Economics
how people make choices under the conditions of scarcity and the results of the choices.
The logical implication of the scarcity principle is that
choices must be made
The cost-benefit principle indicates that an action should be taken
if the extra benefit is greater than or equal to the extra costs.
The scarcity principle indicates that __________ and the cost-benefit principle indicates __________.
choices must be made; how to make the choices
A rational person is one who
possesses well-defined goals and seeks to achieve them.
Relative to a person who earns minimum wage, a person who earns $30 per hour has
a higher opportunity cost of taking a day off.
Suppose Mary is willing to pay up to $15,000 for a used Ford pick-up truck, but she finds one for $12,000. Her __________ is __________.
economic surplus; $3,000
The cost-benefit model used by economists is
useful because most people follow it most of the time.
The marginal benefit of an activity is the
extra benefit associated with an extra unit of the activity.
If the marginal costs of 1, 2, and 3 hours of talking on the phone are $50, $75, and $105, then the total costs are
$50, $125, and $230.