Microeconomics Exam 1 Review 1

If x increases whenever y decreases, then x and y are _______ related.

Economists measure opportunity cost as the ____ thing ______ up.

Scarcity means that wants are ______ than what we can produce without ________.

In economics, cost is measured as what you ____ give up to get something, and benefit is measured as what you are ______ to give up to get it.

Scarcity exists because human ____ exceed ______ available to satisfy them.

In the circular flow model, the factor markets are markets in which ____, _____, ______, and __________ are bought and sold.

Suppose you eat to hamburgers for lunch. The marginal benefit of the first burger is ______ than the marginal benefit of the second burger.

To make a rational choice, a person compares the extra ______ of one unit to the extra _____ of one more unit.

Decision making on the margin involves comparing the _______ ____ and _________ _______ when making a decision.

The cost of a one-unit increase in an activity

A positive relationship exists between two variables if a ______ in one variable is associated with a _______ in the other variable.

In the circular flow model, what of owns the factors of production?

As a person increases his or her caloric intake, the person's weight increase, ceteris paribus. The relationship between the person's caloric intake and the person's weight is an example of a _______ relationship.

______ are the owners of the factors of production, while _______ determine(s) what amounts of those factors to hire.

What best describes the study of economics? Economics studies how we make choices in the face of ______.

The circular flow model shows that goods and services flow from _______ to ________.

Everyday we make many choices. We can't avoid having to make choices because we can't afford to ____ all the things we'd like.

Every week, Ben plays tennis for 3 hours, and his grade on each math test is 75%. Last week after playing 3 hours, Ben decided to play another hour. He also cut his study time by one hour. Last week, his math test score lowered to 55%. What is the opportunity cost of the fourth hour of tennis?