Josh wants to go to the football game this weekend, but he has a paper due on Monday. It will take him the whole weekend to write the paper. Josh decides to stay home and work on the paper. According to the Scarcity Principle, the reason Josh doesn’t go to the game is that:

A.Josh can’t go the game and finish the paper.

B.Josh prefers schoolwork to football games.

C.going to the game won’t be fun.

D.writing the paper is easier than going to the game.

正确答案：Josh can’t go the game and finish the paper.

The Scarcity Principle tells us _, and the Cost-Benefit Principle tells us _.

A.how to make good choices; that choices involve costs and benefits

B.that good choices eliminate scarcity; how to make good choices

C.how to make choices; that choices must be made

D.that choices must be made; how to make good choices

正确答案：that choices must be made; how to make good choices

Choosing to study for an exam until the extra benefit (e.g., improved score) equals the extra cost (e.g., the value of foregone activities) is:

A.not rational because it ignores the importance of total benefits and total costs.

B.an application of the Cost-Benefit Principle.

C.not an economic choice.

D.an application of the Scarcity Principle.

正确答案：an application of the Cost-Benefit Principle.

If a person takes an action if, and only if, the extra benefits from taking that action exceed the extra costs, then that person is:

A.not rational.

B.following the Cost-Benefit Principle.

C.following the Scarcity Principle.

D.not following the Cost-Benefit Principle.

正确答案：following the Cost-Benefit Principle.

Suppose that the extra cost to Tim of a third glass of soda is zero because he’s at a restaurant that gives free refills. According to the Cost-Benefit Principle Tim should:

A.not drink a third glass of soda.

B.drink a third glass of soda if his total benefit from drinking soda is positive.

C.drink a third glass of soda.

D.drink a third glass of soda if the extra benefit of doing so is positive.

正确答案：drink a third glass of soda if the extra benefit of doing so is positive.

A rational person:

A.undertakes activities until the net benefits become less than zero.

B.makes choices based on total benefits and total costs.

C.considers the financial benefits and financial costs of making a choice.

D.makes choices based on added benefits and added costs.

正确答案：makes choices based on added benefits and added costs.

According to the Cost-Benefit Principle, you should go see the latest Star Wars movie with your friends this week-end if:

A.you can afford to go to the movies.

B.the extra benefits of seeing the movie are greater than the extra costs of seeing the movie.

C.you really like Star Wars.

D.the average benefit you get from going to the movies is greater than the average cost of a ticket.

正确答案：the extra benefits of seeing the movie are greater than the extra costs of seeing the movie.

Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. Her opportunity cost of going to the beach is:

A.the $12 she spent on the umbrella, food and drinks.

B.only $0 because she would have spent $12 to go to the movie.

C.the value she places on seeing the movie plus the $12 she spent on the umbrella, food and drinks.

D.the value she places on seeing the movie.

正确答案：the value she places on seeing the movie.

Dean should play golf instead of preparing for tomorrow’s exam in economics if:

A.he is irrational.

B.the economic surplus from playing golf is greater than the economic surplus from studying.

C.Dean can play golf for free.

D.the benefit of golfing is greater than the benefit of studying.

正确答案：the economic surplus from playing golf is greater than the economic surplus from studying.

Janie must choose to either mow the lawn or wash clothes. If she mows the lawn, she will earn $30, and if she washes clothes, she will earn $45. She dislikes both tasks equally and they both take the same amount of time. Janie will therefore choose to _ because it generates a _ economic surplus.

A.mow the lawn; bigger

B.mow the law; smaller

C.wash clothes; smaller

D.wash clothes; bigger

正确答案：wash clothes; bigger

Amy is thinking about going to the movies tonight. A movie ticket costs $15, and she’ll have to cancel a $20 dog-sitting job that she would have been willing to do for free. The opportunity to Amy cost of going to the movies is:

A.$35.

B.$5.

C.$20.

D.$15.

正确答案：$35.

The opportunity cost of an activity includes the value of:

A.the least-best alternative that must be foregone.

B.the chosen activity minus the value of the next-best alternative.

C.all of the alternatives that must be forgone.

D.the next-best alternative that must be foregone.

正确答案：the next-best alternative that must be foregone.