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Chapter 1 1 Refer Scenario 11 Using Marginal Analysis Terminology
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 1 Economics: Foundations and Models 1.1 Three Key Economic Ideas 1) Recent changes occurring within the U.S. health care system, including lower insurance reimbursement rates, have resulted in A) a […]
Chapter 1 2 Concerned About The Falling Birth Rate The
Copyright © 2013 Pearson Education, Inc. 11) Consider the following economic agents: a. the government b. consumers c. producers Who, in a centrally planned economy, decides what goods and services will be produced with the scarce resources available in that […]
Chapter 1 3 None Have Horizontal And Vertical Axis
Copyright © 2013 Pearson Education, Inc. 1.4 Microeconomics and Macroeconomics 1) Which of the following is a microeconomics question? A) How much will be saved and how much will be produced in the entire economy? B) What will the level […]
Chapter 10 1 If a consumer receives 22 units of marginal utility for consuming
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 10 Consumer Choice and Behavioral Economics 10.1 Utility and Consumer Decision Making 1) Economists assume that the goal of consumers is to A) do as little work as possible to […]
Chapter 10 2 Micro 11 Explain How Measure Consumer Preferences
Copyright © 2013 Pearson Education, Inc. 54) The substitution effect of a price increase causes a decrease in the quantity demanded of an inferior good. Answer: TRUE Diff: 2 Page Ref: 317-318/317-318 Topic: Income and Substitution Effects *: Recurring Learning […]
Chapter 10 3 Should Company Whose Celebrity Endorser Was Just
Copyright © 2013 Pearson Education, Inc. 2) The observation that people tend to value something more highly when they own it than when they don’t is called the A) wealth effect. B) endowment effect. C) path dependent effect. D) endorsement […]
Chapter 10 4 What is the marginal rate of substitution between g and h
Copyright © 2013 Pearson Education, Inc. Figure 10-3 7) Refer to Figure 10-3. What is the marginal rate of substitution between g and h? A) 3 1 cookie. B) 2 1 cookie. C) 2 cookies. D) 3 cookies. Answer: B […]
Chapter 10d 1 Economists usually assume that people act in a rational
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 10 Consumer Choice and Behavioral Economics 10.1 Utility and Consumer Decision Making 1) Economists usually assume that people act in a rational, self-interested way. In explaining how […]
Chapter 10d 2 Figure 101 When The Price Ice Cream
Copyright © 2013 Pearson Education, Inc. 39) The income effect of a price change refers to A) the change in demand that occurs when consumer income changes. B) the change in the quantity demanded that results from a change in […]
Chapter 10d 3 These Results Are Example OFA Rational Consumer
Copyright © 2013 Pearson Education, Inc. 20) In an experiment that employed the dictator game, economists at Cornell University gave student “allocators” the option of dividing $20 in only two ways (a) $18 for themselves and $2 to another student, […]
Chapter 10d 4 One reason college students do not study enough to get
Copyright © 2013 Pearson Education, Inc. 23) One reason college students do not study enough to get high grades is that they are unrealistic about their future behavior. Answer: TRUE Diff: 1 Page Ref: 329/329 Topic: Behavioral Economics *: Recurring […]
Chapter 11 1 Micro 12 Apply Methods For Measuring And
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 11 Technology, Production, and Costs 11.1 Technology: An Economic Definition 1) A firm has successfully adopted a positive technological change when A) it can produce more output using the same […]
Chapter 11 2 What is the marginal product of the 4th worker
Copyright © 2013 Pearson Education, Inc. Table 11-1 Number of Workers Mushrooms per Day (pounds) 1 12 2 30 3 45 4 50 5 54 6 56 Table 11-1 shows the technology of production at the Matsuko’s Mushroom Farm for […]
Chapter 11 3 what happens to the difference between the value of average
Copyright © 2013 Pearson Education, Inc. 17) Refer to Figure 11-4. Curve G approaches curve F because A) marginal cost is above average variable costs. B) average fixed cost falls as output rises. C) fixed cost falls as capacity rises. […]
Chapter 11 4 Suppose Argyle Sachs has to choose between building
Copyright © 2013 Pearson Education, Inc. 32) Suppose Argyle Sachs has to choose between building a smaller sweater factory and a larger sweater factory. In the following graph, the relationship between costs and output for the smaller factory is represented […]
