arec chapter 1

suppose anaya owns a small business knitting scarves. the table below shows the number of scarves that anaya can knit each week along with her total cost. if she knits 4 scarves per week, then her average cost is ___ per scarf quantity of scarves. total cost 1 8 2 18 3 30 4 44 5 60

11 (44/4)

people sometimes apply the cost-benefit principle incorrectly because they evaluate costs and benefits:

as proportions rather than absolute dollar amounts

an activity's ___ benefit is the total benefit of carrying out n units of an activity divided by n

average

the total cost of carrying out n units of an activity divided by n is the activity's ___ cost

average

a mathematical expression that describes the relationship between two or more variables is an

equation

a mathematical expression that describes the relationship between two or more variables is called a

equation

an ___ variable determines the value of another variable in an equation.

independent

an economic principle that says how people should behave is known as a

normative economic principle

if it costs sam $150 to grow 300 tomatoes in his garden, then his average cost of growing a tomato is

$0.50 (average cost is the total cost of undertaking n units of an activity divided by n =150/300)

if sarah gets $600 worth of benefit from making 200 christmas cookies, then her average benefit from making christmas cookies is

3 (average benefit is the total benefit of undertaking n units of an activity divided by n (=600/200)

economists believe that scarcity is...

a fundamental fact of life for everyone

a normative economic principle

says how people should behave

when deciding whether to take an action, sunk costs

should be ignored

a ___ is a quantity that is free to take on different values

variable

a quantity that is free to take on different values is a

variable

if sam gets $450 worth of benefit from growing 300 tomatoes in his garden, then his average benefit of growing a tomato is:

$1.50 (average benefit is the total benefit of undertaking n units of an activity divided by n -450/300)

which of the following costs should be ignored when weighing the costs and benefits of an action?

sunk costs

the average benefit of carrying out an activity is

the total benefit of undertaking n units of an activity divided by n

the average cost of carrying out an activity is

the total cost of undertaking n units of an activity divided by n