econ

The value of the best thing that a person must give up when making a decision is known as the
________ .

• money cost

• time cost

• opportunity cost

• marginal benefit

The additional benefit of increasing some activity by one-unit is called the _________ .

• marginal benefit

• average benefit

• total benefit

• unit benefit

If there is no scarcity,

• A) an action would have zero opportunity cost.

• B) choices are no longer rational.

• C) marginal cost of an action is greater than its marginal benefit.

• D) all marginal benefits would equal zero.

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second
go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the
opportunity cost of attending the concert for John?

• A) attending a movie

• B) studying for an economics exam

• C) answering his e-mail

• D) attending a movie, studying for an economics exam, and answering his e-mail

Hugo has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the
pleasure from consuming

• A) the two previous hamburgers.

• B) all three hamburgers.

• C) just the third hamburger.

• D) the third hamburger minus the cost of the third hambuger.

Which of the following statements best describes the study of economics? Economics studies how
_________.

• A) firms make profits

• B) we make choices in the face of scarcity

• C) to create incentives so that scarcity does not exist

• D) businesses reach decisions

he question "Should Economics majors or sociology majors earn more after they graduate?" is an
example of a ________ question.

• A) What to produce

• B) How to produce

• C) for whom to produce

• D) why to produce

If the marginal benefit of getting a college degree rises, _________ .

• A) more people will attend college

• B) there is no change of people’s behaviour

• C) marginal cost of providing education service will decrease

• D) marginal cost of attending college will increase

A demand schedule shows ____________ .

• A) the quantities that transact in the market at each different price when all other influences on
  buying plans remain the same

• B) the quantities that people plan to buy at each different price when all other influences on buying
  plans remain the same

• C) the quantities that people plan to buy in all possible circumstances

• D) the quantities that people plan to buy at each different income when all other influences on
  buying plans remain the same

A change in the demand for apples could result from any of the following EXCEPT ____________.

• A) a change in the number of buyers

• B) a change in preferences for fresh fruit consumption for health reasons

• C) a change in the price of an apple

• D) a change in the price of a banana