Chapter 1 Questions

Chapter 1 Questions - Chapter 1 ~ Questions: 1, 2, 3, 4, 5,...

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Chapter 1 ~ Questions: 1, 2, 3, 4, 5, 6, 8 and 11 1. What is an opportunity cost? To obtain more of one thing, we sacrifice the opportunity of getting another How does the idea relate to the definition of economics? Economics ~ Social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity. Which of the following decisions would entail the greater opportunity cost? I. Allocating a square block in the heart of New York City for a surface parking lot II. Allocating a square block at the edge of a typical suburb for such a lot? I ~ would entail a greater as long as there was a fee to be collected for the opportunity to park there 2. What is meant by the term “utility” and how does the idea relate to purposeful behavior? The pleasure, happiness or satisfaction obtained from using a good or service Behavior is purposeful and/or rational NOT random or chaotic 3. Cite three examples of recent decisions that you made in which you, at least implicitly, weighed marginal cost and marginal benefit? Marginal Means: Extra, additional, or change in
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This note was uploaded on 02/25/2011 for the course ECON 1 taught by Professor Young during the Fall '10 term at Edison State College.

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Chapter 1 Questions - Chapter 1 ~ Questions: 1, 2, 3, 4, 5,...

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