TTU Principles of Economics Quiz 1 ECO-2305
If all the worlds resources were to magically increase one hundredfold then: a) people would still have to make trade-offs b) economics would no longer be relevant c) scarcity would disappear d) trade-offs would become unnecessary
a
the following table shows the relationship between the speed of a computer's CPU and its benefits and costs. assume that all other features of the computer are the same (that is, CPU speed is the only source of variation) and only the CPU speeds listed below are available for purchase CPU GHz, total benefit, marginal benefit, total costs, marginal costs 2.0 / $1000 / ______ / $900 / ______ 2.5 / $1400 / _____ /_______ / $100 3.0 / ______ / $300 / $1200 / _______ 3.5 / $1900 / ______ / $1500 / _______ 4.0 / $2000 / ______ / _______ / $400 the total cost of a 2.5GHz computer is: a) $1000 b) $900 c) $200 d) $100
a
Refer to the table below. the average cost of 5 units of activity is: total benefit, total cost, total benefit o, $0, $0 1, $2, $12 2, $6, $22 3, $12, $30 4, $20, $36 5, $30, $40 6, $42, $42 7, $56, $43 a) $4 b) $6 c) $8 d) $10
b
according to the cost-benefit principle, you should spend an additional hour studying for an exam if and only if: a) the benefits of studying for an additional hour are really high b) the benefits of studying for an additional hour exceed the cost of studying for an additional hour c) the benefits of studying for an additional hour are higher for you than for anyone else in your class d) you have time to study for an additional hour
b
janie must choose to either mow the lawn or wash clothes. if she mows the lawn, she will earn $30, and if she washes clothes, she will earn $45. she dislikes both tasks equally and they both take the same amount of time. janie will therefore choose to ___________ because it generates a _________________ economic surplus a) mow the lawn; bigger b) wash clothes; bigger c) mow the lawn; smaller d) wash clothes; smaller
b
refer to the table below. the marginal benefit of the 6th unit of activity is: total benefit, total cost, total benefit o, $0, $0 1, $2, $12 2, $6, $22 3, $12, $30 4, $20, $36 5, $30, $40 6, $42, $42 7, $56, $43 a) $1 b) $2 c) $4 d) $7
b
suppose the total benefit of watching 1 baseball game is 100, the total benefit of watching 2 games is 120, and the total benefit of watching 3 games is 125. in this case, the marginal benefit of watching the 3rd game is: a) 125 b) 5 c) 41.67 d) 375
b
Alex received a four-year scholarship to state u. that covered tuition and fees, room and board, and books and supplies. if alex becomes a full-time student then: a) attending state u. for four years is costless for alex b) alex has no incentive to study hard while at state u. c) the opportunity cost of attending state u. includes the money alex could have earned working for four years d) the opportunity cost of attending state u. includes the sum of the benefits alex would have had from attending each of the other schools to which he was admitted
c
an editorial in the paper argues that a person only should be allowed to attend school if the marginal cost of educating that person is less than the marginal benefit of educating that person. the writer's reasoning is an application of: a) positive economics b) negative economics c) normative economics d) economic naturalism
c
for fall semester, you had to pay a nonrefundable free of $600 for your meal plan, which gives you up to 150 meals. if you eat all of the meals, your average cost for a meal is: a) $6 b) $5 c) $4 d) $0.25
c
refer to the table below. the average benefit of 4 units of activity is: total benefit, total cost, total benefit o, $0, $0 1, $2, $12 2, $6, $22 3, $12, $30 4, $20, $36 5, $30, $40 6, $42, $42 7, $56, $43 a) $4 b) $5 c) $9 d) $10
c
refer to the table below. the marginal cost of the 4th unit of activity is: total benefit, total cost, total benefit o, $0, $0 1, $2, $12 2, $6, $22 3, $12, $30 4, $20, $36 5, $30, $40 6, $42, $42 7, $56, $43 a) $5 b) $6 c) $8 d) $10
c
suppose the most you would be willing to pay fora plane ticket is $250. if you buy one for $175, then your economic surplus is: a) $250 b) $175 c) $75 d) $0
c
the following table shows the relationship between the speed of a computer's CPU and its benefits and costs. assume that all other features of the computer are the same (that is, CPU speed is the only source of variation) and only the CPU speeds listed below are available for purchase CPU GHz, total benefit, marginal benefit, total costs, marginal costs 2.0 / $1000 / ______ / $900 / ______ 2.5 / $1400 / _____ /_______ / $100 3.0 / ______ / $300 / $1200 / _______ 3.5 / $1900 / ______ / $1500 / _______ 4.0 / $2000 / ______ / _______ / $400 the marginal benefit of upgrading from a 2.0 GHz computer is: a) $1400 b) $1000 c) $400 d) $100
c
the following table shows the relationship between the speed of a computer's CPU and its benefits and costs. assume that all other features of the computer are the same (that is, CPU speed is the only source of variation) and only the CPU speeds listed below are available for purchase CPU GHz, total benefit, marginal benefit, total costs, marginal costs 2.0 / $1000 / ______ / $900 / ______ 2.5 / $1400 / _____ /_______ / $100 3.0 / ______ / $300 / $1200 / _______ 3.5 / $1900 / ______ / $1500 / _______ 4.0 / $2000 / ______ / _______ / $400 the total benefit of 3.0 GHz computer is: a) $300 b) $900 c) $1700 d) $1650
c
which of the following would not be studied in macroeconomics? a) the cause of the great depression b) the growth rate of the US economy c) how a sharp increase in gasoline prices is likely to affect SUV sales d) the impact of government spending on the economy
c
you save $10 on gas every week because you take the bus to school. you have class 5 days a week. what is your average benefit per day of taking the bus to school? a) $10 b) $5 c) $2 d) $0
c
Chris has one hour break between classes every wednesday. Chris can either stay at the library or go to the gym and work out. The decision Chris must make is: a) not an economic problem because neither activity costs money b) not an economic problem because it's an hour that chris has no matter what he does c) an economic problem because the tuition chris pays covers the cost of both the gym and the library d) an economic problem because Chris has only one hour, and engaging in one activity means giving up the other
d
amy is thinking about going to the movies tonight. a movie ticket costs $15, and she'll have to cancel a $20 dog-sitting job that she would have been willing to do for free. the opportunity cost of amy going to the movies is: a) $5 b) $15 c) $20 d) $35
d
which of the following would not be studied in microeconomics? a) how individual firms decide how much to produce b) whether to study or watch TV tonight c) how an early freese in california will affect the price of fruit d) whether the federal budget should be balanced
d