ECO 201
nonfinancial
Estimating willingness to pay quantifies ______ costs of benefits associated with a choice.
between his own choices
Harry Watson is an engineering student taking an economics elective in his senior year. He has the option after college to work as a petroleum engineer or design rollercoasters. He is using concepts learned in his economics course to help with this decision. By considering that he cannot be both a petroleum engineer and a rollercoaster designer, he is acknowledging the dependencies that exist
She will produce seven tons at a total cost of $6,300.
Sara Sandoval is a coffee farmer trying to decide how many tons of coffee to produce. She can sell each ton of coffee for $1500. The cost of producing her first ton of coffee is $300, and the second ton costs $500. Each additional ton of coffee costs $200 more to produce. How many tons of coffee should Sarah produce, and what is the total cost of her coffee production?
He will produce four tables at a cost of $10,000.
Vincent Pearson makes dining tables, and he is trying to decide how many tables to produce. He can sell each dining table for $3,000. The cost of the first table is $1,000, for the second it's $1,500. For each additional table he produces, the marginal cost of each table increases by $500. How many dining tables should Vincent produce, and what is the total cost of his production?
Greater than or equal to
When evaluating how much to produce, increase the quantity produced if the marginal benefit of an additional item is _______ the marginal cost of the additional item.
marginal benefits equal marginal costs
When faced with a quantity decision, the economic surplus stops increasing when
inferior goods
When you get hired for a well-paying job, you will most likely view older used cars as
Damien chooses to buy a sandwich for $5 when the marginal benefit of the sandwich to him is $7.
Which of the following scenarios depicts a rational buyer?
roads
A product that can have congestion effects is
a social media tool such as WeChat in China
A product with a network effect is
Between people or businesses in the same market
Harry Watson is an engineering student taking an economics elective in his senior year. He has the option after college to work as a petroleum engineer or to design rollercoasters. He is using concepts he learned in his economics course to help with this decision. He thinks many engineers would prefer to design rollercoasters and expects a lower salary in this field. With this analysis, he is acknowledging the dependencies that exist
The demand for Gucci shoes will shift to the right today.
How will demand for Gucci shoes change today, if the government decides to tax designer shoes next year?
Not included; Financial
Jonathan Mendez is deciding whether to study for his economics exam at a cafe or go to a concert with friends tonight. The cost of tuition for his economics course is ______ in his opportunity cost calculations for thsi decisions and represents a ______ cost.
Marginal Principle
The __________ suggests, decisions about quantities are best made incrementally.
not go; less
You are thinking of going out to dinner at a restaurant with your friends. The meal is expected to cost you $50, you typically leave a 20% tip, and a round-trip Uber ride will cost you $20. You value the restaurant meal at $20, and the time spent with your friends at $30. If you did not go out to the restaurant, you would eat at home using groceries that cost you $10. You should _____ to dinner with your friends because the benefit of doing so is ______ than the cost.
