Lec 2 Questions

Lec 2 Questions - Econ 101 Class 2 Questions 1. It is hot...

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Econ 101 Class 2 Questions 1. It is hot at the football game and Joe is thirsty. He would pay up to $5.00 for a 20 oz cola. He goes to the concession stand and finds that he can buy a 20 oz cola for $3.00. His economic surplus from the transaction is… A. $0.00. B. $3.00. C. $2.00. ** D. $5.00. 2. You won a free ticket to an Eric Clapton concert (which has no resale value). A Bob Dylan concert on the same night is your next-best alternative activity. Tickets to see Dylan cost $40. You would be willing to pay up to $50 to see Dylan. There are no other costs. What is your opportunity cost of the Clapton Concert? A. $0 B. $10 ** C. $40 D. $50 3. You can buy a game for $25 at the Ram shop or $15 at University Mall. You can buy a computer for $1000 at the Ram shop or $990 at University Mall. Should your “where to buy” decision be the same or different in the two cases? A. Different because buying the game at U Mall provides a greater percentage discount. B.
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This note was uploaded on 03/02/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.

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