By convention, there are two major divisions of economics, called（）
A. reservation price and opportunity cost
B. rational economics and irrational economics
C. microeconomics and macroeconomics
D. marginal benefit and marginal cost
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The extra cost that results from carrying out one additional unit of an activity is the__ of the activity（）
A. opportunity cost
B. reservation cost
C. marginal cost
D. marginal benefit
The Incentive Principle is an example of（）
A. over-estimating the benefits of an action
B. an economic decision-making pitfall
C. a normative economic principle
D. a positive economic principle
Due to the fact that Curly used his frequent flyer miles to fly to visit Moe, Curly told Moe that it didn’t cost him anything to visit. Is Curly correct（）
A. No, because Curly had to pay for earlier trips in order to earn the frequent flyer miles
B. No, because Curly could have used his frequent flyer miles to go somewhere else instead
C. Yes, because Curly could stay at Moe’s house for free
D. Yes, because Curly’s frequent flyer miles made the trip free
The last time gas prices increased drastically, sales of large Sport Utility Vehicles （SUVs） fell. Why（）
A. Higher gas prices increased the benefit of driving an SUV
B. Higher gas prices increased the cost of driving a SUV
C. Higher gas prices lowered the benefit of driving an SUV
D. Higher gas prices lowered the cost of driving a SUV
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