Achieve Chapter 1
Marah is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional cost for cups and lemonade mix of she decided to open up the stand. If Marah decides to open the lemonade stand, how much profit will she earn?
$-5
Aliyah is preparing to expand her IT consulting company. The current market rate for professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the table. What is the marginal cost (MC) and marginal benefit (MB) of hiring each worker? Using the rational rule to maximize her economic surplus, how many workers should Aliyah hire? _________________________________________________________ # workers Clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________4 32 _________________________________________________________ What is the marginal benefit for worker 1?
$165000
Rose Riley's parents have booked a family trip to Aspen, Colorado, during her spring break. They have agreed to pay for everything except for her plane ticket. Rose's friends recently decided to drive to Destin, Florida, for spring break. Rose must now decide whether to join her parents in Aspen or drive to the beach with her friends. The opportunity costs of joining her parents in Aspen included each of the following except. (a) the cost of the plane ticket to Aspen (b) memories she will miss with her friends (c) the stress of traveling via plane and navigating airports (d) the nonrefundable deposit her friends paid for the beach house in Destin
(d) the nonrefundable deposit her friends paid for the beach house in Destin
Neal is a coffee drinker. At the local coffee shop, the price of a cup of coffee is $3. Neal's total benefits from drinking coffee are indicated in the accompying table. Use this information to calculate Neals marginal benefit of consuming each cup of coffee cup per day Benefits _____________________________________________ 1 $8 ______________________________________________ 2 $14 _________________________________________________ 3 $18 _____________________________________________ 4 $20 _______________________________________________ 5 $21 ______________________________________________ Neal should consume ______ cups of coffee per day
3
Aliyah is preparing to expand her IT consulting company. The current market rate for professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the table. What is the marginal cost (MC) and marginal benefit (MB) of hiring each worker? Using the rational rule to maximize her economic surplus, how many workers should Aliyah hire? _________________________________________________________ # workers Clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________4 32 _________________________________________________________ How many workers should Aliyah hire?
4
Which of the following is the best definition of the opportunity cost of a decision?
Benefits from the best forgone alternative
Consider your decision to read this textbook on economics. Identify which of the four core principals of economics is most relevant for each aspect of that decision? (a) reading this textbook will help establish a solid foundation for understanding concepts you will learn in more advanced economic courses. This statement is related to the __________ Principal
Interdependence
The principal that your best choice depends on your other choices, the choices others make, developments in other markets, and expectations about the future is known as the _____ principal
Interdependence Principal
How is the economic surplus generated by a decision calculated?
It is the total benefits minus total cost arising from a decision
Ivan has inherited his mother's 1963 Chevrolet Corvette, which he values at $45,000. He decides that he might be willing to sell it, so he posts it on Craigslist for $55,000. Samanth is interested and willing to pay up to $72,000 for one. _______________________ willing to voluntary engage in this exchange
Ivan and Samantha are both
Consider your decision to read this textbook on economics. Identify which of the four core principals of economics is most relevant for each aspect of that decision? (c) the time you will spend reading this textbook can also be used to study for your chemistry exam. This statement is related to the _______________ Principal
Opportunity cost
Marah is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional cost for cups and lemonade mix of she decided to open up the stand. Based on this information, Marah ______ open the lemonade stand
Should
Marah is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional cost for cups and lemonade mix of she decided to open up the stand. The $10 spent on the sign represent a ________ cost
Sunk
In economics, what is meant by "optimal decisions are made at the margin?"
The idea of the margin is related to making decisions while thinking about the benefits and costs of small changes in behavior
Consider your decision to read this textbook on economics. Identify which of the four core principals of economics is most relevant for each aspect of that decision? (B) reading this textbook will require time and effort but doing so will help you improve your grade in this course. This statement is related to the ________ Principal
cost - benefit
Sunk costs should ______ be considered as part of the opportunity costs of a decision
never
The $5 burger joint gift card that your friend gave you for your birthday expires today. You can either use the gift card to buy yourself dinner at Burger joint, or you can stay home and eat a delicious home cooked meal. What is the opportunity cost of eating a home cooked meal?
