Ch.1 Post-Class Podcast Assignment: Core Principles

Your expectations of the future

Have a large impact on your investment choices.

Competing against other potential employees for a job is an example of the ___ set of interdependencies.

second

How do you quantify the enjoyment you get from a purchase?

Determine the maximum you are willing to pay for the item.

You take a job driving for Lyft. It's a slow night and you are trying to decide whether to continue working or go home. You should

continue working until the marginal benefit you receive from working additional time equals your marginal cost of working additional time.

You are offered a position at FedEx. You should to take the job if

the benefits of taking the job at FedEx are more than the costs of taking the job.

When applying the Opportunity Cost Principle, you consider

the trade-offs of your decisions.

You are launching a new consulting business and you need to decide how many employees to hire. Applying the marginal principle, what question should you consider?

Should I hire one more employee?

You buy an expensive mattress on clearance which is nonreturnable. After a few weeks, you realize it's very uncomfortable and you are not getting a good night's sleep because of the mattress. Thinking like an economist, you should ignore the ___ costs and get a new mattress.

Sunk

You are willing to pay full price for a new shirt, but you end up finding it half-off from an online retailer. Applying the cost-benefit principle, determine what has changed.

Your cost has decreased, but your benefit remains the same.

Edward charges $100 to landscape his neighbors' lawns. His neighbors should hire Edward if the marginal ___ of having their lawn landscaped is ___ than $100.

benefit, greater