- If the marginal benefit of an action is $100 and the marginal cost is $90, then the net benefit is ________.
- Chris is at the gas station, trying to decide what snacks to buy. Using the tables below, choose which option will provide Chris with the greatest net benefit.TABLE 1: 1 Candy bar:Marginal benefit- $5Marginal cost- $12 Candy bar:Benefit- $2Cost-$1TABLE 2:1 Granola Bar:Benefit- $4cost-$22 Granola Bar-Benefit- $3Cost- $2
- What three qualities are required for a good to be considered scarce? (Choose three.)
- In Chapter 3, Hazlitt argues that economists who believe that war is beneficial due to increased demand are confusing demand with ________.
- A decision where we give up one thing to get something else is a ________.
- Bob's Grocery has been doing very well recently, and Bob wants to expand the business. His two best options are to build a pharmacy or to build a café. Eventually, Bob decides to add the café, and he spends $500,000 to build it. In this scenario, what is Bob's opportunity cost?
- Jessica decides to buy a $1.00 candy bar instead of her second choice, a bag of chips. In this scenario, what is Jessica's opportunity cost?
- Which of the following are scarce goods? (Choose all that apply.)
- Scarcity refers to the fact that humans have more desires than there are ________ to fulfill those desires.
- One primary consideration that Christians must take into account in the study of economics is that God has called humanity to be ________.
- Which of the following must take scarcity into account when making decisions? (Choose all that apply.)
- The opportunity cost of a choice is ________.
- Having to decide whether to spend $15 on a movie or on dinner is an example of what concept?
- If $100 can be exchanged for 20,000 Mexican pesos one year and 19,000 pesos the year after that, we would say that the dollar is getting ________.
- Because of increased ________, the world's nations have become increasingly interdependent economically.
- If the US dollar has a low value relative to other countries, it's said to be ________.
- The opportunity cost for taking a particular action is the same for everyone.
- Which of the following are the main causes of economic fallacies? (Choose all that apply.)
- What three qualities does a good have to have in order to be considered scarce?
- Economics is the study of how people make choices in the face of _______.