ECON 2106 Exam 1 Questions and Answers Solved Correctly Latest Update 2025-2026
A tradeoff is ____________________ - Answers an exchange; giving up on get something to get
something else
A rational choice is ______________________ - Answers one that compares cost and benefits and
achieves the greatest benefit over cost for the person making the choice.
In a rational choice only the wants of the person making a choice are relevant to determine its
rationality. (T/F) - Answers True
you can spend the weekend at college or you can go home. You have an incentive to spend the weekend
at college if_________________________ - Answers the marginal benefit of spending the weekend at
college is greater than the marginal cost of spending the weekend at college.
when a school board chooses to spend more on textbooks and less on computers it
______________________________ - Answers must tradeoff computers for textbooks, and it is facing a
"what tradeoff"
when we vote for larger police forces to fight crime, we face _______________________. - Answers a
"for whom tradeoff"
Rational choice is a choice that uses the available resources to ___________ of the person making the
choice - Answers best achieve the objective
A choice on the margin is a choice that is made by comparing all the relevant ____________
systematically and _____________ - Answers alternatives, incrementally
Marginal cost is the _______ opportunity cost that arises from one unit _________ in an activity -
Answers opportunity cost; increase
Marginal benefit is the ________ that arises from one unit _________ in an activity - Answers benefit;
increase
in a positive relationship in a graph, as x increases, y ___________ in an upward sloping curve - Answers
increases
Which of the following pairs does not match?
A. capital; interest
B. entrepreneurship; wages
C. labor; wages
D. land; rent - Answers B. entrepreneurship; wages
A tradeoff is ____________________ - Answers an exchange; giving up on get something to get
something else
A rational choice is ______________________ - Answers one that compares cost and benefits and
achieves the greatest benefit over cost for the person making the choice.
In a rational choice only the wants of the person making a choice are relevant to determine its
rationality. (T/F) - Answers True
you can spend the weekend at college or you can go home. You have an incentive to spend the weekend
at college if_________________________ - Answers the marginal benefit of spending the weekend at
college is greater than the marginal cost of spending the weekend at college.
when a school board chooses to spend more on textbooks and less on computers it
______________________________ - Answers must tradeoff computers for textbooks, and it is facing a
"what tradeoff"
when we vote for larger police forces to fight crime, we face _______________________. - Answers a
"for whom tradeoff"
Rational choice is a choice that uses the available resources to ___________ of the person making the
choice - Answers best achieve the objective
A choice on the margin is a choice that is made by comparing all the relevant ____________
systematically and _____________ - Answers alternatives, incrementally
Marginal cost is the _______ opportunity cost that arises from one unit _________ in an activity -
Answers opportunity cost; increase
Marginal benefit is the ________ that arises from one unit _________ in an activity - Answers benefit;
increase
in a positive relationship in a graph, as x increases, y ___________ in an upward sloping curve - Answers
increases
Which of the following pairs does not match?
A. capital; interest
B. entrepreneurship; wages
C. labor; wages
D. land; rent - Answers B. entrepreneurship; wages
