Chapter 02 - Rational Economic Behavior

Chapter 02 - Rational Economic Behavior - Test Bank...

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Page 1 of 10 Test Bank Microeconomics: Theory and Policy Chapter 02: Rational Economic Behavior B. Modjtahedi Question 1 When it comes to demand something, marginal benefit is A. The minimum of something else you are willing and able to give up to get it. B. What you have to give up to get it. C. The maximum amount of something else you have to give up to get it. D. The maximum amount of something else you are willing and able to give up to get it. E. None of the above. Question 2 When it comes to demand something, marginal cost is A. The minimum of something else you are willing and able to give up to get it. B. What you have to give up to get it. C. The maximum amount of something else you have to give up to get it. D. The maximum amount of something else you are willing and able to give up to get it. E. None of the above. Question 3 When it comes to supply something, marginal benefit is A. The minimum of something else you are willing and able to receive for it. B. What you receive for it. C. The maximum amount of something else you are willing to receive for it. D. The minimum amount of something else you have to pay for it. E. None of the above. Question 4 When it comes to supply something, marginal cost is A. The minimum of something else you are willing to receive for it. B. What you receive for it. C. The maximum amount of something else you are willing to receive for it. D. The minimum amount of something else you have to pay for it. E. None of the above. Question 5 The marginal benefit of a new car for you is $25,000. This means that A. If you pay $25,000 for it, you will end up being better off. B. If you pay $25,000 for it, you will end up being neither better off nor worse off. C. If you pay $25,000 for it, you may end up being worse off. D. If you pay $25,000 for it, you will end up being either better off or worse off. E. None of the above. Question 6 The marginal benefit of buying a new dishwasher for George is $2,000. This means that A. He has to pay $2,000 for it.
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Page 2 of 10 B. This is the minimum he is willing and able to pay for it. C. This is the minimum he has to pay for it. D. This is the maximum he is willing and able to pay for it. E. None of the above. Question 7 The marginal cost of buying a new refrigerator for Melissa is $3,000. This means that A. The sum of the money she has to pay plus the value of other things she has to give up in order to buy it is $3,000. B. This is the minimum she is willing and able to pay for it. C. This is the maximum she is willing and able to pay for it. D. Either of the above answers could be correct. E. None of the above. Question 8 Which of the following is the correct definition of the marginal benefit of buying something? A.
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Chapter 02 - Rational Economic Behavior - Test Bank...

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