Chapter 11d 1 The relationship Between Stan’s Inputs And The Maximum
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 11 Technology, Production, and Costs 11.1 Technology: An Economic Definition 1) Improvements in technology used to produce solar panels allow manufacturers such as 1366 Technologies to produce […]
Chapter 11d 2 Adam Smith employed the example of a pin factory in order to explain
Copyright © 2013 Pearson Education, Inc. 14) In his book The Wealth of Nations, Adam Smith employed the example of a pin factory in order to explain what economic concept? A) the relationship between the marginal and average product of […]
Chapter 11d 3 In a diagram showing the average total cost and average variable
Copyright © 2013 Pearson Education, Inc. 17) In a diagram showing the average total cost and average variable cost curves, the minimum point of the average total cost is A) at the same level of output as the minimum point […]
Chapter 11d 4 The Law Increasing Marginal Opportunity Cost Firm
Copyright © 2013 Pearson Education, Inc. Table 11-6 Fixed Cost Average Variable Cost Small plant $10,000 $2.00 Medium plant 15,000 1.30 Large plant 25,000 0.50 29) Refer to Table 11-6. Clock It To Me manufactures clock radios. The table above […]
Chapter 12 1 Profit Equals Total Revenue Minus Total Cost b
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 12 Firms in Perfectly Competitive Markets 12.1 Perfectly Competitive Markets 1) Assume the market for organic produce sold at farmers’ markets is perfectly competitive. All else equal, as more farmers […]
Chapter 12 2 What is the amount of its total fixed cost
Copyright © 2013 Pearson Education, Inc. Figure 12-3 3) Refer to Figure 12-3. Suppose the prevailing price is P1 and the firm is currently producing its loss-minimizing quantity. Identify the area that represents the loss. A) P2 deP1 B) P3cbP1 […]
Chapter 12 3 Explain The Relationship Between Production And Profits
Copyright © 2013 Pearson Education, Inc. 26) Under what conditions should a competitive firm shut down in the short run? Answer: When market price is below average variable cost at the output where marginal revenue equals marginal cost, the firm […]
Chapter 12 4 A perfectly competitive wheat farmer in a constant-cost industry
Copyright © 2013 Pearson Education, Inc. 21) A perfectly competitive wheat farmer in a constant-cost industry produces 1,000 bushels of wheat at a total cost of $50,000. The prevailing market price is $48. What will happen to the market price […]
Chapter 12d 1 Some Restaurants Have Takeout Windows Some Have
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 12 Firms in Perfectly Competitive Markets 12.1 Perfectly Competitive Markets 1) Which of the following arguments could be made as evidence that the market for produce sold […]
Chapter 12d 2 Letters are used to represent the terms used to answer
Copyright © 2013 Pearson Education, Inc. 12.3 Illustrating Profit or Loss on the Cost Curve Graph 1) Letters are used to represent the terms used to answer this question: price (P), quantity of output (Q), total cost (TC) and average […]
Chapter 12d 3 a firm might choose to produce rather than shut down
Copyright © 2013 Pearson Education, Inc. Figure 12-5 16) Refer to Figure 12-5. The firm’s short-run supply curve is its A) marginal cost curve. B) marginal cost curve from b and above. C) marginal cost curve from c and above. […]
Chapter 12d 4 Which of the following statements describes the change in market
Copyright © 2013 Pearson Education, Inc. Figure 12-7 The graphs in Figure 12-7 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry. 19) Refer […]
Chapter 13 1 Firms Produce Identical Products Entry Barriers Into
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting 13.1 Demand and Marginal Revenue for a Firm in a Monopolistically Competitive Market 1) One reason why the coffeehouse […]
Chapter 13 2 Your Competitors Are Likely Change Their Menus
Copyright © 2013 Pearson Education, Inc. Table 13-3 Quantity Price (dollars) Total Revenue (dollars) Total Variable Cost (dollars) Total Cost (dollars) 0 $21 $0 $0 $50 1 20 20 16 66 2 19 38 31 81 3 18 54 45 […]
Chapter 13 3 What is the profit-maximizing output level
Copyright © 2013 Pearson Education, Inc. Figure 13-8 28) Refer to Figure 13-8 to answer the following questions. a. What is the profit-maximizing output level? b. What is the profit-maximizing price? c. What is the average total cost at the […]
