TutorialWk1

Multiple

Choice

High-school athletes who skip college

to become professional athletes

A bullobviously do not understand

the value of a college education

1 (6) B bullusually do so because they

cannot get into college 0 (0)

C bullunderstand that the

opportunity cost of attending

college is very high 4 (26)

D bullare not making a rational

decision since the marginal

benefits of college outweigh the

marginal costs of college for

high-school athletes 10 (66)

E bullI dont know 0 (0)

When calculating the cost of

college which of the following

should you probably not

include A The cost of tuition 0 (0)

B The cost of books required for

college classes 0 (0)

C The income you would have

earned had you not gone to

college 7 (43) DThe cost of rent for your off-

campus apartment which you

would have to rent anyways 8

(50) E I dont know 1 (6)

Suppose your management

professor has been offered a

corporate job with a 30 percent

pay increase He has decided to

take the job For him the

marginal A cost of leaving was greater than

the marginal benefit 4 (28)

B benefit of leaving was greater

than the marginal cost 8 (57)

C benefit of teaching was greater

than the marginal cost 1 (7)

D All of the above are correct 1

(7) E I dont know 0 (0)

Russell spends an hour studying

instead of playing tennis The

opportunity cost to him of studying is

A bullthe improvement in his grades

from studying for the hour 1 (6)

B bullthe improvement in his grades

from studying minus the enjoyment

of playing tennis 2 (12)

C bullthe enjoyment and exercise he

would have received had he played

tennis 10 (62) D bullzero Since Russell chose to study

rather than to play tennis the value

of studying must have been greater

than the value of playing tennis 3

(18) E bullI dont know 0

Open Questions257

ExtraReview Question 135

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics and discuss

economic naturalism1048766 Understand why scarcity implies

tradeoffs1048766 Define the Cost-Benefit Principle

and illustrate its relationship to

scarcity1048766 Understand how rationality

relates to the Cost-Benefit

Principle1048766 Define marginal benefit and

marginal cost1048766 Define opportunity cost

1048766 Calculate marginal benefit and

marginal cost

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

Multiple

Choice

High-school athletes who skip college

to become professional athletes

A bullobviously do not understand

the value of a college education

1 (6) B bullusually do so because they

cannot get into college 0 (0)

C bullunderstand that the

opportunity cost of attending

college is very high 4 (26)

D bullare not making a rational

decision since the marginal

benefits of college outweigh the

marginal costs of college for

high-school athletes 10 (66)

E bullI dont know 0 (0)

When calculating the cost of

college which of the following

should you probably not

include A The cost of tuition 0 (0)

B The cost of books required for

college classes 0 (0)

C The income you would have

earned had you not gone to

college 7 (43) DThe cost of rent for your off-

campus apartment which you

would have to rent anyways 8

(50) E I dont know 1 (6)

Suppose your management

professor has been offered a

corporate job with a 30 percent

pay increase He has decided to

take the job For him the

marginal A cost of leaving was greater than

the marginal benefit 4 (28)

B benefit of leaving was greater

than the marginal cost 8 (57)

C benefit of teaching was greater

than the marginal cost 1 (7)

D All of the above are correct 1

(7) E I dont know 0 (0)

Russell spends an hour studying

instead of playing tennis The

opportunity cost to him of studying is

A bullthe improvement in his grades

from studying for the hour 1 (6)

B bullthe improvement in his grades

from studying minus the enjoyment

of playing tennis 2 (12)

C bullthe enjoyment and exercise he

would have received had he played

tennis 10 (62) D bullzero Since Russell chose to study

rather than to play tennis the value

of studying must have been greater

than the value of playing tennis 3

(18) E bullI dont know 0

Open Questions257

ExtraReview Question 135

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics and discuss

economic naturalism1048766 Understand why scarcity implies

tradeoffs1048766 Define the Cost-Benefit Principle

and illustrate its relationship to

scarcity1048766 Understand how rationality

relates to the Cost-Benefit

Principle1048766 Define marginal benefit and

marginal cost1048766 Define opportunity cost

1048766 Calculate marginal benefit and

marginal cost

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

High-school athletes who skip college

to become professional athletes

A bullobviously do not understand

the value of a college education

1 (6) B bullusually do so because they

cannot get into college 0 (0)

C bullunderstand that the

opportunity cost of attending

college is very high 4 (26)

D bullare not making a rational

decision since the marginal

benefits of college outweigh the

marginal costs of college for

high-school athletes 10 (66)

E bullI dont know 0 (0)

When calculating the cost of

college which of the following

should you probably not

include A The cost of tuition 0 (0)

B The cost of books required for

college classes 0 (0)

C The income you would have

earned had you not gone to

college 7 (43) DThe cost of rent for your off-

campus apartment which you

would have to rent anyways 8

(50) E I dont know 1 (6)

Suppose your management

professor has been offered a

corporate job with a 30 percent

pay increase He has decided to

take the job For him the

marginal A cost of leaving was greater than

the marginal benefit 4 (28)

B benefit of leaving was greater

than the marginal cost 8 (57)

C benefit of teaching was greater

than the marginal cost 1 (7)

D All of the above are correct 1

(7) E I dont know 0 (0)

Russell spends an hour studying

instead of playing tennis The

opportunity cost to him of studying is

A bullthe improvement in his grades

from studying for the hour 1 (6)

B bullthe improvement in his grades

from studying minus the enjoyment

of playing tennis 2 (12)

C bullthe enjoyment and exercise he

would have received had he played

tennis 10 (62) D bullzero Since Russell chose to study

rather than to play tennis the value

of studying must have been greater

than the value of playing tennis 3

(18) E bullI dont know 0

Open Questions257

ExtraReview Question 135

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics and discuss

economic naturalism1048766 Understand why scarcity implies

tradeoffs1048766 Define the Cost-Benefit Principle

and illustrate its relationship to

scarcity1048766 Understand how rationality

relates to the Cost-Benefit

Principle1048766 Define marginal benefit and

marginal cost1048766 Define opportunity cost

1048766 Calculate marginal benefit and

marginal cost

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

When calculating the cost of

college which of the following

should you probably not

include A The cost of tuition 0 (0)

B The cost of books required for

college classes 0 (0)

C The income you would have

earned had you not gone to

college 7 (43) DThe cost of rent for your off-

campus apartment which you

would have to rent anyways 8

(50) E I dont know 1 (6)

Suppose your management

professor has been offered a

corporate job with a 30 percent

pay increase He has decided to

take the job For him the

marginal A cost of leaving was greater than

the marginal benefit 4 (28)

B benefit of leaving was greater

than the marginal cost 8 (57)

C benefit of teaching was greater

than the marginal cost 1 (7)

D All of the above are correct 1

(7) E I dont know 0 (0)

Russell spends an hour studying

instead of playing tennis The

opportunity cost to him of studying is

A bullthe improvement in his grades

from studying for the hour 1 (6)

B bullthe improvement in his grades

from studying minus the enjoyment

of playing tennis 2 (12)

C bullthe enjoyment and exercise he

would have received had he played

tennis 10 (62) D bullzero Since Russell chose to study

rather than to play tennis the value

of studying must have been greater

than the value of playing tennis 3

(18) E bullI dont know 0

Open Questions257

ExtraReview Question 135

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics and discuss

economic naturalism1048766 Understand why scarcity implies

tradeoffs1048766 Define the Cost-Benefit Principle

and illustrate its relationship to

scarcity1048766 Understand how rationality

relates to the Cost-Benefit

Principle1048766 Define marginal benefit and

marginal cost1048766 Define opportunity cost

1048766 Calculate marginal benefit and

marginal cost

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

Suppose your management

professor has been offered a

corporate job with a 30 percent

pay increase He has decided to

take the job For him the

marginal A cost of leaving was greater than

the marginal benefit 4 (28)

