Chapter 1 Micro

For economists, the word "utility" means:

In economics, the pleasure, happiness, or satisfaction received from a product is called

When economists say that people act rationally in their self-interest, they mean that individuals:

According to economists, economic self-interest:

Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any money on my financial investment." His economist friend points out that in effect he did lose money because he could have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis, in this case, incorporates the idea of:

A person should consume more of something when its marginal:

Economics may best be defined as the:

The study of economics is primarily concerned with:

The economic perspective entails:

Purposeful behavior suggests that:

Purposeful behavior means that:

Economics involves marginal analysis because:

You should decide to go to a movie:

Opportunity costs exist because:

The assertion that "There is no free lunch" means that:

Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. This is a reflection of:

If someone produced too much of a good, this would suggest that

Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact:

In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of:

Which one of the following expressions best states the idea of opportunity cost?

Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students.

Which of the following most closely relates to the idea of opportunity costs?

Economists contend that most economic decisions are:

Alex sees that his neighbors' lawns all need mowing. He offers to provide the service in exchange for a wage of $20 per hour. Some neighbors accept Alex's offer and others refuse. Economists would describe Alex's behavior as:

Kara was out jogging and despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Kara:

Economic theories:

In constructing models, economists:

The Latin term "ceteris paribus" means:

The basic purpose of the other-things-equal assumption is to:

Suppose an economist says that "Other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that:

The term "other things equal" means that:

Macroeconomics approaches the study of economics from the viewpoint of:

Which of the following is associated with macroeconomics?

The problems of aggregate inflation and unemployment are:

Which of the following statements pertains to macroeconomics?

Macroeconomics can best be described as the:

Microeconomics:

Which of the following is a microeconomic statement?

Which of the following statements is true?

A normative statement is one that:

A positive statement is one which is:

Which of the following is a positive statement?

Normative statements are concerned primarily with:

A positive statement is concerned primarily with:

Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that:

The economizing problem is:

The economizing problem is one of deciding how to make the best use of:

The scarcity problem:

The alternative combinations of two goods which a consumer can purchase with a given money income is shown by:

The budget line shows:

Refer to the budget line shown in the diagram above. If the consumer's money income is $20, the:

Refer to the budget line shown in the diagram above. If the consumer's money income is $20, which of the following combinations of goods is unattainable?

Refer to the budget line shown in the diagram above. The absolute value of the slope of the budget line is:

In moving along a given budget line:

An increase in money income:

The shift of the budget line from cd to ab in the above figure is consistent with:

Any combination of goods lying outside of the budget line:

Suppose you have a money income of $10, all of which you spend on Coke and popcorn. In the above diagram, the prices of Coke and popcorn respectively are:

Other things equal, an increase in a consumer's money income:

The slope of a budget line reflects the:

Suppose Elroy's budget line is as shown on the above diagram. If his tastes change in favor of Coke and against popcorn, the budget line will:

Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of which is on the horizontal axis) is $3. Also assume that money income is $60. The absolute value of the slope of the resulting budget line:

Suppose that Julia receives a $20 gift card for the local coffee shop, where she only buys lattes and muffins. If the price of a latte is $4 and the price of a muffin is $2, then we can conclude that Julia:

Which of the following is a labor resource?

Which of the following is a capital resource?

The four factors of production are:

Which of the following lists includes only capital resources (and therefore no labor or land resources)?

Money is not an economic resource because:

Economic resources are also called:

Which of the following do economists consider to be capital?

The main function of the entrepreneur is to:

Which of the following is not a main function of the entrepreneur?

The production possibilities curve illustrates the basic principle that:

Which of the following will not produce an outward shift of the production possibilities curve?

Unemployment:

If the production possibilities curve is a straight line:

A production possibilities curve illustrates

A production possibilities curve shows:

A nation's production possibilities curve is bowed out from the origin because:

Refer to the above table. If the economy is producing at production alternative C, the opportunity cost of the tenth unit of consumer goods will be:

Refer to the above table. As compared to production alternative D, the choice of alternative C would:

Refer to the above table. A total output of 3 units of capital goods and 4 units of consumer goods:

Refer to the above table. For this economy to produce a total output of 3 units of capital goods and 13 units of consumer goods it must:

Refer to the above table. For these data the law of increasing opportunity costs is reflected in the fact that:

When an economy is operating under conditions of full employment, the production of more of commodity A will mean the production of less of commodity B because:

The production possibilities curve:

Any point inside the production possibilities curve indicates:

Refer to the above diagram. Other things equal, this economy will achieve the most rapid rate of growth if:

Refer to the above diagram. This economy will experience unemployment if it produces at point:

Which of the following is assumed in constructing a typical production possibilities curve?

