Chapter01ThinkingLikeanEconomist

MultipleChoiceQuestions

1.

Economicsisbestdefinedasthestudyof:

A.

pricesandquantities.

B.

inflationandinterestrates.

C.

howpeoplemakechoicesundertheconditionsofscarcityandtheresultsofthosechoices.

D.

wagesandincomes.

2.

Economicquestionsalwaysdealwith:

A.

financialmatters.

B.

politicalmatters.

C.

insufficientresources.

D.

choiceinthefaceoflimitedresources.

3.

Therangeoftopicsorissuesthatfitwithinthedefinitionofeconomicsis:

A.

limitedtomarketactivities,e.g.,buyingsoap.

B.

limitedtoindividualsandfirms.

C.

extremelywide,requiringonlytheideasofchoiceandscarcity.

D.

verylimited.

4.

Thecentralconcernofeconomicsis:

A.

poverty.

B.

scarcity.

C.

wealthaccumulation.

D.

overconsumption.

5.

Thescarcityprincipleindicatesthat:

A.

nomatterhowmuchonehas,itisneverenough.

B.

comparedto100yearsago,individualshavelesstimetoday.

C.

withlimitedresources,havingmoreof"this"meanshavinglessof"that."

D.

becausetradeoffsmustbemade,resourcesarethereforescarce.

6.

Thelogicalimplicationofthescarcityprincipleisthat:

A.

onewillneverbesatisfiedwithwhatonehas.

B.

aswealthincreases,makingchoicesbecomeslessnecessary.

C.

aswealthdecreases,makingchoicesbecomeslessnecessary.

D.

choicesmustbemade.

7.

Ifalltheworld'sresourcesweretomagicallyincreaseahundredfold,then:

A.

thescarcityprinciplewouldstillgovernbehavior.

B.

economicswouldnolongerberelevant.

C.

thescarcityprinciplewoulddisappear.

D.

tradeoffswouldbecomeunnecessary.

8.

Theprincipleofscarcityappliesto:

A.

thepoorexclusively.

B.

allconsumers.

C.

allfirms.

D.

everyone—consumers,firms,governments,andnations.

9.

Attheveryleast,JoeAverageandBillGatesarebothidenticallylimitedby:

A.

theirwealth.

B.

the24hoursthatcompriseaday.

C.

theirknowledge.

D.

theirinfluence.

10.

ForestisamountainmanlivingincompleteisolationinMontana.Heiscompletelyself-sufficientthroughhunting,fishing,andfarming.Hehasnotbeeninthecitytobuyanythinginfiveyears.Onecaninfer:

A.

thescarcityprincipledoesnotapplytoForest.

B.

Forestisnotrequiredtomakechoices.

C.

thescarcityprinciplestillappliesbecausemorehuntingmeanslessfishingandfarming.

D.

Forestisverysatisfied.

11.

Thescarcityprincipleappliesto:

A.

alldecisions.

B.

onlymarketdecisions,e.g.,buyingacar.

C.

onlynon-marketdecisions,e.g.,watchingasunset.

D.

onlythepoor.

12.

Chrishasaone-hourbreakbetweenclasseseveryWednesday.Chriscaneitherstayatthelibraryandstudyorgotothegymandworkout.ThedecisionChrismustmakeis:

A.

notaneconomicproblembecauseneitheronecostsmoney.

B.

notaneconomicproblembecauseit'sanhourthatiswastednomatterwhatChrisdoes.

C.

aneconomicproblembecausethetuitionChrispayscoversboththegymandthelibrary.

D.

aneconomicproblembecauseChrishasonlyonehourduringwhichhecanstudyorworkout.

13.

Joshwantstogotothefootballgamethisweekend,buthehasapaperdueonMonday.Itwilltakehimthewholeweekendtowritethepaper.Joshdecidedtostayhomeandworkonthepaper.Accordingtothescarcityprinciple,thereasonJoshdidn'tgotothegameisthat:

A.