B benefit of leaving was greater

than the marginal cost 8 (57)

C benefit of teaching was greater

than the marginal cost 1 (7)

D All of the above are correct 1

(7) E I dont know 0 (0)

Russell spends an hour studying

instead of playing tennis The

opportunity cost to him of studying is

A bullthe improvement in his grades

from studying for the hour 1 (6)

B bullthe improvement in his grades

from studying minus the enjoyment

of playing tennis 2 (12)

C bullthe enjoyment and exercise he

would have received had he played

tennis 10 (62) D bullzero Since Russell chose to study

rather than to play tennis the value

of studying must have been greater

than the value of playing tennis 3

(18) E bullI dont know 0

Open Questions257

ExtraReview Question 135

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics and discuss

economic naturalism1048766 Understand why scarcity implies

tradeoffs1048766 Define the Cost-Benefit Principle

and illustrate its relationship to

scarcity1048766 Understand how rationality

relates to the Cost-Benefit

Principle1048766 Define marginal benefit and

marginal cost1048766 Define opportunity cost

1048766 Calculate marginal benefit and

marginal cost

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

Russell spends an hour studying

instead of playing tennis The

opportunity cost to him of studying is

A bullthe improvement in his grades

from studying for the hour 1 (6)

B bullthe improvement in his grades

from studying minus the enjoyment

of playing tennis 2 (12)

C bullthe enjoyment and exercise he

would have received had he played

tennis 10 (62) D bullzero Since Russell chose to study

rather than to play tennis the value

of studying must have been greater

than the value of playing tennis 3

(18) E bullI dont know 0

Open Questions257

ExtraReview Question 135

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics and discuss

economic naturalism1048766 Understand why scarcity implies

tradeoffs1048766 Define the Cost-Benefit Principle

and illustrate its relationship to

scarcity1048766 Understand how rationality

relates to the Cost-Benefit

Principle1048766 Define marginal benefit and

marginal cost1048766 Define opportunity cost

1048766 Calculate marginal benefit and

marginal cost

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

Open Questions257

ExtraReview Question 135

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics and discuss

economic naturalism1048766 Understand why scarcity implies

tradeoffs1048766 Define the Cost-Benefit Principle

and illustrate its relationship to

scarcity1048766 Understand how rationality

relates to the Cost-Benefit

Principle1048766 Define marginal benefit and

marginal cost1048766 Define opportunity cost

1048766 Calculate marginal benefit and

marginal cost

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

ExtraReview Question 135

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics and discuss

economic naturalism1048766 Understand why scarcity implies

tradeoffs1048766 Define the Cost-Benefit Principle

and illustrate its relationship to

scarcity1048766 Understand how rationality

relates to the Cost-Benefit

Principle1048766 Define marginal benefit and

marginal cost1048766 Define opportunity cost

1048766 Calculate marginal benefit and

marginal cost

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics and discuss

economic naturalism1048766 Understand why scarcity implies

tradeoffs1048766 Define the Cost-Benefit Principle

and illustrate its relationship to

scarcity1048766 Understand how rationality

relates to the Cost-Benefit

Principle1048766 Define marginal benefit and

marginal cost1048766 Define opportunity cost

1048766 Calculate marginal benefit and

marginal cost

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Define economics1048766 Discuss the topics covered in microeconomics

1048766 Understand the efficient

allocation of resources1048766 Identify which costs

matter in making decisions

1048766 Identify the opportunity

cost of an activity1048766 Define sunk costs

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)

Aft

er

studyi

ng t

his

ch

apte

r yo

u s

hould

be a

ble

to

1048766 Identify sunk costs1048766 Apply the concept of

sunk costs to cost-benefit analysis1048766 Define average cost

1048766 Identify which costs

matter in making decisions

• Tutorial
• Multiple Choice
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Open Questions
• Extra
• After studying this chapter you should be able to
• After studying this chapter you should be able to (2)
• After studying this chapter you should be able to (3)