Exam 1vv - Question 1 (1 point) Forest is a mountain man...

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Question 1 (1 point) Forest is a mountain man living in complete isolation in Montana. He is completely self-sufficient through hunting, fishing, and farming. He has not been in the city to buy anything in five years. One can infer a. the scarcity principle does not apply to Forest. b . Forest is not required to make choices. c . the scarcity principle still applies because more hunting means less fishing and farming. d . Forest is very satisfied. Save answer Bottom of Form Question 2 (1 point) Sally earned $25,000 per year before she became a mother. After she became a mother she told her employer that she would not be willing to work for anything less than $50,000. Her decision is based on a. the high cost of raising a child. b . her desire to save for her child's college expenses. c. her increased value to her employer. d . the value she places on spending time with her child. Save answer Bottom of Form Question 3 (1 point) Dean decided to play golf rather than prepare for his exam in economics that is the day after tomorrow. One can infer that a. Dean has made an irrational choice. b . Dean is doing poorly in his economics class. c. the economic surplus from playing golf exceeded the surplus from studying. d . the cost of studying was less than the cost of golfing. Save answer Bottom of Form Question 4 (1 point) 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 you do not use the frequent-flyer coupon to fly, should you go to Miami?
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is more than your cost b . No, your benefit is less than your cost c. Yes, your benefit is equal to your cost d . No, because there are no benefits in the trip Save answer Bottom of Form Question 5 (1 point) Refer to the figure above. The average benefit of 4 units of activity is a. $4 b . $5 c. $6 d . $10 Save answer Bottom of Form Question 6 (1 point) The Governor of your state has cut the budget for the University and increased spending on Medicaid. This is an example of a. the pitfall of considering average costs instead of marginal costs. b . poor normative economic decision making. c. poor positive
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Exam 1vv - Question 1 (1 point) Forest is a mountain man...

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