econ final 1

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  1. The definition of economics states that it is the study of how​ _________.
    agents choose to allocate scarce resources and the impact of those choices on society.
  2. Given this​ information, which of the following would represent your budget constraint for​ entertainment?
    Amount spent on iTunes​ + Amount spent at Redbox​ = $20.
  3. Your budget constraint for entertainment illustrates the concept of ____ since as you increase your purchases of one​ item, you ____
    trade off, must decrease your purchase of the other items
  4. When an argument is made by telling several​ anecdotes, what do you need along with the stories to believe the argument is​ valid?
    Data reflecting the experiences of thousands of people.
  5. The concept of opportunity cost is a measure of​ _________.
    the value of the best alternative use of a resource.
  6. Given this​ information, for which of these activities would you be able to compare opportunity​ costs?
    You can compare all the activities after you translate all the missed activities into dollar amounts.
  7. Optimization is the process that describes​ __________.
    • the choices that businesses make 
  8. Optimization in levels examines​ ___________, while optimization in differences analyzes​ ____________.
    total net benefits of​ alternatives; the change in net benefits.
  9. To optimize, you should play ___ golf.
    not play
  10. Do you think an economist would agree with this​ proverb?
    ​No, because the marginal cost of extra effort may be greater than the marginal benefit.
  11. The price elasticity of demand for a good that is a necessity is likely to​ be:
Card Set:
econ final 1
2017-05-03 03:55:02

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