iVAT Chapter 1

A  prices are constant

B  Prices have a tendency to rise

C  not enough information to answer

D  prices have a tendency to fall

E  prices are in equilibrium

A  Prices have a tendency to fall

B  Prices have a tendency to remain constant

C  Prices have a tendency to rise

D  Prices are in equilibrium

E  Quantity demanded will shift

A  Gain an understanding of how economic variables interact by making simplifying assumptions, and making predictions based on the insights from the model.

B  Gain an understanding of how economic variables converge by making the real world more complex, and making predictions based on the insights from the increased complexity.

C  Increase complexity and gain insights into that complexity.

D  Gain an understanding of how economic variables converge and diverge from one another by making increased complexity an inherent part of the model.

A  Yes, due to the following reason:
MB=12,000>MC=11,000

B  Yes, due to the following reason:
MC=12,000>MB=11,000

C  No, due to the following reason:
MB=12,000>MC=5,000

A  MC=$6,000
MB=$12,000

B  MC=$5,000+$6,000=$11,000
MB=$12,000

C  MC=$5,000+$6,000=$11,000
MB=$12,000+$11,000=$23,000

D  MC=$5,000
MB=$12,000

A  The cost of paying teacher’s salaries

B  The foregone benefit of improved education outcomes

C  The foregone net benefit from spending $50 billion on healthcare

D  The foregone cost of education spending

E  The investment in building educational facilities

A  The net benefit that they could have received from working at their job

B  The net benefit that they could have received by spending that 8 hours in college

C  Textbook costs

D  The parking fees at the factory

E  transportation costs

A  All else being equal you are worse off from the activity

B  marginal benefit is greater than the marginal cost

C  All of the answers available are correct

D  The total cost is greater than the total benefit

E  The marginal cost is greater than the marginal benefit

A  The fixed benefit of going to college over 4 years.

B  The additional money a firm spends on purchasing a computer.

C  The additional expense incurred by engaging in an activity.

D  The additional revenue gained from selling an additional computer.

A  Are variable and change when you engage in some activity

B  Are constant in the long run, but are variable in

C  Cannot be recovered and thus are irrelevant to the decision at hand

D  Can be recovered and thus are relevant to the decision at hand

E  Are purely variable

A  Unemployment, which is primarily a topic studied under macroeconomics, can impact aggregate demand, which is a topic relegated primarily to microeconomics.

B  Inflation, which is primarily a topic studied under macroeconomics, can impact how individuals make consumption decisions, which is a topic relegated primarily to microeconomics.

C  Inflation, which is primarily a topic studied under microeconomics can impact aggregate demand, which is a topic relegated primarily to microeconomics.

D  Unemployment, which is primarily a topic studied under microeconomics, can impact aggregate demand, which is a topic relegated primarily to macroeconomics.

A  cost-benefit analysis

B  the allocating of Ferraris to those who can afford the price of Ferraris

C  the allocating of kidneys based on life expectancy

D  the allocating of slots into Harvard based on who can afford the price of tuition

E  the allocating of healthcare to those who can afford the price of care

A  marginal costs

B  note enough information to answer

C  social, cultural, and political means

D  the price mechanism

E  marginal benefits

A    

B  not enough information to answer

C  the allocating of slots into U.C. Berkeley based on SAT scores

D  the allocating of healthcare to those who are the best candidates for treatment

E  the allocating of kidneys based on life expectancy

F  the allocating Ferrraris to those who can afford the price of a Ferrari

A  the price mechanism

B  non-economic forces

C  non-market rationing

D  social, political, and cultural means

A  The fact that goods/services are limited by human ingenuity.

B  The fact that goods/services are highly desirable.

C  The fact that there is infinite quantities of that good/service in an infinite amount of time.

D  The fact that there is finite quantities of that good/service in a fixed amount of time.