简答题Kevin is the CEO of a large firm and a homeowner who pays a landscaper to maintain his lawn rather than do it himself. Kevin has determined that he can earn more in the hour it would take him to work on his lawn than he must pay his landscaper. This scenario is an example of which principle of economics? A、Trade can make everyone better off. B、Markets are usually a good way to organize economic activity. C、Governments can sometimes improve market outcomes. D、Prices rise when the government prints too much money.简答题The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that ______. A、equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources B、equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits C、equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits D、equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs简答题Rational people make decisions at the margin by ______. A、following marginal traditions B、behaving in a random fashion C、thinking in black-and-white terms D、comparing marginal costs and marginal benefits简答题One reason we need government, even in a market economy, is that ______. A、there is insufficient market power in the absence of government B、property rights are too strong in the absence of government C、the invisible hand is not perfect D、Both a and b are correct.简答题A marginal change is a ______. A、change that involves little, if anything, that is important B、large, significant adjustment C、change for the worse, and so it is usually a short-term change D、small, incremental adjustment简答题For a college student who wishes to calculate the true costs of going to college, the costs of room and board _______. A、should be counted in full, regardless of the costs of eating and sleeping elsewhere B、should be counted only to the extent that they are more expensive at college than elsewhere C、usually exceed the opportunity cost of going to college D、plus the cost of tuition, equals the opportunity cost of going to college简答题A barber currently cuts hair for 50 clients per week and earns a profit. He is considering expanding his operation in order to serve more clients. Should he expand? A、Yes, because cutting hair is profitable. B、No, because he may not be able to sell more services. C、It depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients. D、It depends on the average cost of serving more clients and the average revenue he will earn from serving more clients.简答题According to a recent study of Chilean bus drivers, drivers who are paid by the number of passengers they transport have higher productivity than drivers who are paid by the hour. This result is an example of which principle of economics? A、People face tradeoffs. B、The cost of something is what you give up to get it. C、Rational people think at the margin. D、People respond to incentives.简答题The business cycle is the ______. A、relationship between unemployment and inflation B、irregular fluctuations in economic activity C、positive relationship between the quantity of money in an economy and inflation D、predictable changes in economic activity due to changes in government spending and taxes简答题In the short run, an increase in the money supply is likely to lead to ______. A、lower unemployment and lower inflation B、lower unemployment and higher inflation C、higher unemployment and lower inflation D、higher unemployment and higher inflation简答题Which of the following is a principle concerning how people interact? A、Markets are usually a good way to organize economic activity. B、Rational people think at the margin. C、People respond to incentives. D、All of the above are correct.简答题In the long run the primary effect of increasing the quantity of money is higher prices.简答题The "invisible hand" directs economic activity through ______. A、advertising B、prices C、central planning D、government regulations简答题In a market economy, who makes the decisions that guide most economic activity? A、Firms only. B、Households only. C、Firms and households. D、Government.简答题The saying that "There is no such thing as a free lunch," means ________. A、even people on welfare have to pay for food B、the cost of living is always increasing C、people face tradeoffs D、all costs are included in the price of a product