- An Uber driver faces costs for driving that include sunk costs like insurance that contribute $.50 to the average cost per mile. Yet when a rider offers to pay less than $0.50 per mile for a ride, the driver agrees because
SUNK COSTS LIKE AUTO INSURANCE (IN THIS CASE) DO NOT INCREASE AS DRIVING INCREASES.
HE DOES NOT UNDERSTAND THAT SUNK COST ARE THE MOST IMPORTANT TO CONSIDER.
THE DRIVER IS IRRATIONAL; THIS DECISION WILL CAUSE A LOSS.
THE DRIVER NEEDS TO COVER ALL SUNK COSTS TO BE BETTER OFF BY ACCEPTING THE OFFER.
2.Which of the following statements reflects marginal decision-making?
STAYING IN THIS RENTAL COTTAGE LONGER WOULD BE NICE, BUT THE COTTAGE NEXT DOOR IS MORE ATTRACTIVE.
THE TOTAL COST OF THE PROGRAM IS EQUAL TO THE TOTAL BENEFITS.
BOOKING THIS CONDO IN A BETTER LOCATION IS WORTH THE EXTRA $100.
IF WE DOUBLE THE ORDER TO A DOZEN DOUGHNUTS, WE WILL PAY ONLY 20 PERCENT MORE.
- It is said that the rational consumer will act according to his or her self-interest, and that self-interest can include a concern for one’s family and friends, but not often society as a whole. Which of the following illustrates this type of decision?
THE RENTAL OF RECREATIONAL VEHICLES FOR USE IN NATIONAL PARKS IS RESPONSIVE TO CONCERNS OF NOISE POLLUTION.
OUR TIME WAS VERY VALUABLE AT THAT MOMENT, BUT WE STOPPED TO PUT OUT THE FIRE BEFORE IT SPREAD.
MR. T. DECIDES NOT TO PURCHASE ANY CASE OF WATER BOTTLE SO THERE COULD BE MORE LEFT FOR OTHER CONSUMERS.
THE BOAT RENTAL WAS WORTH THE ADDITIONAL FISH CAUGHT, REGARDLESS OF HOW LITTLE FISH WE LEFT BEHIND.
- Dawnell is a skilled dancer. She is currently teaching modern dance full time for three high schools and makes $44,000 a year. She is now giving up her work and joining a touring dance company for the next two years. She will make $24,000 a year dancing, but gain much more in experience and connections. Dawnell’s decision will result in
A TWO YEAR OPPORTUNITY COST OF $40,000 AFTER LEAVING HER TEACHING POSITION.
A TWO YEAR OPPORTUNITY COST OF $88,000 AFTER LEAVING HER TEACHING POSITION.
A ONE YEAR OPPORTUNITY COST OF $44,000 AFTER LEAVING HER TEACHING POSITION.
A ONE YEAR OPPORTUNITY COST OF $24,000 AFTER LEAVING HER TEACHING POSITION.
- Marcus is considering which college major to choose. In taking a rational approach, Marcus should consider
MINIMIZING THE LENGTH OF TIME IT WILL TAKE TO COMPLETE THE DEGREE.
THE BENEFIT EACH MAJOR WOULD BRING AND THE COST OF THE DEGREE.
POTENTIAL EARNINGS ONLY.
SOLELY THE MONETARY COST OF THE COLLEGE DEGREE.
6.A budget constraint model differs from production possibilities model in that, typically
ONLY THE PRODUCTION POSSIBILITIES MODEL DEMONSTRATES DIMINISHING RETURNS.
THE BUDGET CONSTRAINT SHOWS HOW SCARCITY APPLIES TO PRODUCERS
ONLY THE BUDGET CONSTRAINT DEPICTS AN INVERSE RELATIONSHIP, OR A TRADE-OFF.
ONLY THE BUDGET CONSTRAINT DEMONSTRATES DIMINISHING RETURNS.
- WHICH ONE IS TRUE ?
THE AMOUNT OF BENEFIT A PERSON RECEIVES FROM A GOOD OR SERVICE REMAINS CONSTANT.
MARGINAL COST IS CONSTANT
IT IS THE DIFFERENCE (OR CHANGE) IN THE BENEFIT YOU RECEIVE FROM A DIFFERENT CHOICE.
MARGINAL COST IS THE DIFFERENCE (OR CHANGE) IN COST OF A DIFFERENT CHOICE.
- Suppose that there are only two types of output in a country: nuclear missiles and consumer goods. All else being constant, as the nation produces more missiles,
EVERY ADDITIONAL MISSILE WILL INCREASE CONSUMER GOODS PRODUCTION BY MORE AND MORE.
THE OPPORTUNITY COST OF CONSUMER WANTS BEING SATISFIED WILL DIMINISH.
THE GREATER THE OPPORTUNITY COST WILL BE OF SATISFYING CONSUMER WANTS.
IT WILL NEED TO GIVE UP FEWER AND FEWER CONSUMER GOODS.