Chapter 13 4 Which of the following is a disadvantage of trademarking a firm’s product
Copyright © 2013 Pearson Education, Inc. Figure 13-12 25) Refer to Figure 13-12 to answer the following questions. a. What is the productively efficient output? b. What is the allocatively efficient output? c. What is the amount of excess capacity? […]
Chapter 13d 1 Which of the following is not a characteristic of monopolistic
Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting 13.1 Demand and Marginal Revenue for a Firm in a Monopolistically Competitive Market 1) Which of the following characterizes the market that […]
Chapter 13d 2 At the profit-maximizing output level the firm will
20) Refer to Figure 13-4. At the profit-maximizing output level the firm will A) earn a profit of $176. B) break even. C) earn a profit of $88. D) earn a profit of $60. 21) Refer to Figure 13-4. Based […]
Chapter 13d 3 Which of the following statements is true about monopolistically
4) Which of the following statements is true about monopolistically competitive firms? A) Unlike perfectly competitive firms, monopolistically competitive firms are able to raise their prices without losing all of their customers. B) Like perfectly competitive firms, monopolistically competitive firms […]
Chapter 13d 4 Which of the following is true of trademarks
4) Which of the following is true of trademarks? A) A successful trademark is one that becomes a generic name for a product, for example, “Xerox” has become a generic term for making photocopies. B) A successful trademark is one […]
Chapter 14 1 A key part of Apple’s business strategy in the electronics market
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 14 Oligopoly: Firms in Less Competitive Markets 14.1 Oligopoly and Barriers to Entry 1) A key part of Apple’s business strategy in the electronics market has been A) to wait […]
Chapter 14 2 A game in which each player adopts its dominant strategy
Copyright © 2013 Pearson Education, Inc. 20) A game in which each player adopts its dominant strategy A) will not lead to an equilibrium. B) must be a cooperative game. C) could result in a Nash equilibrium. D) can never […]
Chapter 14 3 Toshiba Will Not Enter The Market Because the
Copyright © 2013 Pearson Education, Inc. Figure 14-1 Assume that Lexus (L) is the first automobile company to produce a luxury class hybrid automobile and is the only such company for the past four years. BMW is now considering producing […]
Chapter 14d 1 What do Wal-Mart, the Microsoft Corporation, and the Dell
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 14 Oligopoly: Firms in Less Competitive Markets 14.1 Oligopoly and Barriers to Entry 1) What do Wal-Mart, the Microsoft Corporation, and the Dell computer company have in […]
Chapter 14d 2 find that the price they charge is greater than the price that would
Copyright © 2013 Pearson Education, Inc. 19) A dominant strategy is A) an equilibrium where each firm chooses the best strategy, given the strategies of other firms. B) a strategy chosen by two firms that decide to charge the same […]
Chapter 14d 3 Hard Rock Will Pay Uni guest For Its systems
Copyright © 2013 Pearson Education, Inc. Table 14-6 62) Refer to Table 14-6. Saudi Arabia and Yemen must decide how much oil to produce. Since the demand for oil is inelastic, relatively low production rates drive up prices and profits. […]
Chapter 15 1 The Main Reason For The Elimination Of profits
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 15 Monopoly and Antitrust Policy 15.1 Is Any Firm Ever Really a Monopoly? 1) To enter a local cable television market, a firm needs a license from the city government. […]
Chapter 15 2 If the firm’s average total cost curve is ATC3, the firm will
Copyright © 2013 Pearson Education, Inc. 9) Refer to Figure 15-1. The firm’s profit-maximizing price is A) P1. B) P2. C) P3. D) P4. Answer: C Diff: 1 Page Ref: 497-498/497-498 Topic: Profit Maximization *: Recurring Learning Outcome: Micro 14: […]
Chapter 15 3 Firms do not have market power in which of the following
Copyright © 2013 Pearson Education, Inc. 19) Firms do not have market power in which of the following market structures? A) perfect competition only B) perfect competition and monopolistic competition C) oligopoly D) monopoly 41 Answer: A Diff: 1 Page […]
Chapter 15d 1 few households in the United States had cable television but
