ECON-1007EL Study Guide - Midterm Guide: Ceteris Paribus, Excess Supply, Problem Set

forgone working or partying, depending on which was your next best choice.

forgone work.

forgone working and partying.

test because you are taking it.

a measure of closeness on a scatter diagram.

a general tendency for a variable to rise or fall.

the maximum value of a variable.

the difference between the maximum value of a variable and the minimum value of the variable.

time on the y-axis and the variable or variables in which we are interested on the x-axis.

time on the x-axis and the variable or variables in which we are interested on the y-axis.

the value of one variable against the value of another variable.

the value of an economic variable for different groups in a population at a point in time.

Why will we offer health care?

How will health care be produced?

For whom will health care be produced?

What type of health care will be produced and in what quantity?

positive; negative

negative; positive

linear; negative

positive; linear

choices made by individuals and businesses.

recessions and inflation in the global economy.

aggregate effects on the national economy.

reasons why the government changes interest rates.

when

for whom

how

what

the opportunity cost of working is negative.

the marginal cost of each additional work hour is not important to most workers.

workers are irrational.

workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work.

an opportunity cost.

a benefit.

a sunk cost.

a choice on the margin.

i, ii, and iii

iii only

i and iii

ii and iii

iii only.

i only.

ii and iii.

ii only.

positive benefits and normative costs

normative benefits and positive costs

marginal benefit and marginal cost

opportunity cost and the sunk cost

positively related.

negatively related.

not related.

related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.

is what you must give up get what you want.

is made by comparing different incentives.

making the choice.

provides the answer to only the "how" question.

choices made in self-interest rare not always in the social interest.

not all goals are desirable.

people's wants exceed the resources available to satisfy them

we cannot answer the major economic questions.

what

why

for whom

how

says what is currently believed about the way the world operates.

depends on someone's values.

cannot use the word "should."

must be tested to determine if it is correct.

to organize production so that scarcity does not occur.

to create incentives so that scarcity does not exist.

firms make profits.

we make choices in the face of scarcity.

Economics teaches how to limit our wants.

Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.

Economics helps you earn as much money as possible.

Economics studies how to choose the best alternative when coping with scarcity.

the amount of money that you pay for something; the amount of money that someone else is willing to pay you

what you are willing to pay on the margin; what the government pays you when you are unemployed or retired

what you must give up to get something; what you are willing to give up to get it

the amount of money that you pay on the margin; the amount of money that you receive on the margin

the opportunity cost of studying is the missed movie.

Jessie is ignoring a sunk cost

Jessie is not responding to any incentives.

Jesse definitely is making a rational choice.

The $80 price of skiing is a sunk cost and so did not affect Adam's decision.

He loses a total of $120 per day, so his decision is irrational.

His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost.

Adam's lost $40 per day in wages is a sunk cost and so did not affect his decision.

has a maximum.

has a linear relationship.

has a minimum.

has a constant slope relationship.

the avoidance of pain and injury from playing one more year

the time he could spend with his family while retired

the lost salary from playing one more year

the value of new employment opportunities that would await him

Military spending as a percent of government spending decreased by 5 percent in the 1990s.

Every American household should have health care insurance coverage.

Welfare reform has decreased the amount the government spends on welfare.

The price of computers fell last year.