Question 1

"There can be too much of a good thing." This statement suggests that

Accepted Answer

This statement suggests that too much of a good thing can lead to diminishing returns and eventually a negative impact on overall well-being. This is because as more of a good is produced, the marginal cost of producing an additional unit increases while the marginal benefit of consuming an additional unit decreases. Eventually, the marginal cost may exceed the marginal benefit, leading to a situation where it is no longer efficient to produce more of the good.

Question 2

Which of the following sayings best describes opportunity cost?

Accepted Answer

The saying "There's no such thing as a free lunch" best describes opportunity cost because it means that everything has a cost, even if it's not immediately apparent. When you choose to do one thing, you are giving up the opportunity to do something else, which has a cost. This is the basic concept of opportunity cost.

Question 3

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers,she is choosing at the margin when she compares ________.

Accepted Answer

When choosing at the margin, Laura is comparing the extra revenue from selling a few additional printers to the extra costs of producing those printers. This allows her to determine whether the additional production will be profitable and to make an informed decision about whether to produce more. Choices A, C, D, and E involve comparing total revenue, average cost, and competition, but they do not specifically address the decision at the margin.

Question 4

Use the information below to answer the following question.
 
-Refer to Fact 1.1.1.The cost of regenerating East London ________ an opportunity cost of hosting the 2012 Olympic Games ________.

Accepted Answer

The answer of Use the information below to answer the...

Question 5

Monika will choose to eat a seventh pizza slice if

Accepted Answer

Monika will only choose to eat the seventh pizza slice if the marginal benefit (the additional satisfaction she will receive from eating one more slice) is greater than the marginal cost (the additional cost of one more slice). If the marginal cost exceeds the marginal benefit, then it is not worth it to her to eat the seventh slice. Therefore, option A is the best choice.

Question 6

When asked in an interview what she missed the most because of the time she spent training for the Olympics,a rower,who lived on her own,answered "a normal social life." She also revealed that she had given up a job that paid $30,000 per year to train fulltime.She received a grant of $8,000 per year from Sport Canada,but this failed to cover all her training expenses.Her food and rent were $5,000 per year and training expenses were $12,000 per year.Aside from the value of a normal social life,what is the annual opportunity cost,expressed in dollars,to this rower of "Going for Gold"?

Accepted Answer

The answer of When asked in an interview what she...

Question 7

A university decides to change its late night bus service between the campus and student housing from a fare-based service to a free service. This statement means that the incentive to ride the bus ________ and the opportunity cost of a bus ride ________.The university's decision is a ________ decision.

Accepted Answer

Changing the bus service from fare-based to free would decrease the incentive to ride the bus, as there is no longer a monetary cost associated with the ride. Additionally, the opportunity cost of a bus ride decreases, as there is no longer a foregone alternative use of money. This is a microeconomic decision, as it involves the specific market of bus transportation for students at the university.

Question 8

Which one of the following is a necessary consequence of scarcity?

Accepted Answer

Scarcity implies that there are limited resources available to fulfill unlimited wants and needs. Therefore, individuals, businesses, and societies must make choices about how to allocate these scarce resources. Choosing between different options is a necessary consequence of scarcity.

Question 9

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is ________.

Accepted Answer

The answer of You have the choice of going on...

Question 10

If you take an additional class this term,you can graduate earlier.This is an example of

Accepted Answer

This scenario involves comparing the benefits of taking an additional class (marginal benefit) to the potential cost savings of graduating earlier. By weighing the costs and benefits, an individual can make a decision about whether or not to take the additional class. The other options listed do not accurately describe the situation.

Question 11

The big tradeoff is the tradeoff between

Accepted Answer

The big tradeoff refers to the tradeoff between equality and efficiency. It is the idea that policies aimed at creating greater equality, such as progressive taxation and social welfare programs, may come at the cost of economic efficiency. On the other hand, policies aimed at promoting economic efficiency, such as deregulation and lower taxes, may come at the cost of greater inequality. Thus, finding the right balance between these two goals is the big tradeoff that policymakers must navigate.

Question 12

Marginal benefit is the

Accepted Answer

Marginal benefit is the additional benefit received from an increase in an activity. It is the extra benefit that one gets from keeping or beginning an activity. A total benefit is the sum of all the benefits received from an activity. Therefore, A is incorrect. A decrease in an activity would result in a decrease in benefit, not an additional benefit, so B is incorrect. D and E are incorrect because they refer to opportunity cost, which is the cost of the next best alternative foregone, not benefit.

Question 13

The night before a history test,you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You ________ a tradeoff ________,and the opportunity cost of your evening at the movies was ________.

Accepted Answer

The best choice would have been to review the notes and prepare for the test, as it would have resulted in a higher score. By choosing to go to the movies, there was a tradeoff between a higher test score and the evening at the movies. The opportunity cost of the evening at the movies was the 15 percent fall in the grade.