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 15 Monopoly and Antitrust Policy 15.1 Is Any Firm Ever Really a Monopoly? 1) By 1970, few households in the United States had cable television but two […]
Chapter 15d 2 Unless Marginal cost Zero This Larger Quantity Than
Copyright © 2013 Pearson Education, Inc. 15.3 How Does a Monopoly Choose Price and Output? 1) A monopoly firm’s demand curve A) is the same as the market demand curve. B) is perfectly inelastic. C) is more inelastic than the […]
Chapter 15d 3 Discuss Production And Pricing Decisions Within Monopolies
Copyright © 2013 Pearson Education, Inc. 22) Equilibrium in a perfectly competitive market results in the greatest amount of economic surplus, or total benefit to society, from the production of a good. Why, then, did Joseph Schumpeter argue that an […]
Chapter 16 1 Which of the following can one conclude from the data above
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 16 Pricing Strategy 16.1 Pricing Strategy, the Law of One Price, and Arbitrage 1) Price discrimination A) is the practice of charging different prices to different customers based on a […]
Chapter 16 2 Figure 162 Shows The Demand Curves For the
Copyright © 2013 Pearson Education, Inc. 27) Which of the following is a reason why airline yield management is an effective method to increase revenue? A) because airlines have invested heavily in developing computer models that identify optimal pricing strategies […]
Chapter 16 3 If demand is taken into account, firms that use cost-plus
Copyright © 2013 Pearson Education, Inc. 16.3 Other Pricing Strategies 1) Some firms practice odd pricing because A) they believe that customers will buy a larger quantity with an odd price. B) it is a way to price discriminate. C) […]
Chapter 16d 1 This is a section of the Sherman Act that forced trusts
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 16 Pricing Strategy 16.1 Pricing Strategy, the Law of One Price, and Arbitrage 1) The price of admission to Walt Disney World A) can vary by your […]
Chapter 16d 2 Which of the following pricing strategies allows a firm to earn
Copyright © 2013 Pearson Education, Inc. 27) Which of the following pricing strategies allows a firm to earn economic profit? A) price discrimination B) charging a price equal to marginal cost C) charging a price equal to the average total […]
Chapter 16d 3 Many firms use odd pricing – charging prices such
Copyright © 2013 Pearson Education, Inc. 3) Many firms use odd pricing – charging prices such as $.99 instead of $1.00 and $9.99 instead of $10.00. One reason for this pricing strategy is that consumers will somehow believe that the […]
Chapter 17 1 Demand in factor markets differs from demand in
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 17 The Markets for Labor and Other Factors of Production 17.1 The Demand for Labor 1) In a market economy, the high salaries of some star baseball players such as […]
Chapter 17 2 following best explains why unemployment rates are higher
Copyright © 2013 Pearson Education, Inc. d. (i) The demand curve shifts to the right. (ii) The profit-maximizing quantity of mechanics increases to 4. Diff: 3 Page Ref: 546-550/546-550 Topic: The Demand for Labor *: Recurring Learning Outcome: Micro 17: […]
Chapter 17 3 If national laws protecting the health and safety of workers
Copyright © 2013 Pearson Education, Inc. 10) If national laws protecting the health and safety of workers completely eliminate any and all risk, then A) workers in risky occupations become better off. B) compensating wage differentials disappear and workers in […]
Chapter 17 4 Which of the following statements about commission systems
Copyright © 2013 Pearson Education, Inc. 4) Which of the following statements about commission systems of compensation is false? A) They increase the risk to workers because sometimes output declines for reasons not connected to the worker’s effort. B) During […]
Chapter 17d 1 Table 171 Shows The Relationship Between The
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 17 The Markets for Labor and Other Factors of Production 17.1 The Demand for Labor 1) One difference between the labor market and markets for goods and […]
Chapter 17d 2 The typical labor supply curve is upward-sloping but
Copyright © 2013 Pearson Education, Inc. 6) The typical labor supply curve is upward-sloping but it is possible for the curve to be backward bending – negatively sloped – at very high wage levels. Which of the following would cause […]
Chapter 17d 3 Competitive markets tend to eliminate economic discrimination
