ECON B251 Exam 1 questions and
answers
Because we face scarcity, every choice involves:
a) money
b) time and money
c) marginal benefity
d) trad-offs✔✔D. trade-offs
You decide to take a vacation and the trip costs you 1,254. While you are on
vacation, you do not report to work where you could have earned 123. The
opportunity cost of the vacation is $_______.✔✔1,377
Strategic decisions include✔✔- one's own benefits
- one's own costs
- other's decisions
The night before a midterm exam, you decide to go to the movies instead of studying
for the exam. You score 59 percent on your exam. If you had studied the night
before, you'd have scored 85 percent. The opportunity cost of your evening at the
movies is _______ percent.✔✔26
Which of the following is a positive statement?
A. Taxes should be higher because people should pay their fair share.
B. A 10 percent beef tax leads to an increase in the consumption of beef.
C. My business class should last for two terms because it is my favorite class.
D. College education should be free.✔✔B. A 10 percent beef tax leads to an
increase in the consumption of beef.
Which of the following is a normative statement?
A. The price of candy bars is $1.25 each.
B. You should eat less candy.
C. Popcorn and candy are sold in movie theaters.
D. Candy bars are more expensive than newspapers.✔✔B. You should eat less
candy.
Which of the following are true?
A. Economists use empirical analysis, as well as natural and economic experiments.
B. Economic models are more complex than real world observations.
C. Economists try to isolate cause and effect relationships.✔✔A & C
answers
Because we face scarcity, every choice involves:
a) money
b) time and money
c) marginal benefity
d) trad-offs✔✔D. trade-offs
You decide to take a vacation and the trip costs you 1,254. While you are on
vacation, you do not report to work where you could have earned 123. The
opportunity cost of the vacation is $_______.✔✔1,377
Strategic decisions include✔✔- one's own benefits
- one's own costs
- other's decisions
The night before a midterm exam, you decide to go to the movies instead of studying
for the exam. You score 59 percent on your exam. If you had studied the night
before, you'd have scored 85 percent. The opportunity cost of your evening at the
movies is _______ percent.✔✔26
Which of the following is a positive statement?
A. Taxes should be higher because people should pay their fair share.
B. A 10 percent beef tax leads to an increase in the consumption of beef.
C. My business class should last for two terms because it is my favorite class.
D. College education should be free.✔✔B. A 10 percent beef tax leads to an
increase in the consumption of beef.
Which of the following is a normative statement?
A. The price of candy bars is $1.25 each.
B. You should eat less candy.
C. Popcorn and candy are sold in movie theaters.
D. Candy bars are more expensive than newspapers.✔✔B. You should eat less
candy.
Which of the following are true?
A. Economists use empirical analysis, as well as natural and economic experiments.
B. Economic models are more complex than real world observations.
C. Economists try to isolate cause and effect relationships.✔✔A & C
