Principles of Microeconomics 6th Edition

ISBN 13
978-0538453042
ISBN 10
0538453044
Authors
N. Gregory Mankiw
has exam prep Exam Prep  has homework help Homework Help
138 documents found.
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Chapter 1 Homework The Increase The Quantity Goods And Services
1 economists approach problems while Chapter 3 will explain how individuals and countries gain from trade. The purpose of Chapter 1 is to lay out ten economic principles that will serve as building blocks for the rest of the text. The ten principles can be grouped into three categories: how
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Chapter 10 Homework The Town Government Might Respond The Externality
why externalities can make market outcomes inefficient. the various government policies aimed at solving the problem of externalities. how people can sometimes solve the problem of externalities on their own. why private solutions to externalities sometimes do not work. why externalities can make market outcomes inefficient. the various
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Chapter 11 Homework The Landowners Would Then Have Some Incentive
why private markets fail to provide public goods. some of the important public goods in our economy. why the costbenefit analysis of public goods is both necessary and difficult. why people tend to use common resources too much. some of the important common resources in our economy. why
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Chapter 12 Homework Design The Tax System Property Tax Vacation
the efficiency costs of taxes. alternative ways to judge the equity of a tax system. why studying tax incidence is crucial for evaluating tax equity. the trade-off between efficiency and equity in the design of a tax system. the efficiency costs of taxes. alternative ways to judge the
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Chapter 13 Homework The Costs Production Activity Average And
the link between a firms production process and its total costs. the meaning of average total cost and marginal cost and how they are related. the shape of a typical firms cost curves. the link between a firms production process and its total costs. the meaning of average
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Chapter 14 Homework Total Revenue Marginal Revenue 8 Profit 8
252 Chapter 14/Firms in Competitive Markets 5. The profit will attract new firms into the market, shifting the supply curve to the right. 6. This will lower price until it falls back to the minimum of average total cost and firms are once again
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Chapter 14 Homework Universal Clones Inc You Are Responsible For
241 WHATS NEW IN THE SIXTH EDITION: There are no major changes in this chapter. LEARNING OBJECTIVES: By the end of this chapter, students should understand: what characteristics make a market competitive. how
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Chapter 15 Homework Analysis The Pharmaceutical Industry Has Shown That
262 WHATS NEW IN THE SIXTH EDITION: A new In the News box on President Obamas Antitrust Policy has been added. LEARNING OBJECTIVES: By the end of this chapter, students should understand: why some
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Chapter 15 Homework Larry Wants Sell Many Drinks Possible Without
Chapter 15/Monopoly 275 students and higher prices to wealthy students; and (5) quantity discounts, which offer lower prices for higher quantities, capturing more of a buyers willingness to pay. Many other examples are possible. Compared to a monopoly that charges a single price, perfect price discrimination reduces consumer
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Chapter 16 Homework Brand Names Provide Consumers With Information About
competition among firms that sell differentiated products. how the outcomes under monopolistic competition and under perfect competition compare. the desirability of outcomes in monopolistically competitive markets. the debate over the effects of advertising. the debate over the role of brand names. competition among firms that sell differentiated products.
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Chapter 17 Homework Why People Sometimes Cooperate While Cooperation Difficult
the prisoners dilemma and how it applies to oligopoly and other issues. how the antitrust laws try to foster competition in oligopolistic markets. the prisoners dilemma and how it applies to oligopoly and other issues. how the antitrust laws try to foster competition in oligopolistic markets.
