Quiz chp.1-2 - 1. According to economists, economic...

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1. According to economists, economic self-interest: is a reality that underlies economic behavior. has the same meaning as selfishnes s. is more characteri stic of men than of women. is usually self- defeating. 2. A person should consume more of something when its marginal:
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benefit exceeds its marginal cost. cost exceeds its marginal benefit. cost equals its marginal benefit. benefit is still positive. 3. Economics may best be defined as the:
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interactio n between macro and micro considerat ions. social science concerned with how individual s, institution s, and society make optimal choices under condition s of scarcity. empirical testing of value judgment s through the use of logic. use of policy to refute facts and hypothese s.
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4. You should decide to go to a movie: if the marginal cost of the movie exceeds its marginal benefit. if the marginal benefit of the movie exceeds its marginal cost. if your income will allow you to buy a ticket. because movies are enjoyable . 5. The assertion that "There is no free lunch" means that:
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there are always tradeoffs between economic goals. all productio n involves the use of scarce resources and thus the sacrifice of alternativ e goods. marginal analysis is not used in economic reasoning . choices need not be made if behavior is rational. 6. In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of:
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scarcity and opportuni ty costs. money and real capital. complem entary economic goals. full productio n. 7. Which of the following is an economic explanation for why most college-aged movie stars do not attend college.
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they are too dumb to get into college they would find college life boring the opportuni ty cost in terms of reduced income is too great they cannot afford the room, board, and tuition fees most colleges charge 8. Which of the following most closely relates to the idea of opportunity costs?
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tradeoffs. economic growth. technolog ical change. capitalism . 9. Kara was out jogging and despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Kara:
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must be an avid runner. decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile. decided that the marginal cost of running one more mile would outweigh the benefit of the additional mile. was not very tired, so the marginal cost of the extra mile was very low.
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10. The term "ceteris paribus" means: that if event A precedes event B, A has caused B. that economic s deals with facts, not values. other things equal. prosperity inevitably follows recession. 11. A normative statement is one that:
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on the law of averages. applies
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This note was uploaded on 10/19/2009 for the course ECON 2010 taught by Professor Staff during the Spring '08 term at Utah Valley University.

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Quiz chp.1-2 - 1. According to economists, economic...

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