Questions:
Question 1
Rational decision-making under conditions of scarcity requires individuals to:
• Question 2
Many stores are open 24 hours a day. When store managers make the decision to stay open 24 hours, it must be the case that:
• Question 3
Google has started a project to scan all books and make those that are not copyrighted available to people free of charge. Why is it important that only books without a copyright are available?
• Question 4
Which scenario describes studying for an economics course without applying the scarcity principle?
• Question 5
Some public transit systems use an "honor system" whereby patrons have to show that they have paid their fare only when asked for it by an enforcement officer. With what population would such a system be successful?
• Question 6
Public buildings in the United States are required to be accessible to the disabled and, as a result, almost all have an elevator. What would be an example of a positive direct incentive for those who can use stairs?
• Question 7
The basic goal of economics is:
• Question 8
What is the strongest argument for why we need more economists today than ever before?
• Question 9
I asked my neighbor to rake the leaves on his lawn because they are blowing into my yard. He responded that it wouldn't be rational for him to do so. Why would this be the case?
• Question 10
What is the opportunity cost of taking this exam?
• Question 11
The opportunity cost of going to school rather than working is the cost of:
• Question 12
Which of the following concepts do economists focus their study on when explaining how humans behave?
• Question 13
The U.S. federal government offers homeowners a tax deduction for their home loan interest payments. This reduction in taxes serves as a(n) ________ to buy a house.
• Question 14
How are changes in opportunity cost related to decision-making behavior?
• Question 15
The patent system:
• Question 16
Economics is the study of:
• Question 17
An example of a direct positive incentive is:
• Question 18
Opportunity cost is the ________ alternative forfeited when a choice is made.
• Question 19
In a growing number of cities, stores are required either not to make available plastic or paper bags or to do so only for an additional fee. What kind of incentive is this fee?
• Question 20
Kelly is an architect, and she is trying to decide whether to hire Mike, a draftsman, to assist with her work. Kelly could hire Mike at $20 per hour, but it would take him three times as long to complete a task as it takes Kelly. Kelly is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?