Econ ch.1

Mitch has $100 to spend and wants to buy either a new amp or new mp3 player. Both cost $100 so he can only buy one. This illustrates the concept that

What represents the principle represented by the adage, "there's no such thing as a free lunch?"

A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of society in a fair manner. In other words, the society faces trade offs between

High school athletes who skip college to become professional athletes

Denise decides to spend 3 hours working overtime rather than watching a video with her friends. She earns 10 dollars an hour. Her opportunity cost of working is

A rational decision maker takes an action only if

The marginal benefit Claire gets from purchasing a third pair of flip-flops is

You are considering staying in college another semester so that you can complete a major in Economics.In deciding wether or not you should stay you should

People are willing to pay more for a diamond than for a bottle of water because

People are likely to respond to a policy change if

Suppose Massachusetts passes a law that increases the tax on alcohol. As a result,residents start purchasing alcohol from other states. This illustrates that