Getting Started

2. 1 Getting Started CLICKER QUESTIONS

3. Checkpoint 1.1 Checkpoint 1.2 Question 1 Question 6 Question 2 Question 7 Question 3 Question 8 Question 9 Question 4 Question 5 Question 10

4. CHECKPOINT 1.1 Question 1 To economists, scarcity means that • limited wants cannot be satisfied by the unlimited resources. • a person looking for work is not able to find a job. • the number of people without jobs rises when economic times are bad. • there can never be answers to the what, how, or for whom questions. • unlimited wants cannot be satisfied by the limited resources.

5. CHECKPOINT 1.1 Question 2 The question “Do economics majors or sociology majors earn more after they graduate?” is an example of a ____ question. • what • how • for whom • where • why

6. CHECKPOINT 1.1 Question 3 The only thing that is relevant when a person makes a rational choice is _______. • the opinion of society • the price of the good the person wants to purchase • whether or not the outcome of the choice will be favorable • the wants and preferences of the person making the choice • the person is following incentives

7. CHECKPOINT 1.1 Question 4 The following statement 1 answers the ____ question, 2 answers the ____ question, and 3 answers the ____question. 1. Today, most stores use computers to keep their inventory records whereas 20 years ago stores used paper records. 2. Health-care professionals and drug companies suggest that Medicaid drug rebates be available to all in need. 3. A higher gas tax might lead to better public transit system. • what and for whom; what and for whom; how • how; how; what and for whom • what and how; how and for whom; how • how; for whom; what and for whom

8. CHECKPOINT 1.1 Question 5 If a decision is made and it is the best choice for society, the decision is said to be ________. • a valid economic choice • made in self-interest • made in the social interest • consistent with scarcity • a want-maximizing choice

9. CHECKPOINT 1.2 Question 6 Jamie has enough money to buy a Mountain Dew, a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is • the Pepsi and the bag of chips. • the Pepsi or the bag of chips, whichever the highest-valued alternative forgone. • the Mountain Dew. • the Pepsi because it is a drink, as is the Mountain Dew. • zero because he enjoys the Mountain Dew.

10. CHECKPOINT 1.2 Question 7 If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will • eat the slice of pizza. • not eat the slice of pizza. • be unable to choose between eating or not eating. • eat half the slice. • eat or will not eat the slice, depending on how much the marginal benefit exceeds the marginal cost.

11. CHECKPOINT 1.2 Question 8 When people make rational choices, they • behave selfishly. • do not consider their emotions. • weigh the costs and benefits of their options and act to satisfy their wants. • necessarily make a decision in the social interest. • are necessarily making the best decision.

12. CHECKPOINT 1.2 Question 9 Which of the following is a microeconomic issue? • Why has unemployment risen across the country? • Why has economic growth been so rapid in China? • What will happen to the quantity of Pepsi purchased if consumers’ tastes change in favor of non-carbonated drinks? • Why is the average income lower in Africa than in Latin America? • Why did overall production within the United States increase last year?

13. CHECKPOINT 1.2 Question 10 Which of the following statements is a normative one? • If cars become more expensive, fewer people will buy them. • Cars emit pollution. • If wages increase, firms will fire some workers. • Fewer people die in larger cars than in smaller cars. • Car prices should be affordable.