Joshprefersschoolworktofootballgames.

B.

writingthepaperiseasierthangoingtothegame.

C.

Joshdoesn'thaveenoughtimeforwritingthepaperandgoingtothegame.

D.

it'stooexpensivetogotothegame.

14.

WhetherstudyingthesizeoftheU.S.economyorthenumberofchildrenacouplewillchoosetohave,theunifyingconceptisthatwantsare:

A.

limited,resourcesarelimited,andthuschoicesmustbemade.

B.

unlimited,resourcesarelimited,andthuschoicesmustbemade.

C.

unlimited,resourcesarelimitedtosomebutnottoothers,andthussomepeoplemustmakechoices.

D.

unlimited,resourcesarelimited,andthusgovernmentneedstodomore.

15.

Thecost-benefitprincipleindicatesthatanactionshouldbetaken:

A.

ifthetotalbenefitsexceedthetotalcosts.

B.

iftheaveragebenefitsexceedtheaveragecosts.

C.

ifthenetbenefit(benefitminuscost)iszero.

D.

iftheextrabenefitisgreaterthanorequaltotheextracosts.

16.

Whenapersondecidestopursueanactivityaslongastheextrabenefitsareatleastequaltotheextracosts,thatpersonis:

A.

violatingthecost-benefitprinciple.

B.

followingthescarcityprinciple.

C.

followingthecost-benefitprinciple.

D.

pursuingtheactivitytoolong.

17.

Choosingtostudyforanexamuntiltheextrabenefit(improvedscore)equalstheextracost(mentalfatigue)is:

A.

notrational.

B.

anapplicationofthecost-benefitprinciple.

C.

anapplicationofthescarcityprinciple.

D.

therelevantopportunitycost.

18.

Thescarcityprincipletellsusthat__________,andthecost-benefitprincipletellsus__________.

A.

choicesmustbemade;howtomakethechoices

B.

choicesmustbemade;thatthecostscanneveroutweighthebenefitsofthechoices

C.

raregoodsareexpensive;thatthecostsshouldoutweighthebenefitsofthechoices

D.

raregoodsareexpensive;thatthecostscanneveroutweighthebenefitsofthechoices

19.

Accordingtothecost-benefitprinciple:

A.

thelowestcostactivityusuallygivesthelowestbenefit.

B.

apersonshouldalwayschoosetheactivitywiththelowestcost.

C.

apersonshouldalwayschoosetheactivitywiththegreatestbenefit.

D.

theextracostsandbenefitsofanactivityaremoreimportantconsiderationsthanthetotalcostsandbenefits.

20.

Arationalpersonisonewho:

A.

isreasonable.

B.

makeschoicesthatareeasilyunderstood.

C.

possesseswell-definedgoalsandseekstoachievethem.

D.

ishighlycynical.

21.

TheseventhglassofsodathatTimconsumeswillproduceanextrabenefitof10centsandhasanextracostofzero(Timiseatingatthecafeteria).Thecost-benefitprinciplepredictsthatTimwill:

A.

realizehehashadtoomuchsodatodrinkandgohome.

B.

drinktheseventhglassandcontinueuntilthemarginalbenefitofdrinkinganotherglassofsodaiszero.

C.

volunteertoemptyoutthefountain.

D.

notdrinktheseventhglass.

22.

Janiemusteithermowthelawnorwashclothes,earningherabenefitof$30or$45,respectively.Shedislikesbothequallyandtheybothtakethesameamountoftime.Janiewillthereforechooseto_________becausetheeconomicsurplusis________.

A.

mowthelawn;greater

B.

washclothes;greater

C.

mowthelawn;smaller

D.

washclothes;smaller

23.

Deandecidedtoplaygolfratherthanpreparefortomorrow'sexamineconomics.Onecaninferthat:

A.

Deanhasmadeanirrationalchoice.

B.

Deanisdoingpoorlyinhiseconomicsclass.

