Econ 2110 Midterm

a. the marginal cost of the fifth show is $20,000

If it costs a theater $180,00 to put on four shows, and the cost would rise to $200,000 if the theater adds a fifth show a. the marginal cost of the fifth show is $20,000 b. the marginal cost of the fifth show is $40,000 c. the marginal cost of the fifth show is $200,000 d. the marginal cost of the fifth show is $50,000

d. none of the above

If people are "rational" in the economics sense, they a. never make mistakes b. put making money before any other goal c. seek only their own welfare d. none of the above

d. is the value of the alternative sacrificed

the real cost of any action a. depends upon the number of suppliers b. is the cost to the consumer plus the cost to the producer c. is. greater when the demand shifts d. is the value of the alternative sacrificed e. all of the above

d. all of the above

we know that trade makes people better off because a. it is a voluntary action b. people wouldn't engage in it otherwise c. it only occurs when there is the potential for mutual gains. d. all of the above

d. All of the above

which of the following costs will you consider when deciding whether it is efficient to take a hike one afternoon? a. the gas it tales to get to the hiking trail b. the studying you won't be able to do c. the wear and tear on your hiking boots. d. All of the above e. Just a and c

d. all are scarce goods

which of the following is an example of a scarce good? a. big macs b. television sets c. oil d. all are scarce goods

c. the use of money lowers the cost of exchanging goods

which of the following is the most important advantage to a society of using money rather than relying exclusively on barter? a. the use of money encourages people to diversify and learn to do more things for themselves b. the use of money encourages people who want to exchange to become more closely acquainted c. the use of money lowers the cost of exchanging goods d. the use of money reduces opportunities for fraud and theft e. the use of money reduces selfishness because money in itself has no value

c. $2.00

you see this deal at the supermarket: one frozen pizza for $3.00, tow for $5.00. your marginal cost for the second pizza is a. $3.00 b. $2.50 c. $2.00 d. zero

d. we are unable to satisfy all our wants.

Scarcity is a situation in which a. something is being wasted. b. something is on the verge of running out. c. some people are poor and others are rich. d. we are unable to satisfy all our wants. e. All of the above

d. the benefits of the additional safety are greater than the additional costs.

The U.S. federal government spends $7 billion on airport security annually. It would be worth spending more only if a. doing so will save more lives b. after the additional spending, the total benefits from security spending are greater than the total costs. c. total benefits from security spending are currently less than the total costs d. the benefits of the additional safety are greater than the additional costs. e. under no conceivable circumstances

a. will increase if public child support increases

The idea that "people respond to incentives" would lead us to conclude that single parent births a. will increase if public child support increases b. should never happen c. result from complicated social conditions and are thus unaffected by public assistance d. depend only on the public assistance offered

b. would fall if tougher penalties are enacted

The idea that "people respond to incentives" would lead us to conclude that the murder rate a. would rise if tougher penalties are enacted b. would fall if tougher penalties are enacted c. would be unaffected by changes in penalties, since crimes are committed in moments of passion d. depends entirely on the level of penalties enacted

d. to advance projects in which they are interested

The idea that human behavior is "self-interested" assumes that people want a. more of everything b. material goods but not spiritual goods c. money d. to advance projects in which they are interested e. all of the above

e. Just a and b.

The marginal costs of your European vacation include a. your passport application fee if you wouldn't have gotten a passport otherwise b. your plane ticket to Europe. c. all the food you consume while in Europe. d. All of the above e. Just a and b.

e. None of the above.

Think like an economist: If Bob chooses to go to a movie nearby rather than travelling into the city to attend a play, we can conclude that a. Bob's cost of attending the play is very high. b. Bob's benefits from attending the play are not very high. c. at the margin, Bob gets more benefits from going to the movie than from attending the play d. All of the above e. None of the above.

c. may be a good, or a bad idea, depending on the marginal benefits and costs

This mean that dedicating more resources to making meat safer a. is a good idea b. is a bad idea c. may be a good, or a bad idea, depending on the marginal benefits and costs d. is a rational plan

d. All of the above.

Tina says that Tommy didn't go to the game because he has an exam on Monday. In economic terms, we would say that a. Tommy's opportunity cost of attending the game was too high to make it worth attending. b. Tommy's marginal cost of attending the game was too high to make it worth attending. c. Tommy does not get enough benefits from attending the game to make it worth skipping the studying. d. All of the above. e. None of the above.

c. toms cost of producing widgets is higher than toms cost of producing widgets d. tim has higher opportunity cost than tom

Tom is twice as good as Tim at producing widgets and three times as good at producing gadgets. therefore, a. tom and time would not benefit from trade b. tim's cost of producing widgets is higher than his cost of producing gadgets c. toms cost of producing widgets is higher than toms cost of producing widgets d. tim has higher opportunity cost than tom e. there is not enough information to determine who has higher costs or if trade would be mutually beneficial.

d. all of the above

Which of the following are marginal benefits associated with studying economics for an extra hour? a. a higher grade in your economics class b. a higher overall GPA c. A better chance of getting a good job after graduation d. all of the above

a. a normative statement

"Senior citizens deserve an income that will allow them to live in comfort for their remaining years." This is an example of a. a normative statement b. a positive statement c. neither a positive and normative statement d. a statement reflecting the concept of scarcity e. recognition of opportunity costs

c. makes him better off

A friend of yours invests his life savings in a yacht even though he has never sailed, can't swim, and hates being out on the water. You try to talk him out of it, but he won't listen. His purchase of the yacht a. is inexplicable b. makes him worse off c. makes him better off d. makes him better off only if he uses the yacht e. makes him neither better nor worse off, because he probably won't use the yacht.

d. something has to be given up to get more of it.

