When computing the opportunity cost of attending a basketball game you should include   the price you pay for the ticket and the value of your time the price you pay for the ticket, but not the value of your time the value of your time, but not the price you pay for the ticket neither the price of the ticket nor the value of your time

 A hamburger costs $3.50.  According to the table, how many hamburgers will you eat? Quantity Marginal Benefit 1 $5 2 $2 3 $1 4 $0   0 burgers             1 burgers 2  burgers 3 burgers

An agreement among firms regarding price and/or production levels is called   a free-trade arrangement collusion a Nash agreement an antitrust market

Suppose the cost of flying a 200-seat plane for an airline is $100,000 and there are 10 empty seats on a flight. If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300, the airline should   sell the ticket because the marginal benefit exceeds the marginal cost sell the ticket because the marginal benefit exceeds the average cost not sell the ticket because the marginal benefit is less than the marginal cost not sell the ticket because the marginal benefit is less than the average cost

All of these are examples of unintended consequences EXCEPT Seat belt laws cause drivers to drive faster An increase in taxes leads to a decrease in your income Drug enforcement leads to more crime Telling your child to stop causes them to do it more.

Refer to Figure 21-3. Which of the graphs in the figure reflects a decrease in the price of good X only? graph a graph b graph c graph d

Very talented high-school athletes who skip college to become professional athletes   obviously do not understand the value of a college education usually do so because they cannot get into college understand that the opportunity cost of attending college is very high are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes

When governments incentivize people to do something, they need to be careful of  1. moral imperatives 2. unintended consequences 3. legal repercussions 4. sunk costs

The adage, “There is no such thing as a free lunch,” means   even people on welfare have to pay for food the cost of living is always increasing people face tradeoffs all costs are included in the price of a product

When the indifference curve is tangent to the budget constraint, a consumer cannot be made better off without an increase in her income or a price decrease in one of the goods she consumes the consumer is likely to be at a sub-optimal level of consumption income is at its optimum for a consumer indifference curves are likely to intersect