Question 1

Use the following Scenario to answer the question scenario 1-2 :  
Suppose that you have a choice between going to the movies with a friend for two hours or working at your job. If you go to the movies, you will spend $7 on a ticket and $5 on popcorn. If you choose to work, you will earn $10 an hour.
-Refer to Scenario 1-2. What is your opportunity cost of going to the movies?

Accepted Answer

The answer of Use the following Scenario to answer the...

Question 2

Explain how an attempt by the government to lower inflation could cause unemployment to increase in the short-run.

Accepted Answer

The answer of Explain how an attempt by the government...

Question 3

Economics is the study of ______.

Accepted Answer

The answer of Economics is the study of ______....

Question 4

Use the following Scenario to answer the question scenario 1-2 :  
Suppose that you have a choice between going to the movies with a friend for two hours or working at your job. If you go to the movies, you will spend $7 on a ticket and $5 on popcorn. If you choose to work, you will earn $10 an hour.
-Refer to Scenario 1-2. What is your opportunity cost of working?

Accepted Answer

The answer of Use the following Scenario to answer the...

Question 5

Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-year graduate program?

Accepted Answer

The answer of Zack quits his job at a consulting...

Question 6

With the understanding that people respond to incentives, outline the possible outcome for teachers if the K-12 school year is extended to 11 months per year instead of the existing 9 months per year.

Accepted Answer

The answer of With the understanding that people respond to...

Question 7

In the long run the primary effect of increasing the quantity of money is higher prices.

Accepted Answer

This is a fundamental principle of the quantity theory of money, which states that an increase in the supply of money leads to an increase in prices in the long run, all else being equal. This happens because an increase in the money supply leads to an increase in demand for goods and services, which in turn puts upward pressure on prices.

Question 8

The broken window fallacy states that when a window breaks and someone spends money to repair it, they have created new economic activity that would not have otherwise taken place.

Accepted Answer

The broken window fallacy highlights how spending money to repair damages, like a broken window, creates economic activity (e.g., paying for repairs) but overlooks the opportunity cost of what could have been done with the money if the window had not been broken.

Question 9

The term refers to the size of the economic pie, and the term refers to how the pie is divided.

Accepted Answer

The answer of The term refers to the size of...

Question 10

Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today?

Accepted Answer

The answer of Define opportunity cost. What is the opportunity...

Question 11

Under what conditions might government intervention in a market economy improve the economy's performance?

Accepted Answer

The answer of Under what conditions might government intervention in...

Question 12

Use the following Scenario to answer the question scenario 1-1 :  
You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for three hours. If you go to the movies, you will spend $8.00 on a ticket and $4.50 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 10 points.
-Refer to Scenario 1-1. What is your opportunity cost of going to the movies?

Accepted Answer

The answer of Use the following Scenario to answer the...

Question 13

Use the following Scenario to answer the question scenario 1-3 : 
It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators.
-Refer to Scenario 1-3. What is the company's average cost?

Accepted Answer

The answer of Use the following Scenario to answer the...

Question 14

How does the study of economics depend upon the phenomenon of scarcity?

Accepted Answer

The answer of How does the study of economics depend...

Question 15

Debbie quits her job, which pays $30,000 a year, to finish her college degree. Her annual college expenses are $10,000 for tuition, $2,000 for books, and $700 for food. What is her opportunity cost of attending college for the year?

Accepted Answer

The answer of Debbie quits her job, which pays $30,000...

Question 16

Explain how government policies that redistribute income from the rich to the poor might reduce efficiency.

Accepted Answer

The answer of Explain how government policies that redistribute income...

Question 17

One tradeoff society faces is between efficiency and equality. Define each term. If the U.S. government redistributes income from the rich to the poor, explain how this action affects equality as well as efficiency in the economy.

Accepted Answer

The answer of One tradeoff society faces is between efficiency...

Question 18

Use the following Scenario to answer the question scenario 1-1 :  
You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for three hours. If you go to the movies, you will spend $8.00 on a ticket and $4.50 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 10 points.
-Refer to Scenario 1-1. What is your opportunity cost of studying economics?

Accepted Answer

The answer of Use the following Scenario to answer the...

Question 19

Give an example of a trade-off faced by society.

Accepted Answer

The answer of Give an example of a trade-off faced...

Question 20

The business cycle refers to fluctuations in economic activity such as employment and production.

Accepted Answer

The business cycle refers to the natural rise and fall of economic activity, including fluctuations in employment, production, and other measures of economic performance.

Quiz 1: Ten Principles of Economics

Explain how an attempt by the government to lower inflation could cause unemployment to increase in the short-run.

Economics is the study of ______.

Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-year graduate program?

With the understanding that people respond to incentives, outline the possible outcome for teachers if the K-12 school year is extended to 11 months per year instead of the existing 9 months per year.

In the long run the primary effect of increasing the quantity of money is higher prices.

The broken window fallacy states that when a window breaks and someone spends money to repair it, they have created new economic activity that would not have otherwise taken place.

The term refers to the size of the economic pie, and the term refers to how the pie is divided.

Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today?

Under what conditions might government intervention in a market economy improve the economy's performance?

How does the study of economics depend upon the phenomenon of scarcity?

Debbie quits her job, which pays $30,000 a year, to finish her college degree. Her annual college expenses are $10,000 for tuition, $2,000 for books, and $700 for food. What is her opportunity cost of attending college for the year?

Explain how government policies that redistribute income from the rich to the poor might reduce efficiency.

One tradeoff society faces is between efficiency and equality. Define each term. If the U.S. government redistributes income from the rich to the poor, explain how this action affects equality as well as efficiency in the economy.

Give an example of a trade-off faced by society.

The business cycle refers to fluctuations in economic activity such as employment and production.