Question 1

What does the term "marginal change" mean?

Accepted Answer

A small incremental ...

Question 2

What you give up to obtain an item is called your

Accepted Answer

A)  opportunity cost.
B)  explicit cost.
C)  monetary cost.
D)  direct cost.E) None of the above
F) A) and B)

Question 3

The marginal benefit Kyra gets from eating a second sandwich is

Accepted Answer

A)  the total benefit Kyra gets from eating two sandwiches minus the total benefit she gets from eating one sandwich.
B)  the same as the total benefit she gets from eating two sandwiches.
C)  less than the marginal cost of eating the second sandwich since she chose to eat the second sandwich.
D)  the total benefit Kyra gets from eating three sandwiches minus the total benefit she gets from eating two sandwiches.E) B) and D)
F) None of the above

Question 4

Scenario 1-6
It costs a company $30,000 to produce 600 heart rate monitors. The company's cost will be $30,070 if it produces an additional heart rate monitor. The company is currently producing 600 heart rate monitors.
-Refer to Scenario 1-6. What is the company's marginal cost?

Accepted Answer

The answer of Scenario 1-6
It costs a company $30,000 to...

Question 5

The government enforces property rights by

Accepted Answer

A)  requiring property owners to pay property taxes.
B)  providing police and courts.
C)  forcing people to own property.
D)  providing public parks and recreation facilities.E) B) and D)
F) B) and C)

Question 6

Rick buys a 1966 Mustang for $3,000, planning to restore and sell the car. He goes on to spend $9,000 restoring the car. At this point he can sell the car for $10,000. As an alternative, he can spend an additional $3,000 replacing the engine. With a new engine the car would sell for $13,000. Rick should

Accepted Answer

A)  complete the repairs and sell the car for $13,000.
B)  sell the car now for $10,000.
C)  never try such an expensive project again.
D)  be indifferent between (i)  selling the car now and (ii)  replacing the engine and then selling it.E) A) and B)
F) A) and C)

Question 7

One reason we need government, even in a market economy, is that

Accepted Answer

A)  there is insufficient market power in the absence of government.
B)  property rights are too strong in the absence of government.
C)  the invisible hand is not perfect.
D)  Both a and b are correct.E) A) and D)
F) B) and C)

Question 8

A society allocates its scarce resources to various uses. These scarce resources include

Accepted Answer

A)  land.
B)  people.
C)  machines.
D)  All of the above are correct.E) A) and D)
F) A) and B)

Question 9

When the United States trades with China,

Accepted Answer

A)  both countries will likely benefit.
B)  only United States will benefit.
C)  only China will benefit.
D)  neither country will benefit.E) C) and D)
F) B) and C)

Question 10

England can benefit from trade

Accepted Answer

A)  only with nations that can produce goods England cannot produce.
B)  only with less developed nations.
C)  only with nations outside of Europe.
D)  with any nation.E) B) and D)
F) C) and D)

Question 11

Give an example of government intervention that is intended to reduce an externality.

Accepted Answer

Laws that restrict t...

Question 12

The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanooga. In advance of a particular trip, four seats remain unsold. The bus company could increase its profit only if it

Accepted Answer

A)  charged any ticket price above $0 for the four remaining seats.
B)  charged at least $11.25 for each of the four remaining seats.
C)  charged at least $45 for each of the four remaining seats.
D)  paid four people to occupy the four remaining seats.E) A) and B)
F) None of the above

Question 13

Scenario 1-3
It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators.
-Refer to Scenario 1-3. What is the minimum price the company will charge for the 701th calculator?

Accepted Answer

Question 14

Which of the following words and phrases best captures the notion of equality?

Accepted Answer

A)  minimum waste
B)  maximum benefit
C)  sameness
D)  efficiencyE) None of the above
F) A) and B)

Question 15

The term ______ refers to the size of the economic pie, and the term ______ refers to how the pie is divided.

Accepted Answer

efficiency...

Question 16

If an externality is present in a market, economic efficiency may be enhanced by

Accepted Answer

A)  government intervention.
B)  a decrease in foreign competition.
C)  fewer market participants.
D)  weaker property rights.E) B) and C)
F) C) and D)

Question 17

Economics is the study of how society allocates its unlimited resources.

Accepted Answer

A) True 
 B)False

Question 18

If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75.

Accepted Answer

A) True 
 B)False

Question 19

Tracy quits her job, which pays $25,000 a year, to finish her college degree. Her annual college expenses are $12,000 for tuition and fees and $1,000 for books. What is her opportunity cost of attending college for the year?

