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Edit View History Bookmarks Window Help bboldwestbury.sh.suny.edu Take Test: Chapter 1: Economic Thinking Quiz-201802 Question Completion Status 10 points Save Answer QUESTION 1 A fitration improvement has been proposed for the okd water plant that serves the entire city. Water rates have been only 2 cents per galion, but with the improvement, the rate would be 5 cents per gallon a. A rational debate for city residents at this time would be centered on which question? b. Can people afford paying more than twice as much for the same amount of water? c. formative d. is t worth paying 5 cents per galion to have a city water system? e. Ane the additional benefits of cleaner water worth paying 3 more cents per gallon? QUESTION 2 10 points Save Answer alties Marginal cost is necessary to consider in a rational decision, and shouid be compared to a opportunity cost b. marginal benefit G, total benest. nd the the Industry QUESTION 3 10 points Save Answer opoly In order to saftisty as many wants as possible, it is necessary to achieve PRODUCTIVE efficiency a since otherwise resources are ide b since it would be impossiblie to produce more of one thing without producing less of another c since ottherwise output may go to where it is less valued. opolstic opoly QUESTION 10 points Save Answer The musician was known for multiple encore performances, but had limited stamina and a rational mind. Even she would eventualy call it a night when, by her judgement a the marginal cost is greater than the marginal benelt of an additional encore. b. the total enjoyment (beneft) of the concert was maximined c. the additional enjoyment of one more encore the marginal benefit) is rising. lity QUESTION 5 10 points Save Answer 4 5

Solution

answering only the first one as these are separate independent questions.

1) the answer is e)

cost benefit analysis is always done at the marginal level. so for extra margnal cost of 3 cents per gallon, are the marginal benefits worth 3 cents or not.