C.

theeconomicsurplusfromplayinggolfexceededthesurplusfromstudying.

D.

thecostofstudyingwaslessthanthecostofgolfing.

Larrywasacceptedatthreedifferentgraduateschools,andmustchooseone.EliteUcosts$50,000peryearanddidnotofferLarryanyfinancialaid.LarryvaluesattendingEliteUat$60,000peryear.StateCollegecosts$30,000peryear,andofferedLarryanannual$10,000scholarship.LarryvaluesattendingStateCollegeat$40,000peryear.NoNameUcosts$20,000peryear,andofferedLarryafull$20,000annualscholarship.LarryvaluesattendingNoNameat$15,000peryear.

24.

TheopportunitycostofattendingEliteUis:

A.

$50,000

B.

$10,000

C.

$20,000

D.

$15,000

25.

TheopportunitycostofattendingStateCollegeis:

A.

$30,000

B.

$20,000

C.

$15,000

D.

$10,000

26.

Larrymaximizeshissurplusbyattending:

A.

EliteU,because$60,000isgreaterthanthebenefitattheotherschools.

B.

StateCollege,becausethedifferencebetweenthebenefitandcostisgreatestthere.

C.

NoNameU,becauseLarryhasafullscholarshipthere.

D.

EliteU,becausetheopportunitycostsofattendingEliteUarethelowest.

27.

LarryhasdecidedtogotoEliteU.Assumingthatallofthevaluesdescribedarecorrect,forLarrytodecideonEliteU,hemusthave:

A.

calculatedhissurplusfromeachchoiceandpickedtheonewiththehighestsurplus.

B.

underestimatedthebenefitsofattendingNoName.

C.

miscalculatedthesurplusofattendingEliteU.

D.

determinedtheopportunitycostofeachchoiceandpickedtheonewiththelowestopportunitycost.

28.

Jenspendsherafternoonatthebeach,paying$1torentabeachumbrellaand$11forfoodanddrinksratherthanspendinganequalamountofmoneytogotoamovie.Theopportunitycostofgoingtothebeachis:

A.

the$12shespentontheumbrella,foodanddrinks.

B.

only$1becauseshewouldhavespentthemoneyonfoodanddrinkswhetherornotshewenttothebeach.

C.

themovieshemissedseeing.

D.

themovieshemissedseeingplusthe$12shespentontheumbrella,foodanddrinks.

29.

Relativetoapersonwhoearnsminimumwage,apersonwhoearns$30perhourhas:

A.

aloweropportunitycostofworkinglongerhours.

B.

ahigheropportunitycostoftakingadayoff.

C.

aloweropportunitycostofdrivingfarthertowork.

D.

thesameopportunitycostofspendingtimeonleisureactivities.

30.

Theopportunitycostofanactivityisthevalueof:

A.

analternativeforgone.

B.

thenext-bestalternativeforgone.

C.

theleast-bestalternativeforgone.

D.

thedifferencebetweenthechosenactivityandthenext-bestalternativeforgone.

31.

Amyisthinkingaboutgoingtothemoviestonight.Aticketcosts$7andshewillhavetocancelherdog-sittingjobthatpays$30.Thecostofseeingthemovieis:

A.

$7.

B.

$30.

C.

$37.

D.

$37minusthebenefitofseeingthemovie.

32.

Economicsurplusis:

A.

thebenefitgainedbytakinganaction.

B.

thepricepaidtotakeanaction.

C.

thedifferencebetweenthebenefitgainedandthecostincurredoftakinganaction.

D.

thewagesomeonewouldhavetoearninordertotakeanaction.

33.

TheGovernorofyourstatehascutthebudgetfortheUniversityandincreasedspendingonMedicaid.Thisisanexampleof:

A.

thepitfallsofconsideringaveragecostsinsteadofmarginalcosts.

B.

poornormativeeconomicdecisionmaking.

C.

poorpositiveeconomicdecisionmaking.

