Econ199PracticeTest2 - Econ 199 Practice Test 2 1 The time...

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Econ 199 Practice Test 2 1. The time one spends researching the performance and fuel economy of new cars on the Internet is an example of a(n) A. monetary cost. B. non-monetary cost. C. information cost. D. implied cost. 2. The law of demand indicates that as the cost of an activity During Thanksgiving you participated in a pumpkin-pie eating contest since you love pumpkin pie. You really enjoyed the first two pies, the third one was OK, but as soon as you ate the 4 th one you became ill and lost the contest. 3. Your total utility _______with each pie you ate up to the 3 rd pie. Sven likes to water ski, but can only water ski during the one week that he is on vacation. Therefore, he plans to ski every day, for eight hours a day. The first day, Sven skied for eight hours and enjoyed every hour. The second day, Sven slept in and then skied for seven hours, which was fun but not as much fun as the first day. The third day, Sven skied for six hours, but was starting to get a bit bored by the end. The fourth day, Sven skied for four hours and then took a nap. On the fifth day of Sven's vacation, Sven went blueberry picking all day.
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4. Pat's total utility after eating 99 Reese's Peanut Butter Cups was less than his total utility after eating his hundredth. Therefore, Pat's marginal utility for the 100 th peanut butter cup was 5. Laura's total utility from consuming 8, 9, and 10 bonbons is 35, 42, and 45, respectively. Her marginal utility from the 9 th bonbon is A. 42 B. 77 C. 7 D. 4.67 6. Refer to the figure above. Total utility increases with each additional pizza consumed up to the _____ and than declines, but marginal utility _______ with each additional pizza consumed each week.
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7. The first time Michel tasted coffee, he thought it was bitter and bad-tasting. The second time Michel had coffee, he thought that it was barely tolerable. Eventually, Michel started to enjoy coffee, and within a few months he was drinking several cups a day. In fact, if he did not drink several cups a day, he was miserable. This suggests that, for Michel, Casey earns $150 a week and consumes only fish and shrimp. The price of fish is $3 a pound and the price of shrimp is $5 a pound.
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