HW 2 ECON

Attending college is a case where the ________________ exceeds the monetary cost.

Along the production possibilities frontier, the most efficient point of production depicted is:

Most inefficient point depicted

Scarcity exists because of:

Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:

The opportunity cost of attending university is likely to include all except which of the following?

Possibility A Economics History I 94 76 II 87 84 III 77 91 A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. The opportunity cost of scoring an 84 on the history exam rather than 76 is:

The choice on a production possibilities set that is socially preferred, or the choice on an individual’s budget constraint that is personally preferred, will display ___________.

Marginal thinking is best demonstrated by:

The marginal benefit of a slice of pizza is the:

The lesson of __________ is to forget about the money that is irretrievably gone and instead to focus on the marginal costs and benefits of future options.

At Point A in the production possibilities graph shown above, the economy:

Philosophers draw a distinction between ___________________, which describe the world as it is, and normative statements, which describe how the world should be.

The law of ____ explains why people and societies rarely make all-or-nothing choices.

Which of the following would most likely shift the production possibilities curve inward?

The leader of a federal political party made the following campaign promise: “My administration will increase national defense without requiring sacrifices elsewhere in the economy.” The promise can be kept if:

The opportunity cost of an action:

In deciding how many hours to work, Beulah will make a choice that maximizes her _______; that is, she will choose according to her preferences for leisure time and income.

The model that economists use for illustrating the process of individual choice in a situation of scarcity is the budget constraint, sometimes also called the _______________, a diagram which shows what choices are possible.

Most real-world choices are not about getting all of one thing or another, instead, most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good.