Principles of Microeconomics 12th Edition

ISBN 13

978-0134078816

ISBN 10

0134078810

Authors

Karl E. Case, Ray C. Fair, Sharon E. Oster

Exam Prep

Homework Help

81 documents found.

Homework Help

978-0134078816 Chapter 1 Appendix Chapter 1

CHAPTER 1 APPENDIX 1A.1. The slopes are as follows: line 1: 5; line 2: 5; line 3: 1; line 4: 1; line 5: slope is 1 as X goes from 0 to 20, and 1 as X goes from 20 to 40; line 6: 250. from 0 to 20, and 1 as

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 1 Part 1

1 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 1 The Scope and Method of Economics 1.1 Why Study Economics? 1) Which of the following is not listed in the book as a

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 1 Part 2

11 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 37) That which we forgo, or give up, when we make a choice or a decision is known as A) equity. B) causation. C) correlation. D) opportunity cost. Answer: D Diff: 1 Answer: D

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 1 Part 3

21 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 4) Positive economics is an approach to economics that A) seeks to understand behavior and the operation of systems while making judgments about their usefulness to society. B) analyzes outcomes of economic behavior, evaluates

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 1 Part 4

31 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 39) An efficient market is characterized by the fact that A) output is steady or growing and there is low inflation. B) profit opportunities are eliminated almost instantaneously. C) there are no opportunity costs.

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 1 Part 5

41 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 73) Economic stability refers to the condition of steady growth in national output, with ________ inflation and ________ employment of resources. A) negative; low B) low; full C) high; full D) no; no Answer:

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 1 Part 6

51 Copyright 2017 Pearson Education, Inc. 7) Refer to Figure 1.3. The slope of the line between Points D and C is A) -3. B) -0.33. C) 0.33. D) 3. Answer: D Diff: 2 Answer: D Diff: 2 Answer: D Diff: 2 Topic: Appendix: How to Read and Understand

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 1 Part 7

59 Copyright 2017 Pearson Education, Inc. 34) If the slope of a straight line is -2. and if X (the variable on the horizontal axis) decreases by 8, then Y (the variable on the vertical axis) will A) increase by 4. B) decrease by 4. C) increase by 16.

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 1 Solution Manual

Solutions to Problems CHAPTER 1 1.1 Answers will vary, but should include the notion that each activity provides benefits in the form of satisfaction or additional income, but also takes time away from the pursuit of other activities(opportunity cost). Time spent on each activity is limited because the additional benefit ofdevoting an

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 10 Solution Manual

CHAPTER 10 1.1 The key idea here is that many things affect the supply and demand for labor. Productivity could increase during the period raising the marginal revenue product of labor and shifting demand up.However, higher productivity could be labor saving and reduce the demand for labor. Theeconomy did expand as

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 11 Solution Manual

CHAPTER 11 1.1 All are capital except (d), (f), and (i). Capital refers to those goods produced by the economic system that are used as inputs to produce other goods and services in the future. Tangible capitalis represented by (b), (c), (h), and (j). Social capital, or infrastructure, is represented

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 12 Solution Manual

S D0 D1 Price of corn P1 P0 D0 D1 S Quanty of farmland Figure 2 Q Price of farmland Price of farmland Price of farmland P0 P1 CHAPTER 12 1.1 If oil prices were to rise at the same time as the subsidy was given to ethanol production, the demand for ethanol, and subsequently the demand for the corn used to produce ethanol wouldincrease, shifting the

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 13 Solution Manual

CHAPTER 13 1.1 This does not necessarily constitute a monopoly. Even though Vincent has the only 7-Eleven in town, this does not mean that there are not any other competitors in town, such as QuikTrip,RaceTrac, or Circle K. Also, consumers may be able to drive to a nearby town to patronize

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 14 Solution Manual

CHAPTER 14 1.1 (a), (c), and (d) are probably oligopolies dominated by a few firms: (b) and (e) are not oligopolies because there is lots of product differentiation, many firms, and lots of entry and exit in thoseindustries. because there is lots of product differentiation, many firms, and lots of entry and

