Econ 120: Practice midterm

It is a beautiful afternoon, and you are considering taking a leisurely stroll through the park. Your alternatives to walking are streaming a movie that you value at $5, taking a nap that you value at $7, or reading a new book that you value at $12. What is the opportunity cost to you of taking the stroll through the park? $12 $7 $5 $0

$12

A friend comes up to you and offers you a free ticket to a Dodgers game that night, and you decide to attend the game. The game takes five hours and costs you $25 for transportation. If you had not attended the game, you would have worked at your part-time job for $12 an hour. What is the cost to you of attending the game? $60 $85 $55 The cost is zero—the ticket is free.

$85

Vincent makes dining tables, and he is trying to decide how many tables to produce. He can sell each dining table for $2,000. The cost of the first table is $750, and for the second it's $1,000. For each additional table he produces, the marginal cost of each table increases by $250. How many dining tables should Vincent produce, and what is the total cost of his production? He will produce seven tables at a total cost of $10,500. He will produce four tables at a total cost of $4,500. He will produce five tables at a total cost of $6,250. He will produce six tables at a total cost of $8,250.

He will produce four tables at a total cost of $4,500.

Suppose oranges and clementines are substitutes. Holding everything else constant, if the price of oranges decreases, then the demand for _____ will _____. clementines; increase clementines; decrease oranges; increase oranges; decrease

clementines; decrease

It is a rainy day, and you are considering taking an Uber one mile to meet some friends. You have decided you are willing to pay $20 to avoid getting wet from the rain. The trip would normally cost you $8, but because of the weather the surcharge is twice the regular cost. You should _____ because the benefit to you of taking the Uber is _____ than the cost. take an Uber; less walk; less take an Uber; more walk; more

take an Uber; less