Question 1

You own a small deli that sells sandwiches,salads,and soup.Which factor is an implicit cost of the business?

Accepted Answer

A)  wages paid to part-time employees 
B)  the job offer you did not accept at a local catering service 
C)  bread,meat,and vegetables used to produce the items on your menu 
D)  your monthly utility bill 
A)  wages paid to part-time employees 
B)  the job offer you did not accept at a local catering service 
C)  bread,meat,and vegetables used to produce the items on your menu 
D)  your monthly utility bill

Question 2

If a person engages in mental accounting,he or she:

Accepted Answer

A)  is unwilling to recognize a loss and move on. 
B)  values some dollars more than others. 
C)  tends to avoid making decisions. 
D)  tries to balance his or her bank account mentally,without writing anything down. 
A)  is unwilling to recognize a loss and move on. 
B)  values some dollars more than others. 
C)  tends to avoid making decisions. 
D)  tries to balance his or her bank account mentally,without writing anything down.

Question 3

To maximize total profit from a particular activity,consumers and firms evaluate each activity at the:

Accepted Answer

A)  average. 
B)  top. 
C)  margin. 
D)  end. 
A)  average. 
B)  top. 
C)  margin. 
D)  end.

Question 4

Suppose that Bob has a part-time business washing cars.He has washed nine cars on a given day;the marginal benefit of washing the tenth car is $20,and the marginal cost is $12.Bob should:

Accepted Answer

A)  wash the tenth car. 
B)  not wash the tenth car. 
C)  increase his marginal benefit. 
D)  There is not enough information to decide. 
A)  wash the tenth car. 
B)  not wash the tenth car. 
C)  increase his marginal benefit. 
D)  There is not enough information to decide.

Question 5

The amount by which an additional unit of an activity increases total cost is:

Accepted Answer

A)  net benefit. 
B)  marginal benefit. 
C)  negative benefit. 
D)  marginal cost. 
A)  net benefit. 
B)  marginal benefit. 
C)  negative benefit. 
D)  marginal cost.

You own a small deli that sells sandwiches,salads,and soup.Which factor is an implicit cost of the business?

If a person engages in mental accounting,he or she:

To maximize total profit from a particular activity,consumers and firms evaluate each activity at the:

Suppose that Bob has a part-time business washing cars.He has washed nine cars on a given day;the marginal benefit of washing the tenth car is $20,and the marginal cost is $12.Bob should:

The amount by which an additional unit of an activity increases total cost is:

First Principles

Economic Models

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas

Elasticity

Taxes

International Trade

The Rational Consumer

Behind the Supply Curve- Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, risk, and Private Information

Graphs in Economics

Consumer Preferences

Indifference Curve Analysis

Filters

Exam 9: Decision Making by Individuals and Firms

You own a small deli that sells sandwiches,salads,and soup.Which factor is an implicit cost of the business?

If a person engages in mental accounting,he or she:

To maximize total profit from a particular activity,consumers and firms evaluate each activity at the:

Suppose that Bob has a part-time business washing cars.He has washed nine cars on a given day;the marginal benefit of washing the tenth car is $20,and the marginal cost is $12.Bob should:

The amount by which an additional unit of an activity increases total cost is:

First Principles

Economic Models

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas

Elasticity

Taxes

International Trade

The Rational Consumer

Behind the Supply Curve- Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, risk, and Private Information

Graphs in Economics

Consumer Preferences

Indifference Curve Analysis

Filters