Which of the following purchases is a matter of marginal, or incremental, cost-benefit analysis? (4 points)

A large house

A college education

An alarm system

A surgical procedure

An additional sweatshirt

2.

(01.05 LC)

Utils measure the benefit gained by (4 points)

the government

all market players

business firms

consumers

entrepreneurs

3.

(01.05 LC)

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? (4 points)

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

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

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

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

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

4.

(01.05 LC)

Which of the following is the correct definition of opportunity cost? (4 points)

The best alternative foregone for any choice

The resource costs for the production of a product

The explicit costs of changing business models

The revenue lost due to inefficient production

The percentage of a product's value wasted by a consumer

5.

(01.05 LC)

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? (4 points)

$12

$75

$36

$45

$60

6.

(01.05 LC)

Based on the table, which of the following vending machine items should the consumer purchase? Good Utils Price Candy Bar 20 $1.00 Mint Gum 10 $0.50 Potato Chips 25 $1.00 Breakfast Bar 45 $2.00 (4 points)Total Benets Home Project Total Costs _ (Increase III 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 hardwood floors $2,500 $2,500 Modernize electrical outlets $600 $1,000 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? (4 points)