ECON 1 exam#1

If an employer offers a potential employee $40,000, but the employee would be willing to work for $35,000, and the employer will make $55,000 from the work that the employee does, what is the employer's economic surplus? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices

$15,000

As consumers consume more units of an item, the marginal benefit of each additional unit decreases at an increasing rate. This can be seen through:

. demand curves that are flatter at lower quantities and steeper at higher quantities

framing effect

Decisions are influenced by how the choices are stated.

Which of these best describes what people should base their decisions on?

Opportunity costs

production possibility frontier

Production possibility frontier is the graph which indicates the various production possibilities of two commodities when resources are fixed. The production of one commodity can only be increased by sacrificing the production of the other commodity.

When the out-of-pocket costs do not exist in the next best alternative.

When the out-of-pocket costs do not exist in the next best alternative.

The idea of _____ benefiting from a voluntary exchange lies at the heart of all economic transactions. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices

both sides