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We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred.

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You have chosen to take a trip during spring break. If you had not gone, you would either have worked at a temporary job or studied for exams. The opportunity cost of your trip is

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The objects and actions that people value and produce to satisfy human wants; a football; a manicure.

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Goods and services are ___ and ___ is an example of a good and ___ is an example of a service.

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what, how, and for whom

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In producing goods and services we answer the questions ___.

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Motor vehicle production in China is growing by 10% a year: Macroeconomic Coffee prices rocket: Microeconomic Globalization has reduced African poverty: Macroeconomic The government must cut its budget deficit: Macroeconomic Apple sells 3 million iPhones a month: Microeconomic

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Label each entry in the list as dealing with a microeconomic topic or a macroeconomic topic

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What you are willing to give up to obtain the good or service

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The benefit from a good or service that you purchase is measured by

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People prefer buying iPhones over Nokia phones.

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Which of the following examples describes microeconomics?

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gain or pleasure it brings

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The benefit of something is the ___.

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I will study for my exam instead of going to the movie tonight.

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Which of the following illustrates a tradeoff?

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A normative statement

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A statement that "all children should receive free health care" is an example of what kind of statement?

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a positive statement

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A statement that argues that "if taxes on gasonline increase, gasoline consumption will decrease" is an example of what kind of statement?

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Human wants exceed the resources available to satify them.

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What is the reason that all economic issues and problems occur?

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How does Dell decide what price to charge for a computer?

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Identify which of the following questions is a microeconomic question.

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marginal benefit

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The benefit that arises from a one-unit increase in an activity is called ___.

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2 baskets

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Suppose when you pick apples for 3 hours, you pick 8 baskets of apples. And if you pick apples for an extra hour, you pick a total of 10 baskets. The marginal benefit from picking apples one more hour is ___.

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best achieve the objective

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Rational choice is a choice that uses the available resources to ___ of the person making the choice.

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Choices that are made in the self-interest cannot benefit the social interest.

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Choose the statement that is incorrect

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A. The decision to protect the rainforest is in the social interest. B. Grace's decision to have a measles vaccination is in the social interest and in her self-interest. C. Your decision to obtain a college education is in the social interest and in your self-interest. D. Sam's decision to carry an umbrella on a cloudy day is in Sam's self-interest. E. All of the above are correct.

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Choose the correct statement

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Social science that studies; cope with scarcity

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Economics is the ___ the choices that individuals, business, governments, and entire societies make as they ___, and the influences on those choices, and the arrangements that coordinate them.

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The things you would have bought with what you spent on the ticket and bus fare getting to the game plus the things you would alternatively have done with you time.

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Which of the following is the opportunity cost of attending a ball game?

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The wants and pregerences of the person making the choice.

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The only thing that is relevant when a person makes a rational choice is ___.

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Megan wants to buy a CD that costs $25 but has only $10 to spend.

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Which of the following illustrates scarcity?

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It is the same for all individuals.

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What is NOT true about rational choice?

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Increased the marginal cost of cheating.

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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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By comparing the marginal benefit from taking the cruise with its marginal cost.

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You would make a rational choice about taking a cruise ___.

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is a choice that uses the available resources to best achieve the objective of the person making the choice.

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Rational choice

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self-interest; self-interest

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Suppose a person gets a loan from a bank to buy a new home. The borrower is pursuing ___ and the bank is pursuing ___.

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self-interest

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If the borrower can't afford to keep up the payments and defaults, the borrower is pursuing ___.

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self-interest

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If the bank forecloses on the delinquent borrower, the bank is pursuing ___.

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what a person is willing to give up to get it

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Economists measure the benefit from something by ___.

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Marginal benefit decreases.

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What typically happens to benefits as the amount of an activity is increased?

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marginal cost

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The cost of a one-unit increase in an activity is called the

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alternatives; incrementally; opportunity cost; increase; benefit; increase.

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A choice on the margin is a choice that is made by comparing all the relevant ___ systematically and ___. Marginal cost is the ___ that arises from one unit ___ in an activity. Marginal benefit is the ___ that arises from one unit ___ in an activity.

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marginal benefit and marginal cost

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Your school has decided to increase the intake of new students next year. What economic concepts would your school consider in reaching its decision?

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Yes: It would consider the marginal benefit and marginal cost of a student.

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Would the school us the "economic way of thinking" and make its decision at the margin?

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It is a rational decision if they each get more pleasure from doing the same thing than from doing their own thing.

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Pam, Pru, and Pat are deciding how they will celebrate the New Year. Pam prefers to take a cruise, is happy to go to Hawaii, but does not want to go skiing. Pru prefers to go skiing, is happy to go to Hawaii, but does not want to take a cruise. Pat prefers to go to Hawaii or to take a cruise but does not want to go skiing. Their decision is to go to Hawaii. Is this decision rational?

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The opportunity cost for Pam and Pat is a cruise and for Pru it is skiing.

answer

What is the opportunity cost of the trip to Hawaii for each of them?

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They each get the benefit from the pleasure, relaxation, excitement and knowledge gained from being in Hawaii together.

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What is the benefit that each gets?

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I buy pizza for lunch; I am collecting funds to help the flood victims

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___, is an example of a choice in the self-interest. ___, is an exampled of a choice in the social interest.

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The U.S. unemployment rate has increased by 0.4 percent.

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Which of the following examples describes macroeconomics?

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human wants exceed the resources available to satisfy them.

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Scarcity exists because

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How do choices end up determining what, how, and for whom goods and services are produced?

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Choose the statement below that is one of the two big questions that summarize the scope of economics.

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marginal benefit and marginal cost

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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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Shoes; haircuts

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___ are examples of goods and ___ are examples of services.

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All conference volunteers would be offered free lunch on all three days.

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Which of the following is an example of an incentive?

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the $10 he could have earned at his job.

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Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is

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only those; observed

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An economic model is a description of some features of the economic world that includes ___ features assumed necessary to explain the ___ facts.

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in their own self-interest; in their own self-interest.

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According to the new clip, businesses acted ___ and consumers acted ___.

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Northwest Airlines analyzed the benefits of adding one more flight to Salt Lake City.

answer

Which of the following is a microeconomic topic?

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