Show:
It's Gonna Cost You
Marginal Analysis
Decisions & Resources
EMPTY EMPTY
EMPTY EMPTY
100
Which of the following is an opportunity cost? __________________________________________________________________________________ a. a bad grade on a quiz because you forgot her birthday __________________________________________________________________________________ b. your father's hurt feelings because you forgot his birthday __________________________________________________________________________________ c. You are called into work so you give up going to Disneyland __________________________________________________________________________________ d. all of the answers are opportunity costs __________________________________________________________________________________
c. You are called into work so you give up going to Disneyland
100
Decisions should only be made after carefully comparing the ____________ and _____________ of each alternative. __________________________________________________________________________________ a. benefits/cost __________________________________________________________________________________ b. benefits/advantages __________________________________________________________________________________ c. cost/disadvantages __________________________________________________________________________________ d. advantages/disadvantages __________________________________________________________________________________
a. benefits/costs
100
A decision always involves __________________________________________________________________________________ a. money __________________________________________________________________________________ b. at least two alternatives __________________________________________________________________________________ c. goods or services __________________________________________________________________________________ d. income __________________________________________________________________________________
b. at least two alternatives
100
A recession is technically defined: __________________________________________________________________________________ a. when GDP increases for two consecutive months __________________________________________________________________________________ b. when GDP increases for two consecutive quarters __________________________________________________________________________________ c. when GDP decreases for six consecutive quarters __________________________________________________________________________________ d. when GDP decreases for six consecutive months __________________________________________________________________________________
d. when GDP decreases for six consecutive months
100
Which of the following are ways to increase human capital and expected income? __________________________________________________________________________________ a. sit in class and hope the time goes by quickly __________________________________________________________________________________ b. gain skills and knowledge through education and training __________________________________________________________________________________ c. hope that someone pays you a lot when you leave school __________________________________________________________________________________ d. be sure to enjoy school by partying as much as possible __________________________________________________________________________________
b. gain skills and knowledge through education and training
200
Which of the following is free? __________________________________________________________________________________ a. a ticket to a rock concert that a friend gave you __________________________________________________________________________________ b. a T-shirt that you received for running a marathon __________________________________________________________________________________ c. a "Buy one, get one free" box of cereal __________________________________________________________________________________ d. None of the above are free __________________________________________________________________________________
d. None of the above are free
200
Which activity demonstrated Diminishing Marginal Utility? __________________________________________________________________________________ a. The Paper Bag Game activity __________________________________________________________________________________ b. Fluffernutter Production activity __________________________________________________________________________________ c. Scarcity Island activity __________________________________________________________________________________ d. Water Drinking Satisfaction activity __________________________________________________________________________________
d. Water Drinking Satisfaction activity
200
A decision is free if __________________________________________________________________________________ a. there is no money involved __________________________________________________________________________________ b. there are no products involved __________________________________________________________________________________ c. there is no exchange with another person __________________________________________________________________________________ d. a decision is never free __________________________________________________________________________________
d. a decision is never free
200
Our economy can consider to be in an economic growth or expansion when: __________________________________________________________________________________ a. GDP is experiencing sustained growth. __________________________________________________________________________________ b. Unemployment is increasing. __________________________________________________________________________________ c. CPI is increasing. __________________________________________________________________________________ d. the FED is decreasing the money supply. __________________________________________________________________________________
a. GDP is experiencing sustained growth.
200
To achieve efficiency in a market economy, the 4 conditions that must exist are: __________________________________________________________________________________ a. Employment, Inflation, Growth, Stable Prices __________________________________________________________________________________ b. Buyers, Sellers, Supply, Demand __________________________________________________________________________________ c. Consumption, Investment, Government, Net Exports __________________________________________________________________________________ d. Competition, Information, Incentives, Property Rights __________________________________________________________________________________
d. Competition, Information, Incentives, Property Rights
300
You are playing a video game. Your mother tells you that it is a waste of human capital, you could be studying. If you weren't playing the video game, you would be emailing your friends. The opportunity cost of your playing the video game is/are: __________________________________________________________________________________ a. studying __________________________________________________________________________________ b. emailing your friends __________________________________________________________________________________ c. both studying and emailing your friends __________________________________________________________________________________ d. none of the answers __________________________________________________________________________________
b. emailing your friends
300
In the economic way of thinking, if the marginal cost of an action is greater than the marginal benefit, then __________________________________________________________________________________ a. Do It __________________________________________________________________________________ b. Don't Do It __________________________________________________________________________________ c. Sleep on it __________________________________________________________________________________ d. Ask Someone __________________________________________________________________________________
a. Don't Do It
300
Whenever you make a choice, you face a(n): __________________________________________________________________________________ a. high cost __________________________________________________________________________________ b. low cost __________________________________________________________________________________ c. opportunity cost __________________________________________________________________________________ d. sunk cost __________________________________________________________________________________
d. ALL of the answer choices.
