Question 1

The difference between the earnings that a firm receives from selling its good or service and the costs of production for the good or service is the

Accepted Answer

A)  marginal benefit
B)  opportunity cost
C)  utility
D)  profit D

Question 2

You and a friend decide to go to a concert and you purchase a ticket for $50.Your manager calls and asks you to work that evening for four hours.You earn $9.50 per hour.What is the value of the opportunity cost of going to the concert?

Accepted Answer

$38.
$9.5...

Question 3

The law of increasing marginal costs states that

Accepted Answer

A)  Ceteris paribus, as more and more of an activity are done; the additional costs of the activity tend to decrease.
B)  Ceteris paribus, as more and more of an activity are done; the additional costs of the activity tend to increase.
C)  Ceteris paribus, as more and more of an activity are done; the additional benefits of the activity tend to decrease.
D)  Ceteris paribus, as more and more of an activity are done; the additional benefits of the activity tend to increase. B

Question 4

The concept of ____________________ is used to isolate important relationships.

Accepted Answer

A)  opportunity cost
B)  marginal benefit
C)  ceteris paribus
D)  diminishing marginal cost

Question 5

Decisions made "at the margin" require

Accepted Answer

A)  comparing the benefits and costs of the next, or incremental, of consuming a good or service
B)  comparing the total benefits and costs of a consuming a good
C)  comparing the total benefits and the net costs of consuming a good
D)  comparing the net benefits and total costs of consuming a good

Question 6

Because of the concept of scarcity

Accepted Answer

A)  choices need to be made
B)  marginal benefits increases
C)  marginal costs decrease
D)  total returns of benefit remains unchanged

Question 7

The opportunity cost of consuming more today is

Accepted Answer

A)  less production of goods in the future
B)  less consumption of goods in the future
C)  more production of goods in the future
D)  more consumption of goods in the future

Question 8

The additional or incremental cost associated with a choice is known as

Accepted Answer

A)  the marginal cost
B)  the marginal benefit
C)  marginal utility
D)  utility A

Question 9

You and a friend decide to go to a concert and you purchase a ticket for $50.Your manager calls and asks you to work that evening for four hours.You earn $9.50 per hour.What is the value of the opportunity cost of working?

Accepted Answer

The answer of You and a friend decide to go...

Question 10

________________ is a synonym for satisfaction or happiness.

Accepted Answer

A)  Marginal cost
B)  Opportunity cost
C)  Utility
D)  Scarcity

Question 11

Consider the data in Table 2.How many apps would satisfy the marginal decision rule?

Accepted Answer

A)  1
B)  2
C)  3
D)  4

Question 12

Which of the following would be a focus of macroeconomics?

Accepted Answer

A)  The study of how individuals make a decision.
B)  The study of how businesses make a profit.
C)  The study of how the price for a product is determined.
D)  The study of changes of price levels in an economy

Question 13

Which of the following is true?

Accepted Answer

A)  Net benefit = total benefit - total cost
B)  Net benefit = total cost - total benefit
C)  Net benefit = total cost + total benefit
D)  Net benefit = total benefit/total cost

Question 14

Consider the data in Table 2.What is the net benefit for the third app purchased? Table SEQ Table 2: Total Benefits and Total Costs for Apps
  Nurnber of Apps  Total Berafit $ )   Total Costs $ )  12015250303704548560\begin{array} { | c | c | c | } \hline 	ext { Nurnber of Apps } & 	ext { Total Berafit } \$ 	ext { )  } & 	ext { Total Costs } \$ 	ext { )  } \\hline 1 & 20 & 15 \\hline 2 & 50 & 30 \\hline 3 & 70 & 45 \\hline 4 & 85 & 60 \\hline\end{array} Nurnber of Apps 1234​ Total Berafit $ )  20507085​ Total Costs $ )  15304560​​

Accepted Answer

A)  $25
B)  $20
C)  $15
D)  $10

Question 15

Explain how the concepts of scarcity and opportunity cost are related.

Accepted Answer

The inputs of production, or resources, ...

Question 16

Your second glass of water on a hot summer day will

Accepted Answer

A)  increase total utility and decrease marginal utility
B)  decrease total utility and decrease marginal utility
C)  increase total utility and increase marginal utility
D)  decrease total utility and increase marginal utility

Question 17

You are considering buying a new laptop.The economic way of thinking suggests that you will buy the laptop if

Accepted Answer

A)  total benefits is greater than total costs
B)  your income is above average
C)  the marginal cost of is less than the marginal benefit for the laptop.
D)  the marginal benefit is greater than the marginal cost of the laptop.

Question 18

Explain how microeconomics affects macroeconomics.

Accepted Answer

While macroeconomics focuses o...

