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Bmal 590 week 6 MicroEconomics Exam Questions and Answers
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Bmal 590 week 6 MicroEconomics Exam
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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
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