Question 1

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 2

Economics is the study of ______.

Accepted Answer

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

Question 3

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 4

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.
-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 Scenario 1-2
Suppose that you have a choice...

Question 5

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 6

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 Scenario 1-1
You have the afternoon free. You...

Question 7

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 Scenario 1-2
Suppose that you have a choice...

Question 8

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 9

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

Accepted Answer

This statement reflects the quantity theory of money, which posits that an increase in the money supply will eventually lead to inflation and higher prices.

Question 10

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

Accepted Answer

The answer of Scenario 1-2
Suppose that you have a choice...

Question 11

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.
-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 Scenario 1-2
Suppose that you have a choice...

Question 12

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 Scenario 1-1
You have the afternoon free. You...

Question 13

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 14

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 15

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

Accepted Answer

The business cycle is a term used to describe the natural rise and fall of economic activity, which includes fluctuations in employment, production, and other economic factors.

Question 16

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 Scenario 1-3
It costs a company $35,000 to...

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

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 19

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 Scenario 1-2
Suppose that you have a choice...

Question 20

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...

Quiz 1: Ten Principles of Economics

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

Economics is the study of ______.

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

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

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

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

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

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

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

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?

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.

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.

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