D.

choiceinthefaceoflimitedresources.

34.

Sallyearned$25,000peryearbeforeshebecameamother.Aftershebecameamother,shetoldheremployerthatheropportunitycostofworkingisnow$50,000,andsosheisnotwillingtoworkforanythingless.Herdecisionisbasedon:

A.

thehighcostofraisingachild.

B.

herdesiretosaveforherchild'scollegeexpenses.

C.

herincreasedvaluetoheremployer.

D.

thevaluesheplacesonspendingtimewithherchild.

35.

Alexreceivedafour-yearscholarshiptoStateU.thatcoveredtuitionandfees,roomandboard,andbooksandsupplies.Asaresult:

A.

attendingStateU.forfouryearsiscostlessforAlex.

B.

AlexhasnoincentivetoworkhardwhileatStateU.

C.

thecostofattendingStateU.istheamountofmoneyAlexcouldhaveearnedworkingforfouryears.

D.

thecostofattendingStateU.isthesumofthebenefitsAlexwouldhavehadattendingeachofthefourotherschoolstowhichAlexhadbeenadmitted.

36.

SupposeMaryiswillingtopayupto$15,000forausedFordpick-uptruck,butshefindsonefor$12,000.Her__________is__________.

A.

benefit;$12,000

B.

cost;$15,000

C.

economicsurplus;$3,000

D.

economicsurplus;$12,000

37.

Ingeneral,rationaldecisionmakingrequiresonetochoosetheactionsthatyieldthe:

A.

largesttotalbenefits.

B.

smallesttotalcosts.

C.

smallestnetbenefits.

D.

largesteconomicsurpluses.

38.

Supposethemostyouwouldbewillingtopayforaplanetickethomeis$250,butyoubuyoneonlinefor$175.Theeconomicsurplusofbuyingtheonlineticketis:

A.

$175.

B.

$250.

C.

$75.

D.

$0.

39.

Theuseofeconomicmodels,likethecost-benefitprinciple,meanseconomistsbelievethat:

A.

thisisexactlyhowpeoplechoosebetweenalternatives.

B.

thisisareasonableabstractionofhowpeoplechoosebetweenalternatives.

C.

thosewhoexplicitlymakedecisionsthiswayaresmarter.

D.

withenougheducation,allpeoplewillstarttoexplicitlymakedecisionsthisway.

40.

Jennadecidestoseeamoviethatcosts$7fortheticketandhasanopportunitycostof$20.Afterthemovie,shesaystooneofherfriendsthatthemoviewasnotworthit.Apparently:

A.

Jennafailedtoapplythecost-benefitmodeltoherdecision.

B.

Jennawasnotrational.

C.

Jennaoverestimatedthebenefitsofthemovie.

D.

Jennaunderestimatedthebenefitsofthemovie.

41.

Mostofusmakesensibledecisionsmostofthetime,because:

A.

weknowthecost-benefitprinciple.

B.

subconsciouslyweareweighingcostsandbenefits.

C.

mostpeopleknowaboutthescarcityprinciple.

D.

weconducthypotheticalmentalauctionswhenwemakedecisions.

42.

Supposeapersonmakesachoicethatseemsinconsistentwiththecost-benefitprinciple.Whichofthefollowingstatementsrepresentsthemostreasonableconclusiontodraw?

A.

Theperson(explicitlyorimplicitly)over-estimatedthebenefitsorunder-estimatedthecostsorboth.

B.

Thecost-benefitprincipleisrarelytrue.

C.

Thepersondoesnotgrasphowdecisionsshouldbemade.

D.

Thepersonissimplyirrational.

43.

Economicmodelsareintendedto:

A.

applytoallexamplesequallywell.

B.

eliminatedifferencesinthewaypeoplebehave.

C.

generalizeaboutpatternsindecision-making.

D.

distinguisheconomicsstudentsfromeveryoneelse.

44.

