Podcast
Questions and Answers
What is the most significant cost of going to college according to the text?
What is the most significant cost of going to college according to the text?
- Opportunity cost (correct)
- Room and board expenses
- Transportation costs
- Tuition fees
Which of the following is NOT mentioned as a problem with calculating the cost of going to college?
Which of the following is NOT mentioned as a problem with calculating the cost of going to college?
- Including unrelated expenses
- Ignoring time as a cost
- Considering only direct costs
- Ignoring the monetary costs (correct)
What does the opportunity cost of an item represent?
What does the opportunity cost of an item represent?
- The price paid for the item
- What you give up to acquire the item (correct)
- The value of the item obtained
- The financial investment required for the item
Principle No. 3 mentioned in the text refers to which concept?
Principle No. 3 mentioned in the text refers to which concept?
When discussing decisions during exams, what are economists referring to when they mention 'marginal changes'?
When discussing decisions during exams, what are economists referring to when they mention 'marginal changes'?
What is emphasized as a key aspect of decision-making in the context of exams, according to the text?
What is emphasized as a key aspect of decision-making in the context of exams, according to the text?
What is one goal of studying economics mentioned in the text?
What is one goal of studying economics mentioned in the text?
Which factor primarily explains the differences in living standards among countries?
Which factor primarily explains the differences in living standards among countries?
According to Principle No. 8, what is a key determinant of a country's standard of living?
According to Principle No. 8, what is a key determinant of a country's standard of living?
How does the text describe the relationship between productivity and living standards?
How does the text describe the relationship between productivity and living standards?
What is the key consideration mentioned in the text when evaluating how a policy will affect living standards?
What is the key consideration mentioned in the text when evaluating how a policy will affect living standards?
Principle No. 9 suggests that prices rise when:
Principle No. 9 suggests that prices rise when:
What does the circular-flow diagram illustrate?
What does the circular-flow diagram illustrate?
Why is a more complex circular-flow model suggested?
Why is a more complex circular-flow model suggested?
What does the production possibilities frontier graph show?
What does the production possibilities frontier graph show?
If an economy allocates all its resources to the sugar industry, what can it produce?
If an economy allocates all its resources to the sugar industry, what can it produce?
How are the two endpoints of the production possibilities frontier defined?
How are the two endpoints of the production possibilities frontier defined?
Why is the circular-flow diagram considered useful despite its simplicity?
Why is the circular-flow diagram considered useful despite its simplicity?
What is the main benefit of trade for countries and families?
What is the main benefit of trade for countries and families?
In a market economy, who makes the decisions that were traditionally made by central planners?
In a market economy, who makes the decisions that were traditionally made by central planners?
What does the term 'invisible hand' refer to in economics?
What does the term 'invisible hand' refer to in economics?
What do economists refer to as 'market failure'?
What do economists refer to as 'market failure'?
Which statement best describes a market economy?
Which statement best describes a market economy?
Why might a government intervene in the economy according to the text?
Why might a government intervene in the economy according to the text?
What does 'margin' mean in the context of the text?
What does 'margin' mean in the context of the text?
Why might one be tempted to conclude that the airline should never sell a ticket for less than $500?
Why might one be tempted to conclude that the airline should never sell a ticket for less than $500?
Why does the text suggest that the airline should sell a ticket to a standby passenger willing to pay $300 even though the average cost per seat is $500?
Why does the text suggest that the airline should sell a ticket to a standby passenger willing to pay $300 even though the average cost per seat is $500?
What does 'Principle No. 4: People Respond To Incentives' suggest about how people make decisions?
What does 'Principle No. 4: People Respond To Incentives' suggest about how people make decisions?
In the context of the text, what happens when the price of apples rises?
In the context of the text, what happens when the price of apples rises?
Why do people change their behavior according to 'Principle No. 4' in the text?
Why do people change their behavior according to 'Principle No. 4' in the text?
