Exam (elaborations)
Bmal 590 week 6 MicroEconomics Exam Questions and Answers
- Course
- Institution
Bmal 590 week 6 MicroEconomics Exam
[Show more]
Content preview
Bmal 590 week 6 MicroEconomics ExamPeople respond to incentives blank_______. - Answers -by calculating their individual
costs and benefits and determining which is greater
After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring
Break destination this year. However, Spring Break is still months away, and you may
reverse this decision. Which of the following events would prompt you to reverse this
decision? - Answers -The marginal cost of going to Ft. Lauderdale decreases.
A tradeoff exists between a clean environment and a higher level of income in that
blank_______. - Answers -laws that reduce pollution raise costs of production and
reduce incomes
An incentive ______. - Answers -could be either a reward or a penalty
Bill is restoring a car and has already spent $4000 on the restoration. He expects to be
able to sell the car for $5800. Bill discovers that he needs to do an additional $2400 of
work to make the car worth $5800 to potential buyers. He could also sell the car now,
without completing the additional work, for $3800. What should he do? - Answers -He
should sell the car now for $3800.
Economists assume that people are motivated by blank_______. - Answers -rational
self-interest
The fundamental reason people must choose between goods to buy and consume is
because of blank______. - Answers -scarcity
A rational student will continue studying in a given study session until blank______. -
Answers -the marginal value of the last unit studied equals the marginal cost of the last
unit
In economics, the cost of doing something is blank_______. - Answers -the value of the
next best opportunity not taken
The optimal amount of studying is determined by comparing the blank_______ -
Answers -marginal benefit and the marginal cost of studying
A shift in the demand curve denotes _______. - Answers -a change in demand
Consider inferior goods. As real incomes rise, consumers tend to buy inferior goods
inblank________. - Answers -less quantity
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
85443 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now