Microeconomics Exam 1 Review 1 – Flashcards
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If x increases whenever y decreases, then x and y are _______ related.
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negatively
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Economists measure opportunity cost as the ____ thing ______ up.
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best, given
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Scarcity means that wants are ______ than what we can produce without ________.
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greater, resources
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In economics, cost is measured as what you ____ give up to get something, and benefit is measured as what you are ______ to give up to get it.
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must, willing
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Scarcity exists because human ____ exceed ______ available to satisfy them.
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wants, resources
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In the circular flow model, the factor markets are markets in which ____, _____, ______, and __________ are bought and sold.
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land, labor, capital, entrepreneurship
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Suppose you eat to hamburgers for lunch. The marginal benefit of the first burger is ______ than the marginal benefit of the second burger.
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larger
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To make a rational choice, a person compares the extra ______ of one unit to the extra _____ of one more unit.
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benefits, costs
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Decision making on the margin involves comparing the _______ ____ and _________ _______ when making a decision.
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marginal costs, marginal benefits
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The cost of a one-unit increase in an activity
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marginal cost
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A positive relationship exists between two variables if a ______ in one variable is associated with a _______ in the other variable.
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decrease, decrease
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In the circular flow model, what of owns the factors of production?
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only households
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As a person increases his or her caloric intake, the person's weight increase, ceteris paribus. The relationship between the person's caloric intake and the person's weight is an example of a _______ relationship.
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positive
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______ are the owners of the factors of production, while _______ determine(s) what amounts of those factors to hire.
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Households, firms
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What best describes the study of economics? Economics studies how we make choices in the face of ______.
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scarcity
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The circular flow model shows that goods and services flow from _______ to ________.
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businesses, households
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Everyday we make many choices. We can't avoid having to make choices because we can't afford to ____ all the things we'd like.
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buy
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Every week, Ben plays tennis for 3 hours, and his grade on each math test is 75%. Last week after playing 3 hours, Ben decided to play another hour. He also cut his study time by one hour. Last week, his math test score lowered to 55%. What is the opportunity cost of the fourth hour of tennis?
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a 20 percentage point drop
