a.
The opportunity cost of attending college is likely greater for Kamal than for Mahmoud.
b.
The opportunity cost is minuscule for both since college graduates are paid much higher than high-school graduates on average.
c.
The opportunity cost of attending college is the same for both since they are enrolled at the same academic institution.
d.
The opportunity cost of attending college is likely greater for Mahmoud than for Kamal.
ANSWER:
d
178. Which of the following best describes an opportunity cost of raising a child?
a.
the money spent on putting them into extra-curricular activities such as hockey
b.
the cost of the necessities such as food and clothing
c.
the money put aside for a college education
d.
the wages forgone by the parent who stays home to raise the child
ANSWER:
d
179. Which of the following is implied by the expression, "There's no such thing as a free lunch"?
a.
Costs are incurred when resources are used to produce goods and services.
b.
Because of time constraints, no one has time for a good lunch anymore.
c.
The person consuming a good must always pay for it.
d.
We all have to pay for our own lunch.
ANSWER:
a
180. What relationship does “There’s no such thing as a free lunch” refer to?
a.
the one between normative and positive economics
b.
the one between scarcity and opportunity cost
c.
the one between food and money
d.
the one between marginal benefit and marginal cost
ANSWER:
b
181. What is the term for the additional benefit received as a result of undertaking an action?
a.
the marginal benefit
b.
the marginal cost
c.
the average benefit
d.
the opportunity cost
ANSWER:
a
182. Which of the following best demonstrates marginal thinking?
a.
measuring all of the costs of a meal against all of the benefits when deciding whether to order dessert
b.
choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time
c.
acquiring the information relevant to a decision on what you should buy your sister for her birthday
d.
deciding to never purchase a good that is made in a sweatshop
ANSWER:
b
183. Which of the following best characterizes marginal thinking?
a.
comparing the total benefit and total cost of going to university
b.
weighing the marginal benefits of going to class against the marginal costs
c.
calculating the ratio of the total benefit of studying to the total cost of studying
d.
people wanting to make themselves better off by pursuing post-secondary education
ANSWER:
b
184. What is the term for the additional cost incurred as a result of undertaking an action?
a.
the total cost
b.
the gross cost
c.
the marginal cost
d.
the marginal benefit
ANSWER:
c
185. What is the marginal benefit of a slice of pizza?
a.
the price of the slice of pizza
b.
the total amount that a consumer is willing to pay for a whole pizza, divided by the number of slices
c.
the maximum amount that a consumer is willing to pay for the slice
d.
the difference between the value of the slice to the consumer and the price of the slice
ANSWER:
c
186. What is the marginal (dollar) cost of an additional plate of food to a patron at an "all-you-can-eat" restaurant?