Copyright © 2013 Pearson Education, Inc. 11) Competitive markets tend to eliminate economic discrimination, but there are many historical examples of firms that hired few, or no, black or female workers. Which of the following is not a reason for […]
Chapter 17d 4 Which of the following economists is best known for exploring
Copyright © 2013 Pearson Education, Inc. 3) Which of the following economists is best known for exploring the application of economic analysis to human resources issues? A) Edward Lazear B) Claudia Goldin C) David Hammermesh D) Alan Krueger Answer: A […]
Chapter 18 1 One argument advanced in favor of reducing the tax on dividends
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 18 Public Choice, Taxes, and the Distribution of Income 18.1 Public Choice 1) One argument advanced in favor of reducing the tax on dividends is that A) dividends increase the […]
Chapter 18 2 The largest percentage of federal income tax revenue in the United
Copyright © 2013 Pearson Education, Inc. 10) If you pay $2,000 in taxes on an income of $20,000, and a tax of $3,500 on an income of $30,000, then over this range of income the tax is A) regressive. B) […]
Chapter 18 3 If the government imposes an excise tax of $1.00 on every unit
Copyright © 2013 Pearson Education, Inc. 12) Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the producer’s burden of the tax A) is Pa – Pd under either supply curve. B) […]
Chapter 18d 1 Both presidents Kennedy and Reagan proposed significant cuts
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 18 Public Choice, Taxes, and the Distribution of Income 18.1 Public Choice 1) With respect to the tax cut on dividends that occurred in the early 2000s, […]
Chapter 18d 2 Under Income Tax Present Consumption Taxed More
Copyright © 2013 Pearson Education, Inc. 7) In the United States, over the past 40 years federal revenues as a share of gross domestic product have A) risen steadily and now are about 40 percent. B) ranged between 17 and […]
Chapter 18d 3 Which of the following statements concerning the federal
Copyright © 2013 Pearson Education, Inc. 8) Refer to Figure 18-1. Area F+G represents A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the […]
Chapter 1d 1 Which of the following best describes an assumption economists
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 1 Economics: Foundations and Models 1.1 Three Key Economic Ideas 1) As recently as 2002, ________ medical practices were owned by doctors as by hospitals, and by […]
Chapter 1d 2 Fast food restaurants produce a range of menu items such as
Copyright © 2013 Pearson Education, Inc. 9) Fast food restaurants produce a range of menu items such as hamburgers, chicken sandwiches, salads, and french fries. What fundamental economic question are they addressing by offering this range of items? A) How […]
Chapter 1d 3 Which of the following is a microeconomics question
Copyright © 2013 Pearson Education, Inc. 1.4 Microeconomics and Macroeconomics 1) Which of the following is a microeconomics question? A) Why do economies experience periods of recession? B) Will government intervention lower the unemployment rate? C) Why has growth in […]
Chapter 2 1 Production Possibilities Frontiers and Opportunity Costs
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System 2.1 Production Possibilities Frontiers and Opportunity Costs 1) Scarcity A) stems from the incompatibility between limited resources and unlimited wants. B) can […]
Chapter 2 2 Analytic Skills special Feature None Refer Table
Copyright © 2013 Pearson Education, Inc. 49) The opportunity cost of taking a semester-long economics class is A) the cost of tuition and fees only. B) the value of the time spent in the classroom. C) zero because there is […]
Chapter 2 3 Belize Has Comparative Advantage The Production Sailboats
Copyright © 2013 Pearson Education, Inc. 33) In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it cannot benefit by trading with the other country. Answer: FALSE Diff: 2 Page […]
Chapter 2 4 Discuss different types of market system and the gains that can
Copyright © 2013 Pearson Education, Inc. Figure 2-9 17) Refer to Figure 2-9. One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A. What is market […]
Chapter 2d 1 Which The Graphs Figure 23 Represent His
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 2 Trade-offs, Comparative Advantage, and the Market System 2.1 Production Possibilities Frontiers and Opportunity Costs 1) ________ exists because unlimited wants exceed the limited resources available to […]
