Microeconomics Pre-test Questions
Suppose your first cup of coffee each day gives you $4.00 in total. Your second cup gives you an additional $3.00 in benefit and the third gives $2.00 in additional benefit. By the fourth cup of coffee, the caffeine really gets to you and you get no additional benefit If the coffee shop you go to charges $2.50 for a cup of coffee, based on marginal analysis, how many cups would you drink?
two
Dave owns a home business where he makes paintings and sells them on the internet. Each week the first painting he makes sells for $100, the second $80, the third $60, and the fourth $40
Two
Jane is trying to decide how many TV shows she should watch tonight. She gets $10 of value from each TV show she watches. If she watches one show she gives up working on her math homework (which she values at $5). If she watches two, she also gives up her economics homework (which she values at $8). If she watches three then she also has to give up her biology homework (which she values at $12)
Two
Marginal analysis is the method of analyzing "how much" type questions by comparing the additional (marginal) cost of doing more with what?
the marginal benefit