the value of the ingredients that go into the home cooked meal, and the value of a five dollar dinner at Burger Joint
Aliyah is preparing to expand her IT consulting company. The current market rate for IT g is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah had will pay her $10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompying table. Use this information to calculate the marginal cost and marginal benefit of hiring each worker. _________________________________________________________ #of workers clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________ 4 32 _________________________________________________________ Using the rational rule to maximize her economic surplus, Aliyah should hire _______ workers
three
Juan McDonald is willing to pay $600 for a new iPad. Apple (the producer of iPads) is selling a new iPad for $700. it costs Apple $400 to produce this iPad. A voluntary economic transaction between Juan and Apple _______ occur because ________would be better off due to the transaction.
will not; only apple
Neal is a coffee drinker. At the local coffee shop, the price of a cup of coffee is $3. Neal's total benefits from drinking coffee are indicated in the accompying table. Use this information to calculate Neals marginal benefit of consuming each cup of coffee cup per day Benefits _____________________________________________ 1 $8 ______________________________________________ 2 $14 _________________________________________________ 3 $18 _____________________________________________ 4 $20 _______________________________________________ 5 $21 ______________________________________________ the marginal benefit of the fifth cup is
$1
Ivan has inherited his mother's 1963 Chevrolet Corvette, which he values at $45,000. He decides that he might be willing to sell it, so he posts it on Craigslist for $55,000. Samanth is interested and willing to pay up to $72,000 for one. How much economic surplus, if any does Ivan gain from engaging in this exchange?
$10000
Aliyah is preparing to expand her IT consulting company. The current market rate for professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the table. What is the marginal cost (MC) and marginal benefit (MB) of hiring each worker? Using the rational rule to maximize her economic surplus, how many workers should Aliyah hire? _________________________________________________________ # workers Clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________4 32 _________________________________________________________What is the marginal benefit for worker 3?
$105000
Aliyah is preparing to expand her IT consulting company. The current market rate for IT g is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah had will pay her $10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompying table. Use this information to calculate the marginal cost and marginal benefit of hiring each worker. _________________________________________________________ #of workers clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________ 4 32 _________________________________________________________ the first worker's marginal benefit is
$110000
Aliyah is preparing to expand her IT consulting company. The current market rate for professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the table. What is the marginal cost (MC) and marginal benefit (MB) of hiring each worker? Using the rational rule to maximize her economic surplus, how many workers should Aliyah hire? _________________________________________________________ # workers Clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________4 32 _________________________________________________________ What is the marginal benefit for worker 2?
$135000
it is a beautiful afternoon, and Jose is considering taking a Leisley two-hour stroll through the park. There are several other activities that Jose is conserding doing instead. The value Jose receives from each of the activities is provided in the table. ________________________________________________________ Activities Value _________________________________________________________Movie $5 _________________________________________________________ Napping $8 _________________________________________________________ chatting w/ friends $13 _________________________________________________________ Reading a book $15 _________________________________________________________ What is Joes's cost of taking a stroll through the park?
$15
Ivan has inherited his mother's 1963 Chevrolet Corvette, which he values at $45,000. He decides that he might be willing to sell it, so he posts it on Craigslist for $55,000. Samanth is interested and willing to pay up to $72,000 for one. How much economic surplus, if any, does Samantha gain from engaging in this exchange?
$17000
Neal is a coffee drinker. At the local coffee shop, the price of a cup of coffee is $3. Neal's total benefits from drinking coffee are indicated in the accompying table. Use this information to calculate Neals marginal benefit of consuming each cup of coffee cup per day Benefits _____________________________________________ 1 $8 ______________________________________________ 2 $14 _________________________________________________ 3 $18 _____________________________________________ 4 $20 _______________________________________________ 5 $21 ______________________________________________ The marginal benefit of the fourth cup is
$2
Gary Parker is willing to pay $700 for a new iPad. Apple (the producer of iPads) is selling a new iPad for $600. It costs Apple $400 to produce this iPad. How much economic surplus does apple receive if Gary purchases this iPad?
