Flashcards To Learn Microeconomics
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Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of
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an incentive to attend the review session.
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Microeconomics includes the study of the
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choices made by individuals and businesses.
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The benefit of a oneminus−unit increase in an activity
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decreases as you do more of it
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The cost of a oneminus−unit increase in an activity is called the
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marginal cost
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The marginal cost of an activity​ ________ as you do more of it.
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increases
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If Jessie studies economics for two hours instead of going to the movies with her​ friends, then
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the opportunity cost of studying is the missed movie.
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A normative statement
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depends on​ someone's values.
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If the marginal benefit of getting a college degree​ rises, rational people will
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attend college in greater numbers
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Whenever one variable​ increases, another variable decreases. The two variables are
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negatively related
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The Latin term ​"ceteris paribus​" means
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​"other things remaining the​ same."
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A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has
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increased the marginal cost of cheating.
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In order to determine whether to major in​ economics, a rational individual compares the​ ________ of the decision.
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marginal benefit and marginal cost
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Economics is the social science that studies
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how people make choices to cope with scarcity.
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Which of the following is a positive​ statement?
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A recession leads to higher enrollments at universities.
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Instead of studying for an additional two hours for the economics​ final, Leann decides to watch a movie. Leann is making
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a rational decision if her marginal benefit from the movie is greater than her marginal cost.
