Module 2 Quiz

A  economic certainty.

B  marginal benefit.

C  marginal cost.

A  the average benefit that each unit of something provides.

B  the additional benefit that one more unit of something will provide.

C  the change in the total benefit that a company can receive by producing another unit of product.

A  the prices of the goods that a person may purchase.

B  utility.

C  sunk costs.

A  significant gains in infrastructure maintenance.

B  relatively small gains in crime prevention.

C  significant gains in crime prevention.

A  the benefit each major would bring and the cost of the degree.

B  soley the monetary cost of the college degree is all Marcus needs to consider.

C  minimizing the length of time it will take to complete the degree.

A  demand for additional storage units from one more storage building (the marginal product) is rising.

B  the marginal benefit is greater than the marginal cost of additional units.

C  the total benefits from all storage units are greater than the the total cost of all storage units.

A  always considering the long-run.

B  considering the impact of one’s decisions on society.

C  weighing prospective benefits and costs to oneself.

A  paying $10,000 in opportunity cost per year to attend college.

B  an opportunity cost to attend college of $22,000 per year.

C  an opportunity cost to attend college of $42,000 per year.

A  what can be demonstrated to be true.

B  conjecture.

C  value judgments.

A  The boat rental was worth the additional fish caught, regardless of how little fish we left behind.

B  Our time was very valuable at that moment, but we stopped to put out the fire before it spread.

C  The rental of recreational vehicles for use in national parks is responsive to concerns of noise pollution.

A  The revenue sacrificed will help to make the audience more diverse.

B  The revenue sacrificed is worth the boost it gives to her image as lines form for tickets.

C  The revenue sacrificed represents a very small share of the show’s revenues.

A  I am absolutely positive that there is a better way.

B  Social security benefits are not taxed.

C  There is a limit to the income each year to which the FICA tax applies, but that is fair, since there is a limit to social security benefits.

A  the prices of the items purchased.

B  the accessibility of the items purchased.

C  how much utility one more unit of a good will provide.

A  Three tickets.

B  One and a half tickets.

C  Thirty tickets.

A  to open a mattress drop off site downtown because the expected marginal benefit is greater than the estimated marginal cost.

B  to not open a mattress drop off site downtown because the marginal costs prove to be too high.

C  to open a mattress drop off site downtown because the marginal cost of the new location is less than other similar projects.

A  The amount of benefit a person receives from a good or service remains constant.

B  It is the difference (or change) in what you receive from a different choice.

C  It is the difference (or change) in cost of a different choice.