Choose the statement that is incorrect.

A.

To quit college and train to become a plumber is a rational choice if the benefit received from working with your hands exceeds the cost of spending hours and hours trying to learn economics.

B.

To spend the weekend at home with your family is a rational choice if the benefit from your mother's cooking exceeds the cost of traveling home.

C.

To live off campus instead of on campus is a rational choice if the benefit from living in residence near the library is less than the cost of living with all-night parties in residence.

D.

It is never a rational choice to decide to enter the labor force immediately following high school.

Economics is used as a policy tool when economists _______.

A.

work to predict the outcome of normative statements

B.

predict the effects of all the changes occurring in the economy at the same time

C.

model different economic proposals proposed by government

D.

advise governments on normative goals for the economy

Every week, Mary plays the piano for four hours, and her grade on each econ test is 80 percent. Last week, after playing piano for four hours, Mary considered playing for another hour. She decided to play for another hour and cut her study time by one hour. But last week, her econ grade fell to 60 percent. Given that Mary spent a fifth hour playing piano, what can you conclude about the marginal benefit and marginal cost of the fourth hour of playing piano? A. The marginal cost of the fourth hour of playing piano exceeded its marginal benefit. B. The marginal benefit from the fourth hour of playing piano exceeded its marginal cost. C. The marginal benefit from the fourth hour of playing piano exceeded the marginal cost of dropping 20 percentage points on an econ test. D. The marginal cost of dropping 20 percentage points on an econ test exceeded the marginal benefit from a fifth hour of playing piano.

Think about the following news items. Which items involve a microeconomic issue and which involve a macroeconomic issue?

A.

IsHuluPlusabettervalueforyourmoneythanNetflix?

B.

Paytoriseformillionsas19statesincreaseminimumwage

C.

U.S.economyadds227,000jobsinJanuary

D.

WHOrecommendstaxofatleast20%onsugarydrinks