Solved > 101) An increased demand for the services of:1923587 …

101) An increased demand for the services of tax accountants

A) may raise their fees but cannot affect their costs.

B) may raise their fees by making it more costly for them to provide services to any client.

C) will lead to fewer people using the services of tax accountants because higher prices mean a smaller quantity demanded.

D) will lower their fees in the long run by producing more tax accountants.

102) What effect does the televising of the Super Bowl have on the cost to the National Football League of giving someone a ticket to the game?

A) It has no effect because all the costs of playing the game are sunk costs.

B) It has no effect on the cost because the demand doesn’t affect cost.

C) It lowers the cost because fewer people will want to buy tickets.

D) It raises the cost because fewer people will want to buy tickets.

103) What would be the most likely effect on the price of tickets for the Rose Bowl football game if a wealthy alumnus agreed to pay all the travel and lodging expenses of the visiting players?

A) No effect.

B) The price would fall.

C) The price would rise.

D) We have no basis for predicting because college football is a non-profit enterprise.

104) What is most likely to happen to the cost of owning and operating a golf course in a large city when the population grows?

A) The cost will decline because the course will be used closer to its capacity.

B) The cost will not change as long as no attempt is made to enlarge the course.

C) The cost will rise because the land will become more valuable for other purposes.

D) The cost will rise if the course is privately owned but will be unchanged if the course is municipally owned.

E) The cost will vary depending on the amount of competition from other courses.

105) People in the U.S. will rarely pay a great deal per gallon to obtain water because

A) there are so many excellent substitutes for water.

B) there is no relationship between objective price and subjective value.

C) they are usually creatures of habit.

D) they think water, as a basic necessity, ought to be supplied at a very low price.

E) they place a very low marginal value on water.

106) Since most people would be willing to pay far more for a cup of diamonds than for a cup of water,

A) diamonds provide more satisfaction to most people than water provides.

B) most people are irrational when it comes to prestige or status goods.

C) most people wrongly think they value diamonds more highly than water.

D) people’s choices and preferences are often inconsistent.

E) very few people are ever in danger of dying of thirst.

107) If you decide to go to a movie on a Friday night rather than write a letter to your grandmother, you

A) are willing to deprive your grandmother of a letter simply in order to enjoy a movie.

B) place more value on the movie than on your grandmother.

C) would rather have fun than fulfill your responsibilities to your relatives.

D) none of the above.

108) Someone who turns down an opportunity to purchase a Bible for $5 and then immediately pays $5 to attend a movie thereby expects to obtain more satisfaction from seeing the movie than from

A) cultivating the spiritual life.

B) deepening his religious faith.

C) owning the Bible just offered to him.

D) reading the Bible.

109) Which sum of money most adequately represents the value someone places on the works of Shakespeare? The sum they would be willing to pay to

A) purchase a set of Shakespeare’s complete works.

B) purchase a set of Shakespeare’s complete works if they did not already own a set.

C) purchase a set of Shakespeare’s complete works if they did not have ready access to a set.

D) purchase a set of Shakespeare’s complete works if they had no other way to obtain access to the complete works.

E) purchase a set of Shakespeare’s complete works if they had no other way to obtain copies of any of them to read.

110) If it costs you $60 to produce 3 widgets and $64 to produce 4 widgets, the marginal cost to you of producing a 4th widget is

A) $62.

B) $20.

C) $18.

D) $6.

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