300
Imperfect information happens when __________________________________________________________________________________ a. the anticipated increase in wealth may be higher than actual wealth because of lack of information __________________________________________________________________________________ b. someone spreads rumors and doesn't tell the whole truth __________________________________________________________________________________ c. someone gives wrong details on purpose which causes a bad exchange. __________________________________________________________________________________ d. the anticipated increase in wealth is lower than the actual wealth because of available information __________________________________________________________________________________
a. the anticipated increase in wealth may be higher than actual wealth because of lack of information
300
If you buy a new laptop, the total cost of the choice to buy the laptop is: __________________________________________________________________________________ a. $1,500 __________________________________________________________________________________ b. $1,500 plus taxes and shipping charges __________________________________________________________________________________ c. what you would have done with the resources used to buy the laptop __________________________________________________________________________________ d. $1,500 plus taxes, shipping, and the price of the extended warranty __________________________________________________________________________________
c. What you would have done with the resources used to buy the laptop
400
You choose from among the following activities: bowling with family, staying home and listening to music, or going to a friend's house. You decide to go to your friend's house. If you hadn't done that, you would have gone bowling. Your choice(s) is/are: __________________________________________________________________________________ a. friend's house __________________________________________________________________________________ b. bowling __________________________________________________________________________________ c. music at home __________________________________________________________________________________ d. all of the answers __________________________________________________________________________________
a. friend's house
400
Which activity demonstrated Diminishing Marginal Returns? __________________________________________________________________________________ a. Water Drinking Satisfaction activity __________________________________________________________________________________ b. Fluffernutter Production activity __________________________________________________________________________________ c. Scarcity Island activity __________________________________________________________________________________ d. The Paper Bag Game activity __________________________________________________________________________________
b. Fluffernutter Production activity
400
Your job in school is to develop your: __________________________________________________________________________________ a. physical capital __________________________________________________________________________________ b. athletic capital __________________________________________________________________________________ c. musical capital __________________________________________________________________________________ d. human capital __________________________________________________________________________________
d. human capital
400
The difference between nominal and real data is: __________________________________________________________________________________ a. Nominal data is always higher than real data __________________________________________________________________________________ b. Nominal data is adjusted for inflation while real is not __________________________________________________________________________________ c. Nominal data comes in a form of a number while real data is in a form of a percentage __________________________________________________________________________________ d. Real data is adjusted for price level changes while nominal is not __________________________________________________________________________________
d. Real data is adjusted for price level changes while nominal is not
400
What economic concept did Adam Smith suggest: __________________________________________________________________________________ a. Invisible hand __________________________________________________________________________________ b. Fiscal Policy __________________________________________________________________________________ c. Market Economy __________________________________________________________________________________ d. Productivity __________________________________________________________________________________
a. Invisible hand
500
You choose from among the following activities: bowling with family, staying home and listening to music, or going to a friend's house. You decide to go to your friend's house. If you hadn't done that, you would have gone bowling. Your alternative(s) is/are: __________________________________________________________________________________ a. friend's house __________________________________________________________________________________ b. bowling __________________________________________________________________________________ c. music at home __________________________________________________________________________________ d. all of the answers __________________________________________________________________________________
d. all of the answers
500
Which of the following is a good consumer rule for expensive items?__________________________________________________________________________________ a. buy the product that your consumer research says is the best. __________________________________________________________________________________ b. buy the most expensive since price reflects product quality. __________________________________________________________________________________ c. buy the product after comparing the benefits and cost of alternatives. __________________________________________________________________________________ d. buy what you want. __________________________________________________________________________________
c. buy the product after comparing the benefits and cost of alternatives.
500
Human capital is a person's __________________________________________________________________________________ a. skills and knowledge __________________________________________________________________________________ b. money __________________________________________________________________________________ c. land __________________________________________________________________________________ d. time __________________________________________________________________________________
a. skills and knowledge
500
Which of the following would be studied in a macroeconomics course? __________________________________________________________________________________ a. determining the price of tires __________________________________________________________________________________ b. determining employment __________________________________________________________________________________ c. productivity of the manufacturing of automobiles __________________________________________________________________________________ d. maximizing the profit of Apple on iPods __________________________________________________________________________________
b. determining the employment
500
What is the strength of our market economy? __________________________________________________________________________________ a. Security __________________________________________________________________________________ b. Growth __________________________________________________________________________________ c. Efficiency __________________________________________________________________________________ d. Freedom __________________________________________________________________________________
c. Efficiency