{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Economics 2301 Final Study Guide part 1

Economics 2301 Final Study Guide part 1 - Economics 2301...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 2301 Final Study Guide Part 1 1. The phenomenon of scarcity stems from the fact that resources are limited . 2. Which of the following statements best represents the principle represented by the adage, “ There is no such thing as a free lunch”? A= Kendra must decide between going to Colorado or Cancun for Spring break. 3. While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms’ owners, workers, and customers. This statement illustrates the principle that people face trade offs. 4. Senator Green argues that replacing the income tax with a national sales tax would increase the level of output. Senator brown objects that this policy would benefit the rich at the expense of the poor. Senator Green’s argument is primarily about efficiency, while Senator Brown’s argument is primarily about equality. 5. College-age athletes who drop out of college to play professional sports are aware that their opportunity cost of attending college is very high. 6. Making rational decisions “at the margin” means that people compare the marginal costs and marginal benefits of each decision. 7. The principle that trade can make everyone better off applies to individuals, families, countries. 8. Suppose that a country that has a high level of output per person agrees to trade with a country that has a low level of output per person. Which country can benefit? Both 9. The amount of goods and services produced from each unit of labor input is called productivity .
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}