Economics 1B Quiz 1 S2011

Economics 1B Quiz 1 S2011 - Quiz #1 Key Economics 1B...

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Quiz #1 Key Economics 1B Department of Economics Professor Siegler UC Davis Spring 2011 1) Economists reason that the optimal decision is to continue any activity up to the point where the A) marginal benefit is zero. B) marginal benefit is greater than the marginal cost. C) marginal cost is zero. D) marginal benefit equals the marginal cost. 2) The opportunity cost of a choice is the A) cost associated with making a choice. B) value of the next best activity not chosen. C) fair market price of whatever is chosen. D) amount paid to purchase what is chosen. E) consequence associated with failure. 3) When the economy is in a recession, jobs are generally harder to find and more people go to college. We can conclude that the opportunity cost of A) going to college decreases when the economy is in recession. B) going to college increases when the economy is in recession. C) working increases when the economy is in recession. D) working is zero when the economy is in recession. E) going to college is always higher than the opportunity cost of working. 4) The three essential questions that every economy must solve are A) what, how many, and for whom? B) how, what, where? C) what, how, and for whom? D) what, how much, and for whom? E) where, how, and for whom?
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This note was uploaded on 02/07/2012 for the course ECON 1b taught by Professor Sheffrin during the Spring '07 term at UC Davis.

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Economics 1B Quiz 1 S2011 - Quiz #1 Key Economics 1B...

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