TCC Econ (Chapters 1,2,&3)

Economists, like mathematicians, physicists, and biologists: A.Make use of the scientific method B.Try to address their subject with a scientist's objectivity. C. Devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories. D. All of the above are correct

All of the above are correct

What is the trade-off facing a society?

Efficiency vs equality

Suppose the cost of flying a 200-seat plane for an airline is $100,000 and there are 10 empty seats on a flight. If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300, the airline should: a. sell the ticket because the marginal benefit exceeds the marginal cost. b. sell the ticket because the marginal benefit exceeds the average cost. c. not sell the ticket because the marginal benefit is less than the marginal cost. d. not sell the ticket because the marginal benefit is less than the average cost.

a. sell the ticket because the marginal benefit exceeds the marginal cost.

A rational decision maker takes action if and only if: a. the marginal benefit of the action exceeds the marginal cost of the action. b. the marginal cost of the action exceeds the marginal benefit of the action. c. the marginal cost of the action is zero. d. the opportunity cost of the action is zero.

a. the marginal benefit of the action exceeds the marginal cost of the action.

Consider the following about opportunity cost-Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot a. The cost of the parking permit is not part of the opportunity cost of attending college if you would not have to pay for parking otherwise. b. The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise c.Only half of the cost of the parking permit is part of the opportunity cost of attending college d. The cost of the parking permit is not part of the opportunity cost of attending college under any circumstances

b. The cost of the parking permit is part of the opportunity cost of attending college if youwould not have to pay for parking otherwise

Rational people make decisions "at the margin" by comparing: a. average costs and benefits. b. total costs and benefits. c. additional costs and benefits. d. opportunity costs and benefits.

c. additional costs and benefits.

Maureen's college raises the cost of room and board per semester. This increase raises Maureen's opportunity cost of attending college a. even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount. An increase in opportunity cost reduces Maureen's incentive to attend college. b. even if the amount she would have to pay for room and board if she didn't attend college rose by thesame amount. An increase in opportunity cost increases Maureen's incentive to attend college. c. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Maureen's incentive to attend college. d. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost increases Maureen's incentive to attend college.

c. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Maureen's incentive to attend college.

You have driven 800 miles on a vacation and then you notice that you are only 15 miles from an attraction you hadn't known about but would really like to see. In computing the opportunity cost of visiting this attraction you had not planned to visit,you should include: a. both the cost of driving the first 800 miles and the next 15 miles .b. the cost of driving the first 800 miles, but not the cost of driving the next 15 miles c. the cost of driving the next 15 miles, but not the cost of driving the first 800 miles d. neither the cost of driving the first 800 miles nor the cost of driving the next 15 miles

c.the cost of driving the next 15 miles, but not the cost of driving the first 800 miles

Consider Paul's decision to go to college. If he goes to college, he will spend $90,000 on tuition, $15,000 on room and board, and $7,000 on books. If he does not go to college, he will earn $22,000 working at a construction job and he will spend $11,000 on room and board. Paul's cost of going to college is: a. $96,000 b. $110,000 c. $114,000 d. $123,000.

d. $123,000

When calculating the cost of college, which of the following should you probably not include? a.The cost of tuition b. The cost of books required for college classes c. The income you would have earned had you not gone to college d. The cost of rent for your off-campus apartment.

d.the cost of rent for your off-campus apartment