【正文】 fountain.D.realize he has had too much soda to drink and go home.B.The seventh glass of soda that Tim consumes will produce an extra benefit of 10 cents and has an extra cost of zero (Tim is eating at the cafeteria). The costbenefit principle predicts that Tim will:is highly cynical.makes choices that are easily understood.C.A.20.a person should always choose the activity with the greatest benefit.D.the lowest cost activity usually gives the lowest benefit.B.According to the costbenefit principle: that the costs can never outweigh the benefits of the choices that the costs should outweigh the benefits of the choicesD. that the costs can never outweigh the benefits of the choicesC. how to make the choicesB.A.18.an application of the scarcity principle.D.not rational.B.Choosing to study for an exam until the extra benefit (improved score) equals the extra cost (mental fatigue) is:pursuing the activity too long.following the scarcity principle.C.A.16.if the net benefit (benefit minus cost) is zero.D.if the total benefits exceed the total costs.B.The costbenefit principle indicates that an action should be taken:unlimited, resources are limited, and thus government needs to do more.unlimited, resources are limited, and thus choices must be made.C.A.14.it39。Josh doesn39。Josh prefers schoolwork to football games.B.t go to the game is that:13.an economic problem because the tuition Chris pays covers both the gym and the library.D.not an economic problem because it39。A.12.only nonmarket decisions, ., watching a sunset.D.all decisions.B.The scarcity principle applies to:Forest is very satisfied.Forest is not required to make choices.C.A.10.their knowledge.D.their wealth.B.At the very least, Joe Average and Bill Gates are both identically limited by:everyone—consumers, firms, governments, and nations.all consumers.C.A.8.the scarcity principle would disappear.D.the scarcity principle would still govern behavior.B.s resources were to magically increase a hundredfold, then:7.as wealth decreases, making choices bees less necessary.D.one will never be satisfied with what one has.B.The logical implication of the scarcity principle is that:because tradeoffs must be made, resources are therefore scarce.pared to 100 years ago, individuals have less time today.C.A.5.wealth accumulation.D.poverty.B.The central concern of economics is:very limited.limited to individuals and firms.C.A.3.insufficient resources.D.financial matters.B.Economic questions always deal with:wages and ines.inflation and interest rates.C.A.1.Chapter 01 Thinking Like an EconomistChapter 01Thinking Like an Economist Multiple Choice QuestionsEconomics is best defined as the study of:prices and quantities.B.how people make choices under the conditions of scarcity and the results of those choices.D.2.A.political matters.C.choice in the face of limited resources.The range of topics or issues that fit within the definition of economics is:limited to market activities, ., buying soap.B.extremely wide, requiring only the ideas of choice and scarcity.D.4.A.scarcity.C.overconsumption.The scarcity principle indicates that:no matter how much one has, it is never enough.B.with limited resources, having more of this means having less of that.D.6.A.as wealth increases, making choices bees less necessary.C.choices must be made.If all the world39。A.economics would no longer be relevant.C.tradeoffs would bee unnecessary.The principle of scarcity applies to:the poor exclusively.B.all firms.D.9.A.the 24 hours that prise a day.C.their influence.Forest is a mountain man living in plete isolation in Montana. He is pletely selfsufficient through hunting, fishing, and farming. He has not been in the city to buy anything in five years. One can infer:the scarcity principle does not apply to Forest.B.the scarcity principle still applies because more hunting means less fishing and farming.D.11.A.only market decisions, ., buying a car.C.only the poor.Chris has a onehour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is:not an economic problem because neither one costs money.B.s an hour that is wasted no matter what Chris does.C.an economic problem because Chris has only one hour during which he can study or work out.Josh wants to go to the football game this weekend, but he has a paper due on Monday. It will take him the whole weekend to write the paper. Josh decided to stay home and work on the paper. According to the scarcity principle, the reason Josh didn39。A.writing the paper is easier than going to the game.C.t have enough time for writing the paper and going to the game.D.s too expensive to go to the game.Whether studying the size of the . economy or the number of children a couple will choose to have, the unifying concept is that wants are:limited, resources are limited, and thus choices must be made.B.unlimited, resources are limited to some but not to others, and thus some people must make choices.D.15.A.if the average benefits exceed the average costs.C.if the extra benefit is greater than or equal to the extra costs.When a person decides to pursue an activity as long as the extra benefits are at least equal to the extra costs, that person is:violating the costbenefit principle.B.following the costbenefit principle.D.17.A.an application of the costbenefit principle.C.the relevant opportunity cost.The scarcity principle tells us that __________, and the costbenefit principle tells us __________.choices must be made。choices must be made。rare goods are expensive。rare goods