Economicmodelsclaimtobe:

A.

reasonableabstractionsofhowpeoplemakechoices,highlightingthemostimportantfactors.

B.

exactreplicationsofthedecision-makingprocesspeopleuse.

C.

interestingchalkboardexerciseswithlittleapplicabilitytotherealworld.

D.

exceptionallyaccuratemethodsofpredictingnearlyallbehaviorofeveryone.

45.

Thecost-benefitmodelusedbyeconomistsis:

A.

unrealisticbecauseitistoodetailedandspecifictoapplytoavarietyofsituations.

B.

unrealisticbecauseeveryonecanthinkoftimeswhenheorsheviolatedtheprinciple.

C.

usefulbecauseeveryonefollowsitallofthetime.

D.

usefulbecausemostpeoplefollowitmostofthetime.

46.

Barryownsaclothingstoreinthemallandhasaskedtwoeconomicconsultantstodevelopmodelsofconsumerbehaviorthathecanusetoincreasesales.Barryshouldchoosethemodelthat:

A.

doesnotincludesimplifyingassumptions.

B.

isthemostdetailedandcomplex.

C.

assumesthatconsumersapplythecost-benefitprinciple.

D.

predictsthatconsumerswillalwayspreferBarry'sstoretothecompetingstores.

47.

Economistsuseabstractmodelsbecause:

A.

everyeconomicsituationisunique,soitisimpossibletomakegeneralizations.

B.

everyeconomicsituationisessentiallythesame,sospecificdetailsareunnecessary.

C.

theyareusefulfordescribinggeneralpatternsofbehavior.

D.

computershaveallowedeconomiststodevelopabstractmodels.

48.

Mostpeoplemakesomedecisionsbasedonintuitionratherthancalculation.Thisis:

A.

irrational,becauseintuitionisoftenwrong.

B.

consistentwiththeeconomicmodelofdecision-making,becausecalculatingcostsandbenefitsleadstodecision-makingpitfalls.

C.

consistentwiththeeconomicmodelbecausepeopleintuitivelycomparetherelativecostsandbenefitsofthechoicestheyface.

D.

inconsistentwiththeeconomicmodel,butrationalbecauseintuitiontakesintoaccountnon-financialconsiderations.

49.

Moehasabigexamtomorrow.Heconsideredstudyingthisevening,butdecidedtogooutwithCurlyinstead.SinceMoealwayschoosesrationally,itmustbetruethat:

A.

theopportunitycostofstudyingtonightislessthanthevalueMoegetsfromspendingtimewithCurly.

B.

theopportunitycostofstudyingtonightisequaltothevalueMoegetsfromspendingtimewithCurlyminusthecostofearningalowgradeontheexam.

C.

MoegetsmorebenefitfromspendingtimewithCurlythanfromstudying.

D.

MoegetslessbenefitfromspendingtimewithCurlythanfromstudying.

50.

Ifonefailstoaccountforimplicitcostsindecisionmaking,thenapplyingthecost-benefitrulewillbeflawedbecause:

A.

thebenefitswillbeoverstated.

B.

thecostswillbeunderstated.

C.

thebenefitswillbeunderstated.

D.

thecostswillbeoverstated.

YourclassmatesfromtheUniversityofChicagoareplanningtogotoMiamiforspringbreak,andyouareundecidedaboutwhetheryoushouldgowiththem.Theround-tripairfaresare$600,butyouhaveafrequent-flyercouponworth$500thatyoucouldusetopaypartoftheairfare.Allothercostsforthevacationareexactly$900.Themostyouwouldbewillingtopayforthetripis$1400.Youronlyalternativeuseforyourfrequent-flyercouponisforyourtriptoAtlantatwoweeksafterthebreaktoattendyoursister'sgraduation,whichyourparentsareforcingyoutoattend.TheChicago-Atlantaround-tripairfaresare$450.

51.

Ifyoudonotusethefrequent-flyercoupontofly,shouldyougotoMiami?