Chapter 2d 2 Opportunity Cost Recurring learning Outcome Micro 20 Apply
Copyright © 2013 Pearson Education, Inc. 48) Suppose your expenses for this term are as follows: tuition: $5,000, room and board: $3,000, books and other educational supplies: $500. Further, during the term, you can only work part- time and earn […]
Chapter 2d 3 What The Opportunity Cost Producing Auto Body
Copyright © 2013 Pearson Education, Inc. 30) If Blake can pick more cherries in one hour than Cody, then Blake has a comparative advantage in cherry picking. Answer: FALSE Diff: 2 Page Ref: 49/49 Topic: Comparative Advantage *: Recurring Learning […]
Chapter 2d 4 What is market F and who are economic agents G
Copyright © 2013 Pearson Education, Inc. Figure 2-9 17) Refer to Figure 2-9. In the circular flow diagram, who are economic agents A and who are economic agents B? A) A = firms; B = households B) A = households; […]
Chapter 3 1 The Calcium Demand Curve Shifts The Left
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 3 Where Prices Come From: The Interaction of Demand and Supply 3.1 The Demand Side of the Market 1) The market for tablet computers has grown rapidly over the past […]
Chapter 3 2 Market Equilibrium Recurring learning Outcome Micro Explain How
Copyright © 2013 Pearson Education, Inc. 5) What is the difference between an “increase in supply” and an “increase in quantity supplied”? A) There is no difference between the two terms; they both refer to a shift of the supply […]
Chapter 3 3 Olive oil producers want to sell more olive oil at a higher price
Copyright © 2013 Pearson Education, Inc. 3.4 The Effect of Demand and Supply Shifts on Equilibrium 1) Let D= demand, S = supply, P = equilibrium price, Q= equilibrium quantity. What happens in the market for tropical hardwood trees if […]
Chapter 3d 1 The market for tablet computers has become very competitive
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 3 Where Prices Come From: The Interaction of Demand and Supply 3.1 The Demand Side of the Market 1) The market for tablet computers has become very […]
Chapter 3d 2 George Gnat subscribes to a monthly pest control service for his home
Copyright © 2013 Pearson Education, Inc. Figure 3-2 9) Refer to Figure 3-2. A technological advancement would be represented by a movement from A) A to B. B) B to A. C) S1 to S2. D) S2 to S1. Answer: […]
Chapter 3d 3 The Effect of Demand and Supply Shifts on Equilibrium
Copyright © 2013 Pearson Education, Inc. 3.4 The Effect of Demand and Supply Shifts on Equilibrium 1) Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels […]
Chapter 4 1 The difference between the highest price a consumer is willing
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 4 Economic Efficiency, Government Price Setting, and Taxes 4.1 Consumer Surplus and Producer Surplus 1) The difference between the highest price a consumer is willing to pay for a good […]
Chapter 4 2 what changes in the market would result in an economically
Copyright © 2013 Pearson Education, Inc. 15) Refer to Figure 4-4. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $3, what changes in the market would result […]
Chapter 4 3 Reflective Thinking special Feature Making The Connection The
40 Table 4-4 Price per Bushel (dollars) Quantity Demanded (bushels) Quantity Supplied (bushels) $2 40,000 0 4 34,000 4,000 6 28,000 8,000 8 24,000 16,000 10 20,000 20,000 12 18,000 28,000 14 12,000 36,000 16 6,000 40,000 Table 4-4 above […]
Chapter 4d 1 Juanita goes to the Hardware Emporium to buy a new circular saw
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 4 Economic Efficiency, Government Price Setting, and Taxes 4.1 Consumer Surplus and Producer Surplus 1) The difference between the ________ for a good and the ________ is […]
Chapter 4d 2 marginal benefit is greater than marginal cost
Copyright © 2013 Pearson Education, Inc. 11) If, in a competitive market, marginal benefit is greater than marginal cost A) the net benefit to consumers from participating in the market is greater than the net benefit to producers. B) the […]
Chapter 4d 3 If the government implements a price ceiling on insulin
Copyright © 2013 Pearson Education, Inc. 33) If the government implements a price ceiling on insulin, this will have all of the following effects on the market for insulin except A) an increase in consumer surplus. B) an increase in […]
Chapter 4d 4 Which of the following statements best describes the impact
