Quiz 1
• Question 1
0 out of 10 points Suppose Tara chooses to engage in an activity that she values at $80 on a night in which she faced two alternatives, all of which do not or would not have cost her any money. She values one alternative at $60 and another at $30. The opportunity cost to her of engaging in the activity is:
Answer
Selected Answer:
$90
Correct Answer:
$60
Response Feedback: The opportunity cost of an activity includes the amount you value the next best alternative, not the sum of all alternatives. In this case, Tara values the next best alternative at $60. • Question 2
10 out of 10 points Microeconomics focuses on the study of:
Answer
Selected Answer: individual choices and of group behavior in individual markets.
Correct Answer: individual choices and of group behavior in individual markets.
Response Feedback: Microeconomics is the study of individual choice under scarcity and its implications for the behavior of prices and quantities in individual markets. • Question 3
10 out of 10 points The economic surplus to an individual from consuming a good is given by:
Answer
Selected Answer: the total benefits the individual receives from consuming the good minus the total costs the individual incurs from consuming the good.
Correct Answer: the total benefits the individual receives from consuming the good minus the total costs the individual incurs from consuming the good.
Response Feedback: The economic surplus from taking any action is the benefit of taking that action minus its cost. • Question 4
10 out of 10 points Use the following cost table to answer the following question. Given the information on benefits and costs above, the optimal quantity equals:
Quantity Marginal Benefit Average Cost Marginal Cost
1 2.99 1.00 1.00
2 2.99 2.00 3.00
3 2.99 3.00 5.00
4 2.99 4.00 7.00
Given the information on benefits and costs above, the optimal quantity
0 out of 10 points Suppose Tara chooses to engage in an activity that she values at $80 on a night in which she faced two alternatives, all of which do not or would not have cost her any money. She values one alternative at $60 and another at $30. The opportunity cost to her of engaging in the activity is:
Answer
Selected Answer:
$90
Correct Answer:
$60
Response Feedback: The opportunity cost of an activity includes the amount you value the next best alternative, not the sum of all alternatives. In this case, Tara values the next best alternative at $60. • Question 2
10 out of 10 points Microeconomics focuses on the study of:
Answer
Selected Answer: individual choices and of group behavior in individual markets.
Correct Answer: individual choices and of group behavior in individual markets.
Response Feedback: Microeconomics is the study of individual choice under scarcity and its implications for the behavior of prices and quantities in individual markets. • Question 3
10 out of 10 points The economic surplus to an individual from consuming a good is given by:
Answer
Selected Answer: the total benefits the individual receives from consuming the good minus the total costs the individual incurs from consuming the good.
Correct Answer: the total benefits the individual receives from consuming the good minus the total costs the individual incurs from consuming the good.
Response Feedback: The economic surplus from taking any action is the benefit of taking that action minus its cost. • Question 4
10 out of 10 points Use the following cost table to answer the following question. Given the information on benefits and costs above, the optimal quantity equals:
Quantity Marginal Benefit Average Cost Marginal Cost
1 2.99 1.00 1.00
2 2.99 2.00 3.00
3 2.99 3.00 5.00
4 2.99 4.00 7.00
Given the information on benefits and costs above, the optimal quantity