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 15 Solution Manual

CHAPTER 15 1.1 Marianos Hacienda Ranch is monopolistically competitive. The restaurant industry contains a large number of firms, especially in a city the size of Dallas, and each firm like Marianos is smallrelative to the total market. In the restaurant industry, there are no barriers to entry keeping otherfirms out of

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 16 Solution Manual

CHAPTER 16 1.1 The statement is correct. Figure 16.3 on page 336 in the text shows that when the penalty is equal to the marginal damage cost, the price paid by consumers will increase until it equals marginalsocial costs. A tax in excess of marginal damage cost will cause price to

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 17 Solution Manual

CHAPTER 17 1.1 303 Copyright 2017 Pearson Education, Inc. Solutions to Problems 304 Alexandra is risk-averse because utility is increasing at a decreasing rate as her income increases.Bianca is risk-neutral because utility is increasing at a constant rate as her income increases.Caleb is risk-loving because utility is increasing at an increasing rate

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 18 Solution Manual

CHAPTER 18 1.1 Items (d) and (e) represent income from wages and salaries. Items (b) and (c) represent income from property.Items (a) and (f) represent income from the government in the form of transfer payments. Items (b) and (c) represent income from property.Items (a) and (f) represent income from the government

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 19 Solution Manual

CHAPTER 19 1.1 The tax is progressive because the first $35,000 is taxed at a marginal rate of zero. As incomerises the part subject to the 0% rate shrinks as a percentage of total income and the part subject tothe 20 marginal rate rises as a percentage of total income. The tax

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 2 Part 1

1 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 2 The Economic Problem: Scarcity and Choice 2.1 Scarcity, Choice, and Opportunity Cost 1) The process by which resources are transformed into useful forms

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 2 Part 2

11 Copyright 2017 Pearson Education, Inc. 37) Refer to Figure 2.2. If Microland's economy is at Point A, it could produce more consumer goods A) without sacrificing any capital goods. B) by sacrificing some capital goods. C) only with technological improvements. D) only with additional resources. Answer: B Diff:

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 2 Part 3

21 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 69) Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by A) an increase in unemployment. B) a reduction in unemployment. C) a change in society's

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 2 Part 4

31 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 101) Related to the Economics in Practice on page 25: Which one of the following occurs when an individual enters the paid work force? A) The opportunity cost of time for housework increases, because

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 2 Part 5

41 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 139) Assume a society can produce either olives or grapes. If the marginal rate of transformation of bushels of olives into bushels of grapes is 0.2, then the opportunity cost of grapes is A)

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 2 Part 6

50 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 4) Which of the following is an element of a command economy? A) The market decides distribution. B) The means of production are privately owned. C) Production decisions are centralized. D) The market decides

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 2 Solution Manual

CHAPTER 2 1.1 Answers will vary, but should include: (a) the value of alternative uses of time (studying for final exams, other forms of leisure) (b) the value of alternative uses of time (other forms of leisure or exercise) (c) the value of other goods and services that the government could have

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 20 Solution Manual

CHAPTER 20 1.1 The data in the following table is from 2014. As the data shows, the United States ran a trade deficit with all five countries in 2014. Country Exports (millions of U.S. dollars) Imports (millions of U.S. dollars) Balance of Trade (millions of U.S. dollars) Canada 374,864 384,428 9,564 China 167,207 482,323 315,116 Mexico 270,721 320,889

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 21 Solution Manual

CHAPTER 21 1.1 Answers will vary, but most students will most likely agree with this assessment. This seems to be referencing the idea of increasing opportunity costs. As more and more resources are devotedto economic growth and reducing poverty, it becomes more and more difficult for additionalresources to continue to have

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 22 Solution Manual

CHAPTER 22 1.1 (a) There may be many factors that would cause the incidence of heart disease to be more pronounced in those office workers studied, including the possibility that people whoregularly dine on fast food also make other, less healthy lifestyle choices that could lead tohigher rates of heart

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 1

1 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 3 Demand, Supply, and Market Equilibrium 3.1 Firms and Households: The Basic Decision-Making Units 1) Michael Dell was the first individual who sold computers

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 10

87 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 105) Refer to Scenario 3.3. If at the same time of the mustard recall, consumer income also decreased. Then, ceteris paribus, in the market for mustard this would have caused A) both the equilibrium

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 2

11 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 11) If the demand for coffee decreases as income decreases, coffee is a(n) A) normal good. B) inferior good. C) substitute good. D) complementary good. Answer: A Diff: 2 Answer: A Diff: 2 Answer:

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 3

21 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 39) Refer to Figure 3.7. An increase in quantity demanded is represented by the movement A) from D2 to D1. B) from D2 to D3. C) along D2 from Point B to point A.

