Microeconomics Chapter 2

Refer to the accompanying figure. Moving from point C to point B, the opportunity cost of 25 more salads is A.) 5 pizzas B.) 10 pizzas C.) 15 pizzas D.) 30 pizzas

A

The accompanying table shows how total donations, average donations, total labor costs, and average labor costs vary depending on the number of employees State U hires for its funding activities: The president of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost. This results in _______ employees being hired and a net benefit (total donations minus total labor costs)of ______. A.) 5; $17,080 B.) 5; $67,080 C.) 4; $60,000 D.) 4; $22,000

A

Jamal and Alex live together and share household chores. They like to cook soe meals ahead of time and eat leftovers. The accompanying table shows the number of rooms they can each clean and the number of meals they can each cook in an hour. For alex, the opportunity cost of cleaning one room is making ________ meal(s); for Jamal the opportunity cost of cleaning one room is making ________ meal(s). A.) 4;4 B.) 1; 4/5 C.) 1; 5/4 D.) 3;5

B

Janie must choose to either mow the lawn or wash clothes. If she mows the lawn, she will earn $30, and if she washes clothes, she will earn $45. She dislikes both tasks equally and they both take the same amount of time. Janie will therefore choose to ______ because it generates a ________ economic surplus. A.) mow the lawn; bigger B.) wash clothes; bigger C.) mow the law; smaller D.) wash clothes; smaller

B

Lauren was accepted at three different graduate schools, and she must choose one. Elite U costs $65,000 per year and did not offer Lauren an annual $10,000 scholarship. Lauren values attending State College at $45,000 per year. NoName U costs $20,000 per year and offered Lauren a full $20,000 annual scholarship. Lauren values attending NoName at $15,000 per year. Lauren's opportunity cost of attending Elite U is A.) $15,000 B.) $88,000 C.) $65,000 D.) $37,500

B

Refer to the accompanying table. According to the Cost-Benefit Principle, how many units of this activity should be carried out? A.) 1 B.) 3 C.) 4 D.) 6

B

Working efficiently and splitting her time equally between the two tasks, Jordan can write 5 essays and outline 2 chapters each week. If Jordan's production possibilities curve is a straight line, it must be true that A.) 0 essays and 4 chapter outlines would be unattainable but efficient. B.) 1 essays and 4 chapter outlines would be unattainable. C.) 1 essays and 4 chapter outlines would be attainable but inefficient. D.) 0 essays and 4 chapter outlines would be both attainable and efficient.

B

Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. Her opportunity cost of going to the beach is A.) the $12 she spent on the umbrella, food, and drinks B.) only $0 because she would have spent $12 to go to the movie. C.) the value she places on seeing the movie. D.) the value she places on seeing the movie plus the $1 she spent on the umbrella, food, and drinks.

C

One thing that distinguishes normative economic principles from positive economic principles is that A.) normative principles are pessimistic and positive principles are optimistic B.) normative principles reflect social norms, and positive principles reflect universal truths. C.) normative principles tell us how people should behave, and positive principles tell us how people will behave. D.) normative principles tell us how people will behave, and positive principles tell us how people should behave.

C

Refer to the accompanying figure. For Chris, the opportunity cost of removing one bag of trash is planting A.) 25 bulbs B.) 1/25 of a bulb C.) 3 bulbs D.) 1/3 of a bulb

C

Refer to the accompanying table. Elena's opportunity cost of making pizza is delivering A.) 3 pizzas B.) 2 pizzas C.) 3/2 of a pizza D.) 2/3 of a pizza

C

Refer to the accompanying table. The marginal cost of the 3rd unit of this activity is A.) $30 B.) $25 C.) $20 D.) $10

C

Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tamika 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct? A.) Tamika should specialize in sandwiches and smoothies. B.) Dan should specialize in smoothies, and Tamika should specialize in sandwiches. C.) Dan should specialize in sandwiches, and Tamika should specialize in smoothies. D.) Dan should specialize in both sandwiches and smoothies.

C

The accompanying figure shows Isabella's daily production possibilities curve for dresses and skirts. Point U is A.) attainable B.) efficient C.) unattainable D.) inefficient

C

The economic surplus of an action is A.) the benefit gained by taking an action. B.) the difference between the explicit and implicit costs of taking an action. C.) the difference between the benefit and the cost of taking an action. D.) the money a person has left over after taking an action.

C