What is the difference between microeconomics and macroeconomics?

Group of answer choices

Microeconomics studies individual agents and markets, and macroeconomics studies the entire economy.

Microeconomics studies the entire economy, and macroeconomics studies individual agents and markets.

Microeconomics is a field of statistics specializing in analyzing economic data, and macroeconomics is the study of how to direct scarce resources in the way that most efficiently achieves a managerial goal.

Microeconomics is the study of how to direct scarce resources in the way that most efficiently achieves a managerial goal, and macroeconomics is a field of statistics specializing in analyzing economic data.

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Question 2 1 pts

"Scarcity" refers to our inability to satisfy our boundless needs and wants due to:

Group of answer choices

unlimited resources

limited resources

inefficient political systems

unemployed workers

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Question 3 1 pts

Tom is debating whether to leave his job as an engineer to start his own business. If he starts his own business, his expected revenue will be $500,000 per year and expected costs will be $310,000 per year. As an engineer, he earns an annual salary of $90,000 per year, which he would have to forfeit if he starts his own business. What is the economic profit of starting his own business?

Group of answer choices

$90,000

$100,000

$190,000

$410,000

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Question 4 1 pts

For the next 2 questions, use the following scenario: Assume that there are two countries (US and Mexico) and two goods (lumber and avocados). The table below shows the output per hour worked for each country.

	US	Mexico
Lumber	6 tons	2 tons
Avocados	10 pounds	9 pounds

Who has an absolute advantage in producing avocados?

Group of answer choices

US

Mexico

Both US and Mexico

Neither US nor Mexico

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Question 5 1 pts

In one hour, how many total units of lumber and avocados would be produced if each country specialized in the good for which it had the comparative advantage?

Group of answer choices

6 tons of lumber and 9 pounds of avocados

6 tons of lumber and 10 pounds of avocados

2 tons of lumber and 9 pounds of avocados

2 tons of lumber and 10 pounds of avocados

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Question 6 1 pts

A friend promises to pay you $1,210 in 2 years. What is the present value of that today? Use a 10% annual discount (interest) rate. Please round to the nearest dollar. (only enter the number)

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Question 7 1 pts

Use this table to answer the next two questions.

You manage a firm that produces baseball bats. The table below displays your revenues (benefit) and costs of producing various quantities of bats. You may find it useful to complete the table, although you're not required to do so.

What is the marginal benefit of producing the 3rd baseball bat? Please round to the nearest cent and only enter numbers.

Quantity (Number of Baseball Bats)	Total Benefit	Total Cost	Net Benefit	Marginal Benefit	Marginal Cost	Marginal Net Benefit
0	$0	$0	$0	$0	$0	$0
1	$20.50	$15.50
2	$40.00	$32.00
3	$58.50	$49.50
4	$76.00	$68.00
5	$92.50	$87.50
6	$108.00	$108.00

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Question 8 1 pts

Use the table in the previous question about baseball bats. If you are trying to maximize the firm's profits, how many bats should you produce?

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Question 9 1 pts

Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants you to go with her. Nevertheless, the movie plays at the same time you were planning to watch the football game on the TV. As a rational person, you should decide to go to the movie

Group of answer choices

always, since the tickets were free.

only if you would gain some pleasure from it.

only if the pleasure you will gain from it outweighs the pleasure you would gain from watching the football game.

only if it brings you more pleasure than the cost of the tickets.

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Question 10 1 pts

If you receive $18 worth of pleasure from the first hole of golf played and your additional pleasure from succeeding holes drops $1 for each hole played, how many holes of golf would you play if you had to pay $2.10 per hole?

Group of answer choices

9

12

14

16

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Question 11 1 pts

You decide to go skiing this weekend. It costs $50 for transportation, $50 for lodging, $30 for ski lift tickets and you could have earned $100 as a waiter at a job you love so much you would do it as a volunteer. You derive $300 worth of satisfaction from skiing. What should you decide?

Group of answer choices

Go skiing

Don't go skiing

You are indifferent between skiing or working at your job

You need more information to answer the question

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Question 12 1 pts

You own a pizza shop called "Pizzas'R' Us". Currently, you are paying your cooks an hourly wage of $20. You sell a medium pizza for $10. By hiring more cooks, you can increase your pizza production as shown in the following table.

Number of cooks	Total production of pizzas each hour
0	0
1	4
2	7
3	9
4	10
5	10

How many cooks should you hire to maximize your net benefit? (Hint: You need to create columns for total revenue, marginal revenue, total cost, and marginal cost.

Group of answer choices

1

3

2

5