A good is "scarce", as economists use. the term, only when a. there is less than an infinite amount. of it available. b. there is less of the good available than there was in the. past. c. a shortage exists d. something has to be given up to get more of it.

c. can perform the activity at a lower opportunity cost than can other people

A person has a comparative advantage in an activity whenever she a. can do the activity in less time than other people b. has an absolute advantage in the activity c. can perform the activity at a lower opportunity cost than can other people d. can do everything better than anyone else e. all of the above

b. the marginal benefit is greater than the marginal cost

A rational decision maker takes action only if a. the average benefit is greater than the average cost b. the marginal benefit is greater than the marginal cost c. the total benefit is positive d. society will be made better off e. all of the above

b. one watch for. 6.5 pounds of chocolate

A trade that can make both countries better off would be a. one watch for 7 pounds of chocolate b. one watch for. 6.5 pounds of chocolate c. one watch for 6 pounds of chocolate d. one watch for 7.5 pounds of chocolate e. No such trade exists

b. 1 violin for 150 tea chests

A trade that would make both countries better off is a. 1 tea chest for 1/200 of a violin b. 1 violin for 150 tea chests c. 1 tea chest for 1/100 violin d. 1 violin for 100 tea chests e. Any of the above trades would make both countries better off

a. He will pay $5 per ride

Above is Mark's total benefit schedule in dollars for roller coaster rides. Mark can either pay $5 per ride, or can buy an all-day pass for $50 that lets him take as many rides as he wants. Which will he do? a. He will pay $5 per ride b. He will pay $50 for an all-day pass c. He is indifferent between the two options. d. There is not enough information to say e. He won't do either

b. $82

Above is Mark's total benefit schedule in dollars for roller coaster rides. Suppose only all-day passes are sold. What is the maximum amount Mark would pay? a. $25 b. $82 c. $0 - Mark would not buy an all-day pass d. $6 e. There is not enough information to say

a. the costs to consumers exceeds the benefits to protected worker

According to MBN, when U.S. jobs are "protected" through the use of trade barriers, a. the costs to consumers exceeds the benefits to protected worker b. the benefits to protected workers exceeds the costs to consumers c. the costs to consumers equals the benefits to protected workers d. it is difficult to tell whether the benefits to protected workers or the costs consumers is higher e. other countries may then attempt to "dump" goods within U.S. borders

e. the quality of institutions such as legal systems

According to Miller, Benjamin and North (and many economists), the primary factor explaining why some countries are rich and some are poor is a. different allocations of resources b. better geographical locations c. the level of agricultural output d. the nature of comparative advantage e. the quality of institutions such as legal systems

b. to reduce congestion

According to Miller, Benjamin and North, the primary economic rationale for road tolls is a. to raise revenue b. to reduce congestion c. to reduce speeding d. to improve infrastructure

c. may be less than or greater than the costs.

According to newspaper reports, Americans waste 35 million tons of food each year. The benefits from reducing food waste therefore a. must exceed the opportunity cost b. may exceed the total cost, but not necessarily the opportunity cost c. may be less than or greater than the costs. d. are greater than the costs e. None of the above

c. what it gives up to produce the good is less than what importers give up

According to the theory of comparative advantage, a country will export a good only if a. it can produce the good using less labor than other countries b. it producers pay low wages c. what it gives up to produce the good is less than what importers give up d. its labor force is more productive than those of importing countries e. all of the above

e. just a and b

After graduating from high school, Steve had three choices, listed in order of preference: 1) matriculate at Clemson, 2) work in a printed circuit board factory, or 3) attend a rival college. His opportunity cost of going to Clemson includes a. the income he could have earned at the printed circuit board factory. b. the direct cost of attending Clemson c. the benefits he could have received from attending the rival college d. all of the above e. just a and b

c. is false because it ignores opportunity costs

An article in the newspaper suggests that an Indian tribe should use coal rather than gas power because the tribe owes 114 billion tons of coal reserves. this statement a. is true because if they own the coal, they don't have to pay for it b. is false because coal is more polluting c. is false because it ignores opportunity costs d. none of the above

d. not considering opportunity cost

Anyone who claims that cheaper labor in one country enables that country to produce everything at lower costs than another country, so that no trade is possible, is a. exaggerating the importance of labor costs b. referring only to comparative, not to absolute cost. c. not referring to to monetary costs because they are measuring in differing currencies. d. not considering opportunity cost

b. Because it raises the cost of retiring, the new contract makes it less likely the player will retire.

As a result of a lucrative new TV contract, NFL player salaries rise dramatically. A veteran player, concerned about the risk of injury, had been considering retirement. Will the new contract affect the player's decision? a. Because it does not change the risk of injury, the new contract will not affect the player's decision. b. Because it raises the cost of retiring, the new contract makes it less likely the player will retire. c. Because the player will not be paid once he retires, the new contract has no effect at the margin. d. The player may be more or less likely to retire after learning about the new contract, depending upon the marginal benefits and marginal costs.

a. 1/100 of a violin

Austria and Albania each produce tea chests and violins. In a day, an Austrian worker can produce 400 tea chests or 2 violins. In a day, an Albanian worker can produce 100 tea chests or 1 violin. What is the cost of producing a tea chest in Albania? a. 1/100 of a violin b. 100 violin c. 1 violin d. 200 violins e. There is not enough information to answer

c. Austria has the comparative advantage in tea chests and Albania has the comparative advantage in violins

Austria and Albania each produce tea chests and violins. In a day, an Austrian worker can produce 400 tea chests or 2 violins. In a day, an Albanian worker can produce 100 tea chests or 1 violin. Which of the following is true? a. Austria has the comparative advantage in both violins and tea chests b. Austria has the comparative advantage in violins and Albania has the comparative advantage in tea chests c. Austria has the comparative advantage in tea chests and Albania has the comparative advantage in violins d. Albania has the absolute advantage in violins, but not in tea chests e. None of the above

d. 4

Bob's total benefit. and total costs schedules for plates of fried clams are listed in the table below. How many plates of clams will Bob consume in total? a. 9 b. 8 or 7 c. 6 d. 4 e. none of the above

e. 6

Bob's total benefit. and total costs schedules for plates of fried clams are listed in the table below. What is the marginal benefit to Bob of consuming a third plate of clams? a. 21 b. 15 c. 12 d. 9 e. 6

e. None of the above

By law, you may donate your kidney to whomever you choose, but you are not allowed to sell your kidney. Assume people are rational and think like an economist: The reason is that a. monetary sales of body parts would make both buyers and sellers worse off b. people would sell kidneys for money even if it risks their health c. people would be forced to give up their kidneys in order to pay for things they need d. All of the above e. None of the above

c. yes, if the marginal benefits of safety are less than the marginal costs

Can you ever have too much safety? a. no, because the more safe you are, the better off you are b. no, because people respond to incentives c. yes, if the marginal benefits of safety are less than the marginal costs d. yes, but only if the total benefits of safety are less than the total cost e. yes, because people usually don't want to be safer

a. Channing focuses on the scraping while Bevin focuses on the painting

Channing and Bevin are starting a house painting service. It takes Channing 10 minutes to scrape a standard sized wall and 20 minutes to paint the wall. It takes Bevin 20 minutes to scrape a standard wall and 30 minutes to paint the wall. Their paint service will be most productive if a. Channing focuses on the scraping while Bevin focuses on the painting b. Bevin focuses on the scraping while Channing focuses on the painting c. Channing handles both the painting and the scraping d. Channing and Bevin each scrape and paint their own wall e. There is not enough information to say which option would be most productive

c. yes, if the marginal benefits of the additional pollution reduction are less than the marginal costs.

