California State University, Sacramento ECON 1A Quiz 1 Question 1)Economists generally assume that individuals:   Question 2 For which of the following individuals would the opportunity cost of going to college be highest?     Question 3 Katie is planning to sell her house, and she is considering two upgrades to the house before list­ ing it for sale

California State University, Sacramento

ECON 1A

Quiz 1

Question 1)Economists generally assume that individuals:

Question 2

For which of the following individuals would the opportunity cost of going to college be highest?

Question 3

Katie is planning to sell her house, and she is considering two upgrades to the house before list­ ing it for sale. Replacing the carpeting will cost $6,000 and replacing the roof will cost $12,000. Katie expects the the new carpeting will increase the value of her house by $7,000 and the new roof to increase the value of her house by $10,000.

Question 4

Suppose that the cost of operating a 100­room hotel for a night is $10,000, whether or not there are any guests are the hotel. Suppose that there are 5 empty rooms for tonight. If the marginal cost of operating one room for one night is $30 and the customer is willing to pay $60 for the night, the hotel manager should:

Question 5

Suppose Jack has three hours to study for an exam in economics and for another exam in math on the same day. The amount of time he spends studying economics and its relation to his grade in the two class are shown in the table. The opportunity cost of increasing the time spent on studying economics from one hour to two hours is:

 Question 6

When the economy is in a recession, jobs are generally harder to find and more people go to college. We can conclude that the opportunity cost of

Question 7

The marginal cost of the 3rd unit of activity below is:

Units of Activity                Cost       Benefit

Question 8

Consider the table above for Question 7 again. According to the marginal cost­marginal benefit principle, the level of activity that provides the largest net benefit is:

Question 9

Gains from voluntary trade arise because

Question 10

When a single person (or small group) has the ability to influence market prices, there is:

Question 11

A government failure occurs when

Question 12

Microeconomics is the study of

Question 13

Which of the following is not a part of macroeconomics?

Question 14

Which of the following is a positive, and not a normative, economic statement?

Question 15

Which of the following is a normative economic statement?

Question 16

Efficiency means that_________________