- Indi and Indrani are sisters who own a software development company. Demand has been increasing for their products and services and the sisters are contemplating whether to open up a satellite office in Austin. They estimate it would add $7 million in expenses and a profit of $12.5 million in total over the next 5 years (all other things equal). Indi and Indrani decide
TO OPEN A NEW OFFICE BECAUSE THE EXPECTED MARGINAL BENEFIT ($12.5 MILLION OVER 5 YEARS) IS GREATER THAN THE ESTIMATED MARGINAL COST ($7 MILLION).
TO NOT OPEN A NEW OFFICE BECAUSE REVENUE WOULD NOT BE AS HIGH AS COMPETITORS
TO NOT OPEN A NEW OFFICE BECAUSE THE MARGINAL COSTS PROVED TO BE TOO HIGH.
10.A positive statement is
REFLECTS ONE’S OPINIONS.
CAN BE SHOWN TO BE CORRECT OR INCORRECT.
A VALUE JUDGMENT.
BASED UPON AN OPTIMISTIC JUDGMENT.
TO OPEN AN AUSTIN OFFICE BECAUSE THE MARGINAL COST OF THE NEW OFFICE IS LOW COMPARED TO OTHER SIMILAR PROJECTS.
- The theory of rational behavior
ASSUMES THAT PEOPLE WILL ALWAYS IGNORE OTHERS’ BEST INTEREST.
IMPLIES THAT PEOPLE WILL ALWAYS TAKE THE TIME TO MAKE CORRECT DECISIONS.
ASSUMES THAT PEOPLE WILL BEHAVE IN THE BEST INTEREST OF SOCIETY AS A WHOLE.
IS AN ASSUMPTION THAT ECONOMISTS MAKE TO HAVE A USEFUL MODEL FOR HOW DECISIONS ARE MADE.
- Which of the following statements is positive?
I AM ABSOLUTELY POSITIVE THAT THERE IS A BETTER WAY.
THERE IS A LIMIT TO THE INCOME EACH YEAR TO WHICH THE FICA TAX APPLIES, BUT THAT IS FAIR, SINCE THERE IS A LIMIT TO SOCIAL SECURITY BENEFITS.
SOCIAL SECURITY BENEFITS ARE NOT TAXED.
SOCIAL SECURITY PAYMENTS TO RETIREES SHOULD NOT BE TAXED.
- A keynote speaker was known for his many speaking engagements, but now he has limited time and a rational mind. Even he would eventually start to turn down speaking engagement when, by his judgement
THE MARGINAL COST IS GREATER THAN THE MARGINAL BENEFIT OF THE NEXT SPEAKING ENGAGEMENT.
THE COST OF THE NEXT ENGAGEMENT STARTS FALLING
THE TOTAL ENJOYMENT (BENEFIT) OF THE SPEAKING ENGAGEMENT WAS MAXIMIZED.
THE ADDITIONAL ENJOYMENT OF ONE MORE SPEAKING ENGAGEMENT (THE MARGINAL BENEFIT) IS RISING.
- The musician was known for multiple encore performances, but had limited stamina and a rational mind. Even she would eventually call it a night when, by her judgement
THE MARGINAL COST IS GREATER THAN THE MARGINAL BENEFIT OF AN ADDITIONAL ENCORE.
THE CROWD KEEPS REQUESTING ENCORES.
THE ADDITIONAL ENJOYMENT OF ONE MORE ENCORE (THE MARGINAL BENEFIT) IS RISING.
THE TOTAL ENJOYMENT (BENEFIT) OF THE CONCERT WAS MAXIMIZED.
- The production possibilities model illustrates an inverse relationship between two goods or services because
PRODUCTION OF DIFFERENT TYPES WILL COMPETE FOR LIMITED RESOURCES.
THE OPPORTUNITY COST OF PRODUCING MORE OF SOMETHING WILL RISE.
SOME GOODS ARE MORE DIFFICULT TO PRODUCE THAT OTHERS.
OF DIMINISHING RETURNS.
- A restaurant chain sponsors a charity that provides support to the parents of children being treated for cancer. How would the use of company funds for this purpose be justified by a business whose goal is to maximize profit?
The funds dedicated to this purpose represent a very small share of profits.
THE MONEY SPENT IS WORTH THE BOOST IT GIVES TO CORPORATE IMAGE.
THE MONEY WILL BE SPENT EFFICIENTLY TO CURE CANCER.
THERE IS A GROWING NEED FOR THIS KIND OF CHARITABLE WORK.
Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.
Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.
This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.
To be inviting and polite is indistinguishable, and politeness requires an insightful and amicable activity against others. Axioms are notable that gracious “pay of graciousness is the main thing to win everything”. Correspondence staff ought to consistently remember this. The accompanying standards may assist with improving courtesy:Preliminary considering correspondence with family All glad families have the mystery of progress. This achievement originates from a strong establishment of closeness and closeness. Indeed, through private correspondence these cozy family connections become all the more intently. Correspondence is the foundation of different affiliations, building solid partners of obedient devotion, improving family way of life, and assisting with accomplishing satisfaction (Gosche, p. 1). In any case, so as to keep up an amicable relationship, a few families experienced tumultuous encounters. Correspondence in the family is an intricate and alluring marvel. Correspondence between families isn’t restricted to single messages between families or verbal correspondence.
It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.
Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>