Chapter 1/Ten Principles of Economics ? 9
56. Which of the following is the best example of a marginal change?
a. After graduating college, Audrey's income increases from $500 per month to $3,000 per month. b. Morgan gets a raise at her part-time job and is now paid $7.25 per hour instead of $7.00.
c. Housing prices in an area increase by 40 percent when a new interstate is built that passes nearby. d. A hard freeze wipes out half of the orange crop in Florida and the price of orange juice doubles. ANS: B DIF: 2 REF: 1-1 TOP: Marginal changes MSC: Applicative
57. Which of the following is the best example of a marginal change?
a. The price of housing in Denver increased by 6 percent last year.
b. Kim gets a big promotion at work. She also gets a raise from $35,000 per year to $55,000 per year.
c. Mark graduates from college and takes a job. His income increases from $10,000 per year to $35,000 per year. d. A drought hits the upper Midwest and the price of wheat increases from $4.00 per bushel to $6.50 per bushel. ANS: A DIF: 2 REF: 1-1 TOP: Marginal changes MSC: Applicative 58. A marginal change is best illustrated by which of the following?
a. Nancy retires and takes a part-time job. She was working 40 hours per week and now works 15 hours per week. b. A large, state-supported university has announced that due to state budget deficits, tuition must rise by 20 percent
next year.
c. Ryan moved to a new apartment and now pays 40 percent more rent than before.
d. Arizona, which usually receives 10 inches of rain per year, received 11 inches last year. ANS: D DIF: 2 REF: 1-1 TOP: Marginal changes MSC: Interpretive 59. Teresa eats three oranges during a particular day. The marginal benefit sh