A.

Yes,yourbenefitismorethanyourcost.

B.

No,yourbenefitislessthanyourcost.

C.

Yes,yourbenefitisequaltoyourcost.

D.

No,becausetherearenobenefitsinthetrip.

52.

WhatistheopportunitycostofusingthecouponfortheMiamitrip?

A.

$100

B.

$450

C.

$500

D.

$550

53.

Ifyouusethefrequent-flyercoupontoflytoAtlanta,wouldyougetanyeconomicsurplusbymakingthetrip?

A.

No,thereisalossof$50.

B.

Yes,surplusof$350.

C.

Yes,surplusof$400.

D.

Yes,surplusof$100.

54.

IftheChicago-Atlantaround-tripairfareis$350,shouldyougotoMiami?

A.

No,thereisalossof$50.

B.

No,thereisalossof$100.

C.

Yes,thereiseconomicsurplusof$50.

D.

Yes,thereiseconomicsurplusof$400.

55.

Patearns$25,000peryear(aftertaxes),andPat'sspouse,Chris,earns$35,000(aftertaxes).Theyhavetwopre-schoolchildren.Childcarefortheirchildrencosts$12,000peryear.Pathasdecidedtostayhomeandtakecareofthechildren.Patmust:

A.

valuespendingtimewiththechildrenbymorethan$25,000.

B.

valuespendingtimewiththechildrenbymorethan$12,000.

C.

valuespendingtimewiththechildrenbymorethan$13,000.

D.

valuespendingtimewiththechildrenasmuchasdoesChris.

Youpaid$35foraticket(whichisnon-refundable)toseeSPAM,alocalrockband,inconcertonSaturday.(Assumethatyouwouldnothavebeenwillingtopayanymorethan$35forthisconcert.)YourbosscalledandsheislookingforsomeonetocoverashiftonSaturdayatthesametimeastheconcert.Youwillhavetowork4hoursandshewillpayyoutimeandahalf,whichis$9/hr.

56.

ShouldyougototheconcertinsteadofworkingSaturday?

A.

Yes,yourbenefitismorethanyourcost.

B.

No,yourbenefitislessthanyourcost.

C.

Yes,yourbenefitisequaltoyourcost.

D.

No,becausetherearenobenefitsintheconcert.

57.

Whatistheopportunitycostofgoingtotheconcert?

A.

$1

B.

$9

C.

$35

D.

$36

58.

Whatisyouropportunitycost,ifyougotoworkonSaturday?

A.

$0

B.

$9

C.

$35

D.

$36

59.

YoureconomicsurplusofgoingtoworkonSaturdayis:

A.

$0

B.

$1

C.

$35

D.

$36

Matthasdecidedtopurchasehistextbooksforthesemester.HisoptionsaretopurchasethebooksviatheInternetwithnextdaydeliverytohishomeatacostof$175,ortodrivetocampustomorrowtobuythebooksattheuniversitybookstoreatacostof$170.Lastweekhedrovetocampustobuyaconcertticketbecausetheyoffered25percentofftheregularpriceof$16.因為他們提供75折的正常價格16美元。

60.

ThebenefittoMattofbuyinghisbooksatthebookstoreis_____.

A.

$5

B.

$9

C.

$170

D.

$175

61.

ThebenefittoMattwas____fromdrivingtocampustobuytheconcertticketlastweek.

A.

$2

B.

$4

C.

$9

D.

$16

62.

Accordingtothecost-benefitprinciple:

A.

itwouldnotberationalforMatttodrivetocampustopurchasethebooksbecausethe$5savingisonlytwopercentofthecostofthebooks,andthatismuchlessthanthe25percenthesavedontheconcertticket.

B.

itwouldberationalforMatttodrivetocampustopurchasethebooksbecauseitcostslesstobuythebookstherethanviatheInternet.

