Question 1

To determine the quantity of any activity that will maximize total net benefit, economists employ the
________ rule.
A.average decision
B.total decision
C.principle of marginal analysis
D.principle of average analysis

Accepted Answer

The answer of To determine the quantity of any activity...

Question 2

Figure: Marginal Benefits and Marginal Costs
(Figure: Marginal Benefits and Marginal Costs) Look at the figure Marginal Benefits and Marginal Costs.As shown, more time spent studying economics adds points to economics scores but (MB) subtracts points from accounting scores (MC).When Claudia studies economics for 4 hours, the marginal benefit is points; when Claudia studies for 6 hours, the marginal benefit is
________ points.
A.20; 10
B.30; 10
C.20; 0
D.20; 30

Accepted Answer

The answer of Figure: Marginal Benefits and Marginal Costs
(Figure: Marginal...

Question 3

Figure: Marginal Benefits and Marginal Costs
  (Figure: Marginal Benefits and Marginal Costs) Look at the figure Marginal Benefits and Marginal Costs.As shown, more time spent studying economics adds points to economics scores (MB) but subtracts points from accounting scores (MC).At 4 hours of study, Claudia will "maximize" her study time because: 
A.MB > MC.
B.MB = 20 and MC = 5.
C.the difference between total benefits and total costs is maximized.
D.sunk costs are minimized.

Accepted Answer

The answer of Figure: Marginal Benefits and Marginal Costs
 ...

Question 4

(Table: Marginal and Total Benefit) Look at the table Marginal and Total Benefit.Sed is deciding how many football games he wants to attend this year.Rodger's marginal benefit from increasing the number of games that he attends from two to three is:

Accepted Answer

Looking at the table, we can see that the marginal benefit of attending the third game is 30, which is higher than the marginal benefit of attending the fourth game (which is only 20). Therefore, Sed's best choice would be to attend three games.

Question 5

(Table: Marginal Analysis of Sweatshirt Production I) Given the information in the table, the net benefit at the optimal quantity of sweatshirts is: 
A.$8.
B.$9.
C.$45.
D.$70.

Accepted Answer

The answer of   (Table: Marginal Analysis of Sweatshirt...

Question 6

(Table: Marginal and Total Benefit) Look at the table Marginal and Total Benefit.Sed is deciding how many football games he wants to attend this year.If the games are free, how many games should he attend?
A.1
B.5
C.7
D.8

Accepted Answer

The answer of (Table: Marginal and Total Benefit) Look at...

Question 7

Figure: Marginal Benefits and Marginal Costs
   (Figure: Marginal Benefits and Marginal Costs) Look at the figure Marginal Benefits and Marginal Costs.As shown, more time spent studying economics adds points to economics scores (MB) but subtracts points from accounting scores (MC).The marginal benefit of studying economics when Claudia studies for 4 hours is ________ points and the marginal cost is points. 
A.30; 30
B.20; 10
C.20; 20
D.30; 10

Accepted Answer

The answer of Figure: Marginal Benefits and Marginal Costs
 ...

Question 8

The activities of consumers and firms:
A.have benefits but not costs.
B.have costs but not benefits.
C.have both costs and benefits.
D.are too complex to be analyzed with economic theory.

Accepted Answer

Economic theory recognizes that the activities of consumers and firms have both costs and benefits. Consumers make choices based on the perceived benefits from consuming a good or service, but they also face the costs of paying for it. Similarly, firms invest in producing goods or services based on the potential profits, but they also bear the costs of production. Economic analysis considers both these costs and benefits to understand how consumers and firms make decisions and how markets work.

Question 9

(Table: Marginal and Total Benefit) Look at the table Marginal and Total Benefit.Rodger is deciding how many football games he wants to attend this year.Suppose football tickets cost $10, but suppose too that the star player just got injured and will be out for the season.As a result of the injury, Rodger's total benefit of attending any game is now only 10% of the value shown in the table.In this case, how many games should he attend?
A.0
B.1
C.2
D.6

Accepted Answer

The answer of (Table: Marginal and Total Benefit) Look at...

Question 10

Figure: The Optimal Quantity
   (Figure: The Optimal Quantity) Look at the figure The Optimal Quantity.If the demand for
lawn-mowing decreased, the ________ curve in the figure would shift to the and the
optimal quantity would be five lawns mowed. 
A.marginal benefit; right; more than
B.marginal cost; right; fewer than
C.marginal benefit; left; fewer than
D.marginal cost; left; more than

Accepted Answer

The answer of Figure: The Optimal Quantity
   (Figure:...

Question 11

Figure: The Optimal Quantity
   (Figure: The Optimal Quantity) Look at the figure The Optimal Quantity.If the cost of producing lawn-mowing increased, the ________ curve in the figure would shift to the and the total
net gain would _. 
A.marginal benefit; right; increase
B.marginal cost; right; increase
C.marginal benefit; left; decrease
D.marginal cost; left; decrease

Accepted Answer

The answer of Figure: The Optimal Quantity
   (Figure:...

