ECON 2110 Practice Exam 1 | Latest
study set | Questions and verified
Answers
If you decide to go to a movie this evening rather than study econ, you thereby demonstrate that -
ANSW-at the margin, you value two hours of movie watching more than two hours of studying econ
The costs that influence decisions to supply are always - ANSW-marginal costs
If sellers want to sell more products than buyers are willing to purchase, we know that - ANSW-the
current price is greater than the equilibrium price
If you pay $400 for a seasonal pool pass at a private club, the marginal cost to you of swimming on any
given weekday will be - ANSW-$0
You want to purchase two pizzas. The price is $8 per pizza, 2 for $15, and 3 for $20. What will be the
marginal cost to you of buying a third pizza? - ANSW-$5
You cut down 4 trees or dig 12 holes in an hour. You can cut down 3 trees or dig 6 holes in an hour. The
cost of one of of my trees is: - ANSW-3 holes
You cut down 4 trees or dig 12 holes in an hour. You can cut down 3 trees or dig 6 holes in an hour. We
could both be made better off if i: - ANSW-specialize in digging holes
You cut down 4 trees or dig 12 holes in an hour. You can cut down 3 trees or dig 6 holes in an hour. A
trade that would help us both is: - ANSW-one of your trees for 2.5 of my holes
The concept of opportunity cost suggests that the cost to airlines of allowing employees to fly for free is:
- ANSW-greater at Christmas than in mid-february
The idea that "people respond to incentive" would lead us to conclude that the murder rate: - ANSW-
would fall if tougher penalties are enacted
If we as a country decided to dedicate more resources to making meat safe, - ANSW-there will be less
left over to do other desirable things
This means that dedicating more resources to making meat safer, - ANSW-may be a good or bad idea,
depending on the marginal benefits and costs.
If people are "rational" in the economic sense, they - ANSW-none of the above
If you say that expanding the food stamp program is the right thing to do, and I reply that expanding the
program will lead to less resources spent in other areas, we are unlikely to have a meeting of minds
because: - ANSW-you are making a normative argument and I am making a positive statement.
In economics, the cost of something is - ANSW-what you must give up to get it
Use the economic model: As you spend more time studying, we would expect the cost of that studying -
ANSW-to rise at the margin, if there are other things you like to do
Which of the following is NOT true of trade - ANSW-Trade makes rich people richer and poor people
poorer
What is the change in total producer surplus if the price rises from $2 to $2 per unit? - ANSW-$15
Bill Gates dropped out of college and founded Microsoft. His opportunity cost of continuing to attend
college was - ANSW-tuition, the cost of books, and the income from his Microsoft pursuits
study set | Questions and verified
Answers
If you decide to go to a movie this evening rather than study econ, you thereby demonstrate that -
ANSW-at the margin, you value two hours of movie watching more than two hours of studying econ
The costs that influence decisions to supply are always - ANSW-marginal costs
If sellers want to sell more products than buyers are willing to purchase, we know that - ANSW-the
current price is greater than the equilibrium price
If you pay $400 for a seasonal pool pass at a private club, the marginal cost to you of swimming on any
given weekday will be - ANSW-$0
You want to purchase two pizzas. The price is $8 per pizza, 2 for $15, and 3 for $20. What will be the
marginal cost to you of buying a third pizza? - ANSW-$5
You cut down 4 trees or dig 12 holes in an hour. You can cut down 3 trees or dig 6 holes in an hour. The
cost of one of of my trees is: - ANSW-3 holes
You cut down 4 trees or dig 12 holes in an hour. You can cut down 3 trees or dig 6 holes in an hour. We
could both be made better off if i: - ANSW-specialize in digging holes
You cut down 4 trees or dig 12 holes in an hour. You can cut down 3 trees or dig 6 holes in an hour. A
trade that would help us both is: - ANSW-one of your trees for 2.5 of my holes
The concept of opportunity cost suggests that the cost to airlines of allowing employees to fly for free is:
- ANSW-greater at Christmas than in mid-february
The idea that "people respond to incentive" would lead us to conclude that the murder rate: - ANSW-
would fall if tougher penalties are enacted
If we as a country decided to dedicate more resources to making meat safe, - ANSW-there will be less
left over to do other desirable things
This means that dedicating more resources to making meat safer, - ANSW-may be a good or bad idea,
depending on the marginal benefits and costs.
If people are "rational" in the economic sense, they - ANSW-none of the above
If you say that expanding the food stamp program is the right thing to do, and I reply that expanding the
program will lead to less resources spent in other areas, we are unlikely to have a meeting of minds
because: - ANSW-you are making a normative argument and I am making a positive statement.
In economics, the cost of something is - ANSW-what you must give up to get it
Use the economic model: As you spend more time studying, we would expect the cost of that studying -
ANSW-to rise at the margin, if there are other things you like to do
Which of the following is NOT true of trade - ANSW-Trade makes rich people richer and poor people
poorer
What is the change in total producer surplus if the price rises from $2 to $2 per unit? - ANSW-$15
Bill Gates dropped out of college and founded Microsoft. His opportunity cost of continuing to attend
college was - ANSW-tuition, the cost of books, and the income from his Microsoft pursuits