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Chapter 18 Homework Also Some The Earnings From Capital May
why equilibrium wages equal the value of the marginal product of labor. how the other factors of productionland and capitalare compensated. how a change in the supply of one factor alters the earnings of all of the factors. why equilibrium wages equal the value of the marginal product
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Chapter 19 Homework One Study Found That Black Basketball Players
the human-capital and signaling theories of education. why in some occupations a few superstars earn tremendous incomes in some occupations. why wages rise above the level that balances supply and demand. why it is difficult to measure the impact of discrimination on wages. when market forces can and cannot
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Chapter 2 Homework Almost All Economists Believe That Rent Control
two simple modelsthe circular flow and the production possibilities frontier. the difference between microeconomics and macroeconomics. the difference between positive and normative statements. the role of economists in making policy. why economists sometimes disagree with one another. two simple modelsthe circular flow and the production possibilities frontier. the
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Chapter 20 Homework Welfare Definition Welfare Government Programs That Supplement
some problems that arise when measuring economic inequality. how political philosophers view the governments role in redistributing income. the various policies aimed at helping poor families escape poverty. some problems that arise when measuring economic inequality. how political philosophers view the governments role in redistributing income. the various
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Chapter 21 Homework How Indifference Curves Can Be Used To Represent A Consumer’s 
363 WHATS NEW IN THE SIXTH EDITION: A new In the News box on Backward-sloping Labor Supply in Kiribati has been added. LEARNING OBJECTIVES: By the end of this chapter, students should understand:
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Chapter 21 Homework The Income Effect Means Mario Will Consume
Chapter 21/The Theory of Consumer Choice 377 7. Because of this ambiguity, it is not clear how changing the way interest income is taxed will affect overall savings rates. 7. Because of this ambiguity, it is not clear how changing the way interest income is taxed will
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Chapter 22 Homework Definition Median Voter Theorem Mathematical Result Showing
the market solutions to asymmetric information. why democratic voting systems may not represent the preferences of society. why people may not always behave as rational maximizers. the market solutions to asymmetric information. why democratic voting systems may not represent the preferences of society. why people may not always
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Chapter 3 Homework The Opportunity Costs Are Constant The Production
the meaning of absolute advantage and comparative advantage. how comparative advantage explains the gains from trade. how to apply the theory of comparative advantage to everyday life and national policy. the meaning of absolute advantage and comparative advantage. how comparative advantage explains the gains from trade. how to
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Chapter 4 Homework Definition Equilibrium Situation Which The Market Price
51 WHATS NEW IN THE SIXTH EDITION: The In the News feature Price Increases after Natural Disasters has been updated with a new article. LEARNING OBJECTIVES: By the end of this chapter, students should understand:
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Chapter 4 Homework Supply Not Affected Result Both The Equilibrium
68 Chapter 4/The Market Forces of Supply and Demand SOLUTIONS TO TEXT PROBLEMS: Quick Quizzes 1. A market is a group of buyers (who determine demand) and a group of sellers (who determine supply) of a particular good or service. A perfectly competitive market is one in
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Chapter 5 Homework What Happens Supply Increases Price Falls And
what determines the elasticity of demand. the meaning of the elasticity of supply. what determines the elasticity of supply. the concept of elasticity in three very different markets (the market for wheat, the market for oil, and the market for illegal drugs). what determines the elasticity of demand.
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Chapter 6 Homework Elasticity And Tax Incidence When Supply Elastic
the effects of government policies that put a floor under prices. how a tax on a good affects the price of the good and the quantity sold. that taxes levied on sellers and taxes levied on buyers are equivalent. how the burden of a tax is split between buyers
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Chapter 7 Homework Ernie Produced One Less Bottle His Producer
Chapter 7/Consumers, Producers, and the Efficiency of Markets 133 quantity would lower total surplus because the value to the marginal buyer would be lower than the cost to the marginal seller on those additional units. Questions for Review 1. The price a buyer is willing to
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Chapter 7 Homework Then Through Consumer Surplus Before The
121 rkets WHATS NEW IN THE SIXTH EDITION: There are no major changes to this chapter. LEARNING OBJECTIVES: By the end of this chapter, students should understand: the link between buyers willingness to
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Chapter 8 Homework Figure The Deadweight Loss Tax Greater The