$200
Ivan has inherited his mother's 1963 Chevrolet Corvette, which he values at $45,000. He decides that he might be willing to sell it, so he posts it on Craigslist for $55,000. Samanth is interested and willing to pay up to $72,000 for one. How much total surplus, if any, is gained from this exchange?
$27000
Neal is a coffee drinker. At the local coffee shop, the price of a cup of coffee is $3. Neal's total benefits from drinking coffee are indicated in the accompying table. Use this information to calculate Neals marginal benefit of consuming each cup of coffee cup per day Benefits _____________________________________________ 1 $8 ______________________________________________ 2 $14 _________________________________________________ 3 $18 _____________________________________________ 4 $20 _______________________________________________ 5 $21 ______________________________________________ The marginal benefit of the third cup is
$4
Aliyah is preparing to expand her IT consulting company. The current market rate for IT g is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah had will pay her $10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompying table. Use this information to calculate the marginal cost and marginal benefit of hiring each worker. _________________________________________________________ #of workers clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________ 4 32 _________________________________________________________The fourth worker's marginal benefit is
$50000
Neal is a coffee drinker. At the local coffee shop, the price of a cup of coffee is $3. Neal's total benefits from drinking coffee are indicated in the accompying table. Use this information to calculate Neals marginal benefit of consuming each cup of coffee cup per day Benefits _____________________________________________ 1 $8 ______________________________________________ 2 $14 _________________________________________________ 3 $18 _____________________________________________ 4 $20 _______________________________________________ 5 $21 ______________________________________________ the marginal benefit of the second cup is
$6
Aliyah is preparing to expand her IT consulting company. The current market rate for IT g is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah had will pay her $10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompying table. Use this information to calculate the marginal cost and marginal benefit of hiring each worker. _________________________________________________________ #of workers clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________ 4 32 _________________________________________________________ the first worker's marginal cost is
$64000
Aliyah is preparing to expand her IT consulting company. The current market rate for IT g is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah had will pay her $10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompying table. Use this information to calculate the marginal cost and marginal benefit of hiring each worker. _________________________________________________________ #of workers clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________ 4 32 _________________________________________________________ the fourth worker's marginal cost is
$64000
Aliyah is preparing to expand her IT consulting company. The current market rate for IT g is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah had will pay her $10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompying table. Use this information to calculate the marginal cost and marginal benefit of hiring each worker. _________________________________________________________ #of workers clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________ 4 32 _________________________________________________________ the second worker's marginal cost is
$64000
Aliyah is preparing to expand her IT consulting company. The current market rate for IT g is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah had will pay her $10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompying table. Use this information to calculate the marginal cost and marginal benefit of hiring each worker. _________________________________________________________ #of workers clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________ 4 32 _________________________________________________________ the third worker's marginal cost is
$64000
Aliyah is preparing to expand her IT consulting company. The current market rate for professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the table. What is the marginal cost (MC) and marginal benefit (MB) of hiring each worker? Using the rational rule to maximize her economic surplus, how many workers should Aliyah hire? _________________________________________________________ # workers Clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________4 32 _________________________________________________________ What is the marginal cost for worker 1?
$64000
Aliyah is preparing to expand her IT consulting company. The current market rate for professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the table. What is the marginal cost (MC) and marginal benefit (MB) of hiring each worker? Using the rational rule to maximize her economic surplus, how many workers should Aliyah hire? _________________________________________________________ # workers Clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________4 32 _________________________________________________________What is the marginal cost for worker 2?
$64000
Aliyah is preparing to expand her IT consulting company. The current market rate for professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the table. What is the marginal cost (MC) and marginal benefit (MB) of hiring each worker? Using the rational rule to maximize her economic surplus, how many workers should Aliyah hire? _________________________________________________________ # workers Clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________4 32 _________________________________________________________What is the marginal cost for worker 4?
$64000
Aliyah is preparing to expand her IT consulting company. The current market rate for professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the table. What is the marginal cost (MC) and marginal benefit (MB) of hiring each worker? Using the rational rule to maximize her economic surplus, how many workers should Aliyah hire? _________________________________________________________ # workers Clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________4 32 _________________________________________________________What is the marginal cost for worker three?
