Question 1

The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour.​

Accepted Answer

Opportunity cost refers to the value of the next-best alternative when a decision is made to choose one option over another. In this case, it's the value of what you could have done instead of working out for that hour.

Question 2

Economics is the study of ______ .

Accepted Answer

The answer of Economics is the study of ______ ....

Question 3

The business cycle refers to fluctuations in economic activity such as employment and production.

Accepted Answer

The business cycle describes the rise and fall in production output of goods and services in an economy. It is a key concept in economics that represents the expansion and contraction in economic activity over time, including fluctuations in employment, production, and other economic indicators.

Question 4

Scenario 1-2
Suppose that you have a choice between going to the movies with a friend for two hours or working at your job. If you go to the movies, you will spend $7 on a ticket and $5 on popcorn. If you choose to work, you will earn $10 an hour.
-Refer to Scenario 1-2. What is your opportunity cost of working?

Accepted Answer

The answer of Scenario 1-2
Suppose that you have a choice...

Question 5

The opportunity cost of working one hour is the sum of the values you would have received from all other activities you could have done in that hour.

Accepted Answer

The opportunity cost of working one hour is the value of the single best alternative you could have done instead of working, not the sum of all possible alternatives.

Question 6

Scenario 1-1
You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for three hours. If you go to the movies, you will spend $8.00 on a ticket and $4.50 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 10 points.
-Refer to Scenario 1-1. What is your opportunity cost of studying economics?

Accepted Answer

The answer of Scenario 1-1
You have the afternoon free. You...

Question 7

Scenario 1-2
Suppose that you have a choice between going to the movies with a friend for two hours or working at your job. If you go to the movies, you will spend $7 on a ticket and $5 on popcorn. If you choose to work, you will earn $10 an hour.
-Refer to Scenario 1-2. What is your opportunity cost of going to the movies?

Accepted Answer

The answer of Scenario 1-2
Suppose that you have a choice...

Question 8

Inflation measures the increase in the quantity of goods and services produced from each hour of a worker's time.

Accepted Answer

Inflation measures the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. It does not measure productivity or the quantity of goods and services produced per hour of work.

Question 9

Explain how government policies that redistribute income from the rich to the poor might reduce efficiency.

Accepted Answer

The answer of Explain how government policies that redistribute income...

Question 10

In the long run the primary effect of increasing the quantity of money is higher prices.

Accepted Answer

Increasing the quantity of money in an economy, without a corresponding increase in the supply of goods and services, typically leads to inflation, which is reflected in higher prices. This is because more money chasing the same amount of goods and services tends to increase demand, pushing prices up.

Question 11

Debbie quits her job, which pays $30,000 a year, to finish her college degree. Her annual college expenses are $10,000 for tuition, $2,000 for books, and $700 for food. What is her opportunity cost of attending college for the year?

Accepted Answer

The answer of Debbie quits her job, which pays $30,000...

Question 12

Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-year graduate program?

Accepted Answer

The answer of Zack quits his job at a consulting...

Question 13

Inflation and unemployment both increase as the money supply increases.

Accepted Answer

Inflation may increase as the money supply increases because more money chasing the same amount of goods can lead to higher prices. However, unemployment typically decreases when the money supply increases because more money in the economy can stimulate demand for goods and services, leading to job creation.

Question 14

The term ______ refers to the size of the economic pie, and the term ______ refers to how the pie is divided.

Accepted Answer

The answer of The term ______ refers to the size...

Question 15

Variations in the standard of living across countries is due almost entirely to differences in each nation's total output of goods and services.

Accepted Answer

Variations in the standard of living across countries are influenced by multiple factors including total output of goods and services (GDP per capita), but also include income distribution, healthcare, education, political stability, infrastructure, and environmental quality, among others.

Question 16

A rational decision maker takes an action if and only if the marginal benefit exceeds the marginal cost.

