Question : 71) If there no scarcity, A) the opportunity cost of an : 1237959

 

71) If there is no scarcity,

A) the opportunity cost of an action would be greater than its sunk cost.

B) an action would have zero opportunity cost.

C) choices are no longer rational.

D) marginal cost of an action is greater than its marginal benefit.

E) all marginal benefits would equal zero.

72) The benefit of an activity is

A) purely objective and measured in dollars.

B) the gain or pleasure that it brings.

C) the value of its opportunity cost.

D) measured by what must be given up to get one more unit of the activity.

E) not measurable on the margin.

73) The ________ of something is the gain or pleasure that it brings.

A) opportunity cost

B) benefit

C) marginal cost

D) rational choice

E) rational margin

74) The cost of a one-unit increase in an activity

A) is called the total one-unit cost.

B) is called the marginal cost.

C) decreases as more of the activity is done.

D) is called the marginal benefit/cost.

E) is called the unit cost.

75) The marginal benefit of an activity is

i.the benefit from a one-unit increase in the activity.

ii.the benefit of a small, unimportant activity.

iii.measured by what the person is willing to give up to get one additional unit of the activity.

A) i only

B) ii only

C) iii only

D) i and iii

E) ii and iii

76) The additional benefit of increasing some activity by one-unit is called the

A) marginal benefit.

B) opportunity cost.

C) total benefit.

D) scarcity.

E) unit cost/benefit.

77) If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will

A) eat the slice of pizza.

B) not eat the slice of pizza.

C) be unable to choose between eating or not eating.

D) eat half the slice.

E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.

78) When people make rational choices, they

A) behave selfishly.

B) do not consider their emotions.

C) weigh the costs and benefits of their options and act to satisfy their wants.

D) necessarily make a decision in the social interest.

E) are necessarily making the best decision.

79) By donating $1,000 to the Salvation Army, Caroline reduces her taxable income. To Caroline, the reduction in her taxable income is

A) a marginal benefit.

B) an opportunity cost.

C) an incentive.

D) a marginal cost.

E) the margin.

80) When the Dallas Cowboys score more than 30 points in a game, they win the game. This is an example of

A) an economic theory.

B) a correlation.

C) an incentive to win the game.

D) a normative statement.

E) a statement on the margin.

81) A positive statement

A) must always be right.

B) cannot be tested.

C) might be right or wrong.

D) depends on someone’s value judgment.

E) cannot be negative.

82) Which of the following is a positive statement?

A) Taxes should be lower because then people get to keep more of what they earn, so they will work more.

B) My economics class should last for two terms because it is my favorite class.

C) A 10 percent increase in income leads to a 4 percent increase in the consumption of beef.

D) Given their negative impact on productivity, the government should eliminate labor unions.

E) The class average on this test should be more than 80 percent.

83) Which of the following is NOT a normative economic statement?

A) States should reduce the tax on heating fuel oil during the winter.

B) People over the age of 75 should not be allowed to drive cars.

C) Teenagers are responsible for most driving fatalities.

D) We don’t spend enough money on anti-smoking campaigns.

E) The price of gasoline is too high.