“2” Aplia Check $100 $200 $300 $400 $500 “1” Economic Principles “3” Famous Economists...

“2”ApliaCheck

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“1”Economic Principles

“3”Famous

Economists

“4”Marginal Analysis

“5”PPF

Model

“6”ComparativeAdvantage

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A-100

The study of the economy as it pertains to individuals or specific markets.

Correct response? Earn $100Incorrect response? Lose $100

A-200

TRUE or FALSE

The opportunity cost of going to a particular college is the same for everyone.


A-300

A subjective statement that does not express a testable hypothesis.


A-400

TANSTAAFL


A-500

The dominant assumption made by economists regarding the behavior of

individuals.


B-100

A baseball stadium has three ticket windows that sell season tickets. Windows 1 and 2 have lines of three people each. Window 3, which was initially closed, opens. One person from Window 1 and one person from Window 2 line up at Window 3.

The economic principle that is described above.


B-200

TRUE or FALSE

Supplies such as paint stripper, varnish, polish, sandpaper, and so on are implicit

costs.


B-300

The coach of a soccer team must decide whether team member Anna should play in the next game, and if so, how long to let Anna continue in this game.

Which part of this decision is a marginal decision?


B-400

Diagram used to illustrate the transactions in the product and factor markets


B-500

Economist who created Aplia.com


C-100

The father of modern economics.


C-200

The first woman appointed to the US Supreme Court.


C-300

Former U.S. President known as the “great communicator” and for his use of “supply

side economics.”


C-400

Stanford grad who won two Super Bowls quarterbacking the Denver Broncos.


C-500

A graduate of Kenyon College, this actor won the Academy Award for “best actor” in

The Color of Money.


D-100

TRUE or FALSE

If the marginal benefit is decreasing, the total benefit must be negative.


D-200

TRUE or FALSE

Marginal analysis is relevant for only “either-or” decisions.


D-300

The rule for determining the optimal amount of any activity.


D-400

Wendy sells ice-making machines. She can sell 6 per week at a price of $2000 each. If she charges $2100, she will only sell 5 per week. The marginal benefit of selling the 6th machine is _______.


D-500

TRUE or FALSE

If a company’s total costs per day increase from $500 to $600 by adding worker, but its marginal benefits are $150, it is sensible to

add that additional worker.


E-100

All points inside the PPF.


E-200

All points outside the PPF


E-300

PPF will shift outward for all of the following reasons EXCEPT:

a) Increase in unemployment rateb) Increase in the labor forcec) Improvement in technologyd) Increase in worker productivity


E-400

The shape of a PPF depicting resources that are perfect substitutes for each other.


E-500

“Law” illustrated by a concave PPF


F-100

TRUE or FALSE

Comparative advantage is held by the person with the highest opportunity cost of

production.


F-200

In one hour Fred can produce either 20 bikes or 10 trikes while Barney can produce either 30 bikes or 20 trikes.

Fred’s opportunity cost of 1 trike is ____.


F-300

In one hour Fred can produce either 20 bikes or 10 trikes while Barney can produce either 30 bikes or 20 trikes.

Barney holds the comparative advantage in _____.


F-400

True or False

If Sarah can produce 10 hamburgers while Jesse can produce 5 hamburgers, we know that Sarah has a comparative advantage in

hamburgers.


F-500

Economist who developed the theory of comparative advantage.


A-100

The study of the economy as it pertains to individuals or specific markets.

Microeconomics


A-200

FALSE

The opportunity cost of going to a particular college is not the same for everyone.


A-300

A subjective statement that does not express a testable hypothesis.

Normative Statement


A-400

TANSTAAFL

There Ain’t No Such Thing As A Free Lunch


A-500

The dominant assumption made by economists regarding the behavior of

individuals.

Self-interest (or rationality)


B-100

Equilibrium


B-200

FALSE

These are examples of explicit costs.


B-300

How long Anna plays.


B-400

Circular Flow Diagram


B-500

Paul Romer


C-100

The father of modern economics.

Adam Smith


C-200

The first woman appointed to the US Supreme Court.

Sandra Day O’Connor


C-300

Former U.S. President known as the “great communicator” and for his use of “supply

side economics.”

Ronald Reagan


C-400

Stanford grad who won two Super Bowls quarterbacking the Denver Broncos.

John Elway


C-500

A graduate of Kenyon College, this actor won the Academy Award for “best actor” in

The Color of Money.

Paul Newman


D-100

FALSE

If the marginal benefit is decreasing, the total benefit may still increase.


D-200

FALSE

Marginal analysis is relevant only for “how much” decisions.


D-300

MB = MC


D-400

Wendy sells ice-making machines. She can sell 6 per week at a price of $2000 each. If she charges $2100, she will only sell 5 per week. The marginal benefit of selling the 6th machine is $1500.


D-500

TRUE

If a company’s total costs per day increase from $500 to $600 by adding worker, but its marginal benefits are $150, it is sensible to

add that additional worker.


E-100

Inefficient


E-200

Unattainable


E-300

a) Increase in unemployment rate


E-400

Linear (or straight line)


E-500

“Law of Increasing Opportunity Costs”


F-100

FALSE

Comparative advantage is held by the person with the LOWEST opportunity cost of

production.


F-200

2 bikes


F-300

Trikes


F-400

FALSE

Sarah has an absolute advantage.


F-500

David Ricardo


“2” Aplia Check $100 $200 $300 $400 $500 “1” Economic Principles “3” Famous Economists...

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