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 4

31 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 68) As Tabitha consumes more ice cream sundaes within a given period of time, it is likely that each additional sundae consumed will A) bring her successively more satisfaction. B) bring her successively less

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 5

41 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 10) Refer to Figure 3.10. An increase in the wage rate of pizza makers will cause a movement from Point B on supply curve S2 to A) Point A on supply curve S2. B)

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 6

51 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 37) The price of circuit boards used in the manufacturing of LCD televisions has fallen. This will lead to ________ LCD televisions. A) an increase in the supply of B) a decrease in the

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 7

61 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 27) Refer to Table 3.2. In this market there will be an excess demand of 1,000 cheeseburgers at a price of A) $5. B) $6. C) $8. D) $9. Answer: A Diff: 2 Answer:

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 8

71 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 57) Refer to Figure 3.16. When the economy moves from Point E to Point B, there has been A) an increase in supply and an increase in quantity demanded. B) an increase in both

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 3 Part 9

81 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 85) Related to the Economics in Practice on page 66: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint. This would cause the

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 3 Solution Manual

V CHAPTER 3 1.1 Answers will vary, but may include examples such as: Bill Gates and Paul Allen with Microsoft; Mark Zuckerberg with Facebook; Elon Musk with PayPal, SpaceX, and Tesla Motors; AlexisOhanian and Steve Huffman with Reddit; Kevin Systrom with Instagram; and Caterina Fake andStewart Butterfield with Flickr. Each

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 4 Part 1

1 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 4 Demand and Supply Applications 4.1 The Price System: Rationing and Allocating Resources 1) In the short run, it is necessary to nonprice ration

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 4 Part 2

11 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3 33) Refer to Figure 4.3. An example of an effective price ceiling

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 4 Part 3

21 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 68) If the market price of green tea is $20.00 per pound and the government will not allow green tea growers to charge more than $25.00 per pound of green tea, which of the

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 4 Part 4

31 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 5) Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil, the tax revenue generated will equal A) $25

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 4 Part 5

40 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 7) Refer to Figure 4.6. If price is P1, consumer surplus is area A) A. B) A + B + E. C) G. D) B + C + E + F + G. Answer:

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 4 Solution Manual

CHAPTER 4 1.1 (a) (b) (c) 1.2 Disagree. Every demand curve hits the quantity axis because of diminishing marginal utilityat a price of zero, there is a limit to how much one can or wants to consume. The argument that atsome price, demand goes to zero explains why all demand curves hit

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 5 Part 1

1 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 5 Elasticity 5.1 Price Elasticity of Demand Refer to the information provided in Figure 5.1 below to answer the question(s) that follow. Figure

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 5 Part 2

11 Copyright 2017 Pearson Education, Inc. 3) Refer to Figure 5.2. If the price of a hamburger increases from $2 to $4, the price elasticity of demand equals ________. Use the midpoint formula. A) -0.33 B) -2.0 C) -3.0 D) -5.0 Answer: A Diff: 2 Answer: A Diff: 2

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 5 Part 3

21 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 33) At a price of $5, quantity demanded is 70; and at a price of $7, quantity demanded is 50. Since total revenue ________ by the price increase, demand must be ________. A) is

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 5 Part 4

31 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 5) The income elasticity of demand A) measures the change in income necessary for a given change in quantity demanded. B) measures the responsiveness of income to changes in quantity demanded. C) measures the

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 5 Part 5

41 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 36) If two products are substitutes, the ________ elasticity of demand is ________. A) income; positive B) income; negative C) cross-price; positive D) cross-price; negative Answer: C Diff: 1 Answer: C Diff: 1 Answer:

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 5 Part 6

48 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 6) Refer to Figure 5.7. The amount customers will pay per pumpkin after the imposition of the tax is A) $1.75. B) $3.00. C) $4.25. D) $7.25. Answer: D Diff: 2 Answer: D Diff:

