a.
He will produce four tables at a cost of $12,000.
b.
He will produce five tables at a cost of $10,000.
c.
He will produce six tables at a cost of $13,500.
d.
He will produce seven tables at a cost of $17,500.
ANSWER:
b
95. Vincent Pearson makes dining tables, and he is trying to decide how many tables to produce. He can sell each dining table for $1,000. The cost of the first table is $900, for the second it's $1,100. For each additional table he produces, the marginal cost of each table increases by $200. How many dining tables should Vincent produce, and what is the total cost of his production?
a.
Vincent will not make any tables.
b.
He will produce one table at a cost of $900.
c.
He will produce two tables at a cost of $2,000.
d.
He will produce three tables at a cost of $3,300.
ANSWER:
b
96. The price of coffee at a local coffee shop is $3. Cheryl is willing to pay $6 for her first cup of coffee each day. The marginal benefit to her of each additional cup of coffee falls by $2. How many cups of coffee should Cheryl purchase?
a.
One
b.
Two
c.
Three
d.
Four
ANSWER:
b
97. The price of coffee at a local coffee shop is $2.50. Cheryl is willing to pay $8 for her first cup of coffee each day. The marginal benefit to her of each additional cup of coffee falls by $2. How many cups of coffee should Cheryl purchase?
a.
One
b.
Two
c.
Three
d.
Four
ANSWER:
c
98. The principle that your best choice depends on your other choices, the choices others make, developments in other markets, and expectations about the future is known as the _____ principle.
a.
cost-benefit
b.
opportunity cost
c.
marginal
d.
interdependence
ANSWER:
d
99. The interdependence principle states that your best choice today depends on all of the following EXCEPT
a.
past decisions you have made.
b.
expectations about the future.
c.
other decisions you are currently making.
d.
decisions others are currently making.
ANSWER:
a
100. Diane Jacobs is a student studying economics and currently working on her class schedule for next semester. When she considers taking another economics course rather than taking a math class in the same time slot, she is acknowledging that dependencies exist
a.
between her own choices.
b.
between people or businesses in the same market.
c.
between markets.
d.
through time.
ANSWER:
a
101. Diane Jacobs is a student studying economics and currently working on her class schedule for next semester. When she considers taking another economics course and how to meet prerequisites for future economics courses, she is acknowledging dependencies that exist
a.
between her own choices.
b.
between people or businesses in the same market.
c.
between markets.
d.
through time.
ANSWER:
d
102. Diane Jacobs is a student studying economics and is currently working on her class schedule for next semester. She considers the fact that a popular class may fill up if she does not act quickly, she is acknowledging the dependencies that exist
a.
between her own choices.
b.
between people or businesses in the same market.
c.
between markets.
d.
over time.
ANSWER:
b
103. Diane Jacobs is a student studying economics and currently working on her class schedule for next semester. She considers the fact that more and more data is available every day and that data interpretation skills are learned by taking additional economics courses in her course selection. This acknowledgment highlights the dependencies that exist: