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1 Economics 1 Quiz on Microeconomics and Behavior C1 Quiz, created by jedgar434 on 18/04/2016.

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Microeconomics and Behavior C1 Quiz

Question 1 of 21

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Microeconomics entails the study of how people choose under .

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Question 2 of 21

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Economists answer questions of choice by comparing the and of doing the activity in question.

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Question 3 of 21

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We define B(x) as the dollar amount

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Question 4 of 21

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C(x) is the value of all the resources you must in order to do x.

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Question 5 of 21

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The of activity x is the price at which a person would be indifferent between doing x and not doing x.

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Question 6 of 21

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If B(x) and C(x) happened to be equal, you would be between the two alternatives.

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Question 7 of 21

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Economists believe that useful insights into our behavior can be gained by assuming that we act as if governed by the rules of
.

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Question 8 of 21

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The opportunity cost of x is the of all that must be to do x.

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Question 9 of 21

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Not incurring a cost is the same as getting .

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Question 10 of 21

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are costs that are beyond recovery at the moment a decision is made.

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Question 11 of 21

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Sunk costs should always be in decision making.

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Question 12 of 21

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In the all you can eat pizza experiment, it was the group who did not receive the refund that . This should not have been the case as they should have stopped eating when B(x), x being another slice of pizza, was . This was the case with the group that .

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Question 13 of 21

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If you save $10 dollars on a $20 dollar radio with a 15 minute drive, the value of travelling 15 minutes to save $10 on a $1000 dollar tv would be .

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Question 14 of 21

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When using the cost-benefit test, you should express costs and benefits in dollar terms. Comparing is not a fruitful way to think about decisions like these.

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Question 15 of 21

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To answer the question of “Should I increase the level by which I am currently engaging in activity x?”, we must compare the and of an of activity.

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Question 16 of 21

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The cost of an additional unit of activity is called the of the activity, and the benefit of an additional unit is called its .

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Question 17 of 21

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The optimal amount of activity is the quantity for which the of conversation is just to its .

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Question 18 of 21

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The downward slope of a marginal benefit curve reflects the fact that the value of an declines with the total amount of activity that has occurred thus far.

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Question 19 of 21

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The four most common pitfalls in cost-benefit analysis are: failing to include costs; failing to ignore ; measuring costs and benefits as rather than values; and failing to recognise the difference between and cost and benefits.

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Question 20 of 21

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A is a question about what policies or institutional arrangements lead to the best outcomes.

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Question 21 of 21

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A positive question is a question about the of policies or institutional arrangements.

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