Could there ever be too little pollution? a. no, because pollution is something we do not want b. only if. people find some socially productive use for pollution c. yes, if the marginal benefits of the additional pollution reduction are less than the marginal costs. d. no, because pollution is bad for a persons health

b. yes, if the marginal costs are greater than the marginal benefits

Could you ever have too much environmental protection? a. no, because it is important to protect the environment b. yes, if the marginal costs are greater than the marginal benefits c. no, because a clean environment is a scarce good d. no, because the benefits of a clean environment outweigh the costs. e. yes, if the demand for environmental protections is not very important.

c. how people make choices

Economics is a model of a. money b. buying and selling c. how people make choices d. how people should behave

a. costs are really opportunities given up

Economists use the term "opportunity cost" to highlight. the fact that a. costs are really opportunities given up b. most costs involve the opportunity to get something in return. c. every opportunity also has its cost d. there are always opportunities to lower the cost

d. all of the above

For which of the following is there a market? a. orange juice b. pedigree dogs c. hiking in national forest land d. all of the above e. just a and b

c. generate benefits that may be less than, equal to, or greater than the costs.

Forty-eight million Americans suffer some form of food poisoning each year. Increased food testing, as the FDA proposes requiring, will therefore a. generate more benefits than costs b. generate benefits at least equal to costs. c. generate benefits that may be less than, equal to, or greater than the costs. d. generate fewer benefits than costs.

e. there is no difference

From an economic perspective, the difference between price and cost is a. prices are more likely to involve money than costs b. costs are more likely to involve money than prices c. costs are opportunities sacrificed, while prices are amounts paid d. costs are opportunities sacrificed, while prices are amounts paid e. there is no difference

c. may be greater or less than the costs

Given that toxic waste can be a risk to health, the benefits of reducing toxic waste at the margin a. must exceed the costs b. must be less than the costs c. may be greater or less than the costs d. necessarily exceed the opportunity cost e. None of the above

c. may be greater or less than the costs

Given their is a finite amount of water, the benefits of conserving water at the margin a. must exceed the costs b. must be less than the costs c. may be greater or less than the costs d. necessarily exceed the opportunity cost

c. are comparing the benefits and costs of their choice

Grocery shoppers who are willing to pay high prices at one supermarket in order to avoid long lines at another a. are not rational shoppers b. would do anything to save money c. are comparing the benefits and costs of their choice d. are not comparing the benefits and costs. of their choice.

d. all of the above

How can I raise the cost of coming to class? a. charge an admission fee b. schedule class at inconvenient times c. give extra homework to anyone who shows up d. all of the above e. none of the above

c. only join if I expect to get at least $100 worth of discounts

I am considering joining a shoppers club, where I pay $100 membership fee and then get a twenty-five percent discount on all of my purchases. In making my decision, I should a. only join if I plan to make at least $100 of purchases b. ignore the membership fee since it is a sunk cost c. only join if I expect to get at least $100 worth of discounts d. only join if they promise to refund my membership fee if I'm not satisfied

d. one of your trees for 2.5 of my holes

I can cut down 4 trees or dig 12 holes in an hour. You can cut down 3 trees or 6 dig holes in an hour. A trade that would help us both is a. one of my holes for 4 of your trees b. one of my trees for 1/4 of your holes c. one of your holes for 1/5 of my trees d. one of your trees for 2.5 of my holes

c. 3 holes

I can cut down 4 trees or dig 12 holes in an hour. You can cut down 3 trees or 6 dig holes in an hour. The cost of one of my trees is a. 3/4 of your trees b. 12 holes c. 3 holes d. depends on how much I like trees e. depends on how much you like trees

a. specialize in digging holes

I can cut down 4 trees or dig 12 holes in an hour. You can cut down 3 trees or 6 dig holes in an hour. We could both be made better off I I a. specialize in digging holes b. specialize in cutting down trees c. specialize in both digging holes and cutting down trees d. let you specialize in both digging holes and cutting down trees

b. At least ten cups of blueberries.

I head out to the forest for a few hours of wild berry picking. I pick blueberries and blackberries. Blackberries are harder to pick, because they have thorns. In a minute, I can pick a cup of blueberries or half a cup of blackberries. I spend ten minutes picking blackberries. What did those blackberries cost? a. Exactly ten cups of blueberries. b. At least ten cups of blueberries. c. Less than ten cups of blueberries. d. Either more, less, or exactly ten cups of blueberries e. It is impossible to say

e. None of the above

If Alexus chooses to pay $2.50 per gallon for gasoline rather than driving one block further and paying only $1.85, using the economic way of thinking, we can conclude that a. she is behaving irrationally. b. she does not recognize that money represents opportunities foregone. c. she is putting too much weight on time and too little on money d. All of the above e. None of the above

b. Estonia has the comparative advantage in hats and Armenia in coats.

If Armenia can make 500 hats or 200 coats or some combination, and Estonia can make 400 hats or 100 coats or some combinations, then a. Armenia has the comparative advantage in hats and Estonia in costs b. Estonia has the comparative advantage in hats and Armenia in coats. c. Armenia has the comparative advantage in both hats and coats d. Neither has the comparative advantage in either product since the differences aren't large

b. Armenia makes coats and trades them for hats at a price of 1 coat = 3 hats

If Armenia can make 500 hats or 200 coats or some combination, and Estonia can make 400 hats or 100 coats or some combinations. Which of the following trades would make both countries better off? a. Armenia makes hats and trades them for coats at a price of 1 coat = 3 hats b. Armenia makes coats and trades them for hats at a price of 1 coat = 3 hats c. Armenia makes hats and trades them for coats at a price of 1 coat = 4 hats d. Armenia makes coats and trades them for hats at a price of 1 coat = 4 hats e. Armenia makes coats and trades them for hats at a price of 1 coat = 2.5 hats

