Question : 21) Huey has eaten two hamburgers and considering a third. : 1237954

Economics

21) Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming

A) the two previous hamburgers.

B) all three hamburgers.

C) just the third hamburger.

D) just the second hamburger.

E) the third hamburger minus the pleasure from consuming zero hamburgers.

22) What typically happens to benefits as the amount of an activity is increased?

A) Total benefits remain constant.

B) Marginal benefit increases.

C) Marginal benefit remains constant.

D) Marginal benefit decreases.

E) The marginal benefit changes only if the marginal cost changes.

23) Suppose you eat two hamburgers for lunch. The marginal benefit of the first burger is ________ of the second burger.

A) larger than the marginal benefit

B) smaller than the marginal benefit

C) equal to the marginal benefit

D) not related to the marginal benefit

E) equal to the marginal cost and the marginal benefit

24) A choice made by comparing all relevant alternatives systematically and incrementally is

A) an opportunity cost.

B) a choice on the margin.

C) a benefit.

D) a sunk cost.

E) a choice made in the social interest.

25) Making choices on the margin means

A) scribbling on the edges of your notebook paper.

B) comparing all relevant alternatives systematically and incrementally.

C) making a decision based on emotions.

D) making decisions in the largest possible increments.

E) taking account of all marginal benefits, all opportunity costs, and all sunk costs.

26) Decision making on the margin involves

A) comparing the marginal cost and marginal benefits when making a decision.

B) comparing the total cost and the total benefit when making a decision.

C) eliminating the additional cost when making a decision.

D) determining the total benefits of a decision.

E) comparing the benefits from the social interest to the benefits from the person’s self-interest.

27) In making your decision whether to take a trip during spring break, you compare all the other activities you could undertake. As a result, you

A) are making a choice on the margin.

B) limit the cost and the benefits you can gain.

C) are not making a rational choice.

D) do not face an opportunity cost.

E) must have made a choice in the social interest.

28) To make a rational choice, a person

A) compares the extra benefits of one more unit to the extra costs of one more unit.

B) adds the total benefits and the total costs and then compares the two totals.

C) adds the total benefits to determine if the total is large enough.

D) adds the total costs to determine if the total is small enough.

E) takes account of all benefits and all opportunity costs, including both marginal costs and sunk costs.

29) In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

A) marginal benefit and marginal cost

B) opportunity cost and the sunk cost

C) positive benefits and normative costs

D) normative benefits and positive costs

E) self-interest and social-interest

30) In order to make a rational choice, people must

A) only know what they want.

B) be able to afford the choice decided upon.

C) decide quickly without wasting time.

D) compare marginal costs and marginal benefits.

E) determine what is in the social interest.

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July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.