Kara was out jogging and, despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Kara:
A. must be an avid runner.
B. decided that the marginal benefit of running one more mile would outweigh the cost of the
additional mile.
C. decided that the marginal cost of running one more mile would outweigh the benefit of the
additional mile.
D. was not very tired, so the marginal cost of the extra mile was very low.
Answer: B
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Rational choice requires that opportunity cost be
a. ignored in making a decision. b. considered for individual choices, but not for societal choices. c. computed, but not actually used in making a decision. d. considered as part of making a decision. e. used as the sole decision criterion.
Based on U.S. income data from 2011, the top fifth of all families received
a. about 3.8 percent more than the bottom fifth. b. about 49 percent more than the bottom fifth. c. approximately 5 times more income than the bottom fifth. d. more than 12 times more income than the bottom fifth.
Suppose the civilian non-institutional population equals 250,000; there are 132,500 employed persons and 10,000 unemployed persons. How many persons are not in the labor force?
A) 122,500 B) 77,500 C) 63,500 D) 107,500
Figure 4-16
Assume that Figure 4-16 shows the supply of steak. An increase in the price of pork will change the supply from
a.
S1 to S2.
b.
S2 to S1.
c.
S2 to S3.
d.
S1 to S3.