Module 1: Quiz 1

While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be

20 cents

Maria wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $2.50 per gallon, the car wash costs $2, but if she buys 10 gallons of gasoline, the car wash is free. For Maria, the marginal cost of the tenth gallon of gasoline is

50 cents.

Which of the following is true?

Changes in personal costs and benefits will exert a predictable influence on the choices of people.

Which of the following students would be most likely to drop out of college before completing their degree?

an outstanding baseball player in his junior year that just received a $500,000 offer from a professional team

Economic analysis assumes that

changes in the personal benefits and costs associated with a choice will exert a predictable influence on human behavior.

The basic task of economics is to

explain the forces that underlie human decision making.

If a college enforces a new policy where anyone caught cheating is immediately expelled, the basic postulate of economics suggests that

fewer students will attempt to cheat

The expression, "There's no such thing as a free lunch," implies that

opportunity costs are incurred when resources are used to produce goods and services.

The economic way of thinking indicates that individuals

seek the lowest cost method of achieving their objectives.

Which of the following are scarce?

time for recreation clean air information