b. Bert has the comparative advantage in trucks, ernie in cars

If Bert can produce 25 cars or 25 trucks with the same resources that Ernie can produce 20 cars or 10 trucks, then a. Bert has the comparative advantage in cars, ernie in trucks b. Bert has the comparative advantage in trucks, ernie in cars c. Bert has the comparative advantage in both cars and trucks d. both a and d

a. 1.5 cars for 1 truck

If Bert can produce 25 cars or 25 trucks with the same resources that Ernie can produce 20 cars or 10 trucks, then a trade that can make both Bert and Ernie better off is a. 1.5 cars for 1 truck b. 1.5 trucks for 1 car c. 2 cars for 1 truck d. 1 car for 2.5 trucks e. no mutually beneficial trade is possible, because Bert is better at both cars and trucks

c. an increase in the demand for off-campus parking

If Clemson raises the price of on campus parking, you would expect to see a. a decrease in demand for on-campus parking b. a decrease in the supply of on-campus parking c. an increase in the demand for off-campus parking d. all of the above

a. England has the comparative advantage in umbrellas and Norway has it in fish

If England can make 10 umbrellas or 5 smoked fish in a day while Norway can make 5 umbrellas or 5 smoked fish a. England has the comparative advantage in umbrellas and Norway has it in fish b. Norway has the comparative advantage in umbrellas and England has it in fish c. England is better at both umbrellas and fish d. Norway's fish cost the same amount as England's

c. 1.5 umbrellas for 1 fish

If England can make 10 umbrellas or 5 smoked fish in a day while Norway can make 5 umbrellas or 5 smoked fish. A trade that can make both countries better off would be a. 1 umbrella for 2 fish b. 2 umbrellas for 1 fish c. 1.5 umbrellas for 1 fish d. No trade is possible since a smoked fish costs the same amount in each country. e. No trade is possible, because England is at least as good as Norway at producing both umbrellas and fish

e. Two umbrellas

If England can make 10 umbrellas or 5 smoked fish in a day while Norway can make 5 umbrellas or 5 smoked fish. In the absence of trade, what does a smoked fish cost in England? a. $ 2 per pound b. there is not enough information to. say c. One of Norway's fish d. Two of Norway's fish e. Two umbrella's

e. None of the above

If Switzerland can make 35 pounds of chocolate or 5 watches while Albania can make 6 pounds of chocolate or 1 watch a. no trade will be profitable for Switzerland b. No trade will be profitable for Albania c. Albania has higher opportunity costs than Switzerland d. Switzerland has higher opportunity costs than Albania e. None of the above

c. Switzerland has the comparative advantage in chocolate; Albania in watches

If Switzerland can make 35 pounds of chocolate or 5 watches while Albania can make 6 pounds of chocolate or 1 watch, who has the comparative advantage? a. Switzerland has the comparative advantage in both chocolate and watches b. Albania has the comparative in both chocolate and watches c. Switzerland has the comparative advantage in chocolate; Albania in watches d. Albania has the comparative advantage in chocolate; Switzerland in watches. e. There is not enough information to say

d. are $16

If a buyer values a product at $28 and a seller's opportunity cost of providing the product is $12, the gains from trade a. can't be determined without the knowledge of the price b. are $28 c. are $12 d. are $16 e. are $40

a. $100.

If a scooter factory reduces its output from 20 to 19 scooters, its costs will fall from $2000 to $1900. The marginal cost of the 20th scooter is therefore a. $100. b. $1900. c. $2000. d. $3900. e. None of the above.

c. trade would make both countries better off if Mexican specialized in roses and the USC in daffodils

If the US can make 10 roses or 40 daffodils and Mexico can make 5 roses or 10 daffodils, then a. no trade is possible since the us is better at producing both roses and daffodils b. trade would make both countries better off if the US specializes in roses and Mexican in daffodils c. trade would make both countries better off if Mexican specialized in roses and the USC in daffodils d. Mexico should buy both daffodils and roses from the US

b. the US has the absolute advantage in both products and the comparative advantage in daffodils.

If the US can make 10 roses or 40 daffodils and Mexico can make 5 roses or 10 daffodils, therefore, a. the US has the absolute advantage in both products and the comparative advantage in roses. b. the US has the absolute advantage in both products and the comparative advantage in daffodils. c. the US has the absolute advantage and the comparative advantage in both products d. mexico has the absolute advantage in roses and the comparative advantage in roses e. mexico has the comparative and absolute advantage in both products

c. 1 rose for 3 daffodils

If the US can make 10 roses or 40 daffodils and Mexico can make 5 roses or 10 daffodils. Both countries would be better off by participating in trade at a price of a. 1 rose for 5 daffodils b. 5 roses for 1 daffodil c. 1 rose for 3 daffodils d. 3 roses for 1 daffodil e. no trade could make both countries better off

e. at least 5

If they charge you $12 for an "all you can consume" pass, how many will you consume? a. none, as it it not worth paying that price given the benefits b. 1 c. 3 d. 4 e. at least 5

d. at least $42

If those benefits and costs are yours, how much will you be willing to pay for a pass that would let you consume all the X you wanted? a. $8 b. $15 c. $33 d. at least $42

a. there will be less leftover to do other desirable things

If we as a country decide to dedicate more resources making meat safe a. there will be less leftover to do other desirable things b. we will have to much safety c. we are not thinking at the margin d. we will never face another case of e-coli poisoning

b. the shopping time matter less to you than the lower price you expect to get

If you are searching for a new pair of skis, it makes sense to keep looking as long as a. you haven't found the lowest price available yet b. the shopping time matter less to you than the lower price you expect to get c. there are stores left that you haven't checked d. you face no opportunity costs at all e. all of the above

c. sell the motorcycle for the best offer you can get

If you buy a motorcycle for $1000 and then discover you hate riding it and will never ride it again, the best thing to do is a. keep the motorcycle because you've paid so much for it b. keep the motorcycle unless you can find someone who will pay you at least $1000 for it c. sell the motorcycle for the best offer you can get d. sell the motorcycle for the best offer you can. get, as long as it covers most of what you paid for it.

d. at the margin, you value two hours of movie watching more than two hours of studying economics

If you decide to go to a movie this evening rather than study economics, you thereby demonstrate that. a. you don't care about getting good grades b. you hate economics c. you would rather have fun than fulfill your responsibilities. d. at the margin, you value two hours of movie watching more than two hours of studying economics e. none of the above

b. $2

If you pay $2 for each ride you take on a roller coaster, and you are about to take your tenth and last right for the day, the marginal cost of that ride is a. 0 b. $2 c. it depends on the benefits you receive d. $20

e. zero

If you pay $400 for a season pool pass at a private club, the. marginal cost to you of swimming on any given weekday will be a. $400 b. $10 if you swim 40 times c. $20 if the swim season lasts twenty weeks. d. $3 if. the. swim season lasts twenty one weeks and there are 7 days in a week. e. zero

d. you are making a normative argument and I am making a positive argument

If you say that expanding the food stamp program is the right thing to do, and I reply that expanding the program will lead to less spent in other areas, we are unlikely to have a meeting of minds because a. you are emphasizing marginal benefits and i am emphasizing marginal costs b. much of the food stamp program is already sunk cost c. the benefits and costs of food stamps are likely to be difficult to calculate d. you are making a normative argument and I am making a positive argument e. you are being reasonable and i am being aggravating

a. you will have less time to do other things.