Accepted Answer

A rational decision maker evaluates the additional benefits of an action against its additional costs and proceeds with the action only if the benefits outweigh the costs. This principle is fundamental in economics and decision theory, emphasizing the importance of comparing incremental gains to incremental expenses to maximize utility or profit.

Question 17

The goal of President Obama's stimulus package and increased government spending following the deep economic downturn in 2008 and 2009 was to reduce inflation.

Accepted Answer

The goal was to stimulate economic growth and reduce unemployment following the recession, not to reduce inflation.

Question 18

Scenario 1-1
You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for three hours. If you go to the movies, you will spend $8.00 on a ticket and $4.50 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 10 points.
-Refer to Scenario 1-1. What is your opportunity cost of going to the movies?

Accepted Answer

The answer of Scenario 1-1
You have the afternoon free. You...

Question 19

The "invisible hand" influences market behavior through trade.​

Accepted Answer

The answer of The "invisible hand" influences market behavior through...

Question 20

In the short-run, society faces a tradeoff between inflation and unemployment.

Accepted Answer

This statement reflects the concept of the Phillips Curve, which suggests that there is an inverse relationship between the rate of inflation and the rate of unemployment in the short run. When unemployment is low, inflation tends to be higher, and vice versa.

Quiz 1: Ten Principles of Economics

The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour.

Economics is the study of ______ .

The business cycle refers to fluctuations in economic activity such as employment and production.

The opportunity cost of working one hour is the sum of the values you would have received from all other activities you could have done in that hour.

Inflation measures the increase in the quantity of goods and services produced from each hour of a worker's time.

Explain how government policies that redistribute income from the rich to the poor might reduce efficiency.

In the long run the primary effect of increasing the quantity of money is higher prices.

Debbie quits her job, which pays $30,000 a year, to finish her college degree. Her annual college expenses are $10,000 for tuition, $2,000 for books, and $700 for food. What is her opportunity cost of attending college for the year?

Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-year graduate program?

Inflation and unemployment both increase as the money supply increases.

The term refers to the size of the economic pie, and the term refers to how the pie is divided.

Variations in the standard of living across countries is due almost entirely to differences in each nation's total output of goods and services.

A rational decision maker takes an action if and only if the marginal benefit exceeds the marginal cost.

The goal of President Obama's stimulus package and increased government spending following the deep economic downturn in 2008 and 2009 was to reduce inflation.

The "invisible hand" influences market behavior through trade.

In the short-run, society faces a tradeoff between inflation and unemployment.

Quiz 1: Ten Principles of Economics

The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour.​

Economics is the study of ______ .

The business cycle refers to fluctuations in economic activity such as employment and production.

The opportunity cost of working one hour is the sum of the values you would have received from all other activities you could have done in that hour.

Inflation measures the increase in the quantity of goods and services produced from each hour of a worker's time.

Explain how government policies that redistribute income from the rich to the poor might reduce efficiency.

In the long run the primary effect of increasing the quantity of money is higher prices.

Debbie quits her job, which pays $30,000 a year, to finish her college degree. Her annual college expenses are $10,000 for tuition, $2,000 for books, and $700 for food. What is her opportunity cost of attending college for the year?

Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-year graduate program?

Inflation and unemployment both increase as the money supply increases.

The term ______ refers to the size of the economic pie, and the term ______ refers to how the pie is divided.

Variations in the standard of living across countries is due almost entirely to differences in each nation's total output of goods and services.

A rational decision maker takes an action if and only if the marginal benefit exceeds the marginal cost.

The goal of President Obama's stimulus package and increased government spending following the deep economic downturn in 2008 and 2009 was to reduce inflation.

The "invisible hand" influences market behavior through trade.​

In the short-run, society faces a tradeoff between inflation and unemployment.

The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour.

The term refers to the size of the economic pie, and the term refers to how the pie is divided.

The "invisible hand" influences market behavior through trade.