Activity #2

With ATMs, it is possible to retrieve cash from the bank at any time. One hundred years ago, one could only get cash from the bank during business hours, say, 9 am to 3 pm. The present availability of 24-hour service has arisen because:

the cost of providing 24-hour service is much lower today.

Refer to the accompany table. The average benefit of 2 units of activity

Average benefit= Total Benefit/n 160/2

Which of the following statements is true?

Comparative advantage does not require absolute advantage.

Your scholarship depends on your maintaining a 3.5 cumulative GPA. Your GPA for last semester was 3.6, which brought your cumulative GPA down. What must be true?

Last semester's grades were lower than your overall GPA.

For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your marginal cost of the 100th meal is:

The non-refundable is $600, you paid for your meal is a sunk cost. So your marginal 0.

The Incentive Principle is an example of:

a positive economic principle.

If a nation can produce a more computers per year than any other nation, that nation has a(n) ______ advantage in the production of computers.

absolute (time)

If a nation has the lowest opportunity cost of producing a good, that nation has a(n) ______ in the production of that good.

comparative advantage

Suppose Karl divides his time between making birdhouses and growing artichokes. Karl's friend recently gave Karl some new woodworking tools that greatly reduced the amount of time it takes Karl to make each birdhouse, but the new tools had no impact on the amount of time it takes Karl to grow artichokes. Thus, the new tools _____ Karl's opportunity cost of growing artichokes.

increased

The extra cost that results from carrying out one additional unit of an activity is the _____ of the activity.

marginal cost

The study of individual choice and its implications for the behavior of prices and quantities in individual markets is:

microeconmics

One thing that distinguishes normative economic principles from positive economic principles is that:

normative principles tell us how people should behave, and positive principles tell us how people will behave.

Jody has purchased a non-refundable $75 ticket to attend a Miley Cyrus concert on Friday night. Subsequently, she is asked to go to out dinner at no expense to her. If she uses cost-benefit analysis to choose between going to the concert and going out to dinner, the opportunity cost of going out to dinner should include:

only the entertain value of the concert. (non-refundable/sunk cost)

The cost-benefit principle

total benefit- total cost