The economic surplus of an action is（）
A. the benefit gained by taking an action
B. the difference between the benefit and the cost of taking an action
C. the difference the explicit and implicit costs of taking an action
D. the money a person has left over after taking an action
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An implication of scarcity is that（）
A. people must make trade-offs
B. people will never be happy
C. some people will always be poor
D. making trade-offs becomes unnecessary as wealth increases
According to the Incentive Principle（）
A. people tend to do more of something when its benefits are greater
B. benefits are more important than costs in making a decision
C. it is irrational to perform volunteer services
D. people will always take the highest-paying job they are offered
According to the Cost-Benefit Principle, you should go see the latest Star Wars movie with your friends this week-end if（）
A. you can afford to go to the movies
B. the extra benefits of seeing the movie are greater than the extra costs of seeing the movie
C. you really like Star Wars
D. the average benefit you get from going to the movies is greater than the average cost of a ticket
Janie must choose to either mow the lawn or wash clothes. If she mows the lawn, she will earn $30, and if she washes clothes, she will earn $45. She dislikes both tasks equally and they both take the
A. mow the lawn; bigger
B. mow the law; smaller
C. wash clothes; smaller
D. wash clothes; bigger
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