If one fails to account for implicit costs in decision making, then applying the cost-benefit rule will be flawed because（）
A. the costs will be understated
B. the benefits will be overstated
C. the benefits will be understated
D. the costs will be overstated
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The Scarcity Principle applies to（）
A. consumers primarily
B. firms primarily
C. poor people primarily
D. everyone
Economists use abstract models because（）
A. they are useful for describing general patterns of behavior
B. computers have allowed economists to develop abstract models
C. every economic situation is essentially the same, so specific details are unnecessary
D. every economic situation is unique, so it is impossible to make generalizations
Suppose that the extra cost to Tim of a third glass of soda is zero because he’s at a restaurant that gives free refills. According to the Cost-Benefit Principle Tim should（）
A. not drink a third glass of soda
B. drink a third glass of soda if his total benefit from drinking soda is positive
C. drink a third glass of soda
D. drink a third glass of soda if the extra benefit of doing so is positive
Suppose Mary is willing to pay up to $15,000 for an used Ford pick-up truck. If she buys one for $12,000, her_would be_（）
A. benefit; $12,000
B. economic surplus; $12,000
C. cost; $15,000
D. economic surplus; $3,000
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