microeconomics EXAM A+ GRADE ASSURED COMPLETE SOLUTIONS AND VERIFIED ANSWERS

EXAM

Exam Solutionms




Microeconomics Exam 1 Chang MSU 2026 A+ GRADE A ms ms ms ms ms ms ms ms




SSURED COMPLETE SOLUTIONS AND VERIFIED ANSWE ms ms ms ms ms




RS (10CE4) ms




QUESTION 1 ms




D. costs and benefits
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ANSWER

The cost-benefit principle states that _____ are the incentives that shape decisions.
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A. framing effects
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B. incomes
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C. opportunity costs
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D. costs and benefits
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QUESTION 2 ms




B. equal to
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ANSWER

According to the marginal principle, keep increasing quantity until the marginal benefit of an additio
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nal item is _____ the marginal cost of an additional item.
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A. less than
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B. equal to
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C. greater than
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D. greater than or less than
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QUESTION 3 ms




d. both the buyer and the seller.
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ANSWER

In a voluntary economic transaction between a buyer and a seller, _____ can earn economic surplus f
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rom the transaction.
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A. neither the buyer nor the seller
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, B. only the seller
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C. only the buyer
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D. both the buyer and the seller
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QUESTION 4 ms




D. $4 ms




ANSWER

Kevin Williamson goes to a local coffee shop and orders a medium-
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sized latte. His willingness to pay for that latte is $6. The price of the latte is $2. The cost to the cof
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fee shop to produce the latte is $1. How much economic surplus does Kevin gain when he purchase
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s the latte?
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A. $6 ms



B. $1
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C. $2
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D. $4 ms




QUESTION 5 ms




C. benefit of purchasing one more coffee equals the marginal cost
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ANSWER

Joshua Murphy is planning on studying late into the night for his economics exam. How many cups
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of coffee should he buy tonight? Joshua should keep buying coffee throughout the evening until the
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marginal:
A. cost of purchasing one more coffee is positive.
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B. benefit of purchasing one more coffee is positive.
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C. benefit of purchasing one more coffee equals the marginal cost.
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D. benefit of purchasing one more coffee is less than the marginal cost.
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QUESTION 6 ms




A. opportunity; financial
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ANSWER

Decisions should reflect the _____ costs, rather than just the _____ costs.
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A. opportunity; financial
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B. financial; marginal
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C. nonfinancial; financial
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D. opportunity; nonfinancial
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QUESTION 7 ms




D. both financial and nonfinancial
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