Prin of MicroEconomics CH 1 quiz

England can benefit from trade

After much consideration, you have chosen Ireland over Spain for your Study Abroad program next year. However, the deadline for your final decision is still months away and you may reverse this decision. Which of the following events would prompt you to reverse this decision?

The study of how society manages its scarce resources is most closely associated with which field of study?

Which of the following statements best characterizes a basic difference between market economies and centrally planned economies?

a. Society relies more upon prices to allocate resources when the economy is centrally-planned than when it is market-based.

b. The self-interest of households is reflected more fully in the outcome of a centrally-planned economy than in the outcome of a market economy.

c. Government plays a larger role in the economic affairs of a market economy than in the economic affairs of a centrally planned economy.

d. None of the above are correct.

Economics is the study of how society manages its

It costs a company $35,000 to produce 500 graphing calculators. The company's cost will be $35,080 if it produces an additional graphing calculator. If the company produces 501 graphing calculators then

What term refers to the idea that society has limited resources and therefore cannot produce all the goods and services people wish to have?

To raise productivity, policymakers could

a. increase spending on education.

b. provide tax credits to firms for capital improvements.

c. fund research and development.

d. All of the above are correct.

For most students, the earnings they give up to attend college are

A rationale for government involvement in a market economy is

a. markets sometimes fail to produce a fair distribution of economic well-being.

b. markets sometimes fail to produce an efficient allocation of resources.

c. property rights have to be enforced.

d. All of the above are correct.

The historical rise in living standards of American workers is primarily a result of

The term used to describe a situation in which markets do not allocate resources efficiently is

Which of the following phrases best captures the notion of efficiency?

Which of the following is an example of something economists study?

a. Mitch chooses to work overtime to earn extra income for his family.

b. Megan sells her physics textbook from last semester to her roommate for half the price of a new textbook.

c. The unemployment rate in the United States has fallen by two percentage points in the last few years.

d. All of the above are correct.

To promote good economic outcomes, policymakers should strive to enact policies that

If Faith attends college, it will take her four years, during which time she will earn no income. She will pay $50,000 for tuition, $12,000 for room and board, and $5,000 for books. If she spends the four years working rather than attending college, she will pay $18,000 for room and board, pay no intuition, and buy no books. Based on this information, Faith's economic cost of attending college would be $67,000 if, over the four years, she could earn

The income of a typical worker in a country is most closely linked to which of the following?

Fundamentally, economics deals with

If the government were to intervene and set the price of a dozen eggs above the market price, then we would expect, relative to the market outcome,

The short-run tradeoff between inflation and unemployment implies that, in the short run,