C.

itwouldberationalforMatttodrivetocampustopurchasethebooksbecausethe$5savingismorethanhesavedbydrivingtheretobuytheconcertticket.

D.

itwouldnotberationalforMatttodrivetocampustopurchasethebooksbecausethecostofgasandhistimemustcertainlybemorethanthe$5hewouldsave.

63.

AssumetheminimumthatMattwouldbewillingtoaccepttodrivetotheuniversitycampusisequaltotheamounthesavedontheconcertticket.WhatwouldbetheamountofhiseconomicsurplusifheboughthistextbooksattheuniversitybookstoreratherthanviatheInternet?

A.

$5

B.

$1

C.

$50

D.

$20

64.

Themarginalbenefitofanactivityisthe:

A.

sameasthetotalbenefitsoftheactivity.

B.

totalbenefitdividedbytheleveloftheactivity.

C.

extrabenefitassociatedwithanextraunitoftheactivity.

D.

totalbenefitassociatedwithanextraunitoftheactivity.

65.

Ifthemarginalcostsof1,2,and3hoursoftalkingonthephoneare$50,$75,and$105respectively,thenthetotalcostsareof1,2and3hoursoftalkingonthephoneare:

A.

$50,$150,and$315respectively.

B.

$50,$41.67,and$115respectively.

C.

$50,$125,and$230respectively.

D.

$50,$175,and$405respectively.

66.

Ifthetotalbenefitsofwatching1,2,and3baseballgamesonTVare100,120,and125respectively,thenthemarginalbenefitsofwatching1,2and3baseballgamesonTVare:

A.

100,120,and125respectively.

B.

100,20,and5respectively.

C.

100,609,and41.67respectively.

D.

100,240,and375respectively.

67.

Theextrabenefitthatcomesfromanextraunitofactivityiscalledthe_________oftheactivity.

A.

marginalbenefit

B.

marginalcost

C.

averagebenefit

D.

reservationbenefit

68.

Themarginalcostofanactivityisthe:

A.

changeinthecostoftheactivitythatresultsfromanextraunitoftheactivity.

B.

sameasthetotalcostoftheactivity.

C.

ratiooftotalcosttotheleveloftheactivity.

D.

changeintheleveloftheactivitydividedbythechangeinthecostoftheactivity.

69.

Theextracostthatresultsfromanextraunitofanactivityisthe:

A.

marginalbenefit.

B.

marginalcost.

C.

reservationcost.

D.

sameastheopportunitycost.

70.

Dividingthetotalcostofnunitsofanactivitybynrevealsthe:

A.

averagebenefit.

B.

marginalcost.

C.

unitspercost.

D.

averagecost.

71.

Youhadtopay$600(non-refundable)foryourmealplanfortheFallsemester,whichgivesyouupto150meals.Ifyoueatallofthemeals,youraveragecostforamealequals:

A.

$6.

B.

$5.

C.

$4.

D.

$0.25.

72.

Youhadtopay$600(non-refundable)foryourmealplanforFallsemesterwhichgivesyouupto150meals.Ifyoueatonly100meals,youraveragecostforamealequals:

A.

$6.

B.

$5.

C.

$4.

D.

$0.25.

73.

Youhadtopay$600(non-refundable)foryourmealplanforFallsemester,whichgivesyouupto150meals.Ifyoueatonly100meals,yourmarginalcostforthe100thmealis:

A.

$6

B.

$4

D.

$0

74.

Theaveragebenefitofanactivityisthe:

A.

totalbenefitoftheactivitydividedbythenumberofunits.

B.

numberofunitsdividedbythetotalbenefitoftheactivity.

C.

numberofunitstimesthetotalbenefitoftheactivity.

D.

extrabenefitforoneadditionalunitoftheactivity.

75.

Yousave$10ongaseveryweeksinceyouliveclosetothebusstop.Youhaveclassfivedaysaweek.Whatisyouraveragebenefitperdayforlivingclosetothebusstop?

A.

$10

B.