the meaning and causes of the deadweight loss from a tax. why some taxes have larger deadweight losses than others. how tax revenue and deadweight loss vary with the size of a tax. the meaning and causes of the deadweight loss from a tax. why some taxes have
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Chapter 9 Homework The Us Economy Achieved And Maintained
160 WHATS NEW IN THE SIXTH EDITION: A new In the News feature on Trade Skirmishes has been added. LEARNING OBJECTIVES: By the end of this chapter, students should understand: what determines whether
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Economics Chapter 1 Opportunity Cost Applicative Ten Principles Economics
1 ANS: A PTS: 1 DIF: 1 REF: 1-0 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Scarcity MSC: Definitional 1 ANS: A PTS: 1 DIF: 1 REF: 1-0 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Scarcity MSC: Definitional 1
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Economics Chapter 1 The City Government Announced A Plan To Build A New Landfill
Chapter 1/Ten Principles of Economics 21 85. Rick buys a 1966 Mustang for $3,000, planning to restore and sell the car. He goes on to spend $9,000 restoring the car. At this point he can sell the car for $10,000. As an alternative, he can spend an additional
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Economics Chapter 1 Which Of The Following Is An Important Cause Of Inflation
52 Chapter 1/Ten Principles Of Economics 53. Which of the following is an important cause of inflation in an economy? a. increases in productivity in the economy b. the influence of positive externalities on the economy c. lack of property rights in the economy d. growth in the
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Economics Chapter 1 Which Of These Activities Will Most Likely Impose An External
Chapter 1/Ten Principles of Economics 41 85. Which of these activities will most likely impose an external cost? a. Betty plants flowers in her garden. b. Bonnie gets a flu vaccine. c. Bridget drives her car after having too much alcohol to drink. d. Becky buys a new
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Economics Chapter 10 Externalities 41156 Refer Figure 1011
Chapter 10/Externalities 41 156. Refer to Figure 10-11. On the a. 260th unit of output, private value exceeds private cost. b. 260th unit of output, private value exceeds external value. c. 300th unit of output, private value exceeds social value. d. 300th unit of output, private cost exceeds
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Economics Chapter 10 Neither Corrective Taxes Nor Pollution Permits Internalize
Chapter 10/Externalities 61 Figure 10-16 77. Refer to Figure 10-16. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. The equilibrium price of pollution is a. $50 b. $500 c. $1,000 d. $2,000 ANS: C PTS: 1 DIF:
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Economics Chapter 10 Require Producers Quot Clean Up Quot Any Spillover That
Chapter 10/Externalities 21 Figure 10-7 67. Refer to Figure 10-7. Which quantity represents the social optimum for this market? a. Q1. b. Q2. c. Q3. d. Q4. ANS: C PTS: 1 DIF: 2 REF: 10-1 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Positive externalities MSC:
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Economics Chapter 10 Take Into Account Private And External Costs And Assume 
76 Chapter 10/Externalities 27. The Coase theorem states that a. under certain circumstances government intervention is not needed to reach efficient outcomes when an externality is present. b. government intervention is always required to reach an efficient outcome when an externality is present. c. government intervention cannot lead
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Economics Chapter 10 When Externalities Are Present In A Market
1 ANS: C PTS: 1 DIF: 1 REF: 10-0 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Externalities MSC: Applicative 1 ANS: C PTS: 1 DIF: 1 REF: 10-0 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Externalities MSC: Applicative 1 ANS: C PTS: 1 DIF: 1
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Economics Chapter 11 For Private Goods Allocated In Markets
Chapter 11/Public Goods and Common Resources 21 49. The difference between specific knowledge and general knowledge is that a. the creation of general knowledge is usually more profitable for the creator. b. specific knowledge is excludable, while general knowledge is not excludable. c. general knowledge is excludable, while
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Economics Chapter 11 Four Friends Decide To Meet At A Chinese Restaurant For Dinner
Chapter 11/Public Goods and Common Resources 53 89. Refer to Figure 11-1. For which two boxes is it the case that externalities arise because something of value has no price attached to it? a. Box A and Box B b. Box A and Box C c. Box B
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Economics Chapter 11 The Coase Theorem States That 
1 ANS: D PTS: 1 DIF: 1 REF: 11-0 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Private goods MSC: Applicative 1 ANS: D PTS: 1 DIF: 1 REF: 11-0 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Private goods MSC: Applicative 1 ANS: D PTS: 1
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Economics Chapter 11 The Difference Between Specific Knowledge And General Knowledge
Chapter 11/Public Goods and Common Resources 41 29. Which of the following statements is not correct? a. A free rider is a person who benefits from something for which he or she does not have to pay. b. The creation of general knowledge is a public good. c.