If you spend more time watching television, a. you will have less time to do other things. b. you will spend too little time studying c. you are not thinking at the margin d. you are not taking opportunity costs into account e. All of the above.

c. you value one additional hour of studying economics more than one additional hour of studying biology

If you stop studying biology and spend an hour studying economics instead, we can conclude that a. you like studying economics better than studying biology b. you'd rather spend whatever time you have studying economics than studying biology c. you value one additional hour of studying economics more than one additional hour of studying biology d. you value studying economics more than studying biology e. all of the above

a. $0

If you've bought an $80 sticker to park on campus, and you plan to park on campus eighty times before the semester ends, the marginal cost to you each time you park is a. $0 b. $1 c. $8 d. $80 e. negative

c. the value of that plateful to you is greater than zero

If you've purchased an all you can eat ticket to a clam roast for $25, good economic thinking would tell you to take one last plateful if a. the value of that plateful to you is greater than $25 b. the value of that plateful to you is greater than or equal to $1 and you've already taken 24 platefuls that you value at 1$ each. c. the value of that plateful to you is than zero d. non of the above

b. through the combined actions of millions of households

In a market economy, resources are allocated primarily a. by a single central planner b. through the combined actions of millions of households c. by a few large corporations d. by the government Board of Economic Planning in the Department of Commerce

b. the extra revenue from cleaning a few more Persian carpets to the extra cost.

Jerome manages the local nifty-wear rug cleaning service, which cleans rugs and carpets. He is employing marginal analysis when he compares a. the total revenue from cleaning Persian carpets to the total cost. b. the extra revenue from cleaning a few more Persian carpets to the extra cost. c. the average cost of cleaning carpets to the average cost of cleaning rugs, in order to specialize more efficiently. d. how much his cleaning service costs relative to that of his nearest competitor e. all of the above

b. the extra revenue from selling a few additional printers to the extra costs of producing the additional printers.

Laura is a manager for HP, and must decide whether to produce a few additional printers. She is choosing at the margin when she compares a. the total revenue from sales of printers to the total cost of producing printers. b. the extra revenue from selling a few additional printers to the extra costs of producing the additional printers. c. HP's printer sales to sales of competing printers. d. the extra revenue from selling a few additional printers to the average cost of producing the additional printers. e. All of the above

c. mineral rights are owned by European governments, rather than by private landowners, as in the U.S.

MBN argue that the reason there is so much more natural gas produced from shale formations by fracking in the U.S. than in Europe is a. there are fewer shale formations in Europe b. European labor costs are higher c. mineral rights are owned by European governments, rather than by private landowners, as in the U.S. d. European governments care more about global warming than does the U.S. government

b. differences in purchasing power between countries

MBN describe the "Big Mac index" as a simple way to take into account a. differences in opportunity costs between consumers b. differences in purchasing power between countries c. differences in benefits from fast food received by consumers d. differences in locations of fast food restaurants within countries

d. if people respond to incentives

Making cars safer could result in more accidents a. under no possible circumstances b. only if people are irrational c. only if designers are mistaken about how safe a car really is d. if people respond to incentives

d. that arises from a small increase in an activity

Marginal benefit is the benefit a. that your activity provides to someone else b. of an activity that exceeds its cost c. that arises from the opportunity cost of an activity d. that arises from a small increase in an activity

c. that arise from a small increase in the activity

Marginal benefits are the benefits a. that your activity provides to society b. that exceed the marginal cost c. that arise from a small increase in the activity d. that are always equal to the price you must pay to engage in the activity.

c. is not always a realistic assumption, but allows useful predictions to be made nonetheless

Most economists believe that the assumption of rationality a. is how humans behave in all circumstances b. is the best argument for the economic model c. is not always a realistic assumption, but allows useful predictions to be made nonetheless d. should be supported by teaching people how to act rationally

trades 1 pen for 2.5 brooms b. Bavaria specializes in pens and trades 1 pen for 2.5 brooms

Name a trade that would make both Bavaria and Prussia better off: a. Prussia specializes in pens and trades 1 pen for 2.5 brooms b. Bavaria specializes in pens and trades 1 pen for 2.5 brooms c. Prussia specializes in brooms and trades 1 broom for 0.5 pens d. Bavaria specializes in brooms and trades 1 broom for 0.5 pens

d. single people will be more likely to have children at the margin

Our economic model led us to predict that if monetary aid per child given to single parents increases substantially (holding everything else the same) a. children will become less scarce b. single people will have many more children c. single people will have fewer children at the market d. single people will be more likely to have children at the margin e. the number of children is unlikely to change, because the decision the have children is based on opportunity cost, not just aid

b. is the benefit to his knowledge and grades he would get from studying for an hour.