The typical production possibilities curve is:

Assume an economy is incurring unemployment. The effect of resolving this problem will be to:

Which of the following is not correct? A typical production possibilities curve:

Refer to the above diagram. This production possibilities curve is constructed so that:

Refer to the above diagram. Starting at point A, the opportunity cost of producing each successive unit of tractors is:

Refer to the above diagram. Starting at point E, the production of successive units of bread will cost:

The negative slope of the production possibilities curve is a graphical way of indicating that:

If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that:

The construction of a production possibilities curve assumes:

If an economy is operating inside its production possibilities curve for consumer goods and capital goods, it:

. Refer to the above diagram. Points A, B, C, D, and E show:

Refer to the above diagram. If society is currently producing 9 units of bicycles and 4 units of computers and it now decides to increase computer output to 6, the cost:

Refer to the above diagram. The combination of computers and bicycles shown by point G is:

Refer to the above diagram. If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:

Refer to the above diagram. The combination of computers and bicycles shown by point F:

Refer to the above diagram. The movement down the production possibilities curve from point A to point E suggests that the production of:

The law of increasing opportunity costs states that:

The concept of opportunity cost:

The law of increasing opportunity costs is reflected in a production possibilities curve that is:

The marginal benefit curve is:

The marginal cost curve is:

If the output of product X is such that marginal benefit equals marginal cost:

Refer to the above diagram for athletic shoes. The optimal output of shoes is:

Refer to the above diagram for athletic shoes. If the current output of shoes is Q1, then:

Refer to the above diagram for athletic shoes. If the current output of shoes is Q3, then: A. resources are being allocated efficiently to the production of shoes.

Refer to the above diagram for athletic shoes. If the current output of shoes is Q3, then:

Suppose that an economy is producing on its production possibilities curve, but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good. This economy:

The optimal allocation of resources is found:

The basic difference between consumer goods and capital goods is that

Which of the following will shift the production possibilities curve to the right?

Other things equal, which of the following would shift an economy's production possibilities curve to the left?

Refer to the above diagram. The concept of opportunity cost is best represented by the:

Refer to the above diagram. Other things equal, which of the following positions relative to PP1 would be the most likely to result in a future production possibilities curve of PP3, rather than PP2?

Refer to the above diagram. An improvement in technology will:

Refer to the above diagram. Which one of the following would shift the production possibilities curve from PP1 to PP2?

Which of the following statements, if any, is correct for a nation that is producing only consumer and capital goods?

(Consider This) A direct cost of going to college is:

(Consider This) An exception to the advice "go to college, stay in college, and earn a degree" occurs when:

If we say that two variables are directly related, this means that:

If we say that two variables are inversely related, this means that:

Which of the following statements is correct?

If two variables are inversely related, then as the value of one variable:

If a positive relationship exists between x and y:

The slope of a straight line can be determined by:

Refer to the above diagram. The variables X and Y are

Refer to the above diagram. The vertical intercept:

Refer to the above diagram. The slope of the line:

Refer to the above diagram. The equation that shows the relationship between Y and X is:

Assume a household would consume $100 worth of goods and services per week if its weekly income were zero and would spend an additional $80 per week for each $100 of additional income. Letting C represent consumption and Y represent income, the equation that summarizes this relationship is:

If the equation y = 15 - 4x was plotted, the:

If the equation y = -10 + 2.5x was plotted:

The movement from line A to line A' represents a change in:

In the above diagram variables x and y are:

In the above diagram the vertical intercept and slope are:

In the above diagram the equation for this line is:

Refer to the above diagram. The slope of curve ZZ at point A is approximately:

Refer to the above diagram. The slope of curve ZZ at point B is:

Refer to the above diagram. The slope of curve ZZ at point C is approximately:

The slope of a line parallel to the vertical axis is:

The slope of a line parallel to the horizontal axis is: