A student can get paid $12 per hour to run a three-hour economics tutoring session, or he can take a five-hour shift helping at his mom's store that pays $15 per hour. What is the opportunity cost of working at the store?

Answer Choices:

a) $12

b) $75

c) $36

d) $45

e) $60

-TABLE DATA -

HOME PROJECT | TOTAL COSTS | TOTAL BENEFITS (INCREASE IN HOME VALUE)

Renovate Kitchen | $12,000 | $15,000

Enclose back porch | $5,000 | $ 10,000

Landscape front yard | $4,000 | $5,000

Replace carpet with | $2,500 | $2,500

hardwood floors

Modernize electrical | $600 | $1,000

outlets

A couple is considering what project they should do next to improve the value of their house. Based on the table above, which of the following projects should they pick?

ANSWER CHOICES:

a) Modernize electrical outlets

b) Enclose back porch

c) Landscape front yard

d) Replace carpet with hardwood floors

e) Renovate kitchen

A group of college students start a dog-walking service. At the end of the first month, they meet to discuss their business performance. Which statement reveals sound economic thinking in their analysis?

Answer Choices:

a) We were profitable, because our total costs exceeded our total revenues.

b) In considering our costs, we need to include what we could have earned by working at part-time jobs instead.

c) The ethics of dog ownership need to be evaluated before proceeding with our business.

d) The only relevant consideration is the total of our explicit costs.

e)We want to continue to maximize the number of utils we gain as a business.

Which of the following purchases is a matter of marginal, or incremental, cost-benefit analysis?

Answer Choices:

a)A large house

b)A college education

c) An alarm system

d) A surgical procedure

e) An additional sweatshirt