Paul decided to spend an hour playing basketball rather than studying. the tradeoff a. is nothing, because he enjoys playing basketball more than studying b. is the benefit to his knowledge and grades he would get from studying for an hour. c. is the increase in skill he would get from playing basketball for an hour. d. only exists if he had originally planned to study, and then played basketball instead.

e. None of the above

People who buy items without first shopping around for a lower price a. do not pay sufficient attention to their costs. b. are focused only on opportunity costs, not monetary costs. c. are paying more attention to their benefits than to their costs. d. All of the above e. None of the above

d. enhanced, enhanced

Smith accidentally runs his car off the road into deep snow. Jones happen along in a tow truck, and offers to haul Smith out for the outrageous price of $300. Smith, though angered by the price, considers he has no choice and pays the $300. Smith's welfare was _______ and Jone's was ________ as a result of Jones passing by. a. enhanced, reduced b. reduced, enhanced c. unchanged, enhanced d. enhanced, enhanced e. reduced, reduced

c. the number of two-parent, low-income families is likely to fall

Some welfare programs offer assistance to families only if there is no father present in the home. what effect would you expect such programs to have on number of two-parent, low-income families? a. no effect, since family decisions are based primarily on factors much more important than welfare eligibility b. the number of two-parent, low-income families is likely to rise c. the number of two-parent, low-income families is likely to fall d. it is impossible to form any expectation about this situation.

c. doesn't understand opportunity cost

Someone who, when confronted by a choice, says "It's simple: do both!" a. is a high demander b. is an inefficient supplier c. doesn't understand opportunity cost d. is a go-getter

d. greater than ten cents but less than 25 cents

Steve is walking along 5th Avenue passing by a penny, a nickel, a dime, and a quarter along the way. He only bothers to bend down to pick up the quarter. We can infer that the opportunity cost to Steve of picking up a coin measured in monetary units is a. one cent b. five cents c. ten cents d. greater than ten cents but less than 25 cents e. at least 25 cents

b. Prussia has the comparative advantage in brooms and the absolute advantage in brooms

Suppose Bavaria and Prussia can produce the following amounts of pens and brooms per unit of labor: Which of the following is true? a. Prussia has the comparative advantage in pens and the absolute advantage in pens b. Prussia has the comparative advantage in brooms and the absolute advantage in brooms c. Bavaria has the comparative advantage in brooms and the absolute advantage in brooms d. Bavaria has the comparative advantage in pens and the absolute advantage in pens e. both a and b

d. Charlize may take, more, fewer, or the same number of rides as under the $5 per ride scheme

Suppose Coney Island changes its pricing and offers instead a single $30 daily ticket, for which one can ride the Cyclone as many times as one likes. Using the economic model, we can predict that following the pricing change, a. Charlize will take more rides than under the $5 per ride scheme b. Charlize will take fewer rides than under the $5 per ride scheme c. Charlize will take the same number of rides as under the $5 per ride scheme d. Charlize may take, more, fewer, or the same number of rides as under the $5 per ride scheme

e. Just a and b.

Suppose a law requires employers to provide health insurance coverage for "contract employees" (i.e., workers on short-term contracts), "because contract employees deserve health insurance too!" What would our economic model lead us to predict? a. Firms would use fewer contract employees b. Firms would reduce the amount they pay contract employees c. Most current contract employees would be made better off d. All of the above e. Just a and b.

b. $2

Suppose you pay $2 for each ride you take on a rollercoaster, and you are about to take your tenth and last ride for the day. The marginal cost of that ride is at least a. 0 b. $2 c. it depends on the benefits you recieve d. $20 e. less than $2, because of diminishing marginal returns

a. the U.S. ends up better of

The concept of comparative advantage explains why, if China becomes much more productive a. the U.S. ends up better of b. the U.S. ends up worse off c. the U.S. is unaffected d. China becomes poorer

d. all of the above

The cost of a college education includes a. tuition paid b. textbook purchased c. a foregone salary at alternative employment d. all of the above e. some but not all of the above

d. whatever you miss doing because you go to that class

The cost of attending the last class before an exam includes a. whatever tuition you paid b. payments on the car that you drive to campus if you commute c. the cost of your dorm room if you live in the dorms d. whatever you miss doing because you go to that class e. all of the above

e. just a and b

The cost of letting senior citizens into a $5 movie for free a. is higher on a saturday night than a monday night b. is lower if the senior citizen would not have gone to the movie without the free pass. c. is always $5 d. all of the above e. just a and b

c. likely to be higher on a Saturday night than on a Monday night

The cost to a cinema owner of letting someone see a movie for free is a. always equal to the regular ticket price of $8.50 b. usually more than the regular ticket price of $8.50 c. likely to be higher on a Saturday night than on a Monday night d. always nothing if he/she owns the cinema

b. marginal costs

The costs that influence decisions are always a. average costs b. marginal costs c. sunk costs d. total costs

a. is a marginal decision

The decision whether to purchase the breakfast "all you can eat" buffet versus ordering from the menu at fixed prices a. is a marginal decision b. is not a marginal decision, because the "all you can eat" price will be sunk once you've paid for it c. depends on benefits and costs, but not on marginal benefits and marginal costs d. is not subject to the marginal principle

e. there is no difference

The difference between a marginal cost and an opportunity cost is a. marginal cost is the cost of the last unit, while opportunity cost is the cost of the opportunity sacrificed b. marginal cost involves decisions "at the margin", while opportunity cost involves alternatives c. opportunity cost makes up only part of marginal cost d. all of the above e. there is no difference

e. None of the above

The difference between a price and an opportunity cost is that a. a price does not represent an opportunity sacrificed. b. a price is expressed in dollar terms while an opportunity cost is an alternative foregone. c. an opportunity cost represents only part of a price paid. d. All of the above e. None of the above

d. All of the above.

The economic way of thinking would lead us to conclude that obesity rates would rise if a. food becomes easier to prepare. b. food prices in the grocery store drop. c. exercise becomes more difficult to engage in. d. All of the above. e. Just a and b.

a. people respond to incentives

The factor that more pedestrians were killed after laws made cars safer demonstrate a. people respond to incentives b. laws usually have a bad effect c. people will always drive badly d. cars need to be made even safer

e. Only a and b

The famous Cyclone roller coaster at Coney Island costs $5 per ride. If Charlize chose to ride the Cyclone four times, but not five times, we can deduce that a. Charlize must have gotten at least $20 in benefits from the four rides b. the marginal benefit Charlize received from her last ride was at least $5 c. the opportunity cost of Charlize's last ride was at most $5 d. All of the above e. Only a and b

d. the highest-valued alternative forgone.

