Econ_002_Quiz___1_SU07_1_

Econ_002_Quiz___1_SU07_1_ - Econ 002 Quiz # 1 SU07 Student:...

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Econ 002 Quiz # 1 SU07 Student: ___________________________________________________________________________ 1. The scarcity principle indicates that __________ and the cost-benefit principle indicates __________. A. choices must be made; how to make the choices B. choices must be made; how to calculate the costs of those choices C. choices must be made; the costs can never outweigh the benefits of the choices D. rare goods are expensive; the costs should outweigh the benefits of the choices E. rare goods are expensive; the costs can never outweigh the benefits of the choices 2. Janie must either mow the lawn or wash clothes, earning her a benefit of $30 or $45, respectively. She dislikes both equally and they both take the same amount of time. Janie will therefore choose to _________because the economic surplus is ________. A. mow; greater B. wash; greater C. mow; smaller D. wash; smaller E. mow; the same as for washing 3. The opportunity cost of an activity is the value of A. an alternative forgone. B. the next-best alternative forgone. C. the least-best alternative forgone. D. the difference between the chosen activity and the next-best alternative forgone. E. the alternative one would have preferred to choose. 4. Economic surplus is A. the benefit gained by taking an action. B. the price paid to take an action. C. the difference between the benefit gained and the cost incurred of taking an action. D. the wage someone would have to earn in order to take an action. E. the amount one person gains at another's expense when negotiating. 1
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5. Economic models are intended to A. describe the exceptions to general rules. B. apply to all examples equally well. C. eliminate differences in the way people behave D. generalize about patterns in decision-making E. distinguish economics students from everyone else. 6. The cost that we can not avoid whether or not an action is taken, is called A. opportunity cost B. average cost C. sunk cost D. marginal cost E. total cost of the action 7. Having a comparative advantage in a particular task means that A. you are better at it than other people. B. you give up more to accomplish that task than do others. C. you give up less to accomplish that task than do others D. you have specialized in that task, while others have not. E. you prefer that task over other tasks. 8. Matt's opportunity cost of one more tire rotation is ______ oil change(s). A. 15 B. 5 C. 3 D. 1/3 E. 1/5 2
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9. The comparative advantage for oil changes belongs to __________ and the comparative advantage for rotating tires belongs to __________. A. Amy, Amy B. Matt, Matt C. Amy, Matt D. Matt, Amy E. Amy, Both Dent'nScratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: 10. For Joe, the opportunity cost of selling a truck is: A. 9 fewer cars sold B. 1 fewer car sold. C. 4 fewer cars sold.
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Econ_002_Quiz___1_SU07_1_ - Econ 002 Quiz # 1 SU07 Student:...

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