$5

C.

$2

76.

Yourscholarshipdependsonyourmaintaininga3.5cumulativeGPA.YourGPAforlastsemesterwas3.6,whichbroughtyourcumulativeGPAdown.Whatmustbetrue?

A.

Yourmarginalgrades(lastsemester'sgrades)werehigherthanyouroverallGPA.

B.

Yourmarginalgrades(lastsemester'sgrades)werelowerthanyouroverallGPA.

C.

Ifthissemester'sgradesarethesameaslastsemester's,youroverallGPAwillstaythesame.

D.

Ifthissemester'sgradesarethesameaslastsemester's,youmightloseyourscholarship.

77.

Refertothetableabove.Theaveragecostof4unitsofthisactivityis:

A.

$20

B.

$25

C.

$30

D.

$40

78.

Refertothetableabove.Themarginalcostofthe3rdunitofthisactivityis:

A.

$30

B.

$25

C.

$20

D.

$10

79.

Refertothetableabove.Theaveragebenefitof3unitsofactivityis:

A.

$80

B.

$60

C.

$40

D.

$20

80.

Refertothetableabove.Themarginalbenefitofthe5thunitofactivityis:

A.

$60

B.

$50

C.

$5

D.

$0

81.

Refertothetableabove.Accordingtothecost-benefitprinciple,thelevelofactivitythatprovidesthelargestnetbenefitis:

A.

1

B.

3

C.

4

D.

6

82.

Refertothetableabove.Theaveragecostof5unitsofactivityis:

A.

$1

B.

$2

C.

$3

D.

$4

83.

Refertothetableabove.Themarginalcostofthe4thunitofactivityis:

A.

$1

B.

$2

C.

$3

D.

$4

84.

Refertothetableabove.Theaveragebenefitof4unitsofactivityis:

A.

$4

B.

$5

C.

$6

D.

$10

85.

Refertothetableabove.Themarginalbenefitofthe6thunitofactivityis:

A.

$1

B.

$2

C.

$4

D.

$10

86.

Refertothetableabove.Accordingtothecost-benefitprinciple,thelevelofactivitythatprovidesthelargestnetbenefitis:

A.

1

B.

4

C.

5

D.

7

87.

Refertothetableabove.Thetotalvalueofdonationsraisedbythreeemployeesis:

三名雇員的善款的總價值是：

A.

$43,899.

B.

$45,000.

C.

$48,911.

D.

$51,963.

88.

Refertothetableabove.Thetotallaborcostof4employeesis:

A.

$21,500.

B.

$22,000.

C.

$38,000.

D.

$43,121.

89.

Refertothetableabove.ThePresidentofWhat'sAMatterUdecidestohirefundraisersaslongastheaveragebenefitexceedstheaveragecost,resultingin__________employeesbeinghiredandanetbenefit(totaldonationsminustotallaborcosts)of__________.

A.

5;$17,080

B.

5;$67,080

C.

4;$60,000

D.

4;$22,000

90.

Refertothetableabove.Themarginalbenefit(extradonations)ofthe2ndemployeeis:

A.

$42,426.

B.

$21,213.

C.

$12,426.

D.

$11,337.

91.

Refertothetableabove.Themarginallaborcost(extralaborcost)ofthe4themployeeis:

A.

$9,500.

B.

$10,750.

C.

$11,000.

D.

$13,000.

92.

Refertothetableabove.TheChairmanoftheEconomicsDepartmentatWhat'sAMatterUsaysthatfundraisersshouldbehiredaslongastheirmarginaldonationsexceedtheirmarginallaborcosts.Followingthiscriterion,__________employeesarehiredandnetbenefitsare__________.

ReferTo:01-92

A.

1;$22,000

B.

2;$25,426

C.

3;$25,426

D.

2;$3,476

93.

Refertothetableabove.Thenetbenefitofhiringfundraisersislargestwhen__________employeesarehired.

ReferTo:01-9