Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the accompanying table below. \[\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Muurs in East } \\ \text { Orchard } \end{array} & \begin{array} { c } \text { Number af Apples } \\ \text { Per Hour } \end{array} & \begin{array} { c } \text { Hours in West } \\ \text { Orchard } \end{array} & \begin{array} { c } \text { Number d Apples } \\ \text { Per Hour } \end{array} \\ \hline 1 & 40 & 1 & 10 \\ \hline 2 & 32 & 2 & 10 \\ \hline 3 & 25 & 3 & 10 \\ \hline 4 & 20 & 4 & 10 \\ \hline \end{array}\] If Frank spends 2 hours picking apples in the east orchard and 2 hours picking apples in the west orchard, how many apples in total will Frank be able to pick today?

A) 21 B) 42 C) 84 D) 92 A) 21 B) 42 C) 84 D) 92

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. $\begin{array}{|c|c|c|c|c} \hline \text { CPU GHz } & \text { Total Benefit } & \text { Marginal Benefit } & \text { Total Cost } & \text { Marginal Costs } \\ \hline 2.0 & \$ 1,000 & & \$ 900 & \\ \hline 2.5 & \$ 1,400 & & & \$ 100 \\ \hline 3.0 & & \$ 300 & \$ 1,200 \\ \hline 3.5 & \$ 1,900 & & \$ 1,500 & \\ \hline 4.0 & \$ 2,000 & & & \$ 400 \\ \hline \end{array}$ Choosing a 3.5GHz computer would be irrational because:

A) its marginal benefit is less than its marginal cost. B) its marginal benefit is equal to its marginal cost. C) it is impossible to tell the difference compared to a 3.0GHz computer. D) its marginal benefit is greater than its marginal cost. A) its marginal benefit is less than its marginal cost. B) its marginal benefit is equal to its marginal cost. C) it is impossible to tell the difference compared to a 3.0GHz computer. D) its marginal benefit is greater than its marginal cost.

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. $\begin{array}{|c|c|c|c|c} \hline \text { CPU GHz } & \text { Total Benefit } & \text { Marginal Benefit } & \text { Total Cost } & \text { Marginal Costs } \\ \hline 2.0 & \$ 1,000 & & \$ 900 & \\ \hline 2.5 & \$ 1,400 & & & \$ 100 \\ \hline 3.0 & & \$ 300 & \$ 1,200 \\ \hline 3.5 & \$ 1,900 & & \$ 1,500 & \\ \hline 4.0 & \$ 2,000 & & & \$ 400 \\ \hline \end{array}$ The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:

A) $1,400. B) $1,000. C) $400. D) $100. A) $1,400. B) $1,000. C) $400. D) $100.

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. $\begin{array}{|c|c|c|c|c} \hline \text { CPU GHz } & \text { Total Benefit } & \text { Marginal Benefit } & \text { Total Cost } & \text { Marginal Costs } \\ \hline 2.0 & \$ 1,000 & & \$ 900 & \\ \hline 2.5 & \$ 1,400 & & & \$ 100 \\ \hline 3.0 & & \$ 300 & \$ 1,200 \\ \hline 3.5 & \$ 1,900 & & \$ 1,500 & \\ \hline 4.0 & \$ 2,000 & & & \$ 400 \\ \hline \end{array}$ The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is:

A) $400. B) $300. C) $200. D) $100. A) $400. B) $300. C) $200. D) $100.

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. $\begin{array}{|c|c|c|c|c} \hline \text { CPU GHz } & \text { Total Benefit } & \text { Marginal Benefit } & \text { Total Cost } & \text { Marginal Costs } \\ \hline 2.0 & \$ 1,000 & & \$ 900 & \\ \hline 2.5 & \$ 1,400 & & & \$ 100 \\ \hline 3.0 & & \$ 300 & \$ 1,200 \\ \hline 3.5 & \$ 1,900 & & \$ 1,500 & \\ \hline 4.0 & \$ 2,000 & & & \$ 400 \\ \hline \end{array}$ Application of the Cost-Benefit Principle would lead one to purchase a ________ computer.

A) 2.0GHz B) 2.5GHz C) 3.0GHz D) 4.0GHz A) 2.0GHz B) 2.5GHz C) 3.0GHz D) 4.0GHz

Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the accompanying table below. \[\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Muurs in East } \\ \text { Orchard } \end{array} & \begin{array} { c } \text { Number af Apples } \\ \text { Per Hour } \end{array} & \begin{array} { c } \text { Hours in West } \\ \text { Orchard } \end{array} & \begin{array} { c } \text { Number d Apples } \\ \text { Per Hour } \end{array} \\ \hline 1 & 40 & 1 & 10 \\ \hline 2 & 32 & 2 & 10 \\ \hline 3 & 25 & 3 & 10 \\ \hline 4 & 20 & 4 & 10 \\ \hline \end{array}\] How should Frank divide his time between the east and the west orchard?

A) He should spend all 4 hours in the east orchard. B) He should spend 3 hours in the east orchard and 1 hour in the west orchard. C) He should spend 2 hours in east orchard and 2 hours in the west orchard. D) He should spend 1 hour in the east orchard and 3 hours in the west orchard. A) He should spend all 4 hours in the east orchard. B) He should spend 3 hours in the east orchard and 1 hour in the west orchard. C) He should spend 2 hours in east orchard and 2 hours in the west orchard. D) He should spend 1 hour in the east orchard and 3 hours in the west orchard.

