Microeconomics deals with: individual units in the economy.

The study of a single firm and how it determines prices would fall under: microeconomics.

Opportunity cost is: the value of the best alternative forgone in making any choice.

The economic way of thinking has to do with: making choices at the margin.

A choice made ________ is a choice whether to do a little more or a little less of something. at the margin

A resource is anything that: can be used in production.

Manny is attending college and majoring in economics. Manny is improving his scarce resource of: human capital.

Which is not an example of a resource?
Production
(Land, Labor, human capital, and capital ARE resources)
Margo spends $10,000 on one year's college tuition. The opportunity cost of spending one year in college for Margo is: whatever she would have purchased with the $10,000 and whatever she would have earned had she not been in college.

The best measure of the opportunity cost of any choice is: whatever you have given up to make that choice, even if no monetary costs are involved.

For which of the following decisions would marginal analysis be most relevant?
Should I eat another donut?

If an economy has used up all opportunities to make someone better off (without making someone else worse off) then it has achieved ________. efficiency .

Who wrote The Wealth of Nations, a book that many credit with establishing economics as a discipline? Adam Smith

Gains from trade arise because of: specialization in production.

If equilibrium exists: there will be no remaining opportunities for individuals to make themselves better off.

Economists say an economy is efficient when: all opportunities to make some people better off without making other people worse off have been taken.

Economists say an economy is efficient when: all opportunities to make some people better off without making other people worse off have been taken.

When markets fail: government intervention may help.

When markets don't achieve efficiency, then: government may intervene to improve society's welfare.

When a market is in equilibrium, people have exploited all opportunities to make themselves better off

When a market is in equilibrium, people have exploited all opportunities to make themselves better off