EC111 Midterm || with Accurate Answers 100%.
Microsoft filed a lawsuit against people who sent spam (junk e-mail) and a website owner who
hosted spam services. A spokesman for Microsoft said that Microsoft was "trying to change the
economics of spam" by increasing the cost of being a spammer. An economist most likely would
agree with which statement about Microsoft's actions? correct answers Microsoft's approach of
trying to change the costs of spamming is the most efficient way to change behavior.
The marginal cost of consuming another unit of a good correct answers equals the increase in
total cost when another unit is consumed
Mary buys cell-phone services from a company that charges $30 per month. For that $30 she is
allowed 600 minutes of free calls and then pays 10 cents per minute for any calls above 600
minutes. Mary has used 600 minutes this month so far. What is her marginal cost per minute of
making additional calls? correct answers 10 cents
Suppose the marginal cost of dating Perry is $30 and the marginal benefit is worth $40 to you.
Following economic reasoning, you should correct answers date Perry
Alan is sitting in a bar drinking beers that cost $1 each. According to the economic decision rule,
Alan will quit drinking when the marginal correct answers benefit to him of an additional beer is
less than $1
The marginal benefit of another T-shirt this month to Mary is $15. If the $10 price of a T-shirt
reflects its marginal cost to Mary and Mary uses economic reasoning, she: correct answers will
buy another T-shirt this month
Marginal analysis suggests that you will engage in more of an activity if the correct answers
additional benefit from the activity exceeds the additional cost
You're deciding whether to install an $800 moonroof and a $400 security system in your car.
Suppose the marginal benefit from the moonroof is $700 and the marginal benefit from the
security system is $600. The economic decision rule dictates that you should: correct answers
Economic reasoning would argue that there is an opportunity cost to correct answers all choices
The table below shows how the marginal benefit of pizza dinners varies for Luigi with the
number consumed per month.
Dinners per month Marginal benefit per dinner
1 $4.00
2 $3.00
3 $2.00
4 $1.00
, Suppose the price per dinner is $4.99 and accurately reflects the marginal cost of the dinners to
Luigi. Assuming that Luigi is rational, he will correct answers not consume any pizza dinners
this month
You bought one share of McDonald's stock for $10, one share of Coca-Cola for $15, and one
share of Pepto-Bismol for $20. Currently, each stock is priced at $15. Assuming that there are no
tax issues and that you cannot predict the future price of any of the stocks, if you needed $15,
which stock would you sell? correct answers McDonalds, Coca-Cola, or Pepto-Bismo (Any one
of them)
Opportunity cost: correct answers is the net benefit forgone by not undertaking the next best
alternative
The opportunity cost of attending college for one year is best measured by the correct answers
value of the next-bet activity forgone by attending college
When your wages rise, the correct answers opportunity cost of an hour of leisure increases
Applying the concept of opportunity cost to the pollution of a lake, an economist probably would
conclude that correct answers
More than 10,000 visitors waited up to two hours in line to see the rare flower titan arum at the
Cambridge Botanical Gardens. What does this situation illustrate to an economist about
rationing? correct answers
Prostitution is legal in Churchill County, Nevada, but a referendum threatened to close two
brothels (prostitution businesses) in that county. What idea from Chapter 1 of the text does this
story best illustrate? correct answers
Countries such as Brazil, India, and Moldova-well-known sources of donors-have banned buying
and selling organs. This legal action comes at the risk of driving the trade underground. What
idea from Chapter 1 of the text does this story best illustrate? correct answers
An economic force given relatively free rein by society to work through the market is correct
answers a market force
Antitrust laws are an example of: correct answers political forces
The price of computers has fallen each year for the last 30 years. This is probably an example of
the working of: correct answers economic forces
The price mechanism is correct answers affected by both political and social forces.
Social forces correct answers affect the price mechanism through cultural norms.
Microsoft filed a lawsuit against people who sent spam (junk e-mail) and a website owner who
hosted spam services. A spokesman for Microsoft said that Microsoft was "trying to change the
economics of spam" by increasing the cost of being a spammer. An economist most likely would
agree with which statement about Microsoft's actions? correct answers Microsoft's approach of
trying to change the costs of spamming is the most efficient way to change behavior.
The marginal cost of consuming another unit of a good correct answers equals the increase in
total cost when another unit is consumed
Mary buys cell-phone services from a company that charges $30 per month. For that $30 she is
allowed 600 minutes of free calls and then pays 10 cents per minute for any calls above 600
minutes. Mary has used 600 minutes this month so far. What is her marginal cost per minute of
making additional calls? correct answers 10 cents
Suppose the marginal cost of dating Perry is $30 and the marginal benefit is worth $40 to you.
Following economic reasoning, you should correct answers date Perry
Alan is sitting in a bar drinking beers that cost $1 each. According to the economic decision rule,
Alan will quit drinking when the marginal correct answers benefit to him of an additional beer is
less than $1
The marginal benefit of another T-shirt this month to Mary is $15. If the $10 price of a T-shirt
reflects its marginal cost to Mary and Mary uses economic reasoning, she: correct answers will
buy another T-shirt this month
Marginal analysis suggests that you will engage in more of an activity if the correct answers
additional benefit from the activity exceeds the additional cost
You're deciding whether to install an $800 moonroof and a $400 security system in your car.
Suppose the marginal benefit from the moonroof is $700 and the marginal benefit from the
security system is $600. The economic decision rule dictates that you should: correct answers
Economic reasoning would argue that there is an opportunity cost to correct answers all choices
The table below shows how the marginal benefit of pizza dinners varies for Luigi with the
number consumed per month.
Dinners per month Marginal benefit per dinner
1 $4.00
2 $3.00
3 $2.00
4 $1.00
, Suppose the price per dinner is $4.99 and accurately reflects the marginal cost of the dinners to
Luigi. Assuming that Luigi is rational, he will correct answers not consume any pizza dinners
this month
You bought one share of McDonald's stock for $10, one share of Coca-Cola for $15, and one
share of Pepto-Bismol for $20. Currently, each stock is priced at $15. Assuming that there are no
tax issues and that you cannot predict the future price of any of the stocks, if you needed $15,
which stock would you sell? correct answers McDonalds, Coca-Cola, or Pepto-Bismo (Any one
of them)
Opportunity cost: correct answers is the net benefit forgone by not undertaking the next best
alternative
The opportunity cost of attending college for one year is best measured by the correct answers
value of the next-bet activity forgone by attending college
When your wages rise, the correct answers opportunity cost of an hour of leisure increases
Applying the concept of opportunity cost to the pollution of a lake, an economist probably would
conclude that correct answers
More than 10,000 visitors waited up to two hours in line to see the rare flower titan arum at the
Cambridge Botanical Gardens. What does this situation illustrate to an economist about
rationing? correct answers
Prostitution is legal in Churchill County, Nevada, but a referendum threatened to close two
brothels (prostitution businesses) in that county. What idea from Chapter 1 of the text does this
story best illustrate? correct answers
Countries such as Brazil, India, and Moldova-well-known sources of donors-have banned buying
and selling organs. This legal action comes at the risk of driving the trade underground. What
idea from Chapter 1 of the text does this story best illustrate? correct answers
An economic force given relatively free rein by society to work through the market is correct
answers a market force
Antitrust laws are an example of: correct answers political forces
The price of computers has fallen each year for the last 30 years. This is probably an example of
the working of: correct answers economic forces
The price mechanism is correct answers affected by both political and social forces.
Social forces correct answers affect the price mechanism through cultural norms.
