sell tickets below cost?

Individuals will only pursue an activity if:

A testable proposition that predicts how people will react to changed circumstances is called a hypothesis.

How do we measure the slope of a linear curve?

How do we find the slope of a nonlinear curve?

The rule of rational choice suggests that you will engage in more of an activity if:

Marginal cost is the additional cost incurred as a result of an economic decision.

The expression, "There's no such thing as a free lunch" implies that:

"Government should do all it can to slow the process of global warming." Is this a positive or normative statement? Explain your answer.

Everyone faces scarcity.

The marginal cost of a vacation in the south of France is $4,500.The marginal benefit to Druscilla of a vacation in the south of France is $4,800.

If a local pizzeria charges $2.50 per slice or $8.00 for a small pizza equal in size to four slices, what would be the marginal cost of a 4^th slice of pizza?

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:

Since it is possible to grow coffee in the United States, we should clearly create a U.S.coffee industry and no longer import coffee from Brazil.

The additional benefit received as a result of undertaking an action is:

Explain why economists believe that an individual who commits a crime does so acting in his/her own self-interest.

The Role and Method of Economics

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

Exam 2: The Economic Way of Thinking

Why is prediction in social sciences like economics more difficult than in physical sciences?

Explain the difference between poverty and scarcity.

An airline having 5 unoccupied seats on a flight from California to Chicago decides to sell these tickets at $300, which is less than its average cost per ticket of $450.Which of the following might have prompted this decision to sell tickets below cost?

Individuals will only pursue an activity if:

A testable proposition that predicts how people will react to changed circumstances is called a hypothesis.

How do we measure the slope of a linear curve?

How do we find the slope of a nonlinear curve?

The rule of rational choice suggests that you will engage in more of an activity if:

Marginal cost is the additional cost incurred as a result of an economic decision.

The expression, "There's no such thing as a free lunch" implies that:

"Government should do all it can to slow the process of global warming." Is this a positive or normative statement? Explain your answer.

Everyone faces scarcity.

The marginal cost of a vacation in the south of France is $4,500.The marginal benefit to Druscilla of a vacation in the south of France is $4,800.

If a local pizzeria charges $2.50 per slice or $8.00 for a small pizza equal in size to four slices, what would be the marginal cost of a 4th slice of pizza?

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:

Since it is possible to grow coffee in the United States, we should clearly create a U.S.coffee industry and no longer import coffee from Brazil.

The additional benefit received as a result of undertaking an action is:

Explain why economists believe that an individual who commits a crime does so acting in his/her own self-interest.

The Role and Method of Economics

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

If a local pizzeria charges $2.50 per slice or $8.00 for a small pizza equal in size to four slices, what would be the marginal cost of a 4^th slice of pizza?