iVAT Chapter 1

A  prices are in equilibrium

B  prices are constant

C  prices have a tendency to fall

D  not enough information to answer

E  Prices have a tendency to rise

A  Prices are in equilibrium

B  Prices have a tendency to remain constant

C  Prices have a tendency to fall

D  Prices have a tendency to rise

E  Quantity demanded will shift

A  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.

B  Increase complexity and gain insights into that complexity.

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

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: M B = 12 , 000 > M C = 11 , 000

B  No, due to the following reason: M B = 12 , 000 > M C = 5 , 000

C  Yes, due to the following reason: M C = 12 , 000 > M B = 11 , 000

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

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

C  MC=$6,000
MB=$12,000

D  MC=$5,000
MB=$12,000

A  The investment in building educational facilities

B  The foregone cost of education spending

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

D  The cost of paying teacher’s salaries

E  The foregone benefit of improved education outcomes

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

B  The parking fees at the factory

C  transportation costs

D  Textbook costs

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

A  marginal benefit is greater than the marginal cost

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

C  All of the answers available are correct

D  The marginal cost is greater than the marginal benefit

E  The total cost is greater than the total benefit

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

B  The additional expense incurred by engaging in an activity.

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

D  The additional revenue gained from selling an additional computer.

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

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

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

D  Are purely variable

E  Are variable and change when you engage in some activity

A  Inflation, which is primarily a topic studied under microeconomics 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  Unemployment, which is primarily a topic studied under macroeconomics, 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  the allocating of kidneys based on life expectancy

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

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

D  cost-benefit analysis

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

A  note enough information to answer

B  marginal benefits

C  the price mechanism

D  marginal costs

E  social, cultural, and political means

A  not enough information to answer

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

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

D  the allocating of kidneys based on life expectancy

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

A  non-economic forces

B  social forces

C  non-market rationing

D  the price mechanism

E  social, political, and cultural means

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

B  The fact that goods/services are highly desirable.

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

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