Ch 1 Post-quiz – Flashcards
Unlock all answers in this set
Unlock answersquestion
The use of resources to produce a good has an opportunity cost because of scarcity.
answer
What does the expression "There's no such thing as a free lunch" mean?
question
the marginal benefit of the action exceeds the marginal cost of the action.
answer
A rational decision maker takes an action if and only if
question
what is true for the individual will also be true for the group.
answer
The fallacy of composition is the fallacious view that
question
The dispassionate development and testing of theories about how the world works.
answer
What is meant by "scientific method"?
question
Provide services to others in exchange for income.
answer
What do individuals have a strong incentive to do when price is the rationing criterion?
question
A set of basic concepts that helps one understand human choices.
answer
Which of the following best describes the economic way of thinking?
question
the allocation of scarce resources in an effort to satisfy wants that are virtually unlimited.
answer
Economics is primarily the study of
question
Scarcity imposed by nature.
answer
Criteria for rationing goods and resources must be established due to which of the following?
question
if something is true for an individual, then it must also be true for the group.
answer
The fallacy of composition is the incorrect view that
question
The value of the best opportunity that must be sacrificed in order to take the action.
answer
What is the opportunity cost of an action?
question
It depends on many factors, including who uses it and under what circumstances.
answer
How is the value of a good determined?
question
his marginal benefit of the additional serving is greater than zero
answer
A restaurant offers an "all you can eat" lunch buffet for $12. Jim has eaten three servings and is trying to decide whether or not to go back for a fourth. The economic way of thinking suggests that Jim should go back for the fourth serving if and only if
question
People will rationally choose not to become fully informed when making decisions.
answer
Because information is costly to acquire, how does the cost change decision making?
question
An opportunity cost is always present when scarce resources are used to produce a good.
answer
"There is no such thing as a free lunch." This statement best reflects which of the following statements?
question
Charge a stand-by passenger more than $200
answer
Suppose an airline company has several empty seats on a flight and the full price of an air ticket is $700 while the marginal cost per passenger is $200. The flight leaves in one hour. Which of the following actions will be the best profitable way to to ensure the remaining seats are sold?
