Q: Which of the following equations correctly calculates the opportunity cost of spending 1 hour per day on social media, if your time is valued at $13 per hour?

$$1 \text{ hour/day} \times 365 \text{ days/year} \times 13 \text{ dollars/hour} = 4,745$$

Question 1

Which of the following best describes the concept of 'scarcity' in economics?

Accepted Answer

Scarcity refers to the situation where the quantity people want exceeds the quantity available.

Question 2

An economic agent is defined as:

Accepted Answer

Any individual or group that makes choices.

Question 3

Which of the following is an example of opportunity cost?

Accepted Answer

The value of the next best alternative you give up when making a choice.

Question 4

Suppose you spend 2 hours watching a movie instead of working, and you could have earned $12 per hour. What is your opportunity cost of watching the movie?

Accepted Answer

$24

Question 5

Which principle of economics is illustrated when people use data to test theories about human behavior?

Accepted Answer

Empiricism

Question 6

A situation in which no individual would benefit by changing their own behavior is called:

Accepted Answer

Equilibrium

Question 7

Which of the following is a normative economic statement?

Accepted Answer

Each student should take only one piece of candy so everyone gets one.

Question 8

If you can buy a $$20 book for 10 by $$driving 3 miles, what is the opportunity cost of not driving to buy the book?

Accepted Answer

$10

Question 9

Which of the following best describes the 'free rider problem'?

Accepted Answer

When an individual enjoys the benefits of a situation without incurring the costs.

Question 10

Microeconomics is primarily concerned with:

Accepted Answer

How individuals, firms, and governments make choices.

Question 11

Which of the following equations correctly calculates the opportunity cost of spending 1 hour per day on social media, if your time is valued at $13 per hour?

Accepted Answer

$$1 	ext{ hour/day} 	imes 365 	ext{ days/year} 	imes 13 	ext{ dollars/hour} = 4,745$$

Question 12

Which of the following is NOT a step in dealing with a free rider in a group project?

Accepted Answer

Markets automatically ensure fairness.

Question 13

If a person is making the best choice possible with the given information, they are:

Accepted Answer

Optimizing

Question 14

Which of the following is an example of a trade-off?

Accepted Answer

Choosing to study for an exam instead of going to a party.

Question 15

A budget constraint is best described as:

Accepted Answer

The set of things a person can choose to do or buy without exceeding their budget.

Question 16

Which of the following statements is positive economics?

Accepted Answer

Raising the minimum wage will increase unemployment among teenagers.

Question 17

If the cost of attending a two-hour movie is the $20 you could have earned working, which formula represents the opportunity cost?

Accepted Answer

$$10 	ext{ per hour} 	imes 2 	ext{ hours} = 20$$

Question 18

Which of the following best illustrates the principle of equilibrium?

Accepted Answer

A market where no buyer or seller can improve their outcome by changing their behavior.

Question 19

Empiricism in economics involves:

Accepted Answer

Using data to test theories and answer questions.

Question 20

Which of the following is NOT a benefit of studying economics, according to the materials?

Accepted Answer

Guaranteed employment

Chapter 1: The Principles and Practice of Economics - Microeconomics Study Guide

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