13. 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 decided to stay home and work on the paper. According to the scarcity principle, the reason Josh didn't go to the game is that: 14. Whether studying the size of the U.S. economy or the number of children a couple will choose to have, the unifying concept is that wants are: 15. The cost-benefit principle indicates that an action should be taken:
82. Refer to the table above. The average cost of 5 units of activity is: 83. Refer to the table above. The marginal cost of the 4th unit of activity is: 84. Refer to the table above. The average benefit of 4 units of activity is: 85. Refer to the table above. The marginal benefit of the 6th unit of activity is: 86. to the table above. According to the cost-benefit principle, the level of activity that provides the largest net benefit is: 87. to the table above. The total value of donations raised by three employees is: 88. Refer to the table above. The total labor cost of 4 employees is:
The information indicates that you are willing to drive downtown for at least $30. You will save more than that by driving downtown when these items are on sale. AACSB: Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-03 Discuss three important pitfalls that occur when applying the Cost-Benefit Principle inconsistently. Topic: Three Important Decision Pitfalls 114. You own a pizza shop called "Pizzas'R' Us". Currently you are paying your cooks an hourly wage of $20. You sell a medium pizza for $10. By hiring more cooks, you can increase your pizza production as shown in the following table. What is the total cost per day of hiring 3 cooks if they work 8 hour shifts? At $20 per hour, an 8 hour day is $160. For 3 the total is $480. Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-03 Discuss three important pitfalls that occur when applying the Cost-Benefit Principle inconsistently. Topic: Three Important Decision Pitfalls 115. You own a pizza shop called "Pizzas'R' Us". Currently you are paying your cooks an hourly wage of $20. You sell a medium pizza for $10. By hiring more cooks, you can increase your pizza production as shown in the following table. What is the dollar value of total production during an 8-hour shift if you hire 2 cooks? Two cooks make 7 pizzas per hour, or 56 pizzas in 8 hours. Each pizza sells for $10, so the value of their production is $560.
AACSB: Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Explain and apply the Incentive Principle; which says that if you want to predict people's behavior; a good place to start is by examining their incentives. Topic: Economic Naturalism 151. Pat can either to work, which takes half an hour and uses $1.50 worth of gas, or take the bus, which takes an hour and costs $1.00. How should Pat get to work? Applying the cost-benefit principle as an economic naturalist, Pat should take the action for which the net benefit is greatest. AACSB: Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Explain and apply the Incentive Principle; which says that if you want to predict people's behavior; a good place to start is by examining their incentives. Topic: Economic Naturalism