Exam 1.docx

# Exam 1.docx - Question 1 A study that deals with the...

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Question 1 A study that deals with the salaries of university professors would be considered: Select one: a. macroeconomics b. microeconomics c. economic naturalism d. real economics Feedback The correct answer is: microeconomics Question 2 Correct 2.34 points out of 2.34 Flag question Question text According to the Cost-Benefit Principle, you should go see the latest Star Wars movie with your friends this week-end if: Select one: a. the extra benefits of seeing the movie are greater than the extra costs of seeing the movie. b. you really like Star Wars. c. you can afford to go to the movies. d. the average benefit you get from going to the movies is greater than the average cost of a ticket. Feedback The correct answer is: the extra benefits of seeing the movie are greater than the extra costs of seeing the movie. Question 3 Correct 2.34 points out of 2.34 Flag question

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Question text You won a free ticket to see the latest Star Trek movie this Friday night (which you can costlessly resell for its face value of \$15). Your favorite band is also performing on Friday and is your only alternative activity. Friday is your last chance to see either the movie or the band. Tickets to see your favorite band cost \$30, and on any given day, you would be willing to pay as much as \$50 for a ticket. Based on this information, what is your opportunity cost of going to see the Star Trek movie on Friday? Select one: a. \$0 b. \$30 c. \$35 d. \$50 Feedback The correct answer is: \$35 Question 4 Correct 2.34 points out of 2.34 Flag question Question text Suppose the most you would be willing to pay for a plane ticket home is \$250. If you buy one for \$175, then your economic surplus is: Select one: a. \$250. b. \$175. c. \$75. d. \$0. Feedback The correct answer is: \$75. Question 5 Correct
2.34 points out of 2.34 Flag question Question text The number of U.S. households with access to the Internet is growing rapidly. Compared to 50 years ago, one would predict that when considering a major purchase, people today will gather: Select one: a. less information because the Internet has lowered the cost of gathering information. b. less information because the Internet has increased the benefit of gathering information. c. more information because the Internet has lowered the cost of gathering information. d. more information because the Internet has increased the cost of gathering information. Feedback The correct answer is: more information because the Internet has lowered the cost of gathering information. Question 6 Correct 2.34 points out of 2.34 Flag question Question text Refer to the table below. The average cost of 4 units of this activity is:

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Select one: a. \$20 b. \$25 c. \$30 d. \$40 Feedback The correct answer is: \$25 Question 7 Correct 2.34 points out of 2.34 Flag question Question text 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?
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