a.
It is equal for all plates of food consumed during the meal.
b.
It is equal to the price paid for the meal (since there is no such thing as a free lunch).
c.
It is equal to the price paid for the meal divided by the number of plates of food consumed.
d.
It is equal to zero.
ANSWER:
d
187. You consider purchasing one more cup of coffee before you go to class. What is this consideration an example of?
a.
average thinking
b.
positive thinking
c.
marginal thinking
d.
total thinking
ANSWER:
c
188. Croissants at a local bakery are priced at one for $3 or two for $5. What is the marginal cost of buying a second croissant?
a.
$1
b.
$2
c.
$3
d.
$5
ANSWER:
b
189. Thelma, with no money in her bank account, estimates that there is a 25 percent chance that she will get caught stealing a Porsche. According to an economist, under what circumstances might it be rational for Thelma to steal the Porsche?
a.
if the expected marginal costs exceed the retail value of the Porsche
b.
if her expected marginal benefit exceeds the amount of money in her bank account
c.
if the expected marginal costs outweigh the expected marginal benefits from doing so
d.
if the expected marginal benefits outweigh the expected marginal costs from doing so
ANSWER:
d
190. Which of the following processes does marginal analysis involve?
a.
comparing the additional benefit from an action with the additional cost
b.
comparing the total benefits of all actions to the total costs incurred as a result of those actions
c.
abstract thinking, which is never actually utilized by consumers when making purchasing decisions
d.
holding all other variables constant when isolating the relationship between two variables
ANSWER:
a
191. According to the rule of rational choice, what must occur for an individual to be willing undertake an activity?
a.
The expected marginal benefits must be less than the expected marginal costs.
b.
The total costs must exceed total benefits.
c.
The expected marginal benefits must be greater than the expected marginal costs.
d.
The expected marginal benefit must equal the expected marginal cost.
ANSWER:
c
192. Which of the following statements about rational choices is the most accurate?
a.
They can only be made by comparing opportunity cost with the marginal cost.
b.
They are made based on expectations of the additional benefits and additional costs involved.
c.
They are based on a comparison of total benefits and total costs.
d.
They measure benefits based on the past.
ANSWER:
b
193. A beer at the baseball stadium costs $16 each. According to the rule of rational choice, when will Adam stop drinking beer?
a.
when the marginal benefit received from consuming peanuts with beer just equals $16
b.
when the marginal cost of an additional beer is less than $16
c.
when the marginal benefit of an additional beer equals zero
d.
when the marginal benefit of an additional beer falls below $16
ANSWER:
d
194. According to the rule of rational choice, under what circumstances will you engage in more of an activity?
a.
when the additional cost incurred as a result of the activity exceeds the additional benefit received
b.
when the opportunity cost of your time is very low
c.
when the total benefit from that activity exceeds the total cost of the activity
d.
when the additional benefit received as a result of the activity exceeds the additional cost incurred