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Economics Chapter 12 A Taxpayer Faces The Following Tax Rates On Her Income
Chapter 12/The Design of the Tax System 41 89. A person's marginal tax rate equals a. her tax obligation divided by her average tax rate. b. the increase in taxes she would pay as a percentage of the rise in her income. c. her tax obligation divided by
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Economics Chapter 12 For Which Two Boxes Is It The Case That Externalities
1 ANS: A PTS: 1 DIF: 1 REF: 12-0 NAT: Analytic LOC: The role of government TOP: Tax burden MSC: Applicative 1 ANS: A PTS: 1 DIF: 1 REF: 12-0 NAT: Analytic LOC: The role of government TOP: Tax burden MSC: Applicative 1 ANS: A PTS: 1 DIF: 1 REF:
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Economics Chapter 12 The Table Below Provides Information On The 4 Households
Chapter 12/The Design of the Tax System 73 Table 12-16 The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes. Household Ability to Pay Tax A Tax B Tax C A
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Economics Chapter 12 The Tax That Generates The Most Revenue For State 
Chapter 12/The Design of the Tax System 21 107. Which of the following statements is not correct? a. All states have state income taxes, but the percentages vary widely. b. Sales taxes and property taxes are important revenue sources for state and local governments. c. Medicare spending has
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Economics Chapter 12 Vertical Equity States That Taxpayers With A Greater Ability
Chapter 12/The Design of the Tax System 61 10. Vertical equity states that taxpayers with a greater ability to pay taxes should a. contribute a decreasing proportion of each increment in income to taxes. b. contribute a larger amount than those with a lesser ability to pay. c.
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Economics Chapter 13 Jennifer Junior College Her Current Cumulative
Chapter 13/The Costs of Production 61 104. Refer to Scenario 13-14. Farmer Browns marginal cost of producing 9 units of output (using 2 bags of seed) is a. $240. b. $120. c. $40. d. $30. ANS: D PTS: 1 DIF: 3 REF: 13-3 NAT: Analytic LOC: Costs of
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Economics Chapter 13 The Long-run Average Total Cost Curve Is Always
Chapter 13/The Costs of Production 81 11. The long-run average total cost curve is always a. flatter than the short-run average total cost curve, but not necessarily horizontal. b. horizontal. c. falling as output increases. d. rising as output increases. ANS: A PTS: 1 DIF: 2 REF: 13-4
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Economics Chapter 13 What Decisions Lie Behind The Market Supply Curve
1 ANS: C PTS: 1 DIF: 1 REF: 13-0 NAT: Analytic LOC: Costs of production TOP: Industrial organization MSC: Definitional 1 ANS: C PTS: 1 DIF: 1 REF: 13-0 NAT: Analytic LOC: Costs of production TOP: Industrial organization MSC: Definitional 1 ANS: C PTS: 1 DIF: 1 REF: 13-0
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Economics Chapter 13 Which Of The Following Costs Would Be A Fixed Cost
Chapter 13/The Costs of Production 41 5. For a construction company that builds houses, which of the following costs would be a fixed cost? a. the $50,000 per year salary paid to a construction foreman b. the $30,000 per year salary paid to the company's bookkeeper c. the
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Economics Chapter 13 Which The Following Possibilities Consistent With The Property
Chapter 13/The Costs of Production 21 97. Refer to Scenario 13-9. An accountant would calculate the total profit for one photo frame to be a. $10. b. $15. c. $20. d. $25. ANS: D PTS: 1 DIF: 2 REF: 13-1 NAT: Analytic LOC: Costs of production TOP: Accounting
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Economics Chapter 14 A Firm Will Shut Down In The Short Run If The Total Revenue
Chapter 14/Firms in Competitive Markets 61 191. A firm will shut down in the short run if the total revenue that it would get from producing and selling its out- put is less than its a. opportunity costs. b. fixed costs. c. variable costs. d. total costs. ANS: C
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Economics Chapter 14 Max Hires A Business Consultant To Analyze
Chapter 14/Firms in Competitive Markets 21 13. Max sells maps. The map industry is competitive. Max hires a business consultant to analyze his companys financial records. The consultant recommends that Max increase his production. The consultant must have concluded that Maxs a. total revenues exceed his total accounting
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Economics Chapter 14 The Analysis Of Competitive Firms Sheds Light On The Decisions
