__172.20.40.61_Materials_l2xie-0010_Chapter_5 - Chapter 5...

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Chapter 5 Student: ___________________________________________________________________________ 1. Home football games at your college are free for students and most of the students like to go to the game. What is the non-monetary cost for you to go to the game? A. Gas that you will need for your car. B. Money you paid for body painting and artificial hair. C. The outrageous price you had to pay for hot dog and soda. D. The 5 hours you waited in the line to get ticket. 2. JoJo is shopping for a new computer. A mail-order computer can be delivered to JoJo's home for $1,200. JoJo could pick up the same computer at the warehouse for $1,000.How should JoJo decide? A. JoJo should definitely drive to the warehouse because the monetary cost is $200 lower. B. JoJo should drive to the warehouse if the value of his travel time plus wear and tear on his car is less than $200. C. JoJo should definitely have the computer delivered, because the $200 saving is less than 20% of the purchase price. D. JoJo should definitely drive to the warehouse because the $200 saving is more than 10% of the purchase price. 3. According to the law of demand, when the price of shoes ______ you will consume ________ shoes. A. rises, more B. falls, more C. rises, the same amount D. falls, the same amount 4. After subsistence levels of food, shelter, and clothing are provided, A. all other goods and services are "needs." B. many goods and services are "needs." C. all other goods and services are "wants." D. all other goods and services are "luxuries." 5. Shelter for homeless people is an example of A. a want B. a need C. something they can live without D. something hard to find
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6. Rice requires extensive irrigation, therefore water for rice farmers in California is A. not as important as for farmers in Pennsylvania, where they grow little rice B. a necessity C. a need D. a want 7. Ten years ago you had never even heard of wireless internet. Now you complete assignments for class on a laptop that accesses the Internet using wireless technology. This is evidence that A. things that were once wants can become needs. B. needs remain the same, but wants change. C. needs and wants both increase with increases in technology. D. needs decrease with technology, but wants increase. 8. Utility maximization means that people try to allocate their ______ to maximize their ___________. A. utility, spending B. resources, satisfaction C. time, work D. limited resource, desires 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. 9. Your total utility _______with each pie you ate up to the 3
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This note was uploaded on 04/19/2011 for the course ECON 1 taught by Professor Tang during the Spring '08 term at UCSD.

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__172.20.40.61_Materials_l2xie-0010_Chapter_5 - Chapter 5...

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