Adam spends a hour studying instead of watching TV with his friends. The opportunity cost to Adam of studying is:

a.

zero. Because Adam chose to study rather than watch TV, the value of studying must have been greater than the value of watching TV

b.

the enjoyment he would have received if he had watched TV with his friends

c.

the improvement in grades from studying minus the enjoyment of watching TV

d.

the improvement in grades from studying for the hour

The reason an individual demand curve slopes downward is that:

a.

when price falls, total utility can be increased when more of the product is purchased

b.

a fall in price causes marginal utility to fall

c.

when price falls, an individual consumes more in order to use all of their income

d.

when price rises, total utility can be increased when more of the product is purchased

If Sarah obtains 15 units of utility from consuming two slices of pizza, and 20 units of utility from consuming three slices of pizza, the marginal utility of the third slice of pizza is:

a.

15 utility units

b.

5 utility units

c.

20 utility units

d.

35 utility units

The slope of the budget constraint is affected by the:

Select one:

a.

consumer's income level

b.

consumer's preferences

c.

relative prices of goods being consumed

d.

amount of goods in the market

e.

preferences of other consumers

Which of the following will not change if the total fixed cost increases?

a.

average fixed cost

b.

marginal cost

c.

total cost

d.

average total cost