microeconomics first quiz

Every day we make many choices.
We can't avoid having to make choices because ______________.

An incentive is ______________.

Economics is the social science that studies the choices ______________.

Factors of production are grouped into four categories, which are ______________.

The Grand Canyon is an example of ______________.

Land is the ______________ that we use to produce goods and services.

The ______________ that people devote to produce goods and services is labor.

Human capital ______________ that people obtain from education, on-the-job training, and work experience.______________ that have been produced in the past and that businesses now use to produce goods and services is capital.

Which of the following is an example of entrepreneurship?

resource use in efficient when

Which of the following illustrates a tradeoff?

The benefit of something is the ______________.Benefit is determined by preferences - by what a person ______________ and the intensity of those feelings.

A rational choice is ______________.

All of the following are incentives for you to take a class in summer school except ______________.

A benefit from your decision to attend summer school is ______________ and a cost of your decision is ______________.

Your decision to attend summer school is rational if ______________.

A choice on the margin is a choice that is made by comparing all the relevant ______________ systematically and ______________.Marginal cost is the ______________ that arises from one unit ______________ in an activity.Marginal benefit is the ______________ that arises from one unit ______________ in an activity.

Eric , a medical student, buys four cups of coffee a day, which costs him $8.00.He decides to buy one more cup each day and his expenditure on coffee increases to $10.00.The marginal cost to Eric of a cup of coffee is ______________.

Byron plays softball two nights a week and his current grade in economics is 80 percent.He decides to play softball for three nights each week and his economics grade falls to 65 percent.The marginal cost to Byron of playing softball one more night each week is ______________.

People make rational choices by comparing ______________.

You can stay in school or you can quit school and get a full-time job.You have an incentive to stay in school if ______________.

Which of the following is the opportunity cost of attending a ball game?

You plan to travel in Europe this summer.If you do, you won't be able to take your usual summer job that pays $10,000 for the summer, and you won't be able to live at home for free.The cost of transportation is $1,000 , visas cost $300 , and living expenses are $1,700.What is the opportunity cost of your plan to travel in Europe?
Your opportunity cost is what you would have purchased with $ ______________ if you did not go to Europe.

The night before a history test, you decide to watch television instead of reviewing your notes.You get 70 percent on your test compared with the 80 percent that you normally score.You ______________, and the opportunity cost of your evening watching television was ______________.

Which of the following statements are positive?
1. We should save the rainforests
2. The greatest number of accidents are caused by drunk drivers
3. Most iPods are purchased by teenagers
4. Every house should have a pet

Which of the following statements is a normative macroeconomic statement?

The production possibilities frontier is the boundary between the combinations of goods and services that ______________, given the available factors of production and the state of technology.

Point A is (on the curve) ______________ and point B is (outside the curve) ______________.

This PPF​ ______ illustrate scarcity because​ ______.

Harry produces 8 balloon rides and 6 boat rides an hour.Harry could not produce more balloon rides without producing fewer boat rides.Harry is ______________ his production possibilities frontier.

The PPF bows outward because as we move from point A to point B to point C , the opportunity cost of producing a jacket ______________.

Distinguish between production efficiency and allocative efficiency.
______________ efficiency occurs when we produce goods and services at the lowest possible cost.
______________ efficiency occurs when goods and services are produced at the lowest possible cost and in the quantities that provide the greatest possible benefit.

All points on the PPF are points of ______________efficiency.
When we produce at the point on the PPF that we prefer above all other points we achieve ______________efficiency.

The marginal benefit of a good or service is the ______________.

The marginal cost of producing a good or service is the ______________.

Microsoft's marginal cost of producing the 100th copy of Microsoft Windows 10 is ______________.

Monday Island produces only tomatoes and pineapples.The marginal cost of a tomato is the number of pineapples that ______________ to get one more ______________.