Question 1

If it costs Vijay $150 to design 5 Web sites and $175 to design 6 Web sites,then $175 is the marginal cost of producing the 6th Web site.

Accepted Answer

To find the marginal cost of producing the 6th Web site, we need to determine the additional cost of producing the 6th Web site compared to the cost of producing the 5th Web site. 
Cost of producing 5 Web sites = $150 
Cost of producing 6 Web sites = $175 
Therefore, the total cost of producing the 6th Web site is $175, but the additional cost compared to producing the 5th Web site is: 
Marginal cost = Cost of producing 6 Web sites - Cost of producing 5 Web sites 
Marginal cost = $175 - $150 
Marginal cost = $25 
So, the marginal cost of producing the 6th Web site is $25, not $175.

Question 2

Describe what has happened to state obesity rates in the United States since 1994.

Accepted Answer

The answer of Describe what has happened to state obesity...

Question 3

Every society faces economic trade-offs.This means
A)some people live better than others do.
B)not everyone can have enough goods to survive.
C)producing more of one good means less of another good can be produced.
D)society's output cannot be made available to all.

Accepted Answer

Economic trade-offs refer to the fact that producing more of one good means less of another good can be produced. This is due to limited resources and the opportunity cost of allocating resources towards one good rather than another. Every society must make choices about how to allocate their resources, and trade-offs are inevitable.

Question 4

An economic model is a complex version of reality used to analyze real-world economic situations.

Accepted Answer

An economic model is a simplified version of reality used to analyze real-world economic situations and understand how economies function.

Question 5

Which of the following statements is false?
A)Anytime you have to decide which action to take you are facing an economic trade-off.
B)Trade-offs do not apply when the consumers purchase a product for which there is excess supply,such as a stock clearance sale.
C)Every individual,no matter how rich or poor,is faced with making trade-offs.
D)Economics is a social science that studies the trade-offs we are forced to make because of scarcity.

Accepted Answer

Trade-offs apply in all economic situations, including situations where there is an excess supply of a product. In fact, even in such situations, consumers still have to make a trade-off between the money they will spend on the discounted product and the alternative use of that money. Therefore, statement B is false.

Question 6

Suppose the extra annual cost to a nation to enact a mandatory seat belt law for motorcycles is $850.Then,the nation should enact this seat belt law if doing so results in an additional benefit of $850 or more each year.

Accepted Answer

If the additional benefit of enacting the seat belt law is $850 or more annually, it matches or exceeds the extra annual cost, making it economically justifiable to enact the law.

Question 7

Opportunity cost is defined as
A)the benefit of an activity.
B)the monetary expense associated with an activity.
C)the highest valued alternative that must be given up to engage in an activity.
D)the total value of all alternatives that must be given up to engage in an activity.

Accepted Answer

Opportunity cost is the value of the highest foregone alternative when choosing one option. Therefore, the correct option is C - "the highest valued alternative that must be given up to engage in an activity." Options A and B are incorrect because the benefit or monetary expense does not necessarily represent the opportunity cost. Option D is incorrect because it includes all alternatives, not just the highest valued one.

Question 8

Suppose the extra cost for a municipality to enact a "no texting while driving" law is $15,000 per year.Then,the municipality should enact the law if it receives a total benefit from all of its traffic laws of $15,000 per year.

Accepted Answer

This statement is incomplete and cannot be determined without more context. The cost of enacting a law must be compared to the benefits of that specific law, not the benefits of "all of its traffic laws." Additionally, the threshold for enacting a law would depend on various factors such as the potential reduction in accidents and the cost saved from such accidents.

Question 9

What is scarcity,and why is it a fundamental concept in economics?

Accepted Answer

The answer of What is scarcity,and why is it a...

Question 10

Marginal benefit is the benefit that your activity provides to someone else.

Accepted Answer

Marginal benefit refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. It is focused on the individual's own gain, not the benefit provided to someone else.

Question 11

What does the word "marginal" mean in economics? What is a marginal benefit? What is a marginal cost? What is marginal analysis?

Accepted Answer

The answer of What does the word "marginal" mean in...

Question 12

Assume that a city can earn an additional $100,000 of revenue each year from using drones to catch speeding drivers.What must the additional cost of using drones to catch speeders be to make this economically rational?

Accepted Answer

The answer of Assume that a city can earn an...

Question 13

Explain the term "economics."

Accepted Answer

The answer of Explain the term "economics."...

Question 14

Optimal decisions are made at the point where marginal benefit is maximized.

Accepted Answer

Optimal decisions are made at the point where marginal benefit equals marginal cost, not where marginal benefit is maximized.