Exam 1: Thinking Like an Economist

Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the accompanying table below. Muurs in East Orchard Number af Apples Per Hour Hours in West Orchard Number d Apples Per Hour 1 40 1 10 2 32 2 10 3 25 3 10 4 20 4 10 If Frank spends 2 hours picking apples in the east orchard and 2 hours picking apples in the west orchard, how many apples in total will Frank be able to pick today?

(Multiple Choice)

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Question 121

The Incentive Principle is an example of:

(Multiple Choice)

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Question 122

If one fails to account for implicit costs in decision making, then applying the cost-benefit rule will be flawed because:

(Multiple Choice)

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Question 123

The Scarcity Principle states that:

(Multiple Choice)

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Question 124

For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your average cost for a meal is:

(Multiple Choice)

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Question 125

The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. The marginal cost of the 4ᵗʰ employee is:

(Multiple Choice)

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Question 126

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHz Total Benefit Marginal Benefit Total Cost Marginal Costs 2.0 \ 1,000 \ 900 2.5 \ 1,400 \ 100 3.0 \ 300 \ 1,200 3.5 \ 1,900 \ 1,500 4.0 \ 2,000 \ 400 Choosing a 3.5GHz computer would be irrational because:

(Multiple Choice)

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Question 127

The Scarcity Principle tells us , and the Cost-Benefit Principle tells us .

(Multiple Choice)

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Question 128

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHz Total Benefit Marginal Benefit Total Cost Marginal Costs 2.0 \ 1,000 \ 900 2.5 \ 1,400 \ 100 3.0 \ 300 \ 1,200 3.5 \ 1,900 \ 1,500 4.0 \ 2,000 \ 400 The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:

(Multiple Choice)

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Question 129

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. What is Larry's economic surplus from attending State College instead of his next best alternative?

(Multiple Choice)

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Question 130

An implication of scarcity is that:

(Multiple Choice)

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Question 131

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHz Total Benefit Marginal Benefit Total Cost Marginal Costs 2.0 \ 1,000 \ 900 2.5 \ 1,400 \ 100 3.0 \ 300 \ 1,200 3.5 \ 1,900 \ 1,500 4.0 \ 2,000 \ 400 The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is:

(Multiple Choice)

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Question 132

Pat earns $25,000 per year (after taxes), and Pat's spouse, Chris, earns $35,000 (after taxes). They have two pre-school-aged children. Childcare for their children costs $12,000 per year. Given that Chris doesn't want to stay home with the kids, regardless of what Pat does, Pat should stay home with the kids if, and only if, the value of Pat spending more time with the kids is greater than:

(Multiple Choice)

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Question 133

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHz Total Benefit Marginal Benefit Total Cost Marginal Costs 2.0 \ 1,000 \ 900 2.5 \ 1,400 \ 100 3.0 \ 300 \ 1,200 3.5 \ 1,900 \ 1,500 4.0 \ 2,000 \ 400 Application of the Cost-Benefit Principle would lead one to purchase a ________ computer.

(Multiple Choice)

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Question 134

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry's opportunity cost of attending State College is:

(Multiple Choice)

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Question 135

Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the accompanying table below. Muurs in East Orchard Number af Apples Per Hour Hours in West Orchard Number d Apples Per Hour 1 40 1 10 2 32 2 10 3 25 3 10 4 20 4 10 How should Frank divide his time between the east and the west orchard?

(Multiple Choice)

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Question 136

Suppose there are two parallel highways between two cities with approximately equal traffic. What would you expect to happen if the state began charging tolls to drive on one of those highways?

(Multiple Choice)

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Question 137

During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?

(Multiple Choice)

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Question 138

You save $10 on gas every week because you take the bus to school. You have class 5 days a week. What is your average benefit per day of taking the bus to school?

(Multiple Choice)

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Question 139

An editorial in the paper argues that a person only should be allowed to attend school if the marginal cost of educating that person is less than the marginal benefit of educating that person. The writer's reasoning is an application of:

(Multiple Choice)

4.9/5

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Question 140

The Incentive Principle is an example of:

If one fails to account for implicit costs in decision making, then applying the cost-benefit rule will be flawed because:

The Scarcity Principle states that:

For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your average cost for a meal is:

The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. The marginal cost of the 4ᵗʰ employee is:

The Scarcity Principle tells us , and the Cost-Benefit Principle tells us .

An implication of scarcity is that:

Suppose there are two parallel highways between two cities with approximately equal traffic. What would you expect to happen if the state began charging tolls to drive on one of those highways?

During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?

You save $10 on gas every week because you take the bus to school. You have class 5 days a week. What is your average benefit per day of taking the bus to school?

An editorial in the paper argues that a person only should be allowed to attend school if the marginal cost of educating that person is less than the marginal benefit of educating that person. The writer's reasoning is an application of:

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economic Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

Exam 1: Thinking Like an Economist

The Incentive Principle is an example of:

If one fails to account for implicit costs in decision making, then applying the cost-benefit rule will be flawed because:

The Scarcity Principle states that:

For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your average cost for a meal is:

The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. The marginal cost of the 4ᵗʰ employee is:

The Scarcity Principle tells us ________, and the Cost-Benefit Principle tells us ________.

An implication of scarcity is that:

Suppose there are two parallel highways between two cities with approximately equal traffic. What would you expect to happen if the state began charging tolls to drive on one of those highways?

During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?

You save $10 on gas every week because you take the bus to school. You have class 5 days a week. What is your average benefit per day of taking the bus to school?

An editorial in the paper argues that a person only should be allowed to attend school if the marginal cost of educating that person is less than the marginal benefit of educating that person. The writer's reasoning is an application of:

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economic Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

The Scarcity Principle tells us , and the Cost-Benefit Principle tells us .