Economics Chapter 9 Multiple Choice Figure

72. Multiple Choice: Figure: The Marginal Cost Curve Refer…

Question Figure: The Marginal Cost Curve

Reference: Ref 9-2

(Figure: The Marginal Cost Curve) Look at the figure The Marginal Cost Curve. Using

the marginal cost curve in the figure provided, the total cost of mowing five lawns is

approximately:

73. Multiple Choice: The ________ is the amount by which a…

Question The ________ is the amount by which an additional unit of activity increases its

cost.

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74. Multiple Choice: The amount by which an additional uni...

Question The amount by which an additional unit of an activity increases total cost is:

75. Multiple Choice: Reference: Ref 9-3 (Table: Marginal …

Question

Reference: Ref 9-3

(Table: Marginal Cost of Sweatshirts) Look at the table Marginal Cost of

Sweatshirts. The marginal cost of the second sweatshirt is:

76. Multiple Choice: Reference: Ref 9-3 (Table: Marginal …

Question

Points: 0

Reference: Ref 9-3

(Table: Marginal Cost of Sweatshirts) Look at the table Marginal Cost of

Sweatshirts. The marginal cost of the third sweatshirt is:

77. Multiple Choice: Reference: Ref 9-3 (Table: Marginal …

Question

Reference: Ref 9-3

(Table: Marginal Cost of Sweatshirts) Look at the table Marginal Cost of

Sweatshirts. The marginal cost of the fourth sweatshirt is:

78. Multiple Choice: Reference: Ref 9-3 (Table: Marginal …

Question

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Reference: Ref 9-3

(Table: Marginal Cost of Sweatshirts) Look at the table Marginal Cost of

Sweatshirts. The marginal cost of the fifth sweatshirt is:

79. Multiple Choice: Reference: Ref 9-3 (Table: Marginal …

Question

Reference: Ref 9-3

(Table: Marginal Cost of Sweatshirts) Look at the table Marginal Cost of

Sweatshirts. The marginal cost of producing sweatshirts is an example of

___________ marginal costs.

80. Multiple Choice: Constant marginal costs occur when ea…

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Question Constant marginal costs occur when each individual unit costs

81. Multiple Choice: Learning effects often result in ____...

Question Learning effects often result in ________ marginal costs.

82. Multiple Choice: Tara notices that studying for one ho…

Question Tara notices that studying for one hour after class increases her economics grade

by 11 points. The second hour yields a 7-point gain, the third hour yields a 4-point

gain, and the fourth hour yields only a 1-point gain. This means that the marginal

________ of studying decreases with study hours.

83. Multiple Choice: Marginal benefit:

Question Marginal benefit:

Answer is the subsidiary benefit from an activity; for example, the main benefit from

weight training is an increase in muscle mass, and the subsidiary or marginal

benefit might be a reduction in cholesterol.

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84. Multiple Choice: Wendy sells ice-making machines. She ...

Question Wendy sells ice-making machines. She can sell six per week at a price of $2,000. If

she charges $2,100, she will sell only five per week. The marginal benefit of selling

the sixth ice-making machine is:

Answer $2,000.

85. Multiple Choice: Figure: The Marginal Benefit Curve Re…

Question Figure: The Marginal Benefit Curve

Reference: Ref 9-4

(Figure: Marginal Benefit Curve) Look at the figure The Marginal Benefit Curve.

According to the marginal benefit curve, the total benefit of mowing four lawns is

approximately:

86. Multiple Choice: Figure: The Marginal Benefit Curve Re…

Points: 0

Question Figure: The Marginal Benefit Curve

Reference: Ref 9-4

(Figure: Marginal Benefit Curve) Look at the figure The Marginal Benefit Curve.

According to the marginal benefit curve, the total benefit of mowing six lawns is

approximately:

87. Multiple Choice: Figure: The Marginal Benefit Curve Re…

Question Figure: The Marginal Benefit Curve

Reference: Ref 9-4

(Figure: Marginal Benefit Curve) Look at the figure The Marginal Benefit Curve.

