Question : 75) An office supply store sells a ream of printer : 1387250

 

 

75) An office supply store sells a ream of printer paper at a fixed price of $4.50. Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

A) marginal revenue

B) gross earnings

C) pure profit

D) marginal costs

E) net benefit

 

76) Economics promotes which of the following as the way to make the best decision?

A) Continue an enjoyable activity as long as you do not have to pay for it.

B) Continue an enjoyable activity until it is no longer enjoyable.

C) Continue an enjoyable activity until you cannot afford to pursue it.

D) Continue an enjoyable activity up to the point where its marginal benefit equals its marginal cost.

 

 

77) ________ involves undertaking an activity until its marginal benefits equal marginal costs.

A) Scarcity reduction

B) Central planning

C) Marginal analysis

D) Market intervention

 

 

78) The revenue received from the sale of an additional unit of a product

A) is a marginal benefit to the firm.

B) is called profit.

C) is called gross sales.

D) is called a net gain.

 

79) The cost incurred from the production of an additional unit of a product

A) is a marginal cost to the firm.

B) is called a loss.

C) is called opportunity cost.

D) must be zero for a firm to be efficient.

 

 

80) Before a doctor decides to keep her office open on Saturdays, she should

A) make sure that the marginal cost of doing so will exceed the marginal benefit.

B) only consider the increase in total profit from doing so.

C) weigh the costs and benefits of staying open on Saturdays before deciding if she should go through with this idea.

D) only look at the marginal benefit of doing so, because marginal cost will not change.

 

 

81) If the marginal cost of producing a television is constant at $200, then a firm should produce this item

A) only if the marginal benefit it receives is greater than $200 plus an acceptable profit margin.

B) as long as the marginal benefit it receives is just equal to or greater than $200.

C) as long as its marginal cost does not rise.

D) until the marginal benefit it receives reaches zero.

 

82) Which of the following is an example of a “how much” decision?

A) The Pleasantville movie theatre is open only in the evenings. The theatre’s manager is debating whether to add daily matinee shows.

B) The Zhous have demolished their old home and are debating whether to build a ranch-style house or a Craftsman home.

C) You’re planning to hold a graduation party and must decide between having your party catered or having a pot-luck.

D) Chelsea has withdrawn from the swim team to take up a full-time job.

 

 

83) Which of the following is an example of a “how much” decision?

A) Octavia is debating whether to buy a pair of Jimmy Choo shoes or Steve Madden boots.

B) Humberto has taken a second job to earn money to buy a Harley-Davidson SuperLow Sportster.

C) You plan on going to Las Vegas for your birthday and are deciding if you should fly or drive.

D) Diana is trying to decide if she should open her pet shop on Sundays.

 

 

84) Marginal cost is the ________ associated with undertaking an activity.

A) total cost

B) extra cost

C) opportunity cost

D) foregone cost

 

 

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