1 ANS: D PTS: 1 DIF: 2 REF: 14-0 NAT: Analytic LOC: Perfect competition TOP: Competitive markets MSC: Applicative 1 ANS: D PTS: 1 DIF: 2 REF: 14-0 NAT: Analytic LOC: Perfect competition TOP: Competitive markets MSC: Applicative 1 ANS: D PTS: 1 DIF: 2 REF: 14-0 NAT: Analytic
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Economics Chapter 14 When Firms In A Perfectly Competitive Market Face The Same Costs
80 Chapter 14/Firms in Competitive Markets 62. When firms in a perfectly competitive market face the same costs, in the long run they must be operating a. under diseconomies of scale. b. with small, but positive, levels of profit. c. at their efficient scale. d. where price is
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Economics Chapter 14 When Price Exceeds Average Variable Cost In The Short Run
Chapter 14/Firms in Competitive Markets 41 100. Refer to Scenario 14-1. At Q = 999, the firm's total costs equal a. $10,985. b. $10,990. c. $10,995. d. $10,999. ANS: A PTS: 1 DIF: 3 REF: 14-2 NAT: Analytic LOC: Perfect competition TOP: Total cost MSC: Applicative ANS: A
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Economics Chapter 15 Electricity Producers Were Thought To Be A Classic Example 
Chapter 15/Monopoly 93 39. For a long while, electricity producers were thought to be a classic example of a natural monopoly. People held this view because a. the average cost of producing units of electricity by one producer in a specific region was lower than if the same
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Economics Chapter 15 Figure 152 Which Panel Could Represent The
Chapter 15/Monopoly 21 26. A monopolist's average revenue is always a. equal to marginal revenue. b. greater than the price of its product. c. equal to the price of its product. d. less than the price of its product. ANS: C PTS: 1 DIF: 2 REF: 15-2 NAT:
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Economics Chapter 15 The Consumer Surplus At The Monopolist’s Profit-maximizing
Chapter 15/Monopoly 81 Figure 15-17 Demand MC MR 10 20 30 40 50 60 70 80 Quantity 10 20 30 40 50 60 70 80 90 100 Price 62. Refer to Figure 15-17. The consumer surplus at the monopolists profit-maximizing price is a. $450. b. $900. c. $1,350. d. $2,025. ANS: A PTS: 1 DIF: 2 REF: 15-4 NAT: Analytic LOC: Monopoly
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Economics Chapter 15 What Is The Total Revenue From Selling 6 Pairs Of Shoes
Chapter 15/Monopoly 41 116. Refer to Table 15-7. What is the total revenue from selling 6 pairs of shoes? a. $100 b. $600 c. $625 d. $660 ANS: D PTS: 1 DIF: 2 REF: 15-2 NAT: Analytic LOC: Monopoly TOP: Total revenue MSC: Applicative ANS: D PTS: 1
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Economics Chapter 15 Which The Following Statements About This Issue
Chapter 15/Monopoly 61 33. To maximize total surplus with a monopoly firm, a benevolent social planner would choose the level of output where a. MR = MC. b. MR intersects the demand curve. c. MC intersects the demand curve. d. MR exceeds MC by the greatest amount. ANS:
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Economics Chapter 16 A Profit-maximizing Firm In A Monopolistically Competitive Market
Chapter 16 /Monopolistic Competition 21 24. A profit-maximizing firm in a monopolistically competitive market is characterized by which of the follow- ing? a. marginal cost exceeds marginal revenue b. average revenue equals marginal cost c. price exceeds marginal cost d. All of the above are correct. ANS: C PTS:
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Economics Chapter 16 In A Long-run Equilibrium, Price Is Equal To Average Total Cost
Chapter 16 /Monopolistic Competition 41 119. "In a long-run equilibrium, price is equal to average total cost." This statement applies to a. competitive markets, but not to monopolistically competitive markets or monopolies. b. competitive and monopolistically competitive markets, but not to monopolies. c. competitive markets, monopolistically competitive markets,
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Economics Chapter 16 Which Of The Following Is A Characteristic Of Monopolistic
1 ANS: B PTS: 1 DIF: 1 REF: 16-1 NAT: Analytic LOC: Monopolistic competition TOP: Imperfect competition MSC: Interpretive 1 ANS: B PTS: 1 DIF: 1 REF: 16-1 NAT: Analytic LOC: Monopolistic competition TOP: Imperfect competition MSC: Interpretive 1 ANS: B PTS: 1 DIF: 1 REF: 16-1 NAT: Analytic
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Economics Chapter 16 Which Of The Following Represents The Best Government 
Chapter 16 /Monopolistic Competition 61 214. Which of the following represents the best government policy to reduce the deadweight loss associated with a monopolistically competitive market? a. The government should regulate firms in a manner similar to natural monopolies. b. The government should encourage more firms to enter
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Economics Chapter 16 Which Of The Following Statements Regarding Brand Names 