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 5 Solution Manual

CHAPTER 5 1.1 The slope of the demand curve in Figure a is: (5 3) / (10 20) = 2 / 10 = 0.2. The slope of the demand curve in Figure b is: (500 300) / (10 20) = 200 / 10 = 20. Theslopes of the two curves

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 6 Appendix Chapter 6

CHAPTER 6 APPENDIX 1A.1 The graph to the left violates more is better because the indifference curve has a positive slope. You cannot get more of both goods and be indifferent. Indifference curves cannot curl upward.The figure to the right violates diminishing marginal rate of substitution. This shape wouldimply thatMUx/MUyincreases as

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 6 Part 1

1 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 6 Household Behavior and Consumer Choice 6.1 Household Choice in Output Markets 1) Jane has $500 a week to spend on clothing and food.

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 6 Part 2

11 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 33) Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of one beer is A) 1/4 of a gardenburger. B) 1 gardenburger. C) 2 gardenburgers. D) changing as Mr. Lingle moves down

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 6 Part 3

21 Copyright 2017 Pearson Education, Inc. 64) Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D the consumer is buying ________ DVDs and ________ CDs. A) 0;

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 6 Part 4

31 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 96) When the price of a good decreases, the budget constraint shifts out parallel to the original budget constraint. Answer: FALSE Diff: 1 Answer: FALSE Diff: 1 Answer: FALSE Diff: 1 Topic: Household Choices

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 6 Part 5

41 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 23) Refer to Table 6.1. Assume that a store is giving hamburgers and sodas away for free. Consumers can have as many sodas and hamburgers as they want, but the food has to be

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 6 Part 6

51 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 53) ________ utility is the additional satisfaction gained by consuming ________ of a good. A) Marginal; all units B) Total; one more unit C) Total; no more units D) Marginal; one more unit Answer:

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 6 Part 7

61 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 89) The diamond/water paradox helps to illustrate the concept of marginal value. Answer: TRUE Diff: 1 Answer: TRUE Diff: 1 Answer: TRUE Diff: 1 Topic: The Basis of Choice: Utility Skill: Conceptual AACSB: Reflective

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 6 Part 8

71 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 14) In the labor market, the income and substitution effects work in the same direction. Answer: FALSE Diff: 1 Topic: Household Choice in Input Markets Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-10 6.5

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 6 Part 9

78 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 17) Refer to Figure 6.14. If the price of an ice cream cone is $3, Jason's income is A) $50. B) $375. C) $450. D) indeterminate because the price of ice cream sandwiches is

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 6 Solution Manual

CHAPTER 6 1.1 (a) (d) (b) (e) (c) (f) (g) 1.2 (a,c) (b)10 lunches at the club, and 5 at Alices cost atotal of 10$5 + 5$10 = $100. This is withinthe budget constraint. 1.2 (a,c) (b)10 lunches at the club, and 5 at Alices cost atotal of 10$5 + 5$10 = $100. This

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 7 Appendix Chapter 7

CHAPTER 7 APPENDIX 1A.1 MPL / PL = 10 / 4 = 2.5 <MPK / PK = 6 / 2 = 3. The MP per dollar spent on capital is higher than the MP per dollar spent on labor. The firm should transfer spending from labor to capital,because each dollar spent

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 7 Part 1

1 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 7 The Production Process: The Behavior of Profit-Maximizing Firms 7.1 The Behavior of Profit-Maximizing Firms 1) Total revenue minus total cost is equal to

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 7 Part 2

11 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 34) The rate of return on capital that is just sufficient to keep owners and investors satisfied is called A) economic profit. B) a minimum efficient scale. C) the price-earnings ratio. D) a normal

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 7 Part 3

21 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 7) Refer to Table 7.1. If the hourly wage rate is $10 and the hourly price of capital is $25, which production technology should be selected? A) A B) B C) C D) D

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 7 Part 4

31 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 37) Refer to Figure 7.4. The marginal product of the fourth worker is A) 8. B) 12.5. C) 48. D) 92. Answer: A Diff: 2 Answer: A Diff: 2 Answer: A Diff: 2 Topic:

