ECON 102 Final All Quizzes and Homework 1-8 GRADED A+ 2021 LATEST VERSION

ECON 102 Final All Quizzes and Homework 1-8 Submitted by ROBERTSON, KRISTI (KLR5625) on 1/17/2016 11:21:36 PM Points Awarded 9.00 Points Missed 1.00 Percentage 90.0% 1. The idea that resources are limited is called A) opportunity cost. B) a shortage. C) scarcity. D) insufficiency. Feedback: Definition of scarcity Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): C 2. ________________ is the branch of economics concerned with the behavior of individual decision makers – both households and firms – and the functioning of individual industries. A) Financial economics B) Macroeconomics C) Public economics D) Microeconomics Feedback: Definition of Microeconomics Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): D 3. “If Penn State begins to fine students for littering, our classrooms would be cleaner” is an example of A) a positive statement. B) an empirical statement. C) a normative statement. D) a fallacy. Feedback: Positive statements are not judgment driven. Table for Individual Question Feedback Points Earned: 0.0/1.0 Correct Answer(s): A 4. Ceteris paribus means A) all else being equal. B) all variables changeable. C) all abstraction aside. D) all assumptions included. Feedback: Definition of ceteris paribus. Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): A 5. Opportunity cost is A) a cost that cannot be escaped because it has already been incurred. B) the lowest cost possible of producing a unit of output. C) the value of a sunk cost. D) the next-best alternative that we forgo when we make a choice. Feedback: Definition of opportunity cost Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): D 6. A movie production company is considering making a sequel to one of their most popular films of 2009. In their decision, should they consider the cost of the original film or just the sequel? A) They should consider the cost of both films because the cost of the sequel will likely be less than the cost of the original film. B) They should consider just the cost of the sequel because the cost of the original film has already been covered by the revenue of the original film. C) They should consider just the cost of the sequel because the cost of the original film is a sunk cost. The only cost that is important here is the marginal cost, or the cost of the sequel. D) They should consider the cost of both films because the revenues from the sequel will cover part of the original cost. Feedback: The cost of the original film is sunk. The cost of the sequel must be covered by the revenue from the sequel in order for the production company to be willing to make the sequel. Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): C 7. Your opportunity cost of cutting hair at your barbershop is $20 per hour. Electricity costs $6 per hour, and your weekly rent is $250. You normally stay open nine hours per day. Each haircut costs $10. If you stay open a tenth hour, you can give three haircuts. Should you stay open for the 10th hour? A) No. You cannot cover all of your expenses. B) Yes. The marginal benefit is greater than the marginal cost. C) Yes. The marginal cost of staying open for another hour is zero because all of the costs are sunk. D) No. The marginal benefit is lower than the marginal cost. Feedback: The marginal benefit of staying open another hour is $30 – 3 haircuts times $10 per haircut. The marginal cost is $26 -- $20 is the opportunity cost of your time plus $6 to pay for your electricity. The weekly rent of $250 is a sunk cost. Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): B 8. Economics Airlines currently spends $20,000 per month in airport fees and $10,000 per flight for fuel, crew, and airplane maintenance. An economist would call the $20,000 per month in airport fees a(n) _____________ because no matter the number of flights offered, this fee must be paid. A) sunk cost. B) None of these. C) inescapable cost. D) marginal cost. Feedback: Definition of sunk cost. Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): A 9. Each donut that you consume for breakfast costs $.75. The first donut gives you $2.00 worth of pleasure, with each subsequent donut providing $.50 less pleasure than the previous one. What is the marginal cost of the 3rd donut? A) $1.00 B) $.25 C) $1.75 D) $.75 Feedback: The marginal cost of each donut, including the third, is $.75. Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): D 10. In a typical year, the U.S. national output increases. Economists call this A) productivity expansion. B) national progression. C) technological development. D) economic growth. Feedback: Definition of economic growth. Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): D Submitted by ROBERTSON, KRISTI (KLR5625) on 1/31/2016 11:56:39 PM Points Awarded 6.00 Points Missed 4.00 Percentage 60.0% 1. Mark can produce 20 baseballs in a month and Katie can produce 25 baseballs in a month. Also, Mark can produce 10 bats in a month and Katie can produce 15 bats in a month. What is Mark’s opportunity cost of producing 30 bats? A) 20 baseballs. B) 50 baseballs. C) 15 baseballs. D) 30 baseballs. E) 60 baseballs. Feedback: It would take Mark 3 months to produce 30 bats. In that time, Mark could have produced 60 baseballs. Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): E 2. Mark can produce 6 guitars in a month and Katie can produce 5 guitars in a month. Also, Mark can produce 8 banjos in a month and Katie can produce 2 banjos in a month. What is Katie’s opportunity cost of producing 30 guitars? A) 10 banjos. B) None of these C) 1/3 banjos. D) 36 banjos. E) 48 banjos. Feedback: It would take Katie 6 months to produce 30 guitars. In that time, Katie could have produced 12 banjos.