Micro_1_to_8_practice (1)

Micro_1_to_8_practice (1) - Microeconomics Midterm Ch 1 1....

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Microeconomics Midterm Ch 1 1. In economics, the pleasure, happiness, or satisfaction received from a product is called: A. marginal cost. B. rational outcome. C. status fulfillment. D. utility. 2. A person should consume more of something when its marginal: A. benefit exceeds its marginal cost. B. cost exceeds its marginal benefit. C. cost equals its marginal benefit. D. benefit is still positive. 3. Economics involves marginal analysis because: A. most decisions involve changes from the present situation. B. marginal benefits always exceed marginal costs. C. marginal costs always exceed marginal benefits. D. much economic behavior is irrational. 4. The assertion that "There is no free lunch" means that: A. there are always tradeoffs between economic goals. B. all production involves the use of scarce resources and thus the sacrifice of alternative goods. C. marginal analysis is not used in economic reasoning. D. choices need not be made if behavior is rational. 5. Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact: A. is an example of irrational behavior. B. implies that reading should be taught through phonics rather than the whole language method. C. contradicts the economic perspective. D. implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost. 6. Which of the following is an economic explanation for why most college-aged movie stars do not attend college. A. they are too dumb to get into college B. they would find college life boring C. the opportunity cost in terms of reduced income is too great D. they cannot afford the room, board, and tuition fees most colleges charge 7. Kara was out jogging and despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Kara: A. must be an avid runner. B. decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile. C. decided that the marginal cost of running one more mile would outweigh the benefit of the additional mile. D. was not very tired, so the marginal cost of the extra mile was very low.
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8. Which of the following is a correct statement? A. Economic concepts or laws that are valid during depression are necessarily valid during prosperity. B. Though not quantitatively exact, economic laws are useful because they allow us to predict and therefore control or adjust to events. C. Economics is as scientific as are physics and chemistry because economic laws are as quantitatively precise as the laws of physics or chemistry. D. Because economics is concerned with questions of "ought," it is a branch of applied ethics and not scientific. 9. The basic purpose of the other-things-equal assumption is to:
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Micro_1_to_8_practice (1) - Microeconomics Midterm Ch 1 1....

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