Question: Mike Ditka, a famous NFL football coach, has proposed taking the face masks off of players’ helmets. This proposal is due to:

Answer: his belief that the rate of injury will actually go down when the players are unprotected. This statement is supported by the Law of Unintended Consequences which states the the extra protection of the helmets and face masks may actually lead to less safety.

Question: As more of a particular good is produced:

Answer: marginal cost increases due to the Law of Increasing Cost.

Question: The concept of Rational Economic Man in economics:

Answer: is based on an assumption that people will act in their own self-interest in a world of scarce goods

Question: In Economics, a Positive Statement:

Answer: can be either proved true or false since it is a scientific question based on evidence, not opinion.

Question: Economists believe that:

Answer: it is possible to be self-interested without being selfish since these two concepts, while related, are not the same thing.

Question: In economics, scarcity exists when:

Answer: the desire for a good exceeds the amount freely available from nature. If the price was zero, there would not be enough for everyone to have as much as they want.

Question: Microeconomics is the study of:

Answer: how individual decision makers behave in markets.

Question: Self-Interest and Selfishness:

Answer: are different. A person may legitimately act in their own self-interest, but selfishness is wrong because it takes self-interest beyond a legitimate point.

Question: In which scenario below is a person acting rationally or irrationally according to economists?

Answer: A young person is acting rationally when she drop out of a high paying career field like medicine to study poetry. She wants to become a singer/song writer in Nashville’s country music scene.

Question: The marginal benefit of consuming an additional unit of a good:

Answer: is the change in total benefit from consuming one more unit.