ECON 101 Quiz 1

Saying “the marginal costs are greater than the marginal benefits” is the same as saying
the additional costs are greater than the additional benefits.
Every time you make a __________, you incur a (an) __________.
choice; opportunity cost
The concept that relates how much one variable changes as another variable changes is
Which of the following is a microeconomics topic?
answer is not (b and c)
Ceteris paribus means
all other things held constant or nothing else changes.
A line is parallel to the horizontal axis. The slope of the line is
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Positive economics is concerned with
cause-effect relationships.
All sellers may be tempted to raise the price of what they sell, but a negative unintended effect of raising the price could be __________ in units sold large enough to __________ their total revenue earned.
a decrease; lower
Which of the following is a possible rationing device?
a, b, c
If variable X goes down as variable Y goes down, then X and Y are
directly related.
Prior to attending college, Darius is offered a lucrative four-year contract as an actor in a daytime soap opera. Assuming that acting and attending college are Darius’ preferred alternatives and that he must choose between the two, his cost of attending college after receiving the offer
What does it mean if a person makes a “decision at the margin”?
The person compares additional benefits and additional costs when deciding what to do.
Entrepreneurship is
the talent for organizing the use of land, labor and capital, among other things.
In all cases, normative economics deals with
what should be
What is the most prominent rationing device you will likely find at your campus bookstore?
dollar price
The student whose study habits are illustrated here will maximize the net benefits of studying when she has studied
6 hours
Scarcity means
wants are greater than the limited resources available to satisfy these wants.
Amy’s opportunity cost of going to the movies is
the price of the ticket plus the value to Amy of what she would have chosen to do with her time had she not chosen to go to the movies.