ANSWER:
d
195. If a student enrols in an additional course at the university, which of the following would an economist conclude?
a.
The total benefit that the student expects to receive as a result of completing their university degree exceeds the total cost of their university education.
b.
The student is not following the rule of rational choice.
c.
The student is not looking at the opportunity costs.
d.
The expected marginal benefit of an additional course must exceed the expected marginal cost of the course.
ANSWER:
d
196. The price of a ticket to a Taylor Swift concert is $150. According to an economist, under what circumstances will you purchase a ticket?
a.
when your valuation of seeing the concert is less than $150
b.
when your marginal benefit of going to the concert is positive
c.
when your expected marginal benefit from viewing the concert exceeds $150
d.
when your expected marginal cost from viewing the concert exceeds $150
ANSWER:
c
197. The expected marginal benefit to you from purchasing a new Land Rover is $60 000. If the price of the new Land Rover is $62 000, what will you do?
a.
If you are acting rationally, you will borrow $2000 and purchase a new Land Rover.
b.
You will not purchase the new Land Rover at this time if you are acting rationally.
c.
If you are acting rationally, you will purchase Land Rovers until the marginal cost of doing so falls to $60 000.
d.
If you do not purchase the new Land Rover, your net loss will be $2000.
ANSWER:
b
198. The marginal benefit to you of drinking coffee is $3.50. If the price of a coffee is $3.00, what will you do?
a.
If you purchase coffee you will suffer a net loss of 50 cents per cup.
b.
You will not purchase coffee if you are acting rationally.
c.
If you purchase a cup of coffee, the net gain to you from doing so is 50 cents.
d.
If you are acting rationally, you will purchase coffee until the marginal benefit falls to 50 cents.
ANSWER:
c
199. If Amidala declines to purchase a new coat priced at $900, according to the rule of rational choice, which of the following best represents the expected marginal benefit of the coat for Amidala?
a.
less than $800
b.
less than $900
c.
less than $850
d.
more than $900
ANSWER:
b
200. Bellatrix must choose between going to their economics class this evening and going on a date. If they choose to go on the date, which of the following statements is most accurate about the expected value of the economics lecture?
a.
It is likely greater than the expected marginal benefit from going on the date.
b.
It is impossible to compare to the expected enjoyment from going on the date.
c.
It is likely equal to the expected marginal benefit from going on the date.
d.
It is likely less than the expected marginal benefit from going on the date.
ANSWER:
d
Table 1-2
Number of Weekend
Vacations
Marginal Benefit
1
$800
2
$750
3
$675
4
$525
5
$450
6
$380
201. Refer to Table 1-2. If the marginal cost of a weekend vacation at the local resort is constant and equal to $375, how many weekends at the local resort is Gendry likely to enjoy?
a.
2
b.
3
c.
4
d.
5
ANSWER:
b
202. Refer to Table 1-2. If the marginal cost of a weekend vacation at the local resort is constant and equal to $700, how many weekends at the local resort is Shalico likely to enjoy?
a.
2
b.
3
c.
4
d.
5
ANSWER: