CHAPTER1quiza - CHAPTER1,QUIZa 1 , likeit.However,...

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CHAPTER1, QUIZ a  1. A friend recommends a movie and you go see it, expecting that you will  like it. However, you think it is the worst movie you have seen in years,  and wish you hadn't wasted your money on it. This situation A) shows the rationality assumption is false because you were worse off  for seeing the movie.  B) shows that you behaved irrationally because you didn't get enough  information about the movie before seeing it.  C) is consistent with rational behavior because you had thought  that you were going to like the movie.  2. Economics is the study of A) why people want certain goods and services rather than other goods  and services.  B) how people spend their income.  C) how people allocate their resources to satisfy their wants.  D) how to get rich.  3. Which of the following situations is the best example of scarcity? A) People in Haiti have fewer goods and services than people in the  U.S.  B) Chinese incomes are rising, enabling consumers to buy more goods.  C) Ugandans find that their incomes are decreasing and cannot buy as  much as they had in the past.  D) Bolivian farmers wish to build more homes, sheds and barns  but do not have enough lumber to construct all of these buildings.  E) All of the above are situations that exhibit scarcity.  4. Suppose you are studying economics. If you weren't studying  economics, you would be studying literature, raising your grade in that  class by a letter grade. If you weren't studying literature, you would be  working, making $500. If you weren't working, you would be playing  cards with friends. If you weren't playing cards with friends, you would  be sleeping, which would improve your quiz score at your early-morning 
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accounting class in the morning by 3 points. The opportunity cost of  studying economics is A) 3 points on the accounting quiz. 
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This note was uploaded on 06/07/2011 for the course ECONOMICS 101 taught by Professor Wilhour during the Summer '08 term at Parkland.

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CHAPTER1quiza - CHAPTER1,QUIZa 1 , likeit.However,...

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