Microeconomics 101 Chapter 1

The basic concept of microeconomics is:

How people choose among the alternatives available to them is:

A key theme fundamental to all of economics is that:

We are forced to make choices because of:

A resource is anything that:

Which of the following is NOT a resource in the production of rice?

. When a chef prepares a dinner for a customer, which of the following is physical
capital?

Manny is attending college and majoring in economics. By doing so, Manny is
improving his:

For an economist, the cost of something is:

Whenever a choice is made:

. Margo spends $10,000 on one year's college tuition. The opportunity cost of spending one year in college for Margo is:

Khalil is offered a free ticket to the opera. His opportunity cost of going to the opera is:

A new fast-food restaurant offered a free meal (valued at $5) a week for a year to its
first 100 customers. Ramona camped out for 48 hours before the opening to be one of
the first 100 customers. The cost of the free meal a week for a year for Ramona was:

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:

A friend comes up to you and offers you a free ticket to a professional baseball game
that night. You decide to attend the game. The game takes five hours and costs you $15
for transportation. If you had not attended the game, you would have worked at your
part-time job for $8 an hour. What is the cost to you of attending the game?

For a student who owns his or her own home and doesn't plan to live in the dorm, the
cost of going to college is:

. You decide to join the economics club, but this means you can't join the accounting club
because it meets at the same time. This statement best represents this economic concept:

A choice made _____ is a choice whether to do a little more or a little less of something.

You decide whether to eat one more slice of pizza based on how hungry you feel. This
statement best represents this economic concept:

Marla will make $10 by tutoring for an additional hour, but she will lose an hour of
studying for her economics test. Marla decides to study rather than tutor. Marla's choice indicates that she:

Thinking in economic terms, when Mary Sweet-Tooth is deciding whether to eat
another brownie, she:

You are planning to study eight hours this week for your economics final and are
considering studying a ninth hour. You should:

Which of the following policies is MOST likely to reduce traffic congestion in a large
metropolitan area because people usually exploit opportunities to make themselves
better off?

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:

Because people usually exploit opportunities to make themselves better off, to
encourage young people to go to college in their home state, state universities can:

Because people usually exploit opportunities to make themselves better off, which of
the following methods of reducing pollution is likely to be most effective?

Economists tend to believe that to change people's behavior you must:

. Which of the following is NOT one of the four principles for understanding individual
choice?

When the San Francisco city manager faces a complaint that the city council chamber
podium is not accessible to individuals with disabilities, he responds that the $1 million
improvement will not happen because "that money could be spent building 70 curb
ramps." This statement best represents this economic concept:

Gains from trade arise because of

. Economists use the term equilibrium to describe when:

Which of the following statements is CORRECT?

. An economy is efficient when:

Resources are being used efficiently when:

When the nations that constitute the Organization of Petroleum Exporting Countries (OPEC) restrict the supply of oil to increase their profits, the oil market:

Although for smokers the marginal benefit from smoking may exceed the marginal cost
of smoking, the negative effects of second-hand smoke may increase the marginal costs
of smoking to society to a point where it exceeds that marginal benefit to society. This is an example of:

Everyone benefits from street lighting, yet the marginal benefit to any one individual
usually falls short of the marginal cost. This is an example of:

When markets don't achieve efficiency:

One parent picks up the child from day care while the other parent goes to the grocery
store and begins to make dinner. This is an example of the principle that:

Which of the following is NOT one of the five principles for understanding how
individual choices interact?