Econ 101 exam 1 actual exam attempt 1.docx - ECON101_MH_V3Topic 1 Basics of Macroeconomics Started on State Monday 1:10 PM Finished Completed on Monday

Econ 101 exam 1 actual exam attempt 1.docx -...

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ECON101_MH_V3Topic 1: Basics of Macroeconomics Started on Monday, January 20, 2020, 1:10 PM State Finished Completed on Monday, January 20, 2020, 1:50 PM Time taken 40 mins 20 secs Grade 46.75 out of 55.00 (85%) Question 1 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text The last time gas prices increased drastically, sales of large Sport Utility Vehicles (SUVs) fell. Why? Select one: a. Higher gas prices lowered the benefit of driving an SUV. b. Higher gas prices increased the benefit of driving an SUV. c. Higher gas prices increased the cost of driving a SUV. Correct d. Higher gas prices lowered the cost of driving a SUV. Feedback The correct answer is: Higher gas prices increased the cost of driving a SUV. Question 2 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text Refer to the table below. The average cost of 5 units of activity is:
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Units of Activity Total Cost Total Benefit 0 $0 $0 1 $2 $12 2 $6 $22 3 $12 $30 4 $20 $36 5 $30 $40 6 $42 $42 7 $56 $43 Select one: a. $4 b. $6 Correct c. $8 d. $10 Feedback The correct answer is: $6 Question 3 Correct 2.75 points out of 2.75
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Not flaggedFlag question Question text Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round- trip airfares are $450. If the Chicago-Atlanta round-trip airfare were $350, should you use the coupon to go to Miami? Select one: a. No, your economic surplus would be -$50. b. No, your economic surplus would be -$100. c. Yes, your economic surplus would be $50. Correct d. Yes, your economic surplus would be $400. Feedback The correct answer is: Yes, your economic surplus would be $50. Question 4 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text Choosing to study for an exam until the extra benefit (e.g., improved score) equals the extra cost (e.g., the value of foregone activities) is: Select one: a. not an economic choice. b. an application of the Cost-Benefit Principle. Correct c. an application of the Scarcity Principle.
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d. not rational because it ignores the importance of total benefits and total costs.
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