Quiz 1

Which of the following statements about scarcity is​ true?
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Terms in this set (14)
Suppose that some investors have decided that economic and financial uncertainty have made the prospect of investing in domestic stock markets more risky than investing in foreign stock​ markets, and therefore choose to invest in foreign markets. By using all available information as they act to achieve their​ goals, these investors are exemplifying the economic idea that
Thuy Anh runs a small flower shop in the town of Florabunda. She is debating whether she should extend her hours of operation. Thuy Anh figures that her sales revenue will depend on the number of extra hours the flower shop is open as shown in the table to the right. She would have to hire a worker for those extra hours at a wage rate of​ $16 per hour.
Using marginal​ analysis, by how many hours should Thuy Anh extend her flower​ shop's hours of​ operations?
Which of the following best describes an assumption economists make about human​ behavior?They assume that rational behavior is useful in explaining choices people make even though people may not behave rationally all the time.If the marginal cost for the U.S. Postal Service to deliver packages for Amazon on Sundays is estimated to be​ $250,000 per​ Sunday, then the U.S. Postal Service should make these Sunday deliveriesas long as the marginal benefit received each Sunday is just equal to or greater than​ $250,000.​Lionel's Lawn Care is a company that maintains residential yards.​ Lionel's cost for his standard package of​ mowing, edging, and trimming is​ $15, and he charges​ $25 for this service. For a total price of​ $40, Lionel will also trim​ shrubs, a service that adds an additional​ $10 to the total cost of the standard package. Should Lionel continue to offer the shrub−trimming ​service?yes, his marginal benefit is greater than his marginal costZane's Vanes is a service that restores old weather vanes. Zane has just spent​ $125 purchasing a​ 1920s-era weather vane which he expects to restore and sell for​ $500 once the work is completed. After having spent​ $125, Zane realizes that he will need to spend an additional​ $200 on materials to complete the restoration.​ Alternatively, he can sell the weather vane without restoring it for​ $200. What should he​ do?He should finish the restoration and then sell the weather vane.