Question :
71.A movie costs you and your friend $15 each. After : 1378969
71.A movie costs you and your friend $15 each. After one hour of watching the movie, you have struggled to stay awake while your friend has been on Facebook and is also bored with the movie. You suggest that you and your friend leave the movie and go to the park. Your friend responds by stating that he is not going to waste his $15 that was previously spent on the movie. Your friend is considering:
A. an opportunity cost of the movie.
B. a sunk cost.
C. the marginal benefit.
D. depreciation.
72.You have paid all expenses to travel to your favorite beach for a vacation. You made these payments early in order to receive a discount and all payments are nonrefundable. Unfortunately, a hurricane is likely to crash into the coast during your vacation dates. What should not be considered as you make a decision to take your trip or not?
A. The money that has already been spent on the trip
B. The satisfaction you are likely to receive at the beach during a hurricane
C. The best alternative use of your time if you do not take the trip
D. All of these should be considered.
73.You decided to take a college accounting course to brush up on your knowledge of the language of business. The tuition expense was $500. After the date has expired to receive a refund for the course, you are offered a job that would conflict with your class time. In making the decision to accept or decline the offer, the $500 is:
A. the opportunity cost of the job.
B. the expected gain in pay from taking the accounting course.
C. a sunk cost.
D. a sunk benefit.
74.Your favorite team has a commanding lead toward the end of the ballgame. You suggest to your friend that you leave early to beat traffic. Your friend does not like the idea because he paid $50 to see the game. The $50 already spent on the game is an example of a(n):
A. implicit cost.
B. sunk cost.
C. normal cost.
D. variable cost.
75.An Incentive is a concept that addresses which question used by economists?
A. What are the wants and constraints of those involved?
B. What are the trade-offs?
C. How will others respond?
D. Why isn’t everyone already doing it?
76.The price of pizza falls relative to the price of spaghetti, and so people buy more pizza instead of spaghetti. This is an example of responding to:
A. marginal science.
B. incentives.
C. disincentives.
D. sunk benefit.
77.To provide an incentive for villagers to repay loans, Muhammad Yunus:
A. forced villagers to offer collateral for loans.
B. made loans using group responsibility.
C. threatened to call the borrower’s mother.
D. would increase interest rates by 1 percent after each late payment.
78.Entrepreneurs tend to take greater risks if low tax rates offer greater after-tax profit potentials. The government’s decision to offer low tax rates to entrepreneurs is:
A. providing room for an economic expansion.
B. providing an incentive, in the hopes that more entrepreneurs will take risk and create economic growth.
C. providing a disincentive, in the hopes that more entrepreneurs will avoid risk and not grow.
D. providing a disincentive, in the hopes that entrepreneurs will not get into tax default after assuming too much risk.
79.Hardee’s announces “buy one get one free” breakfast sandwiches. This is an example of:
A. the use of incentives.
B. a macroeconomic decision.
C. hoarding scarce resources.
D. this is not an example of any of these concepts.
80.A car dealer advertises free satellite radio for one year with the purchase of a new car. This is an example of:
A. bait and switch.
B. marginal sales.
C. an incentive.
D. voluntary exchange.
