Question :
Table 1-3
Hours
Open
Total
Revenue
(dollars : 1387248
Table 1-3
Hours
Open
Total
Revenue
(dollars)
1
$70
2
120
3
160
4
184
5
200
6
210
Santiago runs a comic book store in the town of East Arbor. He is debating whether he should extend his hours of operation. Santiago figures that his sales revenue will depend on the number of hours the store is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $18 per hour.
55) Refer to Table 1-3. Using marginal analysis, determine how many hours should Santiago extend his store’s hours of operations?
A) 2 hours
B) 3 hours
C) 4 hours
D) 5 hours
E) 6 hours
56) Refer to Table 1-3. What is Santiago’s marginal benefit if he decides to stay open for two hours instead of one hour?
A) $40
B) $50
C) $120
D) $190
57) Refer to Table 1-3. What is Santiago’s marginal cost if he decides to stay open for two hours instead of one hour?
A) $18
B) $36
C) $38
D) $102
58) Damian shares a small food truck with his sister. His share of the expenses is $500 per month. He has decided to get his own, newer food truck which he will not have to share with anyone. His expenses for the newer truck are $1,400 per month. Damian is as rational as any other person. As an economics major, you rightly conclude that
A) Damian cannot afford the newer truck and will have to go back to sharing a truck with his sister.
B) Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least $900.
C) Damian figures that the benefit of having his own truck (as opposed to sharing) is at least $1,400.
D) the cost of having one’s own truck outweighs the benefits.
59) As recently as 2000, ________ percent of doctors were in private practice and by 2013, ________ percent of doctors were in private practice.
A) only 20; more than 70
B) nearly 60; less than 40
C) about 50; about 50
D) over 80; less than 15
60) The study of economics arises due to
A) money.
B) scarcity.
C) greed.
D) resources.
61) Scarcity refers to the situation in which
A) unlimited wants exceed limited resources.
B) unlimited resources exceed limited wants.
C) a country’s population is larger than its resource base.
D) a nation’s poverty level increases faster than its population.
62) The basic economic problem of scarcity
A) has always existed and will continue to exist.
B) will eventually disappear as technology continues to advance.
C) is a problem only in developing economies.
D) does not apply to the wealthy in society.
63) Economics is the study of the ________ people make to attain their goals, given their ________ resources.
A) purchases; unlimited
B) choices; scarce
C) income; available
D) decisions; household
64) What is an economic model?
A) It is a description of an economic issue that includes all possible related information.
B) It is a description of an economic issue based on official government information.
C) It is a detailed version of some aspect of economic life used to analyze an economic issue.
D) It is a simplified version of some aspect of economic life used to analyze an economic issue.