Question 12

(Table: Marginal Analysis of Sweatshirt Production I) Given the information in the table, the optimal quantity of sweatshirts to produce is:

Accepted Answer

The answer of (Table: Marginal Analysis of Sweatshirt Production I)...

Question 13

If the marginal benefit received from a good is greater than the marginal cost of production, then:
A.society's well-being can be improved if production increases.
B.society's well-being can be improved if production decreases.
C.society's well-being cannot be improved by changing production.
D.the market is producing too much of the good.

Accepted Answer

If the marginal benefit received from a good is greater than the marginal cost of production, it means that each additional unit produced generates more benefits than the costs incurred in producing it. As a result, society's well-being can be improved if production increases because the benefits gained by producing more of the good exceed the costs of doing so.

Question 14

Figure: Marginal Benefits and Marginal Costs
  (Figure: Marginal Benefits and Marginal Costs) Look at the figure Marginal Benefits and Marginal Costs.As shown, more time spent studying economics adds points to economics scores (MB) but subtracts points from accounting scores (MC).The marginal benefit of studying economics when Claudia studies for 2 hours is ________ points and the marginal cost is points. 
A.40; 0
B.30; 10
C.20; 20
D.10; 30

Accepted Answer

The answer of Figure: Marginal Benefits and Marginal Costs
 ...

Question 15

Figure: The Optimal Quantity
   (Figure: The Optimal Quantity) Look at the figure The Optimal Quantity.If the cost of producing
lawn-mowing decreased, the ________ curve in the figure would shift to the and the total
net gain would _. 
A.marginal benefit; right; increase
B.marginal cost; right; increase
C.marginal benefit; left; decrease
D.marginal cost; left; decrease

Accepted Answer

The answer of Figure: The Optimal Quantity
   (Figure:...

Question 16

(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:

Accepted Answer

The optimal quantity to produce is where marginal cost equals marginal revenue. At quantity 4, marginal cost is $12 and marginal revenue is $12, indicating that the producer will maximize profits at this quantity. At quantities above or below 4, the marginal cost is higher than the marginal revenue, meaning that producing more or less would lead to lower profits.

Question 17

(Table: Marginal and Total Benefit) Look at the table Marginal and Total Benefit.Sed is deciding how many football games he wants to attend this year.If tickets to each football game cost $10, then he should attend game(s).
A.0
B.1
C.2
D.5

Accepted Answer

The answer of (Table: Marginal and Total Benefit) Look at...

Question 18

(Table: Marginal and Total Benefit) Look at the table Marginal and Total Benefit.Sed is deciding how many football games he wants to attend this year.If tickets to each football game cost $75, how many games should he attend?
A.0
B.1
C.2
D.5

Accepted Answer

The answer of (Table: Marginal and Total Benefit) Look at...

Question 19

(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: 
A.$15.
B.$16.
C.$48.
D.$80.

Accepted Answer

The answer of   (Table: Marginal Analysis of Sweatshirt...

Question 20

Figure: The Optimal Quantity
   (Figure: The Optimal Quantity) Look at the figure The Optimal Quantity.If the demand for
lawn-mowing increased, the ________ curve in the figure would shift to the and the
optimal quantity would be five lawns mowed. 
A.marginal benefit; right; more than
B.marginal cost; right; fewer than
C.marginal benefit; left; fewer than
D.marginal cost; left; more than

Accepted Answer

The answer of Figure: The Optimal Quantity
   (Figure:...

Quiz 9: Decision Making by Individuals and Firms

To determine the quantity of any activity that will maximize total net benefit, economists employ the ________ rule. A.average decision B.total decision C.principle of marginal analysis D.principle of average analysis

(Table: Marginal and Total Benefit) Look at the table Marginal and Total Benefit.Sed is deciding how many football games he wants to attend this year.Rodger's marginal benefit from increasing the number of games that he attends from two to three is:

(Table: Marginal Analysis of Sweatshirt Production I) Given the information in the table, the net benefit at the optimal quantity of sweatshirts is: A.$8. B.$9. C.$45. D.$70.

(Table: Marginal and Total Benefit) Look at the table Marginal and Total Benefit.Sed is deciding how many football games he wants to attend this year.If the games are free, how many games should he attend? A.1 B.5 C.7 D.8

The activities of consumers and firms: A.have benefits but not costs. B.have costs but not benefits. C.have both costs and benefits. D.are too complex to be analyzed with economic theory.

(Table: Marginal Analysis of Sweatshirt Production I) Given the information in the table, the optimal quantity of sweatshirts to produce is:

(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:

(Table: Marginal and Total Benefit) Look at the table Marginal and Total Benefit.Sed is deciding how many football games he wants to attend this year.If tickets to each football game cost $10, then he should attend game(s). A.0 B.1 C.2 D.5

(Table: Marginal and Total Benefit) Look at the table Marginal and Total Benefit.Sed is deciding how many football games he wants to attend this year.If tickets to each football game cost $75, how many games should he attend? A.0 B.1 C.2 D.5

(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: A.$15. B.$16. C.$48. D.$80.