Imagine a consumer can choose either a donut for$2, which gives them 10 utils of marginal utility or a cupcake for$1 which gives them 2 utils of marginal utility. Which item will the consumer pick

A.Thecupcake, as it offers more marginal utility per dollar

B.Thedonut, as it offers more marginal utility per dollar

C.Thedonut, but only if it has a lower price

D.Thecupcake, as it has a lower price

2.A surplus occurs when

A.quantity supplied exceeds quantity demanded

B.quantity supplied is less than quantity demanded

C.quantity supplied equals quantity demanded

D.quantity supplied is equal to the egalitarian principle

3.Which of the following would be most likely to increase your opportunity cost of attendingcollege?

A.a recession in the economy that made finding a job more difficult

B.the retirement of your favorite professor under whom you hoped to study during the next semester

C.information indicating that salaries were declining and that there were very few openings for college graduates not in your field

D.receiving a very attractive offer to start a job today that would permit you to earn about 50 percent more than you expected to make after graduation

4.In a perfectly competitivemarket, if a producer sells goods above competitors

A.they will make an economic profit

B.consumers will treat there good as a luxury good

C.they will force competitors to form a cartel

D.no one will purchase their goods