Question 15

Ted quits his $60,000-a-year job to be a stay-at-home dad.What is the opportunity cost of his decision?
A)zero,since he will no longer be earning a salary
B)depends on the "going rate" for stay-at-home dads
C)at least $60,000
D)the value he attributes to the joy of parenting

Accepted Answer

The opportunity cost of Ted's decision to quit his job and become a stay-at-home dad is at least $60,000 because that is the value of the salary he is giving up. Opportunity cost refers to the value of the next best alternative that must be forgone in order to pursue a certain action. In this case, the next best alternative would be to continue working and earning a salary.

Question 16

Which of the following is an example of an economic trade-off that a firm has to make?
A)whether it is cheaper to produce with more machines or with more workers
B)deciding why consumers want its products
C)whether or not consumers will buy its products
D)deciding what profit margin it desires for its products

Accepted Answer

A firm has to decide whether it is more cost-effective to produce with more machines or with more workers, which is an example of an economic trade-off. The other options are not examples of economic trade-offs, as they do not involve choosing between alternative options with different costs or benefits.

Question 17

The Stogie Shop,a cigar store in the mall,sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each.What is the opportunity cost of buying a hand-rolled cigar?
A)4 machine-made cigars
B)one-quarter of a machine-made cigar
C)$10.00
D)$2.50

Accepted Answer

The opportunity cost of buying a hand-rolled cigar is the value of the next-best alternative forgone, which in this case is the machine-made cigar. To determine the opportunity cost, we need to calculate how many machine-made cigars we could buy with the same $10.00 that we would spend on a hand-rolled cigar. 
$10.00 / $2.50 (cost of one machine-made cigar) = 4 machine-made cigars 
Therefore, the opportunity cost of buying a hand-rolled cigar is 4 machine-made cigars. So, the best choice is option A.

Question 18

What is an economic market?

Accepted Answer

The answer of What is an economic market?...

Question 19

Trade-offs force society to make choices when answering what three fundamental questions?
A)What will be the prices of goods and services; how will these goods and services be produced; and who will receive them?
B)What goods and services to produce; how will these goods and services be produced; and who receives them?
C)Who gets jobs; what wages do workers earn; and who owns what property?
D)How much will be saved; what will be produced; and how can these goods and services be fairly distributed?

Accepted Answer

The three fundamental questions of economics are what to produce, how to produce it, and for whom to produce it. Trade-offs arise because society cannot have everything they want, so choices need to be made about what goods and services to produce, how to produce them (using what resources and technology), and who will receive them. Option B is the best choice as it presents the three fundamental questions accurately. Options A, C, and D are either incomplete or incorrectly identify the fundamental questions.

Question 20

If it costs Hobie $900 to produce 5 lamps and $1,200 to produce 6 lamps,then the difference of $300 is the marginal cost of producing the 5th lamp.

Accepted Answer

The difference of $300 is the marginal cost of producing the 6th lamp, not the 5th. The cost given is cumulative, so the marginal cost refers to the cost of producing one more unit beyond what has already been produced.

Quiz 1: Economics: Foundations and Models

If it costs Vijay $150 to design 5 Web sites and $175 to design 6 Web sites,then $175 is the marginal cost of producing the 6th Web site.

Describe what has happened to state obesity rates in the United States since 1994.

Every society faces economic trade-offs.This means

An economic model is a complex version of reality used to analyze real-world economic situations.

Which of the following statements is false?

Suppose the extra annual cost to a nation to enact a mandatory seat belt law for motorcycles is $850.Then,the nation should enact this seat belt law if doing so results in an additional benefit of $850 or more each year.

Opportunity cost is defined as

Suppose the extra cost for a municipality to enact a "no texting while driving" law is $15,000 per year.Then,the municipality should enact the law if it receives a total benefit from all of its traffic laws of $15,000 per year.

What is scarcity,and why is it a fundamental concept in economics?

Marginal benefit is the benefit that your activity provides to someone else.

What does the word "marginal" mean in economics? What is a marginal benefit? What is a marginal cost? What is marginal analysis?

Assume that a city can earn an additional $100,000 of revenue each year from using drones to catch speeding drivers.What must the additional cost of using drones to catch speeders be to make this economically rational?

Explain the term "economics."

Optimal decisions are made at the point where marginal benefit is maximized.

Ted quits his $60,000-a-year job to be a stay-at-home dad.What is the opportunity cost of his decision?

Which of the following is an example of an economic trade-off that a firm has to make?

The Stogie Shop,a cigar store in the mall,sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each.What is the opportunity cost of buying a hand-rolled cigar?

What is an economic market?

Trade-offs force society to make choices when answering what three fundamental questions?

If it costs Hobie $900 to produce 5 lamps and $1,200 to produce 6 lamps,then the difference of $300 is the marginal cost of producing the 5th lamp.