Copyright © 2013 Pearson Education, Inc. Figure 4-11 12) Refer to Figure 4-11. Suppose the market is initially in equilibrium at price P1 and then the government imposes a tax on every unit sold. Which of the following statements best […]
Chapter 5 1 New Jersey Governor Chris Christie announced that he would pull
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 5 Externalities, Environmental Policy, and Public Goods 5.1 Externalities and Economic Efficiency 1) In 2011, New Jersey Governor Chris Christie announced that he would pull the state out of the […]
Chapter 5 2 Suppose a negative externality exists in a market
Copyright © 2013 Pearson Education, Inc. 12) Suppose a negative externality exists in a market. If transactions costs are low and parties are willing to bargain, then, according to the Coase theorem, A) an equitable solution can be reached only […]
Chapter 5 3 Briefly explain the command-and-control approach in dealing
Copyright © 2013 Pearson Education, Inc. 28) Briefly explain the command-and-control approach in dealing with an externality such as pollution.Give an example of the U.S. government using the command-and-control approach to deal with the pollution problem. Answer: Command-and-control is an […]
Chapter 5d 1 Which of the following describes how a negative externality
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 5 Externalities, Environmental Policy, and Public Goods 5.1 Externalities and Economic Efficiency 1) An externality A) is a benefit or cost that affects someone who is not […]
Chapter 5d 2 Steven Cheung examined the relationship between beekeepers
Copyright © 2013 Pearson Education, Inc. 9) Steven Cheung examined the relationship between beekeepers and apple growers. Cheung noted that: “Pollination contracts usually include stipulations regarding the number and strength of … [bee] colonies, the rental fee per hive, the […]
Chapter 5d 3 what is the equilibrium level of security that airlines
Copyright © 2013 Pearson Education, Inc. Figure 5-7 Figure 5-7 shows the market for aviation security. Aviation security generates a positive externality because people who are not airline passengers benefit from aviation security. 23) Refer to Figure 5-7 to answer […]
Chapter 6 1 The Price Elasticity of Demand and Its Measurement
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 6 Elasticity: The Responsiveness of Demand and Supply 6.1 The Price Elasticity of Demand and Its Measurement 1) Price elasticity of demand measures A) how responsive suppliers are to price […]
Chapter 6 2 Sales Revenue Falls Less Than Percent b Sales
Copyright © 2013 Pearson Education, Inc. 9) According to an article in the Wall Street Journal, unlike airlines, even elite hotels don’t have sophisticated systems that can react quickly to changes in demand. Even if they could, many hoteliers say […]
Chapter 6 3 What The Percentage Increase Price Which Would
Copyright © 2013 Pearson Education, Inc. 16) Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean? A) A 1 percent decrease in the price of grapefruit juice leads to a […]
Chapter 6d 1 The Demand For The John Grisham Book
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 6 Elasticity: The Responsiveness of Demand and Supply 6.1 The Price Elasticity of Demand and Its Measurement 1) Economists use the concept of ________ to measure how […]
Chapter 6d 2 Boutique Hotel Rooms Are Inferior Good Demand
Copyright © 2013 Pearson Education, Inc. Table 6-2 Estimated Price Elasticity of Demand Coca-Cola -3.0 All carbonated soft drinks -1.5 All soft drinks -0.8 12) Refer to Table 6-2. Assume that an economist has estimated the price elasticity of demand […]
Chapter 6d 3 If you expect that the economy is headed for a long recession
Copyright © 2013 Pearson Education, Inc. 9) Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products. If you expect that the economy is headed for a long recession, you would […]
Chapter 6d 4 None13 The Price Elasticity Supply Hot Dog
Copyright © 2013 Pearson Education, Inc. 5) Assume that the price elasticity of demand for gasoline is -0.06. If the government tax causes the price of gasoline to increase by 50 percent, what will be the decrease in the quantity […]
Chapter 7 1 The Improving Health of People in the United States
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 7 The Economics of Health Care 7.1 The Improving Health of People in the United States 1) Over the past 160 years in the United States, life expectancy A) has […]
Chapter 7 2 Someone Who Receives Meningitis vaccination Protecting Not Just