The ultimate cost of any choice is a. the dollars expended. b. what someone else would be willing to pay. c. the after-tax cost. d. the highest-valued alternative forgone.

a. are the wages they could make otherwise

The opportunity cost to college athletes on scholarship who stay in school a. are the wages they could make otherwise b. are the value of the scholarship they recieve c. is nothing, unless they are good enough to turn professional d. underestimates the value of a college education

a. it would increase the cost

The professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this influence the cost to a player of quitting basketball to pursue a career in broadcasting? a. it would increase the cost b. it would decrease the cost, because the player could make more money in the meantime c. it would not affect the cost, but it would affect the benefits d. it would affect neither the benefits nor costs of becoming a broadcaster e. there is not enough information to determine

b. the risk of harm from Zika versus the risk of harm from the remedy

The spread of the Zika virus has many health experts worried, and the Food and Drug Administration (FDA) is being pressured to approve anti-Zika remedies (like the release of genetically modified mosquitoes) without doing full-scale testing. The principal tradeoff facing the FDA is a. that any remedy will cost money b. the risk of harm from Zika versus the risk of harm from the remedy c. that a risky remedy will be approved d. There is no tradeoff - only completely safe remedies should be approved.

d. benefits both the United States and Thailand

Trade between the United States and Thailand a. is a losing proposition for Thailand because U.S. workers are more productive b. is a losing proposition for the U.S. because Thailand has cheaper labor c. is like a sports contest: one side wins and the other side loses d. benefits both the United States and Thailand

a. to rise at the margin, if there are other things you like to do

Use the economic model: As you spend more time studying, we would expect the cost of the time you spend studying a. to rise at the margin, if there are other things you like to do b. to fall at the margin, because you can spread your tuition payment over more studying hours c. to fall at the margin, because the benefits of additional studying are diminishing d. to stay the same, because your tuition is a sunk cost

c. 3

Use the marginal principle to predict how much X will be consumed a. 5, as you get total benefits of $42 versus a total cost of $37 b. 4, as you get an average benefit of $10 versus an average cost of $7 c. 3 d. 1, as you get a net benefit of $9

c. if the marginal benefit of the last unit of safety was less than the marginal cost

We have too much safety a. if the marginal cost of the last unit of safety was less than the marginal benefit b. if the total value of safety is negative c. if the marginal benefit of the last unit of safety was less than the marginal cost d. if no one ever gets hurt e. all of the above

e. None of the above

When I visit family in Connecticut, I usually drive rather than fly. Therefore, using the economic way of thinking, you can deduce that a. at the margin, I get more benefits from driving than from flying b. I must dislike flying a lot c. I must like driving a lot d. All of the above e. None of the above

d. there is a cost because firms and consumers must give up something in return

When airlines increase the number of safety inspections of their engines, a. there is no cost, since more safety benefits everybody b. there is no cost for society as a whole, since only a few firms are affected c. there is a cost only if firms are forced to cancel flights d. there is a cost because firms and consumers must give up something in return

a. the existence of scarcity

When economists refer to tradeoffs, they are highlighting a. the existence of scarcity b. the fact that trade makes us better off c. the importance of gains from trade d. the importance of ensuring that gains from trade are distributed equitably e. all of the above

d. there is a tradeoff because firms and consumers will be left with less money

When society requires that firms reduce pollution a. there is no tradeoff, since lower pollution benefits everybody b. there is no tradeoff for society as a whole, since only a few firms are affected c. there is a tradeoff only if firms are forced to close down d. there is a tradeoff because firms and consumers will be left with less money

a. the T.V. program you would otherwise have watched

Which of the following are marginal costs associated with studying economics for an extra hour? a. the T.V. program you would otherwise have watched b. the cost of your economics textbook c. the tuition paid for that economics class d. all of the above

b. A world-renowned chef hires someone to cook meals for his family.

Which of the following best illustrates the concept of comparative advantage? a. Your lawyer processes his own legal briefs in order to get them done quickly. b. A world-renowned chef hires someone to cook meals for his family. c. A firm builds a second factory after demand for its product increases. d. A doctor takes accounting courses to help her manage the business end of her practice. e. All of the above.

d. I must pay $2 if I want another espresso.

Which of the following bests illustrate the economic concept of scarcity? a. Sumatran tigers are nearly extinct. b. "Rare earth" minerals are found in the far-reaching corners of the world. c. Big glaciers in Alaska are melting. d. I must pay $2 if I want another espresso. e. All of the above

e. all of the above

Which of the following explain my decision to go to the weight room rather than to a movie? a. I value exercising more than movie watching b. I feel better if I work out c. the marginal benefits of working out rather. than going to a movie exceed the marginal costs d. I like to exercise more than I like to watch films. e. all of the above

a. fewer houses will be put up for rent if laws keep rents low

Which of the following is a positive rather than normative statement? a. fewer houses will be put up for rent if laws keep rents low b. rents are for long term tenants should not be allowed to rise merely because an area becomes fashionable c. the amount of affordable housing currently available is too low d. you are terrific e. all of the above

d. all of the above

Which of the following is a resource allocation question? a. should i have coffee or tea this afternoon? b. should we log Yellowstone National Park or leave the land alone c. should we log Yellowstone National Park or mine Yellowstone National park? d. all of the above e. just b and c

d. all of the above

Which of the following is a resource allocation question? a. should the government allow mining or grazing on a parcel of public land? b. Should new houses be built in San Diego or in Las vegas or both, how many? c. should my spouse and i have another child? d. all of the above e. all except c

d. all of the above

Which of the following is a substitute for gasoline? a. ethanol b. a car pool c. more fuel efficient cars d. all of the above

d. All are scarce goods

Which of the following is an example of a scarce good? a. Coca Cola b. Insulin c. Diamonds d. All are scarce goods e. just b and c

d. All of the above are consistent with the marginal principle

Which of the following is consistent with the marginal principle a. Saxon spends an hour studying, even though he can barely keep his eyes open b. Miley spends an hour studying, even though she has a tennis match early tomorrow c. Bob spends an hour studying, because he enjoys studying more than anything else d. All of the above are consistent with the marginal principle e. None of the above is consistent with the marginal principle

c. You should learn to take better care of your cookies.

Which of the following is not a positive statement? a. If you leave that cookie on the table, the dog will eat it. b. If the dog eats the cookie, she will throw up on the rug. c. You should learn to take better care of your cookies. d. All of the above are positive statements e. None of the above are positive statements

e. all are assumptions of the economic model

Which of the following is not an assumption of the economic model? a. people respond to incentives b. goods are scarce c. people make decisions by comparing marginal benefits and marginal costs d. the only costs that matter are opportunity costs e. all are assumptions of the economic model

d. all of the above

Which of the following is true of the statement "All solution must be stopped" a. it ignores the importance of comparing marginal benefits and marginal costs b. it does not consider that. we may have too much pollution control c. it ignores that fact that to get more of. anything, we must give up something else d. all of the above

b. $4 per plate

Which would leave Bob better off (measured as "benefits less costs"), paying $25 for an "all the plates of clams you can eat" buffet, or paying $4 for each plate of clams? a. all you can eat b. $4 per plate c. indifferent d. more information required

e. just a and b

You are considering renting a car and driving to Seattle for Christmas. Which of the following would be marginal costs that you will consider in making your decision? a. the car rental price b. gasoline c. wear and tear on the car d. all of the above e. just a and b

d. your marginal benefit is greater than zero.