According to the marginal benefit curve, the total benefit of mowing seven lawns is

approximately:

Points: 0

88. Multiple Choice: The amount by which an additional uni...

Question The amount by which an additional unit of an activity increases total benefit is:

Answer net benefit.

89. Multiple Choice: The ________ is the amount by which a…

Question The ________ is the amount by which an additional unit of an activity increases its

total benefit.

Answer average benefit

90. Multiple Choice: Reference: Ref 9-5 (Table: Marginal …

Question

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Reference: Ref 9-5

(Table: Marginal Benefit of Sweatshirts) Look at the table Marginal Benefit of

Sweatshirts. The marginal benefit of producing the second sweatshirt is:

Answer $31.

91. Multiple Choice: Reference: Ref 9-5 (Table: Marginal …

Question

Reference: Ref 9-5

(Table: Marginal Benefit of Sweatshirts) Look at the table Marginal Benefit of

Sweatshirts. The marginal benefit of producing the third sweatshirt is:

Answer $31.

Points: 0

92. Multiple Choice: Reference: Ref 9-5 (Table: Marginal …

Question

Reference: Ref 9-5

(Table: Marginal Benefit of Sweatshirts) Look at the table Marginal Benefit of

Sweatshirts. The marginal benefit of producing the fourth sweatshirt is:

Answer $58.

93. Multiple Choice: Reference: Ref 9-5 (Table: Marginal …

Question

Reference: Ref 9-5

(Table: Marginal Benefit of Sweatshirts) Look at the table Marginal Benefit of

Sweatshirts. The marginal benefit of producing the fifth sweatshirt is:

Answer $70.

Points: 0

94. Multiple Choice: According to the optimal output rule,...

Question According to the optimal output rule, if the marginal benefit is:

Answer more than the marginal cost, an activity should be reduced.

95. Multiple Choice: According to the optimal output rule,...

Question According to the optimal output rule, if the marginal benefit is:

96. Multiple Choice: According to the optimal output rule,...

Question According to the optimal output rule, if the marginal benefit is:

Answer more than the marginal cost, an activity should be reduced.

97. Multiple Choice: Whenever marginal benefit is less tha…

Question Whenever marginal benefit is less than marginal cost, the decision maker should do

________ of the activity.

Points: 0

98. Multiple Choice: Whenever marginal benefit is greater ...

Question Whenever marginal benefit is greater than marginal cost, the decision maker should

do ________ of the activity.

Answer less

99. Multiple Choice: Some highways have one lane; others h...

Question Some highways have one lane; others have two, three, or more. If each lane costs

$10 million per mile, an economist would assume that the total benefit of a three-

lane highway must be:

Answer less than $10 million per mile.

100. Multiple Choice: While eating pizza, you discover that...

Question While eating pizza, you discover that the marginal benefit of eating one more slice is

greater than the marginal cost of that slice. You then conclude:

101. Multiple Choice: Joan loves to eat sushi. Her first pi...

Question

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Joan loves to eat sushi. Her first piece of sushi normally gives her a marginal benefit

of $5. Each additional piece creates a marginal benefit that declines by $0.25 per

piece. If her favorite sushi bar charges $2.75 per piece of sushi, how many pieces

should she eat?

102. Multiple Choice: Pauli’s Pizza offers the following pr...

Question Pauli’s Pizza offers the following prices: one slice for $2, two slices for $3.50, three

slices for $4.50, four slices for $5.00. Sal orders two slices. From this we know that

Sal’s marginal benefit from the second slice must be at least ________, while the

marginal benefit from the third slice must be less than ________.

Answer $3.50; $4.50

103. Multiple Choice: In economic analysis, the optimal qua...

Question In economic analysis, the optimal quantity of an activity is the quantity at which:

Answer marginal benefit exceeds marginal cost by the greatest amount.

104. Multiple Choice: Werner installs custom sound systems ...

Question Werner installs custom sound systems in cars. If he installs seven systems per

day, his total costs are $300. If he installs eight systems per day, his total costs are

$400. William will install eight sound systems per day only if the eighth customer is

willing to pay at least:

Answer $300.

