ECON 102 QUESTIONS AND ANSWERS LATEST UPDATED
VERSION, GRADED A+.
Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you
arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the
additional $15 you pay for parking is an example of
marginal cost
Opportunity cost is
that which we forgo, or give up, when we make a choice or a decision.
You own the Star Wars six DVD set. The opportunity cost of watching these DVDs for the second time
is the value of the alternative use of the time you spend watching the DVDs.
The branch of economics that examines the functioning of individual industries and the behavior of
individual decision-making units is
microeconomics.
The study of how benefits are determined for city employees would be considered
microeconomics.
An economy in which a central authority draws up a plan that establishes what will be produced and
when, sets production goals, and makes rules for distribution is a
command economy.
Which of the following is an element of a command economy?
Production decisions are centralized.
Better insurance benefits increase the incentive of some individuals to work. This statement is best
described as
a positive statement.
Health insurance should be provided to every citizen in a wealthy nation such as the United States.
This statement is best described as
a normative statement.
The study of economics
is a way of analyzing decision-making processes caused by scarcity.
In making decisions using marginal analysis, sunk cost should be ___
ignored
VERSION, GRADED A+.
Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you
arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the
additional $15 you pay for parking is an example of
marginal cost
Opportunity cost is
that which we forgo, or give up, when we make a choice or a decision.
You own the Star Wars six DVD set. The opportunity cost of watching these DVDs for the second time
is the value of the alternative use of the time you spend watching the DVDs.
The branch of economics that examines the functioning of individual industries and the behavior of
individual decision-making units is
microeconomics.
The study of how benefits are determined for city employees would be considered
microeconomics.
An economy in which a central authority draws up a plan that establishes what will be produced and
when, sets production goals, and makes rules for distribution is a
command economy.
Which of the following is an element of a command economy?
Production decisions are centralized.
Better insurance benefits increase the incentive of some individuals to work. This statement is best
described as
a positive statement.
Health insurance should be provided to every citizen in a wealthy nation such as the United States.
This statement is best described as
a normative statement.
The study of economics
is a way of analyzing decision-making processes caused by scarcity.
In making decisions using marginal analysis, sunk cost should be ___
ignored
