51-100 eco

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

• a. a promising young mathematician who will command a high salary once she earns her
  college degree

• b. a student with average grades who has never held a job

• c. a famous, highly-paid actor who wants to take time away from show business to finish
  college and earn a degree

• d. a student who is the best player on his college basketball team, but who lacks the skills
  necessary to play professional basketball

52.When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included?

• d. You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food if you were not in college.

• c. a famous, highly-paid actor who wants to take time away from show business to finish
  college and earn a degree

53.Samantha's college raises the cost of room and board per semester. This increase raises Samantha's opportunity cost of attending college

• c. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Samantha's incentive to attend college.

• c. a famous, highly-paid actor who wants to take time away from show business to finish
  college and earn a degree

54.When calculating the cost of college, which of the following should you probably not include?

• c. You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food if you were not in college

• d. The cost of rent for your off-campus apartment.

55.When calculating the cost of college, which of the following should you probably include?

• b. The cost of books required for college classes

• c. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Samantha's incentive to attend college.

56.Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot.

• b. The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise.

• d. The cost of rent for your off-campus apartment.

57.You have driven 1,000 miles on a vacation and then you notice that you are only 50 miles from an attraction you hadn't known about, but would really like to see. In computing the opportunity cost of visiting this attraction you had not planned to visit, you should include

• c. the cost of driving the next 50 miles, but not the cost of driving the first 1,000.

• d. the $45,000 salary that you will be able to earn after having completed your graduate program

58.Pete receives $50 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $50. Finally he decides on Option B. The opportunity cost of this decision is

• a. the value to Pete of the option he would have chosen had Option B not been available.

• c. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Samantha's incentive to attend college.

59.College-age athletes who drop out of college to play professional sports

• b. are well aware that their opportunity cost of attending college is very high.

• c. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Samantha's incentive to attend college.

60.A rational decisionmaker

• c. takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.

• d. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Samantha's incentive to attend college.