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105. Multiple Choice: Suppose Bob has a part-time business ...

Question Suppose Bob has a part-time business washing cars. He has washed nine cars on

a given day; the marginal benefit of washing the tenth car is $20 and the marginal

cost is $12. Bob should:

106. Multiple Choice: To maximize her grade in economics, S...

Question To maximize her grade in economics, Stacey should study until:

Answer her marginal cost of studying begins to increase.

107. Multiple Choice: According to the marginal decision ru...

Question According to the marginal decision rule, if the marginal benefit is:

Answer more than marginal cost, an activity should be reduced.

108. Multiple Choice: According to the marginal decision ru...

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Question According to the marginal decision rule, if the marginal benefit is:

109. Multiple Choice: According to the marginal decision ru...

Question According to the marginal decision rule in economics, if the marginal benefit is:

Answer more than marginal cost, an activity should be reduced.

110. Multiple Choice: In economics, the assumption is that ...

Question In economics, the assumption is that consumers and firms will make choices that

maximize the ________ of each activity.

111. Multiple Choice: To maximize total net benefit, consum...

Question To maximize total net benefit, consumers and firms evaluate each activity at the:

Answer average.

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112. Multiple Choice: Total net gain is maximized when marg…

Question Total net gain is maximized when marginal benefit ________ marginal cost.

Answer is more than

113. Multiple Choice: In economics, maximization of the tot…

Question In economics, maximization of the total net benefit of an activity occurs when:

114. Multiple Choice: At whatever quantity ________, the de...

Question At whatever quantity ________, the decision maker should do ________ of the

activity.

Answer MB < MC; that amount

115. Multiple Choice: At whatever quantity ________, the de...

Question At whatever quantity ________, the decision maker should do ________ of the

activity.

Points: 0

MB > MC; none

116. Multiple Choice: At whatever quantity MB = MC, the dec…

Question At whatever quantity MB = MC, the decision maker should do ________ of the

activity.

117. Multiple Choice: If the marginal benefit received from…

Question If the marginal benefit received from a good is equal to the marginal cost of

production, then:

118. Multiple Choice: If the marginal benefit received from…

Question If the marginal benefit received from a good is less than the marginal cost of

production, then:

119. Multiple Choice: If the marginal benefit received from…

Question If the marginal benefit received from a good is greater than the marginal cost of

production, then:

Points: 0

120. Multiple Choice: Reference: Ref 9-6 (Table: Marginal...

Question

Reference: Ref 9-6

(Table: Marginal Analysis of Sweatshirt Production I) Given the information in the

table, the optimal quantity of sweatshirts to produce is:

121. Multiple Choice: Reference: Ref 9-6 (Table: Marginal …

Question

Reference: Ref 9-6

(Table: Marginal Analysis of Sweatshirt Production I) Given the information in the

table, the net benefit at the optimal quantity of sweatshirts is:

Points: 0

122. Multiple Choice: Reference: Ref 9-7 (Table: Marginal...

Question

Reference: Ref 9-7

(Table: Marginal Analysis of Sweatshirt Production II) Look at the table Marginal

Analysis of Sweatshirt Production II. Given the information provided, the optimal

quantity of sweatshirts to produce is:

123. Multiple Choice: Reference: Ref 9-7 (Table: Marginal...

Question

Reference: Ref 9-7

(Table: Marginal Analysis of Sweatshirt Production II) Look at the table Marginal

Analysis of Sweatshirt Production II. Given the information provided, the net benefit

at the optimal quantity of sweatshirts is:

Points: 0

124. Multiple Choice: To determine the quantity of any acti...

Question To determine the quantity of any activity that will maximize total net benefit,

economists employ the ________ rule.

125. Multiple Choice: The activities of consumers and firms:

Question The activities of consumers and firms:

Answer have benefits but not costs.

126. Multiple Choice: Reference: Ref 9-8 (Table: Marginal …

Question

Points: 0