Question 14

When the government chooses to use resources to build a dam,those resources are no longer available to build a highway.This illustrates the concept of

Accepted Answer

The concept being illustrated here is opportunity cost, which refers to the idea that choosing to use resources for one purpose (in this case, building a dam) means sacrificing the opportunity to use those resources for another purpose (such as building a highway). Therefore, option C, which explicitly mentions opportunity cost, is the best choice.

Question 15

What is the definition of marginal benefit?

Accepted Answer

Marginal benefit refers to the additional benefit that arises from an increase in an activity. Therefore, option D "the benefit that arises from an increase in an activity" is the correct definition of marginal benefit.

Question 16

Saskatchewan had more hospitals than Ontario,despite having one-tenth the population.The Saskatchewan government closed many of these hospitals in spite of widespread local protests.Which one of the following arguments is true?

Accepted Answer

The answer of Saskatchewan had more hospitals than Ontario,despite having...

Question 17

To make choices,people must

Accepted Answer

To make choices, people must evaluate the values of alternative actions. This involves considering the outcomes, costs, and benefits of each option and weighing them against personal values and goals. While the other options listed may be helpful in certain contexts, they are not necessary for making choices in general.

Question 18

Which of the following creates an incentive to increase the amount of an activity?

Accepted Answer

A decrease in marginal cost means that the cost of performing the activity has decreased, making it less costly to perform. An increase in marginal benefit means that the benefits of performing the activity have increased, making it more worthwhile to perform. Together, these factors create an incentive to increase the amount of the activity.

Question 19

Complete the following sentence.Marginal cost is

Accepted Answer

Marginal cost is the cost of an additional unit of an activity. So, it is the cost of an increase in an activity.

Question 20

Before starring as Tony Stark in Iron Man,Robert Downey Jr.had played in 45 movies that had average first-weekend box office revenues of a bit less than $5 million. Iron Man grossed $102 million in its first weekend.The success of Iron Man ________ the opportunity cost of hiring Robert Downey Jr. Movie producers now have ________ incentive to hire Robert Downey Jr.

Accepted Answer

The success of Iron Man increases the opportunity cost of hiring Robert Downey Jr. Movie producers now have more incentive to hire him due to his proven box office success.

Quiz : 1 What Is Economics

"There can be too much of a good thing." This statement suggests that

Which of the following sayings best describes opportunity cost?

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers,she is choosing at the margin when she compares ________.

Use the information below to answer the following question. -Refer to Fact 1.1.1.The cost of regenerating East London an opportunity cost of hosting the 2012 Olympic Games .

Monika will choose to eat a seventh pizza slice if

A university decides to change its late night bus service between the campus and student housing from a fare-based service to a free service. This statement means that the incentive to ride the bus and the opportunity cost of a bus ride .The university's decision is a decision.

Which one of the following is a necessary consequence of scarcity?

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is ________.

If you take an additional class this term,you can graduate earlier.This is an example of

The big tradeoff is the tradeoff between

Marginal benefit is the

The night before a history test,you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You a tradeoff ,and the opportunity cost of your evening at the movies was .

When the government chooses to use resources to build a dam,those resources are no longer available to build a highway.This illustrates the concept of

What is the definition of marginal benefit?

Saskatchewan had more hospitals than Ontario,despite having one-tenth the population.The Saskatchewan government closed many of these hospitals in spite of widespread local protests.Which one of the following arguments is true?

To make choices,people must

Which of the following creates an incentive to increase the amount of an activity?

Complete the following sentence.Marginal cost is

Quiz : 1 What Is Economics

"There can be too much of a good thing." This statement suggests that

Which of the following sayings best describes opportunity cost?

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers,she is choosing at the margin when she compares ________.

Use the information below to answer the following question. -Refer to Fact 1.1.1.The cost of regenerating East London ________ an opportunity cost of hosting the 2012 Olympic Games ________.

Monika will choose to eat a seventh pizza slice if

Which one of the following is a necessary consequence of scarcity?

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is ________.

If you take an additional class this term,you can graduate earlier.This is an example of

The big tradeoff is the tradeoff between

Marginal benefit is the

The night before a history test,you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You ________ a tradeoff ________,and the opportunity cost of your evening at the movies was ________.

When the government chooses to use resources to build a dam,those resources are no longer available to build a highway.This illustrates the concept of

What is the definition of marginal benefit?

Saskatchewan had more hospitals than Ontario,despite having one-tenth the population.The Saskatchewan government closed many of these hospitals in spite of widespread local protests.Which one of the following arguments is true?

To make choices,people must

Which of the following creates an incentive to increase the amount of an activity?

Complete the following sentence.Marginal cost is

Use the information below to answer the following question. -Refer to Fact 1.1.1.The cost of regenerating East London an opportunity cost of hosting the 2012 Olympic Games .

The night before a history test,you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You a tradeoff ,and the opportunity cost of your evening at the movies was .