Mid term 1 (1-3)

Mid term 1 (1-3) - Exam Name_ MULTIPLE CHOICE. Choose the...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) When a choice is made, we call the value of the best alternative choice the 1) A) marginal cost. B) marginal choice. C) monetary cost. D) marginal benefit. E) opportunity cost. 2) Which one of the following is a part of the opportunity cost of attending college for an individual who lives on their own? 2) A) cost of transportation B) cost of meals C) cost of clothing D) cost of renting movies E) cost of tuition 3) During the next hour John can choose one of the following three activities: playing basketball, watching television, or reading a book. The opportunity cost of reading a book 3) A) is the value of playing basketball if John prefers that to watching television. B) depends on how much the book cost when it was purchased. C) is the value of playing basketball and the value of watching television. D) is the value of watching television if John prefers playing basketball to watching television. E) depends on how much John enjoys the book. 4) A welder makes $20 an hour. He must take two hours off work (with pay) to go to the dentist to have a tooth extracted. The dentist charges $100. The opportunity cost of the welder's trip to the dentist is 4) A) $100. B) $60. C) $120. D) $140. E) $40. 5) When the government of Alberta chooses to build more roads, the required resources are no longer available for spending on public education. This dilemma illustrates the concept of 5) A) Post Hoc Fallacy. B) Fallacy of Composition. C) marginal benefit. D) opportunity cost. E) monetary cost. 6) Which one of the following is a necessary consequence of scarcity? 6) A) the requirement of making choices B) all wants are satisfied C) low profits D) high profits E) no choices required 1
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7) The opportunity cost to a customer for getting a $10 haircut is the 7) A) customer's best alternative use of the $10. B) value to the barber of the time it takes to give a haircut. C) value of $10 to the barber. D) customer's best alternative use of the time it takes to get a haircut. E) customer's best alternative use of both the $10 and the time it takes to get a haircut. 8) Harrison makes $30 an hour as a plumber. He must take two hours off work to have a tooth extracted, but his contract specifies the firm still pays him. The dentist charges $80. The opportunity cost to the firm of Harrison's trip to the dentist is 8) A) $80. B) $110. C) $140. D) $50. E) $60. 9) Which of the following describes incentives? 9) A) a rise in tuition for economics classes leads to greater enrollment for dance students B) a rise in the price of orange juice makes people want to drink less orange juice C) a rise in the price of orange juice leads to a rise in the price of apples D) students trying to get into a heavily demanded economics class E) none of the above 10) Scarcity differs from poverty because 10) A) resources exceed wants for the rich. B) the poor do not have any wants.
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This note was uploaded on 12/31/2011 for the course ECON 101 taught by Professor Vanderwaal during the Fall '08 term at Waterloo.

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Mid term 1 (1-3) - Exam Name_ MULTIPLE CHOICE. Choose the...

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