Trade Offs and Opportunity Costs, Costs and Revenues

Front

Which of the following represents a marginal cost? mortgage payments, the sum of fixed costs and variable costs , wages and raw materials, the cost of producing one additional unit

Back

the cost of producing one additional unit

Front

The total cost of producing a pair of jeans is $5,000, and a company produces 1,000 pairs of jeans. The average total cost is

Back

$5.00

Front

According to rational economic decision making, we should accept an option when the benefits outweigh the costs.

Back

the benefits outweigh the costs

Front

On what economic principle is the woman remarking? Options: Pizza is scare in the United States., Pizza is a need and not a want., Pizza is a valuable resource and therefore has a high cost., The benefits of buying a pizza in Italy do not outweigh the costs.

Back

The benefits of buying a pizza in Italy do not outweigh the costs.

Front

What does the woman think of the man's choice?

Back

His is not making a
rational economic
decision.

Front

Which of the following is an opportunity cost of the man's decision to go to Italy to buy pizza? Options: The money spend on the trip to Italy could have been spent on other things., The man will still have to purchase food and beverage on the flight., The pizza in Italy will taste better than pizza made at home., The $2 coupon is just an excuse to take a vacation.

Back

The money spend on the trip to Italy could have been spent on other things.

Front

What does a cost-benefit analysis compare?

Back

marginal costs and marginal benefits

Front

If the fixed cost of producing dresses are $1,000.00 and the variable costs are $500.00, then the total cost is

Back

$1,500.00

Front

The loss of years of income resulting from the decision to go to college is the

Back

opportunity cost

Front

What does this graph show?

Back

The marginal benefit decreases as the marginal cost increases.