Podcast
Questions and Answers
Teresa eats three oranges during a particular day. The marginal benefit she enjoys from eating the third orange
Teresa eats three oranges during a particular day. The marginal benefit she enjoys from eating the third orange
- can be thought of as the total benefit Teresa enjoys by eating three oranges minus the total benefit she would have enjoyed by eating just the first two oranges. (correct)
- determines Teresa’s willingness to pay for the first, second, and third oranges.
- does not depend on how many oranges Teresa has already eaten.
- All of the above are correct.
The average cost per seat on the 50-passenger Floating-On-Air Bus company's trip from Kansas City to St. Louis, on which no refreshments are served, is $45. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if it
The average cost per seat on the 50-passenger Floating-On-Air Bus company's trip from Kansas City to St. Louis, on which no refreshments are served, is $45. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if it
- charged any ticket price above $0 for the three remaining seats. (correct)
- charged at least $15 for each of the three remaining seats.
- charged at least $45 for each of the three remaining seats.
- paid three people to occupy the three remaining seats.
A construction company has built 50 houses so far this year at a total cost to the company of $8 million. If the company builds a 51st house, its total cost will increase to $8.18 million. Which of the following statements is correct?
A construction company has built 50 houses so far this year at a total cost to the company of $8 million. If the company builds a 51st house, its total cost will increase to $8.18 million. Which of the following statements is correct?
- For the first 50 houses, the average cost per house was $160,000.
- The marginal cost of the 51st house, if it is built, will be $180,000.
- If the company can experience a marginal benefit of $190,000 by building the 51st house, then the company should build it.
- All of the above are correct. (correct)
People are willing to pay more for a diamond than for a bottle of water because
People are willing to pay more for a diamond than for a bottle of water because
Evidence indicates that seat belt laws have led to
Evidence indicates that seat belt laws have led to
Based on the available evidence, which of the following groups benefits most from mandatory seat belt laws?
Based on the available evidence, which of the following groups benefits most from mandatory seat belt laws?
In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumstances, what were the economic incentives for producers?
In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumstances, what were the economic incentives for producers?
The principle that "trade can make everyone better off" applies to interactions and trade between
The principle that "trade can make everyone better off" applies to interactions and trade between
Benefits from trade would not include
Benefits from trade would not include
Which of the following statements does not apply to a market economy?
Which of the following statements does not apply to a market economy?
