Midterm

Midterm - 1 After wearing seat belts became mandatory...

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1. After wearing seat belts became mandatory, drivers reacted by driving faster and less carefully. This is consistent with what Principle of Economics? (Points: 5) trade can make everyone better off the cost of something is what you give up to get it governments can sometimes improve market outcomes people respond to incentives 2. The term 'quantity supplied' means _____ (Points: 5) the same things as 'supply'. the amount of a good that customers need. the amount of a good that consumers ultimately desire. the amount of a good sellers are willing to sell at a given price. 3. Economists believe that self-sufficiency (no trade) _____ (Points: 5) is needed, in order to guarantee national security. ensures an equitable distribution of resources. prevents exploitation of the working class, by limiting the power of capitalists. results in lower levels of output and consumption than would prevail under free trade. 4. Opportunity cost is _____ (Points: 5) any lost opportunity. the value of the next-best opportunity that one foregoes when making a choice. used to exploit weaker parties to a transaction by stronger parties. the aggregate value of all foregone opportunities. 5.
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Midterm - 1 After wearing seat belts became mandatory...

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