HW 1 - DName: _ Date: _ 1. Which of the following is not...

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DName: __________________________ Date: _____________ 1. Which of the following is not true? A) Resources are scarce when you don't have enough money. B) The real cost of a choice is what you must give up to enjoy that choice. C) People typically make choices that will make them better off. D) Rational people use marginal analysis when making “how much?” decisions. 2. Manny is attending college and majoring in economics. Manny is improving his scarce resource of: A) land. B) labor. C) capital. D) human capital. 3. Margo spends $10,000 on one year's college tuition. The opportunity cost of spending one year in college for Margo is: A) $10,000. B) whatever she would have purchased with the $10,000 instead. C) whatever she would have earned had she not been in college. D) whatever she would have purchased with the $10,000 and whatever she would have earned had she not been in college. 4. The problem of scarcity is confronted by: A) industrialized societies. B) pre-industrialized societies. C) societies governed by communist philosophies. D) all societies. 5. The best example of making a choice at the margin is: A) buying a new computer. B) quitting your job. C) eating another slice of pizza. D) attending college. 6. If the price of gasoline rises and stays high for an extended period of time, we expect people to: A) reduce the number of miles they drive. B) buy smaller and more fuel-efficient cars. C) use more public transportation. Page 1
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D) reduce the number of miles they drive, buy smaller and more gas efficient cars, and use more public transportation. 7. Lena and Jess are roommates. Lena hates to clean the bathroom. Jess will only agree to clean the bathroom if Lena vacuums the living room. This statement best represents the economic concept of: A) the real cost of something is what you must give up to get it. B) “how much?” is a decision at the margin. C) people usually exploit opportunities to make themselves better off. D) there are gains from trade. 8. If equilibrium exists: A) all individuals must have an equal amount of income. B) the price in that market will not fluctuate by more than 5%. C) there will be no remaining opportunities for individuals to make themselves better off. D) the number of buyers equals the number of sellers. 9. Economists define an efficient use of resources as a situation where: A) one person can be made better off, but only by making another person worse off. B) all persons can be made better off, without making anyone worse off. C) all persons receive an equal share of the resources. D) all persons are made worse off when one person is made better off. 10. Specialization and trade should lead to all of the following except: A) individuals learning specific skills and earning a salary. B)
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This note was uploaded on 06/05/2011 for the course ECO 202 taught by Professor Fairchild during the Spring '10 term at Northern Virginia Community College.

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HW 1 - DName: _ Date: _ 1. Which of the following is not...

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