$64000
Aliyah is preparing to expand her IT consulting company. The current market rate for IT g is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah had will pay her $10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompying table. Use this information to calculate the marginal cost and marginal benefit of hiring each worker. _________________________________________________________ #of workers clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________ 4 32 _________________________________________________________ the third worker's marginal benefit is
$70000
Aliyah is preparing to expand her IT consulting company. The current market rate for professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the table. What is the marginal cost (MC) and marginal benefit (MB) of hiring each worker? Using the rational rule to maximize her economic surplus, how many workers should Aliyah hire? _________________________________________________________ # workers Clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________4 32 _________________________________________________________What is the marginal benefit for worker 4?
$75000
Neal is a coffee drinker. At the local coffee shop, the price of a cup of coffee is $3. Neal's total benefits from drinking coffee are indicated in the accompying table. Use this information to calculate Neals marginal benefit of consuming each cup of coffee cup per day Benefits _____________________________________________ 1 $8 ______________________________________________ 2 $14 _________________________________________________ 3 $18 _____________________________________________ 4 $20 _______________________________________________ 5 $21 ______________________________________________ The marginal benefit of the first cup is
$8
Aliyah is preparing to expand her IT consulting company. The current market rate for IT g is $58,000 per year. Each employee she hires will also require a computer and equipment that cost $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah had will pay her $10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompying table. Use this information to calculate the marginal cost and marginal benefit of hiring each worker. _________________________________________________________ #of workers clients _________________________________________________________ 0 0 _________________________________________________________ 1 11 _________________________________________________________ 2 20 _________________________________________________________ 3 27 _________________________________________________________ 4 32 _________________________________________________________ The second worker's marginal benefit is
$90000
During the economic downturn of 2008-2009, the unemployment rate increased to nearly 10%. At the same time, the price of college tuition and the number of college enrollees increased. Which statement best explains why more people enrolled in college during this time period even as the price of tuition increased? More people enrolled because (a) of the bandwagon effect. When something becomes popular or trendy, even more people are willing to pay high prices for it (b) of the social pressure, people feel to go to college. Universities exploited this and increased the price of tuition without losing many students (c) if the next best option was unemployment, many individuals may have preferred to enroll in college and gain new skills in hopes of increasing their future employment prospects (d) if the next best option was unemployment, many individuals may have preferred to enroll in college and live off of student loans while waiting for the job market to improve
(c) if the next best option was unemployment, many individuals may have preferred to enroll in college and gain new skills in hopes of increasing their future employment prospects
Consider the following statement "economists always put things into monetary terms; as a result, economists can most appropriately be called the study of money. Is this statement true or false? (a) false, even though economists use money as a form of measurement, economics is better defined as the study of financial markets (b) true, financial markets are the primary focus of economics (c) False, even though economists use monetary terms often, economics is better described as a governmental approach to improving market outcomes (d) False, economists use monetary terms because they can be quantified and compared, but economics is better described as an approach to decision making
(d) false, economists use monetary terms because they can be quantified and compared, but economics is better described as an approach to decision making
Alan Patel is a college student living alone in a campus apartment. He finished cooking dinner when his friends text him to join them at the dining hall on campus for dinner. He now has to decide whether to eat the dinner he prepared or walking to campus to meet his friends at the dining hall. Alan should consider all of the following costs when making this dinner except the (a) time it will take to go meet his friends and walk back (b) amount of money he will spend at the dining hall (c) value he places on not eating dinner alone (d) money spent on the groceries he used to cook dinner
(d) money spent on the groceries he used to cook dinner
Consider your decision to read this textbook on economics. Identify which of the four core principals of economics is most relevant for each aspect of that decision? (d) each page that you read and each practice problem that you complete will help you increase your understanding of the material. This statement is related to the _____ Principal
marginal
During the economic downturn of 2008-2009, the unemployment rate increased to nearly 10%. At the same time, the price of college tuition and the number of college enrollees increased. The core principle that best explains this is the
opportunity cost principal
Maddie spends all of her spare money on widgets, which cost $2 each, and gizmos which cost $6 each. What is her opportunity cost if Madeline buys 12 widgets?
opportunity cost: 4 gizmos