🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
HomeStudy Guides420,000CA160,000

ECN 104 Study Guide - Quiz Guide: Loss Aversion, Bounded Rationality, Marginalism

272 views18 pages
coralwhale6
8 Dec 2014
School
Ryerson University
Department
Economics
Course
ECN 104
Professor
Paul Missios

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Name: __________________________ date: ____________: according to the optimal quantity rule, if the marginal benefit is, more than the marginal cost, an activity should be increased. less than the marginal cost, an activity should be increased. C) equal to the marginal cost, an activity should be increased: more than the marginal cost, net benefit is maximized, if the marginal benefit received from a good is equal to the marginal cost of production, then: D) top benefit: a person who is risk averse: always makes irrational decisions. always makes rational decisions. is willing to pay in order to avoid economic loss. enjoys taking risks. Page 1: jacquelyn is a student at mcgill university. D) tuition textbooks the salary that she could have earned working full-time computer lab fees: constant marginal costs occur when each individual unit costs. A) less than the previous one to produce: more than the previous one to produce.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

ECN 104 Lecture Notes - Lecture 6: Risk Aversion, John Stuart Mill, Bounded Rationality
pinksheep369
ECN 104 Lecture Notes - Lecture 11: Marginal Utility, Marginal Cost, Social Cost
cyanscorpion985
ECN 104 Lecture Notes - Lecture 11: Maryland Route 300, Ronald Coase, System On A Chip
periwinklesnail174

Related Questions

99. Whenever MB = MC, the decisionmaker should do _______ of theactivity.
A) less
B) the same amount
C) more
D) none

100. If the marginal benefit received from a good is equal to themarginal cost of production, then:
A) society's well-being cannot be improved by changingproduction.
B) society's well-being can be improved if productiondecreases.
C) society's well-being can be improved if productionincreases.
D) the market is producing too much of the good.

101. If the marginal benefit received from a good is less than themarginal cost of production, then:
A) society's well-being can be improved if productionincreases.
B) society's well-being can be improved if productiondecreases.
C) society's well-being cannot be improved by changingproduction.
D) the market is producing too little of the good.


102. If the marginal benefit received from a good is greater thanthe marginal cost of production, then:
A) society's well-being can be improved if productionincreases.
B) society's well-being can be improved if productiondecreases.
C) society's well-being cannot be improved by changingproduction.
D) the market is producing too much of the good.

1) A farm can produce 1,000 bushels of wheat per year with 2workersand 1,300 bushels of wheat per year with 3 workers. Themarginalproduct of the third worker is:
a) 100 bushels
b) 300 bushels
c) 1,300 bushels
d) 2,300 bushels

2) At 47 units of labor, a firm finds that average product oflaborequals 39.6 and marginal product of labor equals 32.9. Wecanconclude that the average product curve at 47 units oflaboris:
a) upward-sloping
b) horizontal
c) vertical
d) downward-sloping

3) At 76 units of labor, a firm finds that average product oflaborequals 39.6 and marginal product of labor equals 42.9. Wecanconclude that the average product curve is 76 units oflaboris:
a) upward-sloping
b) downward-sloping
c) vertical
d) horizontal

4) The change in total output resulting from a 1-unit increaseinthe quantity of a factor of production used, holding thequantitiesof all other factors of production constant, is:
a) average cost
b) average product
c) marginal cost
d) marginal product

5) If a consumer purchases a combination of commodities a and bsuchthat MUa/Pa=40 and MUb/Pb=60, to maximize utility, theconsumershould buy:
a) less of both a and b
b) less of a and more of b
c) more of both a and b
d) more of a an less of b

6) If the marginal benefit received from a good is equal tothemarginal cost of production, then:
a) society's well-being cannot be improved bychangingproduction
b) society's well-being can be improved if productiondecreases
c) society's well-being can be improved if productionincreases
d) the market is producing too much of the good

7) If the marginal benefit received from a good is less thanthemarginal cost of production, then:
a) society's well-being can be improved if productionincreases
b) society's well-being can be improved if productiondecreases
c) society's well-being cannot be improved bychangingproduction
d) the market is producing too little of the good

8) If the marginal benefit received from a good is greater thanthemarginal cost of production, then:
a) society's well-being can be improved if productionincreases
b) society's well-being can be improved if productiondecreases
c) society's well-being cannot be improved bychangingproduction
d) the market is producing too much of the good

9) If an activity generates external costs, thedecisionmakersgenerating the activity will:
a) be faced with its full cost
b) be faced with no costs
c) not be faced with its full costs
d) be faced with excessive costs


Can you solve them and tell me if youre sure 100% 100% 100%



Question 1 (1 point)

If two variables move together but are otherwise unrelated, we have

Question 1 options:

a fallacy of composition.

an econometric model.

a spurious correlation.

an efficiency problem.

evidence of a weak correlation but strong causation.

