ECN 212 Study Guide Questions with 100%
Correct Answers
theresa spends 2 hours working instead of watching tv with her friends. the opportunity
cost to her of working is:
the salary earned working per hour
the salary earned working per hour, minus the enjoyment of watching tv
the enjoyment she would have received if she had watched tv with her friends
zero, since theresa chose to study than to watch tv, the value of studying must have been
greater to her than the value of watching tv
the enjoyment she would have received if she had watched tv with her friends
Katie is planning to sell her house, and she is considering making two upgrades to the
house before listing it for Replacing the carpeting will cost her $2,500 and replacing the
roof will cost her $9,000. Katie expects the new carpeting to increase the value of her
house by $3,000 and the new roof to increase the value of her house by $7,000.
she should replace the carpeting but not replace the roof
she should make both improvements to her house
she should replace the roof but not replace the carpeting
, she should not make either improvements to her house
she should replace the carpeting but not replace the roof
which of the following would likely be studied by a microeconomist rather than a
macroeconomist
the effect of foreign direct investment on economic growth
the effect of a sales tax on the cigarette industry
the effect of an investment tax credit on the economys capital stock
the effect of a war on government spending
the effect of a sales tax on the cigarette industry
ramona decides to spend two hours taking a nap rather than attending her classes. her
opportunity cost of napping is:
the value of the knowledge she would have received had she attended class
the $24 she could have earned if she had worked at her job those two hours
the value of her nap minus the value of attending class
nothing, since she valued sleep more than class attendance
Correct Answers
theresa spends 2 hours working instead of watching tv with her friends. the opportunity
cost to her of working is:
the salary earned working per hour
the salary earned working per hour, minus the enjoyment of watching tv
the enjoyment she would have received if she had watched tv with her friends
zero, since theresa chose to study than to watch tv, the value of studying must have been
greater to her than the value of watching tv
the enjoyment she would have received if she had watched tv with her friends
Katie is planning to sell her house, and she is considering making two upgrades to the
house before listing it for Replacing the carpeting will cost her $2,500 and replacing the
roof will cost her $9,000. Katie expects the new carpeting to increase the value of her
house by $3,000 and the new roof to increase the value of her house by $7,000.
she should replace the carpeting but not replace the roof
she should make both improvements to her house
she should replace the roof but not replace the carpeting
, she should not make either improvements to her house
she should replace the carpeting but not replace the roof
which of the following would likely be studied by a microeconomist rather than a
macroeconomist
the effect of foreign direct investment on economic growth
the effect of a sales tax on the cigarette industry
the effect of an investment tax credit on the economys capital stock
the effect of a war on government spending
the effect of a sales tax on the cigarette industry
ramona decides to spend two hours taking a nap rather than attending her classes. her
opportunity cost of napping is:
the value of the knowledge she would have received had she attended class
the $24 she could have earned if she had worked at her job those two hours
the value of her nap minus the value of attending class
nothing, since she valued sleep more than class attendance