You are considering whether to take on last ski run before going home. You paid $30 for your lift ticket (which gives you the right to ski all day), and you have taken nine runs. It is only efficient for you to take a tenth run if a. your marginal benefit is greater than $30 b. your marginal benefit will be greater than. $3 c. your total benefit will end up greater than $30 d. your marginal benefit is greater than zero. e. your total benefit ends up greater than your total costs

e. go home

You buy an all day ski pass for $50, planning on taking 10 runs and getting $100 worth of. enjoyment. After four runs, you find you're not enjoying yourself and want to go home. According to the economic model, you should a. take at least one more run to get your money's worth b. take a fifth run only if the benefit from it is at least $10 c. take more runs unless you've gotten at least $50 worth of enjoyment already d. keep skiing until you've taken 10 runs e. go home

c. has made both you and the driver better off

You miss the last train home on New years eve. After walking for an hour, you spot a taxi. Its driver wants to charge $150 to take you home, though the ride usually costs $30. You are furious, but feel you have no other option and accept the deal. Finding the taxi a. has made you better off and the driver worse b. has made you worse off and the driver better off c. has made both you and the driver better off d. has made both you and the driver worse off e. has made the driver better off but left your well-being unchanged

d. all of the above

You observe that a hotdog vendor lowers his prices in the late afternoon. Which of the following is a plausible economic rationale? a. The opportunity cost of the hot dogs has fallen b. people are less likely to buy hotdogs in the. late afternoon than earlier in the day c. the marginal benefits of alternative activities (for example, meeting friends for a drink) rise in the afternoon d. all of the above

d. $5

You want to purchase some pizza. The price is $8 for one pizza, $15 for two pizzas, and $20 for three pizzas. What is the marginal cost to. you of getting a third pizza? a. $20 b. $12 c. $7 d. $5 e. zero

c. whichever can be completed at the least additional cost

Your company is engaged in two projects, one of which hs cost $25 million to date, the other of which has cost $10. million to date. It can only afford to finish one of the projects. The expected benefit from each project is the same. Which project should it finish? a. the $25 million project, because it has already invested so much b. the $10 million project, because it has cost so little thus far c. whichever can be completed at the least additional cost d. whichever will result in the lowest cost in total by the end of the project

b. in a low income area with high unemployment

based on the concept of opportunity cost, where would you expect to have the least trouble finding someone to clean your house? a. in a high income area with low unemployment b. in a low income area with high unemployment c. in a middle class area with medium unemployment d. in any area, because there's always someone willing to clean house

d. are $5

if a buyer values a product at $19 and a seller's opportunity cost of selling the product is $14, the gains from trade a. can't be determined without knowledge of the price b. are $19 c. are $14 d. are $5 e. are $33

a. it its worth to you is less than $12,000

if you paid $25,000 for your car just a short while ago, but the best offer you can get for it now is $12,000. you should only sell the car a. it its worth to you is less than $12,000 b. if its worth to you is less than $25,000 c. if you can get something close to what you paid for d. if you value it more than $12,000

b. $21

if you value a good at $25 and you buy it from Ed, who values it at $4, for a price of $10, you have created total gains from trade a. $15 b. $21 c. $6 d. $25

a. you give up an hour you could have spent doing something else

if you work an additional hour on your homework a. you give up an hour you could have spent doing something else b. you don't give up anything, because you are here to go to school c. you give up something only if you could have spent your time on things more important than homework d. you give up something only if you could have used that hour to make some money

c. what you must give up to get it

in economics, the cost of something is a. the out of pocket expense of obtaining it b. always measured in money c. what you must give up to get it d. always higher than people think

e. none of the above

movie-goers who are willing to put up with long lines at a cinema to get a lower price are a. not rational b. haven't evaluated the marginal cost. of the time they gave up c. would give up any amount of time to save a little money d. all of the above e. none of the above

e. they cannot be affected by the decision in question

sucks costs are irrelevant to economic decisions because a. they dont involve monetary expenditures, merely opportunity costs b. opportunity costs rise with the quality supplied c. they dont. affect a firms profit d. they dont reflect what people actually value e. they cannot be affected by the decision in question

d. the resulting decrease in your economics grade.

suppose you spend the semester watching TV instead of studying economics (your next best alternative use of time). the cost is a. your hourly wage multiplied by hours of tv watched b. the price of the textbook you paid for but didn't use c. the tuition money you wasted d. the resulting decrease in your economics grade. e. all of the above

d. is greater on Christmas than in mid-February

the concept of opportunity cost suggest that the cost to airlines of allowing employees to fly for free a. depends on the alternatives available to the employees b. is zero c. depends on the value employees place on free travel d. is greater on Christmas than in mid-February

d. all of the above

the cost of skipping class a. is higher the day of an exam b. depends on how much you like the class c. is not affected by the tuition revenue you paid d. all of the above

a. is high on the weekend when more people ski

the cost to a ski instructor of taking a day off a. is. high on the weekend when more people ski b. falls when it snows c. rises when it rains d. rises when there are a lotto other instructors around, so competition is intense

e. price

the form of rationing we see most often in our society is a. queuing (waiting in line) b. lotteries c. allocating goods through the political process d. allocating goods according to need e. price

d. all of the above

the idea that "people respond incentives" would lead us to conclude that class attendance would rise a. if i take attendance and grade it b. if i give lots of surprise quizzes c. if i offer money to students who come to class d. all of the above

b. the price will rise because. the contractor's opportunity cost will be higher

you want to build a new garage, and ask a contractor for a bid. he gives you a time and price. you ask him to complete the garage in half the time he proposes. What will happen to the price and why? a. the price will rise because your willingness to pay is obviously higher b. the price will rise because. the contractor's opportunity cost will be higher c. the price will fall because the contractor can get your garage out of the way more quickly, and thus move on other projects d. the price will not be affected because the relevant costs are sunk

b. increases during summer vacation

your comparative advantage as a house painter (as opposed to a student) a. increases during exam week b. increases during summer vacation c. depends only on how good you are with a paintbrush d. all of the above