Save

Question 2 (1 point)

The Latin expression "ceteris paribus": is essential in ______.

Question 2 options:

collecting data.

identifying sunk costs.

evaluating theories.

recognizing scarcity.

developing spurious relationships.

Save

Question 3 (1 point)

Opportunity cost is best defined as

Question 3 options:

marginal cost minus marginal benefit.

the time spent on an economic activity.

the value of the best forgone alternative.

the monetary cost of an economic decision.

marginal cost plus marginal benefit.

Save

Question 4 (1 point)

A cost that cannot be recovered at the time a decision is being made is termed a(n)

Question 4 options:

marginal cost.

scarcity cost.

sunk cost.

average cost.

opportunity cost.

Save

Question 5 (1 point)

If the marginal costs of 1, 2, and 3 hours of talking on the phone are $50, $75, and $105, then the total costs are

Question 5 options:

$50, $150, and $315.

$50, $41.67, and $115.

$50, 125, and $230.

$50, $175, and $405.

impossible to calculate with information given.

Save

Question 6 (1 point)

In general, individuals should specialize in producing those goods for which they

Question 6 options:

can produce more quickly than others.

can produce less quickly than others.

have the lowest opportunity cost compared to others.

have the highest opportunity cost compared to others.

have an average opportunity cost.

Save

Question 7 (1 point)

The extra benefit that comes from an extra unit of activity is called the _________ of the activity.

Question 7 options:

benefit

marginal benefit

marginal cost

average benefit

reservation benefit

Save

Question 8 (1 point)

The marginal benefit of an activity is the

Question 8 options:

same as the total benefits of the activity.

total benefit divided by the level of the activity.

change in the activity divided by the change in benefits.

extra benefit associated with an extra unit of the activity.

total benefit divided by the change in the level of the activity.

Save

Question 9 (1 point)

The fundamental problem that is studied in economics is that

Question 9 options:

consumers have limited wants in the face of unlimited resources.

markets should function without government interference.

Canada is too wealthy.

consumers have unlimited wants in the face of limited resources.

there are unlimited resources.

Save

Question 10 (1 point)

The range of topics, or issues, that fit within the definition of economics is

Question 10 options:

limited to market activities, e.g., buying soap.

limited to individuals and firms.

extremely wide, requiring only the ideas of choice and scarcity.

limited to governments and nations.

very limited.

Save

Question 11 (1 point)

When economists make predictions using the framework of a given economic model, it is usually based on

Question 11 options:

personal experiences.

important relationships between particular variables.

mathematical abstractions.

political implications.

the profit-maximizing objective.

Save

Question 12 (1 point)

The cost of spending an evening partying instead of studying economics is

Question 12 options:

the resulting decrease in the test score in Economics.

the time spent at the party.

the score of the test.

the cost of the textbook.

university tuition.

Save

Question 13 (1 point)

As one progresses from a one-person economy to a large, multi-person economy, the shape of production possibilities curve changes from

Question 13 options:

downward sloping to upwards sloping.

linear to convex (bowed into the origin).

concave (bowed out from the origin) to linear.

convex (bowed into the origin) to concave (bowed out from the origin).

linear to concave (bowed out from the origin).

Save

Question 14 (1 point)

Which is NOT a sunk cost?

Question 14 options:

Monthly rent of $1,000 contractually specified in a one-year lease.

An insurance premium of $50 per year, paid last month.

An attorney's retainer of $50,000 per year.

A worker's wage of $15 per hour.

A non-refundable deposit for a tender.

Save

Question 15 (1 point)

"We should support government intervention because the market produces undesirable outcomes" is an example of

Question 15 options:

positive economics.

normative economics.

comparative economics.

negative economics.

formative economics.

Save