C zero because you do not have to pay money to use the library. Due to process innovations in computer chip manufacturing, the market supply of computers increased. D cannot be tested by checking it against the facts. A The purchasing decisions that an individual consumer makes. C both the tennis given up and the sleep given up. The combination of computers and bicycles shown by point F: A.
D Raising taxes on gas would benefit some social groups. From the economist's perspective, was Sara behaving rationally when she bought those shoes? If society is currently producing 9 units of bicycles and 4 units of computers and it now decides to increase computer output to 6, the cost: A. C effects an increase in the price of gasoline has on an individual. Refer to the above diagram. C the total amount paid to all the workers, both the new one and the previously hired workers. The opportunity cost of reading a book A is how much the book cost when it was purchased. In fact, I would begin here: Microeconomic decisions by both small businesses and individuals are mainly motivated by cost and benefit considerations.
At the heart of the study of microeconomics is the analysis of the market behaviors of individuals in order to better understand their decision-making process and how it impacts the cost of goods and services. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is A Brand B plus Brand C. This behavior a contradicts economic theory because the people didn't do what they said they would do b contradicts economic theory because it is irrational not to purchase safer cars c does not contradict economic theory because economists focus on what people do rather than on what they say d does not contradict economic theory because economic theory only relates to prices and not to features such as safety According to proponents of behavioral economics, because every possible choice cannot be considered, an individual will tend to fall back on methods of making decisions that are simpler than trying to sort through every single possibility, known as a rules of thumb b rational options c irrational choices d normative decisions If psychological limitations and other complications cause people to be unable to examine and think through every possible choice available to them and rely instead on rules of thumb, then these individual exhibit: a unbounded rationality b normative thinking c bounded rationality d positive thinking Assumption are necessary to a make economics a social science b define a set of circumstances where a model is most likely to apply c define the relationship between wants and resources under all circumstances d define the specific cause and effect relationship that is being explained by social science What would lead an economist to conclude that Theory A is superior to Theory B a Theory A predicts real-world events better than does Theory B b the assumption underlying Theory A are more realistic than are the assumptions underlying Theory B c Theory A explains how people think, whereas Theory B only explains what they do d Theory A is based on the assumption that an individual typically cannot determine what is in his or her own best interest, whereas Theory B assumes that each person knows what is in his or her own best interst and acts accordingly. Points A, B, C, D, and E show: A. For these data the law of increasing opportunity costs is reflected in the fact that: A. C the result of a model's normative assumptions.
B factors that affect aggregate unemployment. Which of the following is the best example of a microeconomic topic? C What is Britney's opportunity cost of having another baby? Which of the following is closest to the definition of capital? As Rosa considers where to build her new bakery, she also factors in the number of other bake shops in the area. Answer: D Topic: For Whom Are Goods and Services Produced? C 70 percentage points more than the 10 hours of his time. C should not approve producing 4,000 more laptops because it will cost the company too much. Economics is the study of how society chooses to allocate scarce resources.
B how much money and time it takes to consume something. If you decide to go to Florida, the opportunity cost of the trip is A working and doing fix-up projects. Topics in microeconomics have public policy implications; topics in macroeconomics do not. B the highest valued alternative to attending college. D Brand B or Brand C, depending on which is considered the highest-value alternative forgone. B extra hour per day you spend on studying.
A decline in the price of soybeans caused farmer Wanek to plant more land in wheat. D None of the above because scarcity cannot be eliminated. In doing so, you are applying the concept of A opportunity cost. D The effect of an increase in the tax on cigarettes on cigarette sales. If you decide to go to Hawaii, the opportunity cost is A the value of working and skiing.
D the management skill of a small business owner. C wise use of our resources. Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. You are overseeing the construction of buildings on an island. D for whom to produce. Economics, according to its definition, studies how people: A. A How many more pounds of cookies will a consumer purchase if the price of cookies decreases? B government decision making concerning farm price supports.
B What effect would a cure for Mad Cow Disease have on the market for beef? We know that A both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie. B highest-valued alternative given up. D cease participation in the activity. The dynamic interaction between scarcity and choice helps economists discover what humans consider valuable. C labor and capital not land, which is fixed.