Econ 231 Microeconomics Dr. Sauley exam
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with detailed answers
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Suppose |the |most |you |would |be |willing |to |pay |to |have |a |freshly |washed |car |before |going |out |on |a
|date |is |$6. |The |smallest |amount |for |which |you |would |be |willing |to |wash |someone |else's |car |is |$3.50.
|You |are |going |out |this |evening |and |your |car |is |dirty. |How |much |economic |surplus |would |you |receive
|from |washing |it? |- |CORRECT |ANSWER-$2.50
Dean |should |play |golf |instead |of |preparing |for |tomorrow's |exam |in |economics |if:
A.)the |economic |surplus |from |playing |golf |is |greater |than |the |economic |surplus |from |studying.
B.)he |is |irrational.
C.)the |benefit |of |golfing |is |greater |than |the |benefit |of |studying.
D.)Dean |can |play |golf |for |free. |- |CORRECT |ANSWER-A.)the |economic |surplus |from |playing |golf |is
|greater |than |the |economic |surplus |from |studying.
Larry |was |accepted |at |three |different |graduate |schools, |and |must |choose |one. |Elite |U |costs |$50,000
|per |year |and |did |not |offer |Larry |any |financial |aid. |Larry |values |attending |Elite |U |at |$60,000 |per |year.
|State |College |costs |$30,000 |per |year, |and |offered |Larry |an |annual |$10,000 |scholarship. |Larry |values
|attending |State |College |at |$40,000 |per |year. |NoName |U |costs |$20,000 |per |year, |and |offered |Larry |a
|full |$20,000 |annual |scholarship. |Larry |values |attending |NoName |at |$15,000 |per |year. |What |is |Larry's
|economic |surplus |from |attending |State |College |instead |of |his |next |best |alternative?
a.)$5,000
b.)$40,000
c.)$20,000
d.)$10,000 |- |CORRECT |ANSWER-A.)$5,000
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.)the |opportunity |cost |of |attending |State |U. |includes |the |money |Alex |could |have |earned |working |for
|four |years.
, b.)the |opportunity |cost |of |attending |State |U. |includes |the |sum |of |the |benefits |c.)Alex |would |had |from
|attending |each |of |the |other |schools |to |which |he |was |admitted.
d.)attending |State |U. |for |four |years |is |costless |for |Alex.
Alex |has |no |incentive |to |study |hard |while |at |State |U. |- |CORRECT |ANSWER-a.) |the |opportunity |cost |of
|attending |State |U. |includes |the |money |Alex |could |have |earned |working |for |four |years.
Jen |spends |her |afternoon |at |the |beach, |paying |$1 |to |rent |a |beach |umbrella |and |$11 |for |food |and
|drinks |rather |than |spending |an |equal |amount |of |money |to |go |to |a |movie. |Her |opportunity |cost |of
|going |to |the |beach |is:
a.)the |value |she |places |on |seeing |the |movie.
b.)the |$12 |she |spent |on |the |umbrella, |food |and |drinks.
c.)only |$0 |because |she |would |have |spent |$12 |to |go |to |the |movie.
d.)the |value |she |places |on |seeing |the |movie |plus |the |$12 |she |spent |on |the |umbrella, |food |and |drinks.
|- |CORRECT |ANSWER-a.)the |value |she |places |on |seeing |the |movie.
Your |friends |from |the |University |of |Cincinnati |are |planning |to |go |to |Miami |for |spring |break, |and |you
|are |undecided |about |whether |you |should |go |with |them. |The |round-trip |airfare |is |$600, |but |you |have
|a |frequent-flyer |coupon |worth |$500 |that |you |could |use |to |pay |part |of |the |airfare. |All |other |costs |for
|the |vacation |are |exactly |$900. |The |most |you |would |be |willing |to |pay |for |the |trip |is |$1,400. |Your |only
|alternative |use |for |your |frequent-flyer |coupon |is |for |your |trip |to |Atlanta |two |weeks |after |the |break
|to |attend |your |sister's |graduation, |which |your |parents |are |forcing |you |to |attend. |The |Cincinnati-
Atlanta |round-trip |airfare |is |$450. |What |is |the |opportunity |cost |of |using |the |coupon |for |the |Miami
|trip?
a.)$450
b.)$500
c.)$550
d.)$100 |- |CORRECT |ANSWER-a.)$450
For |the |fall |semester, |you |had |to |pay |a |nonrefundable |fee |of |$600 |for |your |meal |plan, |which |gives
|you |up |to |150 |meals. |If |you |eat |100 |meals, |your |marginal |cost |of |the |100th |meal |is:
a.)$0.
b.)$6.
