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“2”ApliaCheck
$100
$200 $200
$300 $300
$400 $400
$500 $500
“1”Economic Principles
“3”Famous
Economists
“4”Marginal Analysis
“5”PPF
Model
“6”ComparativeAdvantage
$100 $100 $100 $100 $100
$200 $200 $200 $200
$300 $300 $300 $300
$400 $400 $400 $400
$500 $500 $500 $500
Page 2
A-100
The study of the economy as it pertains to individuals or specific markets.
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Page 3
A-200
TRUE or FALSE
The opportunity cost of going to a particular college is the same for everyone.
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Page 4
A-300
A subjective statement that does not express a testable hypothesis.
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Page 5
A-400
TANSTAAFL
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Page 6
A-500
The dominant assumption made by economists regarding the behavior of
individuals.
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Page 7
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.
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Page 8
B-200
TRUE or FALSE
Supplies such as paint stripper, varnish, polish, sandpaper, and so on are implicit
costs.
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Page 9
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?
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Page 10
B-400
Diagram used to illustrate the transactions in the product and factor markets
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Page 11
B-500
Economist who created Aplia.com
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Page 12
C-100
The father of modern economics.
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Page 13
C-200
The first woman appointed to the US Supreme Court.
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Page 14
C-300
Former U.S. President known as the “great communicator” and for his use of “supply
side economics.”
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Page 15
C-400
Stanford grad who won two Super Bowls quarterbacking the Denver Broncos.
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Page 16
C-500
A graduate of Kenyon College, this actor won the Academy Award for “best actor” in
The Color of Money.
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Page 17
D-100
TRUE or FALSE
If the marginal benefit is decreasing, the total benefit must be negative.
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Page 18
D-200
TRUE or FALSE
Marginal analysis is relevant for only “either-or” decisions.
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Page 19
D-300
The rule for determining the optimal amount of any activity.
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Page 20
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 _______.
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Page 21
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.
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Page 22
E-100
All points inside the PPF.
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Page 23
E-200
All points outside the PPF
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Page 24
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
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Page 25
E-400
The shape of a PPF depicting resources that are perfect substitutes for each other.
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Page 26
E-500
“Law” illustrated by a concave PPF
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Page 27
F-100
TRUE or FALSE
Comparative advantage is held by the person with the highest opportunity cost of
production.
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Page 28
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 ____.
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Page 29
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 _____.
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Page 30
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.
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Page 31
F-500
Economist who developed the theory of comparative advantage.
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Page 32
A-100
The study of the economy as it pertains to individuals or specific markets.
Microeconomics
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Page 33
A-200
FALSE
The opportunity cost of going to a particular college is not the same for everyone.
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Page 34
A-300
A subjective statement that does not express a testable hypothesis.
Normative Statement
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Page 35
A-400
TANSTAAFL
There Ain’t No Such Thing As A Free Lunch
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Page 36
A-500
The dominant assumption made by economists regarding the behavior of
individuals.
Self-interest (or rationality)
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Page 37
B-100
Equilibrium
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Page 38
B-200
FALSE
These are examples of explicit costs.
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Page 39
B-300
How long Anna plays.
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Page 40
B-400
Circular Flow Diagram
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Page 41
B-500
Paul Romer
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Page 42
C-100
The father of modern economics.
Adam Smith
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Page 43
C-200
The first woman appointed to the US Supreme Court.
Sandra Day O’Connor
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Page 44
C-300
Former U.S. President known as the “great communicator” and for his use of “supply
side economics.”
Ronald Reagan
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Page 45
C-400
Stanford grad who won two Super Bowls quarterbacking the Denver Broncos.
John Elway
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Page 46
C-500
A graduate of Kenyon College, this actor won the Academy Award for “best actor” in
The Color of Money.
Paul Newman
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Page 47
D-100
FALSE
If the marginal benefit is decreasing, the total benefit may still increase.
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Page 48
D-200
FALSE
Marginal analysis is relevant only for “how much” decisions.
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Page 49
D-300
MB = MC
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Page 50
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.
Correct response? Earn $400Incorrect response? Lose $400
Page 51
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.
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Page 52
E-100
Inefficient
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Page 53
E-200
Unattainable
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Page 54
E-300
a) Increase in unemployment rate
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Page 55
E-400
Linear (or straight line)
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Page 56
E-500
“Law of Increasing Opportunity Costs”
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Page 57
F-100
FALSE
Comparative advantage is held by the person with the LOWEST opportunity cost of
production.
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Page 58
F-200
2 bikes
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Page 59
F-300
Trikes
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Page 60
F-400
FALSE
Sarah has an absolute advantage.
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Page 61
F-500
David Ricardo
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