Even a person with unlimited wealth must deal with opportunity costs. correct answers true
Sunk costs are irrelevant. correct answers true
You should carefully consider sunk costs when making economic decisions. correct answers false
People make decisions based upon the expected opportunit...
even a person with unlimited wealth must deal with
Written for
Econ
Econ
Seller
Follow
sh3rrymagdah
Content preview
econ ch 1 (Correct answers)
Even a person with unlimited wealth must deal with opportunity costs. correct answers true
Sunk costs are irrelevant. correct answers true
You should carefully consider sunk costs when making economic decisions. correct answers false
People make decisions based upon the expected opportunity cost of a choice. correct answers true
Your opportunity cost never depends on you alternatives. correct answers false
With every choice comes an opportunity cost. correct answers true
Because acquiring information about alternatives is costly and time-consuming, you usually make choices
based on limited or even faulty information. correct answers true
It is not wise to spend your time and effort figuring out how to avoid sunk costs. correct answers true
Opportunity costs are always measured in dollar amounts. correct answers false
Once the opportunity cost of attending college is calculated, it is clear that it is more useful for every
young person to go to college instead of enter the workforce. correct answers false
The supply and demand for resources come together in product markets to determine what firms pay for
resources. correct answers false
Economist agree on most theoretical principles based on positive economic analysis. correct answers true
Households both demand services and supply resources in the economy. correct answers true
Macroeconomics focuses on the economy as a whole. correct answers true
, Economic theories are directly responsible for causing future economic trends. correct answers false
Making rational consumer choices can be done without time and information. correct answers false
In order to be accurate, theories must be detailed in nature. correct answers false
in the context of economics, marginal is defined as incremental or additional. correct answers true
Although it is assumed that people are driven by rational self-interest, this does not mean that people are
not concerned for others. correct answers true
According to the circular-flow model, the flows of resources and products are supported by the flows of
income and expenditure. correct answers true
A bus station is an example of a capital good. correct answers true
a good is free if it involves no apparent cost to you. correct answers false
tutoring is an example of a service, not a good. correct answers true
Depending on the situation, an entrepreneur does not always need to assume the risk of success or failure
in a business venture. correct answers false
Because productive resources are scarce, goods and services are scarce, too. correct answers true
An exhaustible resource can be drawn upon indefinitely, as long as it is used wisely. correct answers false
Labor is a type of human resource. correct answers true
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller sh3rrymagdah. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £9.10. You're not tied to anything after your purchase.
