D) The set of food choices is often too complex for most customers and thus creates long lines.
24) From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the:
A) marginal cost of waiting is less than the marginal benefit of being served.
B) marginal cost of waiting is greater than the marginal benefit of being served.
C) management is exhibiting irrational behaviour by not maximizing profits.
D) management is making an assumption that other things are equal.
25) Consumers might leave a fast-food restaurant without being served because:
A) they are misinformed about the marginal cost and marginal benefits of the food being served.
B) they conclude that the marginal cost (monetary plus time costs) exceeds the marginal benefit.
C) the environment is not conducive to a rational choice.
D) the lines waiting for service are not of equal length.
26) At fast-food restaurants:
A) consumers enjoy complete and accurate information.
B) decisions are usually made by trial and error.
C) decisions entail comparisons of marginal costs and marginal benefits.
D) benefits always exceed costs.
27) Economics involves "marginal analysis" because:
A) most decisions involve changes in the status quo.
B) marginal benefits always exceed marginal costs.
C) marginal costs always exceed marginal benefits.
D) much economic behaviour is irrational.
28) You should decide to go to a movie:
A) if the marginal cost of the movie exceeds its marginal benefit.
B) if the marginal benefit of the movie exceeds its marginal cost.
C) if your income will allow you to buy a ticket
D) because movies are inherently good products.
29) Marginal costs exist because:
A) the decision to produce more of some product means the sacrifice of other products.
B) wants are scarce relative to resources.
C) households and businesses make rational decisions.
D) most decisions do not involve sacrifices or tradeoffs.
30) Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact:
A) is an example of irrational behaviour.
B) implies that reading should be taught through phonics rather than the whole language method.
C) contradicts the economic perspective.
D) implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.