Accepted Answer

The answer of Tracy quits her job, which pays $25,000...

Question 20

Following the implementation of laws requiring automobiles to have seat belts, which of the following occurred?

Accepted Answer

A)  An individual's probability of surviving an auto accident rose.
B)  There was an increase in pedestrian deaths.
C)  There was an increase in automobile accidents.
D)  All of the above are correct.E) All of the above
F) C) and D)

Exam 1: Ten Principles of Economics

The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanooga. In advance of a particular trip, four seats remain unsold. The bus company could increase its profit only if it

Correct Answer
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England can benefit from trade

Correct Answer
verified

Correct Answer
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If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75.

Correct Answer
verified

The marginal benefit Kyra gets from eating a second sandwich is

Correct Answer
verified

The government enforces property rights by

Correct Answer
verified

Economics is the study of how society allocates its unlimited resources.

Correct Answer
verified

Give an example of government intervention that is intended to reduce an externality.

Correct Answer
verified
Laws that restrict t...
View Answer

What you give up to obtain an item is called your

Correct Answer
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The term refers to the size of the economic pie, and the term refers to how the pie is divided.

Correct Answer
verified
efficiency...
View Answer

Which of the following words and phrases best captures the notion of equality?

Correct Answer
verified

Correct Answer
verified

What does the term "marginal change" mean?

Correct Answer
verified
A small incremental ...
View Answer

If an externality is present in a market, economic efficiency may be enhanced by

Correct Answer
verified

A society allocates its scarce resources to various uses. These scarce resources include

Correct Answer
verified

When the United States trades with China,

Correct Answer
verified

One reason we need government, even in a market economy, is that

Correct Answer
verified

Following the implementation of laws requiring automobiles to have seat belts, which of the following occurred?

Correct Answer
verified

Scenario 1-6 It costs a company $30,000 to produce 600 heart rate monitors. The company's cost will be $30,070 if it produces an additional heart rate monitor. The company is currently producing 600 heart rate monitors. -Refer to Scenario 1-6. What is the company's marginal cost?

Correct Answer
verified

Tracy quits her job, which pays $25,000 a year, to finish her college degree. Her annual college expenses are $12,000 for tuition and fees and $1,000 for books. What is her opportunity cost of attending college for the year?

Correct Answer
verified

Exam 1: Ten Principles of Economics

The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanooga. In advance of a particular trip, four seats remain unsold. The bus company could increase its profit only if it

Correct AnswerverifiedShow Answer

England can benefit from trade

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75.

Correct AnswerverifiedShow Answer

The marginal benefit Kyra gets from eating a second sandwich is

Correct AnswerverifiedShow Answer

The government enforces property rights by

Correct AnswerverifiedShow Answer

Economics is the study of how society allocates its unlimited resources.

Correct AnswerverifiedShow Answer

Give an example of government intervention that is intended to reduce an externality.

Correct AnswerverifiedLaws that restrict t...View AnswerShow Answer

What you give up to obtain an item is called your

Correct AnswerverifiedShow Answer

The term ______ refers to the size of the economic pie, and the term ______ refers to how the pie is divided.

Correct Answerverifiedefficiency...View AnswerShow Answer

Which of the following words and phrases best captures the notion of equality?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What does the term "marginal change" mean?

Correct AnswerverifiedA small incremental ...View AnswerShow Answer

If an externality is present in a market, economic efficiency may be enhanced by

Correct AnswerverifiedShow Answer

A society allocates its scarce resources to various uses. These scarce resources include

Correct AnswerverifiedShow Answer

When the United States trades with China,

Correct AnswerverifiedShow Answer

One reason we need government, even in a market economy, is that

Correct AnswerverifiedShow Answer

Following the implementation of laws requiring automobiles to have seat belts, which of the following occurred?

Correct AnswerverifiedShow Answer

Scenario 1-6 It costs a company $30,000 to produce 600 heart rate monitors. The company's cost will be $30,070 if it produces an additional heart rate monitor. The company is currently producing 600 heart rate monitors. -Refer to Scenario 1-6. What is the company's marginal cost?

Correct AnswerverifiedShow Answer

Tracy quits her job, which pays $25,000 a year, to finish her college degree. Her annual college expenses are $12,000 for tuition and fees and $1,000 for books. What is her opportunity cost of attending college for the year?

Correct AnswerverifiedShow Answer

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Laws that restrict t...
View Answer

Correct Answer
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The term refers to the size of the economic pie, and the term refers to how the pie is divided.

Correct Answer
verified
efficiency...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A small incremental ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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