2304S08-x1 - 2304F07-x1 Multiple Choice Identify the choice...

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2304F07-x1 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Economics is the study of a. production methods. b. how society manages its scarce resources. c. how households decide who performs which tasks. d. the interaction of business and government. 2. In economics, the cost of something is a. the dollar amount of obtaining it. b. always measured in units of time given up to get it. c. what you give up to get it. d. often impossible to quantify, even in principle. 3. When you calculate your true costs of going to college, what portion of your room-and-board expenses should be  included? a. Your full room-and-board expenses should always be included. b. None of your room-and-board expenses should ever be included. c. You should include only the amount by which your room-and-board expenses exceed the  income you earn while attending college. d. You should include only the amount by which your room-and-board expenses exceed the  expenses for rent and food if you were not in college. 4. Making rational decisions "at the margin" means that people a. make those decisions that do not impose a marginal cost. b. evaluate how easily a decision can be reversed if problems arise. c. compare the marginal costs and marginal benefits of each decision. d. always calculate the marginal dollar costs for each decision. 5. After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this  year. However, Spring Break is still months away, and you may reverse this decision. Which of the following  events would prompt you to reverse this decision? a. The marginal benefit of going to Cancun increases. b. The marginal cost of going to Cancun decreases. c. The marginal benefit of going to Ft. Lauderdale decreases. d. The marginal cost of going to Ft. Lauderdale decreases. 6. Which of the following is a principle concerning how people interact? a. Markets are usually a good way to organize economic activity. b. Rational people think at the margin. c. People respond to incentives. d. All of the above are correct. 7. The principle that "trade can make everyone better off" applies to interactions and trade between
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a. families. b. states within the United States. c. nations. d. All of the above are correct. 8. The term used to describe a situation in which markets fail to allocate resources efficiently is called a. economic meltdown. b.
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2304S08-x1 - 2304F07-x1 Multiple Choice Identify the choice...

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