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
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
A. falls, less of the activity will occur.
B. rises, more of the activity will occur.
C. rises, the level of the activity may or may not increase depending on the individual.
D. falls, more of the activity will occur.
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
one you became ill and lost the
3. Your total utility _______with each pie you ate up to the 3
C. stayed the same
D. first increased than decreased
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