Your classmates are planning to go to Agadir for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is for your trip to Cairo two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The round-trip airfares to Cairo are $450.

51.

If you do not use the frequent-flyer coupon to fly, should you go to Agadir?

A.

Yes, your benefit is more than your cost

B.

No, your benefit is less than your cost

C.

Yes, your benefit is equal to your cost

D.

No, because there are no benefits in the trip

52.

What is the opportunity cost of using the coupon for the Agadir trip?

A.

$100

B.

$450

C.

$500

D.

$550

53.

If you use the frequent-flyer coupon to fly to Cairo, would you get any economic surplus by making the trip?

A.

No, there is a loss of $50.

B.

Yes, surplus of $350.

C.

Yes, surplus of $400.

D.

Yes, surplus of $100.

54.

If the round-trip air fare to Cairo is $350, should you go to Agadir?

A.

No, there is a loss of $50.

B.

No, there is a loss of $100.

C.

Yes, there is economic surplus of $50.

D.

Yes, there is economic surplus of $400.