Question 19

In the following table, the marginal benefits for the 3rd malt is Table SEQ Table 1: Marginal and Total Benefit for Chocolate Malts
  # of Chocolate  Malts  Margiral Benefits  Total  Benefits 1$6.002$5.00$11.003$15.004$3.005$20.00\begin{array} { | c | c | c | } \hline \begin{array} { c } 	ext { \# of Chocolate } \	ext { Malts }\end{array} & 	ext { Margiral Benefits } & \begin{array} { c } 	ext { Total } \	ext { Benefits }\end{array} \\hline 1 & \$ 6.00 & \\hline 2 & \$ 5.00 & \$ 11.00 \\hline 3 & & \$ 15.00 \\hline 4 & \$ 3.00 & \\hline 5 & & \$ 20.00 \\hline\end{array} # of Chocolate  Malts ​12345​ Margiral Benefits $6.00$5.00$3.00​ Total  Benefits ​$11.00$15.00$20.00​​

Accepted Answer

A)  $1.00
B)  $4.00
C)  $5.00
D)  $15.00

Question 20

A _______________ is a cost that, once incurred, cannot be recovered.

Accepted Answer

A)  marginal cost
B)  diminishing cost
C)  sunk cost
D)  incremental cost

Exam 1: An Introduction to the Economic Way of Thinking

The difference between the earnings that a firm receives from selling its good or service and the costs of production for the good or service is the

Correct Answer
verified
D

You and a friend decide to go to a concert and you purchase a ticket for $50.Your manager calls and asks you to work that evening for four hours.You earn $9.50 per hour.What is the value of the opportunity cost of going to the concert?

Correct Answer
verified
$38.
$9.5...
View Answer

The law of increasing marginal costs states that

Correct Answer
verified
B

The concept of ____________________ is used to isolate important relationships.

Correct Answer
verified

Decisions made "at the margin" require

Correct Answer
verified

Because of the concept of scarcity

Correct Answer
verified

The opportunity cost of consuming more today is

Correct Answer
verified

The additional or incremental cost associated with a choice is known as

Correct Answer
verified
A

You and a friend decide to go to a concert and you purchase a ticket for $50.Your manager calls and asks you to work that evening for four hours.You earn $9.50 per hour.What is the value of the opportunity cost of working?

Correct Answer
verified

________________ is a synonym for satisfaction or happiness.

Correct Answer
verified

Consider the data in Table 2.How many apps would satisfy the marginal decision rule?

Correct Answer
verified

Which of the following would be a focus of macroeconomics?

Correct Answer
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Which of the following is true?

Correct Answer
verified

Correct Answer
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Explain how the concepts of scarcity and opportunity cost are related.

Correct Answer
verified
The inputs of production, or resources, ...
View Answer

Your second glass of water on a hot summer day will

Correct Answer
verified

You are considering buying a new laptop.The economic way of thinking suggests that you will buy the laptop if

Correct Answer
verified

Explain how microeconomics affects macroeconomics.

Correct Answer
verified
While macroeconomics focuses o...
View Answer

Correct Answer
verified

A _______________ is a cost that, once incurred, cannot be recovered.

Correct Answer
verified

Exam 1: An Introduction to the Economic Way of Thinking

The difference between the earnings that a firm receives from selling its good or service and the costs of production for the good or service is the

Correct AnswerverifiedD

You and a friend decide to go to a concert and you purchase a ticket for $50.Your manager calls and asks you to work that evening for four hours.You earn $9.50 per hour.What is the value of the opportunity cost of going to the concert?

Correct Answerverified$38. $9.5...View AnswerShow Answer

The law of increasing marginal costs states that

Correct AnswerverifiedB

The concept of ____________________ is used to isolate important relationships.

Correct AnswerverifiedShow Answer

Decisions made "at the margin" require

Correct AnswerverifiedShow Answer

Because of the concept of scarcity

Correct AnswerverifiedShow Answer

The opportunity cost of consuming more today is

Correct AnswerverifiedShow Answer

The additional or incremental cost associated with a choice is known as

Correct AnswerverifiedA

You and a friend decide to go to a concert and you purchase a ticket for $50.Your manager calls and asks you to work that evening for four hours.You earn $9.50 per hour.What is the value of the opportunity cost of working?

Correct AnswerverifiedShow Answer

________________ is a synonym for satisfaction or happiness.

Correct AnswerverifiedShow Answer

Consider the data in Table 2.How many apps would satisfy the marginal decision rule?

Correct AnswerverifiedShow Answer

Which of the following would be a focus of macroeconomics?

Correct AnswerverifiedShow Answer

Which of the following is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Explain how the concepts of scarcity and opportunity cost are related.

Correct AnswerverifiedThe inputs of production, or resources, ...View AnswerShow Answer

Your second glass of water on a hot summer day will

Correct AnswerverifiedShow Answer

You are considering buying a new laptop.The economic way of thinking suggests that you will buy the laptop if

Correct AnswerverifiedShow Answer

Explain how microeconomics affects macroeconomics.

Correct AnswerverifiedWhile macroeconomics focuses o...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A _______________ is a cost that, once incurred, cannot be recovered.

Correct AnswerverifiedShow Answer

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D

Correct Answer
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$38.
$9.5...
View Answer

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B

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A

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The inputs of production, or resources, ...
View Answer

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While macroeconomics focuses o...
View Answer

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