9. Marginal benefit is the benefit:
a.
that your activity provides to someone else.
b.
of the next activity you undertake.
c.
that arises from the secondary effects of an activity.
d.
that arises from a small decrease in an activity.
e.
none of the above make sense.
10. Marginal cost is the cost:
a.
that your activity imposes on someone else.
b.
that arises from a small decrease in an activity.
c.
additional cost of doing something
d. that arises
from the secondary effects of an activity.
e. none of the
above make sense.
11. Which of the following is an example of
a normative economic statement?
a.
Household consumption is the largest component of spending in the economy.
b.
The government debt rose under the Bush and Obama administrations.
c.
The business sector of the economy is the primary source of jobs.
d. Households
should save more.
e. More than one
answer is correct
12.
Ceteris paribus means:
a. Everything
else held constant.
b. Allowing the
free market to decide, not government.
c. Changing
prices to see how demand changes.
d. Holding
people constant with force.
e. None of the
above makes sense.
13.
At the end of the course,
Professor Jones told us that we were the best class he had ever had. That's why
I'm sure that the "F" the appeared on my grade report is a mistake. Surely, if
we were as good a class as Professor Jones said we were, none of us deserved to
fail.
a. Fallacy of Composition
b. Fallacy of Division
c. Post Hoc Fallacy
d. Broken Window Fallacy
e. None of the above makes sense.
14. "I loaned you my car. When I got it back, the
battery, which I bought only 5 short years ago died. You broke it and you
owe me a new batterfy." What fallacy of reasoning does this argument
represent?
a. Fallacy of Composition
b. Fallacy of Division
c. Post Hoc Fallacy
d. Broken Window Fallacy
e. None of the above makes sense.