Copyright © 2013 Pearson Education, Inc. 27) If a doctor knows that an insurance company will pay for most of a patient’s bill, the doctor has more of an incentive to require additional medical procedures and tests, even if the […]
Chapter 7 3 Small Business Health Options Program Shop Provision
Copyright © 2013 Pearson Education, Inc. 17) All of the following are part of the “state health exchanges” provision of the Patient Protection and Affordable Care Act (PPACA) except A) each state is required to establish an Affordable Insurance Exchange […]
Chapter 7d 1 With Normal Good Income Increases Spending The
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 7 The Economics of Health Care 7.1 The Improving Health of People in the United States 1) In 2011, the average life expectancy at birth in the […]
Chapter 7d 2 Insurance companies use deductibles and coinsurance to reduce moral
Copyright © 2013 Pearson Education, Inc. 24) Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consumers are willing to pay as much as $6,000 for a good used car but […]
Chapter 8 1 Which of the following must a firm in a market economy do
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 8 Firms, the Stock Market, and Corporate Governance 8.1 Types of Firms 1) Which of the following must a firm in a market economy do today to succeed? A) Produce […]
Chapter 8 2 Nasdaq Market This Was Example Of group on Using
Copyright © 2013 Pearson Education, Inc. 13) When an investor buys a corporate bond, A) the investor becomes part owner of the corporation. B) the principal of the bond is a loan to the corporation. C) the interest made on […]
Chapter 8 3 Tanesha sells homemade candles over the Internet
Copyright © 2013 Pearson Education, Inc. 12) Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000. What is […]
Chapter 8d 1 Partnerships Recurring learning Outcome Micro Discuss The Fundamental
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 8 Firms, the Stock Market, and Corporate Governance 8.1 Types of Firms 1) A firm in a market economy must do all of the following to succeed […]
Chapter 8d 2 All of the following represent differences between stocks
Copyright © 2013 Pearson Education, Inc. 9) All of the following represent differences between stocks and bonds except A) a stock can possibly pay dividends forever, but bonds have a fixed number of payments. B) differences of opinion about a […]
Chapter 8d 3 Sec Regulation Often Considered Riskier Because Private
Copyright © 2013 Pearson Education, Inc. 10) Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, the explicit costs of his business are $10,000, and the opportunity costs of his business are $18,000 per year. […]
Chapter 9 1 French Workers Become More Productived Will Take
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e (Hubbard/O’Brien) Chapter 9 Comparative Advantage and the Gains from International Trade 9.1 The United States in the International Economy 1) U.S. firms that sell products in foreign markets protested the “Buy American” […]
Chapter 9 2 The simple trade model demonstrates that countries can expand
Copyright © 2013 Pearson Education, Inc. 22) The simple trade model demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage. In reality we do not see complete […]
Chapter 9 3 Under trade agreements signed with other countries
Copyright © 2013 Pearson Education, Inc. 33) Under trade agreements signed with other countries, the United States is allowed to impose tariffs on imports if foreign firms are selling products in the United States at below their production cost. This […]
Chapter 9d 1 Albanian Workers Become More Productived Can Take
Copyright © 2013 Pearson Education, Inc. Microeconomics, 4e – Testbank 2 (Hubbard) Chapter 9 Comparative Advantage and the Gains from International Trade 9.1 The United States in the International Economy 1) In early versions of the 2009 stimulus bill, a […]
Chapter 9d 2 Examples of comparative advantage often begin with two countries
Copyright © 2013 Pearson Education, Inc. 20) Examples of comparative advantage often begin with two countries that each produce the same two goods. Each country is then shown to have a comparative advantage in producing the good it can produce […]
Chapter 9d 3 If the U.S. government implements a tariff on Chinese tire
Copyright © 2013 Pearson Education, Inc. 33) If the U.S. government implements a tariff on Chinese tire imports all of the following would be made worse off except A) U.S. consumers. B) American tire retailers. C) Chinese tire manufacturers. D) […]