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with detailed answers
| | |
Suppose |the |most |you |would |be |willing |to |pay |to |have |a |freshly |washed |car |before |going |out |on |a
|date |is |$6. |The |smallest |amount |for |which |you |would |be |willing |to |wash |someone |else's |car |is |$3.50.
|You |are |going |out |this |evening |and |your |car |is |dirty. |How |much |economic |surplus |would |you |receive
|from |washing |it? |- |CORRECT |ANSWER-$2.50
Dean |should |play |golf |instead |of |preparing |for |tomorrow's |exam |in |economics |if:
A.)the |economic |surplus |from |playing |golf |is |greater |than |the |economic |surplus |from |studying.
B.)he |is |irrational.
C.)the |benefit |of |golfing |is |greater |than |the |benefit |of |studying.
D.)Dean |can |play |golf |for |free. |- |CORRECT |ANSWER-A.)the |economic |surplus |from |playing |golf |is
|greater |than |the |economic |surplus |from |studying.
Larry |was |accepted |at |three |different |graduate |schools, |and |must |choose |one. |Elite |U |costs |$50,000
|per |year |and |did |not |offer |Larry |any |financial |aid. |Larry |values |attending |Elite |U |at |$60,000 |per |year.
|State |College |costs |$30,000 |per |year, |and |offered |Larry |an |annual |$10,000 |scholarship. |Larry |values
|attending |State |College |at |$40,000 |per |year. |NoName |U |costs |$20,000 |per |year, |and |offered |Larry |a
|full |$20,000 |annual |scholarship. |Larry |values |attending |NoName |at |$15,000 |per |year. |What |is |Larry's
|economic |surplus |from |attending |State |College |instead |of |his |next |best |alternative?
a.)$5,000
b.)$40,000
c.)$20,000
d.)$10,000 |- |CORRECT |ANSWER-A.)$5,000
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.)the |opportunity |cost |of |attending |State |U. |includes |the |money |Alex |could |have |earned |working |for
|four |years.
, b.)the |opportunity |cost |of |attending |State |U. |includes |the |sum |of |the |benefits |c.)Alex |would |had |from
|attending |each |of |the |other |schools |to |which |he |was |admitted.
d.)attending |State |U. |for |four |years |is |costless |for |Alex.
Alex |has |no |incentive |to |study |hard |while |at |State |U. |- |CORRECT |ANSWER-a.) |the |opportunity |cost |of
|attending |State |U. |includes |the |money |Alex |could |have |earned |working |for |four |years.
Jen |spends |her |afternoon |at |the |beach, |paying |$1 |to |rent |a |beach |umbrella |and |$11 |for |food |and
|drinks |rather |than |spending |an |equal |amount |of |money |to |go |to |a |movie. |Her |opportunity |cost |of
|going |to |the |beach |is:
a.)the |value |she |places |on |seeing |the |movie.
b.)the |$12 |she |spent |on |the |umbrella, |food |and |drinks.
c.)only |$0 |because |she |would |have |spent |$12 |to |go |to |the |movie.
d.)the |value |she |places |on |seeing |the |movie |plus |the |$12 |she |spent |on |the |umbrella, |food |and |drinks.
|- |CORRECT |ANSWER-a.)the |value |she |places |on |seeing |the |movie.
Your |friends |from |the |University |of |Cincinnati |are |planning |to |go |to |Miami |for |spring |break, |and |you
|are |undecided |about |whether |you |should |go |with |them. |The |round-trip |airfare |is |$600, |but |you |have
|a |frequent-flyer |coupon |worth |$500 |that |you |could |use |to |pay |part |of |the |airfare. |All |other |costs |for
|the |vacation |are |exactly |$900. |The |most |you |would |be |willing |to |pay |for |the |trip |is |$1,400. |Your |only
|alternative |use |for |your |frequent-flyer |coupon |is |for |your |trip |to |Atlanta |two |weeks |after |the |break
|to |attend |your |sister's |graduation, |which |your |parents |are |forcing |you |to |attend. |The |Cincinnati-
Atlanta |round-trip |airfare |is |$450. |What |is |the |opportunity |cost |of |using |the |coupon |for |the |Miami
|trip?
a.)$450
b.)$500
c.)$550
d.)$100 |- |CORRECT |ANSWER-a.)$450
For |the |fall |semester, |you |had |to |pay |a |nonrefundable |fee |of |$600 |for |your |meal |plan, |which |gives
|you |up |to |150 |meals. |If |you |eat |100 |meals, |your |marginal |cost |of |the |100th |meal |is:
a.)$0.
b.)$6.