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 7 Part 5

41 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 69) A firm is operating such that the marginal product of labor is 10 and the marginal product of capital is 20. The firm is minimizing its costs only if A) the wage is

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 7 Part 6

51 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 106) If diminishing marginal returns have already set in for Danica's Dog Training Emporium and the marginal product of the fifth dog trainer is 18, then the marginal product of the fourth dog trainer

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 7 Part 7

61 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 145) A production function shows the greatest amount that a firm will produce given the amount of labor input. Answer: TRUE Diff: 1 Answer: TRUE Diff: 1 Answer: TRUE Diff: 1 Topic: The Production

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 7 Part 8

71 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. A) $1,200. B) $1,800. C) $2,400. D) indeterminate from this information, as the price of labor is not given. Answer: B Diff: 2 Answer: B Diff: 2 Answer: B Diff: 2 Topic: Appendix: Isoquants

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 7 Part 9

78 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 49) Refer to Figure 7.10. If this firm's cost of capital is $40 per unit and its cost of labor is $20 per unit, the isocost line represents a total cost of A) $1,000.

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 7 Solution Manual

CHAPTER 7 1.1 The Total revenue is $300,000 ($15 x 20,000). The opportunity cost of the capital is 7% of $400,000 annually or $28,000. Total cost, including opportunity costs, is $250,000 for labor plus$28,000 for capital or $278,000. Profit is TR TC or $300,000 $278,000 = +$22,000. The firmis experiencing

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 8 Part 1

1 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 8 Short-Run Costs and Output Decisions 8.1 Costs in the Short Run 1) In the short run A) existing firms do not face limits

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 8 Part 2

11 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 33) Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, which of the following statements is true? A) The

Principles of Microeconomics 12th Edition

Exam Prep

978-0134078816 Chapter 8 Part 3

21 Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. Copyright 2017 Pearson Education, Inc. 68) If the marginal cost curve is below the average variable cost curve, then A) average variable costs are increasing. B) average variable costs are decreasing. C) marginal cost must be decreasing. D) average

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 8 Solution Manual

CHAPTER 8 1.1 The monthly payment and the insurance do not depend on the amount that you drive. They must be paid even if you do not drive. Thus, the fixed costs are $451.50 per month. The marginal costof a mile driven is $2.60 divided by 35, or 7.4 cents

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 9 Appendix Chapter 9

CHAPTER 9 APPENDIX 1A.1 Disagree. In the long run, expansion in an industry may cause input prices to increase. This is one reason for external economics of scalein this case, external diseconomies. The text provides anexample of this case in the housing industry, where an increase in industry size drove up

Principles of Microeconomics 12th Edition

Homework Help

978-0134078816 Chapter 9 Solution Manual

CHAPTER 9 1.1 (a) Disagree. A firm earning positive profits in the short run will have an incentive to expand its scale of operation only if it expects to continue to earn profits. If it doesnot expect to continue to earn positive profits, it should not expand its scale ofoperations.(b) Disagree.

Principles of Microeconomics 12th Edition

Trusted by Thousands of
Students

Here are what students say about us.

Albert

University of Michigan

“I found almost every finance case study paper for my MBA courses.”.

Anna

University of Massachutsetts

“Wow! Solution manual for 3 out of 4 courses.”.

Collins

Jacksonville State University

“One-stop shop for college students. I passed all my exams thanks to Coursepaper”.

Jill

Boston University

“A helpful studying resources, a combination of all studying material in one place”.

Drake

Clark Atlanta University

“I graduated thanks to Coursepaper”.

Karen

College of Charleston

“I invested in Coursepaper, and it is paid off after the first semester. I got straight A”.

Hill

Concordia University Irvine

“Awesome awesome awesome site”.

Rachel

Coppin State University

“The one website that I recommend to every college students”.

Principles of Microeconomics 12th Edition

Trusted by Thousands of
Students

Albert

Anna

Collins

Jill

Drake

Karen

Hill

Rachel

Kristopher

Resources

Company

Legal

Principles of Microeconomics 12th Edition

Trusted by Thousands ofStudents

Albert

Anna

Collins

Jill

Drake

Karen

Hill

Rachel

Kristopher

Resources

Company

Legal

Trusted by Thousands of
Students