Question 1 (5 points) Listen (Table: Marginal and Total Benefit from Baseball Games) Use Table: Marginal and Total Benefit from Baseball Games. Sidney is deciding how many baseball games to attend this year. If games are free, how many games should he attend? Table: Marginal and Total Benefit from Baseball Games Number of games Total benefit 0 1 50 2 90 3 120 4 140 5 152 6 160 7 164 8 162 ( a) 5 ( b) 7 Oc) 1 O d ) 8Question 2 (5 points) Listen (Table: Marginal Analysis of Sweater Production I) Use Table: Marginal Analysis of Sweater Production I. Profit at the optimal quantity of sweaters produced is: Table: Marginal Analysis of Sweater Production I Quantity of Total revenue Total cost shirts $0 SO 1 16 9 2 31 20 3 45 33 58 48 5 70 55 Oa) $70. ( b) $8. O c) $12. O d) $45.Question 3 {5 points] an Economic prot is: O a] less than accounting prot if implicit costs are zero. 0 b] less than accounting prot if there are implicit costs. 0 C} greater than accounting prot if there are implicit costs. 0 d} always equal to accounting prot. Question 4 {5 points] all In making an "eitheror" decision, it is generally recommended to: O 3] choose the activity that results in the greater accounting prot. 0 b] continue in an activity as long as the marginal cost is less than the marginal benet. 0 C} choose the activity that results in the greater economic prot. 0 d} continue in an activity as long as the marginal cost exceeds the marginal benet. Question 5 (5 points) ) Listen Suppose Genevieve buys a new vacuum to replace her old one that suddenly quit working. If Genevieve buys the model on closeout sale and doesn't take time to research the repair records and energy efficiency of various other models, she is: ( a) risk averse. ( b) suffering from status bias. ( c) exhibiting bounded rationality. O d) using marginal analysis. Question 6 (5 points) Listen Total profit is maximized when marginal benefit marginal cost. ( a) is less than b) is more than O c) approaches ( d) is equal toQuestion 7 (5 points) Listen Gennaro is a blogger living in Italy who could work for la Repubblica (a newspaper in Rome) as a food critic for $50,000 a year but instead runs the blogging business online through advertising, making revenues of $80,000 a year. His only business expenses are $2,000 for supplies and $18,000 in rent for his office space. What is Gennaro's economic profit from working as a freelance writer? ( a) $68,000 O b) $10,000 O c) $20,000 O d) $30,000Question 8 {5 points] all According to the principle of "eitheror" decision making= an eitheror decision entails: O a] calculating the marginal benet of each activity. 0 b] a choice between two activities. 0 C} calculating the marginal cost of each activity. 0 d} deciding how much of an activityr to do. Question 9 {5 points} all Until recently, Davina worked as an insurance claims adjuster, earning $30,000 annually. Then she inherited a piece of commercial real estate that had rented for $12,000 annually. Davina decided to leave her job and operate an Italian restaurant in the space she inherited. At the end ofthe rst year, her books showed total revenues of $260,000 and total costs of $230,000 for food, utilities, cooks, and other supplies. Her economic prot at the end of one year is: O a] $30,000. 0 b) 00. O C) #512,000. 0 *3\" $230,000. Question 10 {5 points) an Edward is tired of graduate school as well as his parttime bartending job. On the spur of the moment, he decides to take a weekend trip to the Cayman Islands for snorkeling. He pays for it with his credit card rather than money from his bank account. Which type of irrational behavior does this BEST describe? 0 a] mental accounting 0 bl loss aversion O C} status quo bias 0 C\" risk aversion Question 11 {5 points) all If at a given quantity, , the decision maker should do of the activity. 0 a] ME a: MC; that amount 0 b] ME =1 MC; less 0 C} 4113 \"S? MC; none 0 C\" MB 3* M'C; less Question 12 (5 points) () Listen Generally, when economists are interested in finding the solution to a "how much" decision, they compare the of an action to the of that action. ( a) accounting profit; economic profit ( b) explicit costs: implicit costs ( c) present value; net present value O d) marginal benefits; marginal costs Question 13 (5 points) )Listen Sunk costs: ( a) are not considered in marginal analysis. ( b) are the same as variable costs. ( c) can dramatically increase marginal costs. ( d) help determine the optimal quantity of an activity.Question 14 (5 points) () Listen (Table: Expected Exam Scores from Studying Microeconomics and Marketing) Use Table: Expected Exam Scores from Studying Microeconomics and Marketing. What is the opportunity cost (marginal cost) of the first hour studying marketing? Table: Expected Exam Scores from Studying Microeconomics and Marketing Hours spent studying Micro result Marketing result 65 50 1 80 65 2 90 70 3 95 70 O a) 70 b) 15 O c) 5 O d) .Question 15 (5 points) () Listen (Table: Marginal and Total Benefit from Baseball Games) Use Table: Marginal and Total Benefit from Baseball Games. Sidney is deciding how many baseball games to attend this year. His marginal benefit from increasing the number of games he attends from two to three is: Table: Marginal and Total Benefit from Baseball Games Number of games Total benefit 0 0 1 50 2 90 3 120 4 140 5 152 6 160 7 164 8 162 O a) 20. ( b) 30. O c) 40. O d) 10.Question 16 (5 points) () Listen Economic profits are calculated by: ( a) taking the difference between total revenue and the sum of explicit and implicit costs. (b) taking the difference between total revenue and explicit costs only. (c) summing total revenue, explicit costs, and implicit costs. ( d) taking the difference between the total revenue and implicit costs only.Question 1? (5 points) all Tamara notices that studying for one hour after class increases her statistics grade by 16 points. The second hour yields a 9point gain, the third hour yields a 4-point gain, and the fourth hour yields only a 1point gain. This means that the marginal of studying decreases with study hours. 0 a] opportunity cost 0 '3] cost 0 C} time 0 c\" benet Question 18 (5 points) ) Listen You decide to quit your $70,000-per-year job as a hotel concierge to be an online hotel review blogger. At the end of the first year of blogging, you have earned $90,000. You also spent $10,000 for a high-end computer and wireless network. Your economic profit in the first year as an illustrator is: ( a) $80,000. O b) $10,000. O c) $90,000. d) $20,000.Question 19 (5 points) Listen Constant marginal costs occur when the production of each additional unit costs: ( a) less than the previous one. ( b) more than the previous one. ( c) more than the next one. ( d) the same as the previous one. Question 20 (5 points) Listen Gino's Pizza has a special offer: one slice for $2, two slices for $3.50, three slices for $4.50, and four slices for $5.00. The marginal cost of the fourth slice is: ( a) so.50. ( b) $4. 50. O c ) $2. O d) $10