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Exam 1: What Is Economics

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Question 141

Multiple Choice

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You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not report to work where you could have earned $750. The opportunity cost of the vacation is

A) $750.
B) $2,750.
C) $2,000.
D) $1,250

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Question 142

Multiple Choice

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Which of the following is NOT an example of an opportunity cost?

A) Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment.
B) Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year.
C) By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.
D) By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class.

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Question 143

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What is the difference between a total benefit and a marginal benefit?

Economists point out that scarcity confronts

Jane is deciding whether to go to school for 8 weeks this summer. The cost of tuition and textbooks is $1,700 and housing and other expenses will cost her $600. If she does not go to school, she will live in her parents' house for free and they will cover her food and other expenses for her. Also, if Jane does not go to summer school she could work fulltime. But the best job she can get pays only $600 per week, and Jane would only agree to give up free time for no less than $750 per week. However, if she goes to summer school, she'll have to spend 40 hours a attending classes and studying. a) What will the summer school cost Jane in terms of money spent? b) What are the opportunity costs of going to summer school that Jane does not pay explicitly? Explain. c) What is Jane's total opportunity cost of going to school this summer? Explain your answer. d) Suppose that if Jane does not go to summer school, she will eventually take the classes anyway. What is Jane marginal benefit of going to summer school? e) Suppose Jane decides to go to school in the summer. Explain her decision using the concepts of marginal cos marginal benefit.

When an economy produces more houses and fewer typewriters, it is answering the question.

^In the United States, the percentage of people employed in over the last 60 years.

Which of the following is a macroeconomic issue?

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this roommate's comment correct?

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

The formula for the slope across an arc is used to approximate the slope for

-In the figure above, the value on the x- axis increases as we move from

Which of the following is a macroeconomic decision or concept?

Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5. Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?

-Using the above figure, the origin is at which point?

-The slope of the line in the above figure is

-The slope of the line shown in the above figure is

What is a tradeoff? Give an example.

-In the above table, when x increases from 4 units to 6 units, y changes by _ units.

The horizontal axis in a graph