Question : 111.YouhaveeatentwobowlsoficecreamatSundaeSchoolIceCreamstore.Youconsidereatingathird.Asarationalconsumeryoushouldmakeyourchoicebycomparing a.thebenefitsfromeatingallthreebowlsoficecreamtohowmuchthreebow : 1261335

111.YouhaveeatentwobowlsoficecreamatSundaeSchoolIceCreamstore.Youconsidereatingathird.Asarationalconsumeryoushouldmakeyourchoicebycomparing

a.thebenefitsfromeatingallthreebowlsoficecreamtohowmuchthreebowlsoficecreamcosts.

b.thebenefitsfromeatingallthreebowlsoficecreamtohowmuchonemorebowloficecreamcosts.

c.thebenefitsfromeatingonemorebowloficecreamtohowmuchthreebowlsoficecreamcosts.

d.thebenefitsfromeatingonemorebowloficecreamtohowmuchonemorebowloficecreamcosts.

112.OliviawasacceptedbyNorthwesternandbyanotheruniversity.Sheistryingtodecidewheretogo.Whichofthefollowingshouldinfluenceherdecision?

a.howmuchshespentapplyingtoNorthwestern,andthedifferencebetweenlivingexpensesatNorthwesternandtheotheruniversity

b.howmuchshespentapplyingtoNorthwestern,butnotthedifferencebetweenlivingexpensesatNorthwesternandtheotheruniversity

c.thedifferencebetweenlivingexpensesatNorthwesternandhersecondchoice,butnothowmuchshespentapplyingtoNorthwestern

d.neitherhowmuchshespentapplyingtoNorthwesternnorthedifferencebetweenlivingexpensesatNorthwesternandhersecondchoice

113.Yougotothemovieplexwheremoviesordinarilycost$9.Youareintendingtoseeamovieforwhichyouhavea$3 off coupon good for only that movie at that time. However, when you get there you see a friend who asks if you would rather see a new release. Both movies start and end at the same time. If you decide to see the new release with your friend, what is your opportunity cost?

a.theamountyouvaluethefirstmovie+$3

b.theamountyouvaluethefirstmovie+$9

c.$3

d.$9

114.MaxandMaddychargepeopletoparkontheirlawnwhileattendinganearbycraftfair.Atthecurrentpriceof$10, seven people park on their lawn. If they raise the price to $15, they know that only five people will want to park on their lawn. Whether they have seven or five cars parked on their lawn does not affect their costs. From this information it follows that

a.theyshouldleavethepriceat$10.

b.itdoesnotmatteriftheycharge$10or$15.

c.theywoulddobettercharging$15than$10.

d.theyshouldraisethepriceevenmore.

115.Yourprofessorlovesherwork,teachingeconomics.Shehasbeenofferedotherpositionsinthecorporateworldthatwouldincreaseherincomeby25percent,butshehasdecidedtocontinueworkingasaprofessor.Herdecisionwouldnotchangeunlessthemarginal

a.costofteachingincreased.

b.benefitofteachingincreased.

c.costofacorporatejobincreased.

d.benefitofacorporatejobdecreased.

116.Supposeyourmanagementprofessorhasbeenofferedacorporatejobwitha30percentpayincrease.Hehasdecidedtotakethejob.Forhim,themarginal

a.costofleavingwasgreaterthanthemarginalbenefit.

b.benefitofleavingwasgreaterthanthemarginalcost.

c.benefitofteachingwasgreaterthanthemarginalcost.

d.Alloftheabovearecorrect.

117.Somethingthatinducesapersontoactiscalled

a.atrade-off.

b.apolicy.

c.anincentive.

d.anopportunitycost.

118.Economistsareparticularlyadeptatunderstandingthatpeoplerespondto

a.laws.

b.incentives.

c.punishmentsmorethanrewards.

d.rewardsmorethanpunishments.

119.Ataxongasolineencouragespeopletodrivesmaller,morefuel-efficientcars.Whichprincipleofeconomicsdoesthisillustrate?

a.Peoplefacetradeoffs.

b.Thecostofsomethingiswhatyougiveuptogetit.

c.Rationalpeoplethinkatthemargin.

d.Peoplerespondtoincentives.

120.Peoplearelikelytorespondtoapolicychange

a.onlyiftheythinkthepolicy isagoodone.

b.onlyifthepolicychangechangesthecostsoftheirbehavior.

c.onlyifthepolicychangechangesthebenefitsoftheirbehavior.

d.ifthepolicychangeseitherthecostsorbenefitsoftheirbehavior.