78 Chapter 16 /Monopolistic Competition 65. Which of the following statements regarding brand names in advertising is not correct? a. Brand names provide consumers with information about quality when quality cannot be easily judged in advance of purchase. b. Brand names give firms an incentive to maintain high
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Economics Chapter 17 Each Face The Marginal Cost Curve Shown In The Diagram
Chapter 17/Oligopoly 21 95. Refer to Figure 17-1. Suppose this market is served by two firms who each face the marginal cost curve shown in the diagram and have zero fixed cost. The marginal revenue curve that a monopolist would face in this market is also shown. If
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Economics Chapter 17 Nash Equilibrium Since Players After Agreeing Play
Chapter 17/Oligopoly 41 53. Suppose two companies own adjacent oil fields. Under the two fields is a common pool of oil worth $30 mil- lion. For each well that is drilled, the company that drills the well incurs a cost of $3 million. Each company can drill up to
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Economics Chapter 17 None The Above Correct The Sherman Act
Chapter 17/Oligopoly 61 141. Refer to Table 17-24. What is the Nash equilibrium? a. A and B both stay in business b. A stays in business, B sells c. B stays in business, A sells d. Both A and B sell ANS: B PTS: 1 DIF: 3 REF:
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Economics Chapter 17 The Practice Of Requiring Someone To Buy Two Or More Items Together
72 Chapter 17/Oligopoly 41. The practice of requiring someone to buy two or more items together, rather than separately, is called a. resale maintenance. b. product fixing. c. tying. d. free-riding. ANS: C PTS: 1 DIF: 1 REF: 17-3 NAT: Analytic LOC: Oligopoly TOP: Tying MSC: Definitional ANS:
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Economics Chapter 17 What Price Will They Charge For Subscription When
1 Chapter 17 Oligopoly MULTIPLE CHOICE 1. Which of the following statements about oligopolies is not correct? a. An oligopolistic market has only a few sellers. b. The actions of any one seller can have a large impact on the profits of all other sellers. c. Oligopolistic firms are
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Economics Chapter 18 Dan Owns One Of The Many Bakeries In New York City
Chapter 18/The Market For the Factors of Production 41 183. Dan owns one of the many bakeries in New York City. Which of the following events will lead to an increase in Dan's demand for the services of bakers? (i) The price of muffins increases. (Muffins are Dan's
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Economics Chapter 18 The Firm Hires The Factor Up To The Point Where The Value 
Chapter 18/The Market For the Factors of Production 75 40. "The firm hires the factor up to the point where the value of the factor's marginal product is equal to the factor's price." This statement applies to which factor of production? a. labor only b. land only c.
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Economics Chapter 18 The Following Table Shows The Number Of Calculators That 
Chapter 18/The Market For the Factors of Production 21 90. Refer to Figure 18-3. Suppose that the price of the output is $20. What is the value of the marginal product of the third worker? a. $2 b. $10 c. $40 d. $280 ANS: C PTS: 1 DIF:
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Economics Chapter 18 Us Economy Fails Confirm That Link C Evidence
Chapter 18/The Market For the Factors of Production 61 Figure 18-10 37. Refer to Figure 18-10. When the relevant labor demand curve is D1 and the labor market is in equilibrium, a. the value of the marginal product of labor to firms is less than W1. b.
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Economics Chapter 18 Which Of The Following Is An Example Of A Firm’s 
1 ANS: C PTS: 1 DIF: 1 REF: 18-0 NAT: Analytic LOC: Labor markets TOP: Factor markets MSC: Definitional 1 ANS: C PTS: 1 DIF: 1 REF: 18-0 NAT: Analytic LOC: Labor markets TOP: Factor markets MSC: Definitional 1 ANS: C PTS: 1 DIF: 1 REF: 18-0 NAT: Analytic
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Economics Chapter 19 Earnings And Discrimination Labor Unions Will
74 Chapter 19/Earnings and Discrimination 105. White women earn an average of 24% less than white men. A labor economist who wants to inves- tigate whether the differences in earnings indicate labor-market discrimination against women should consider whether white men and women have similar (i) years of work experience.
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Exam Prep
Economics Chapter 19 Freedonia Men And Women Have The Same
Chapter 19/Earnings and Discrimination 61 48. The profit motive counteracts a. consumer discrimination. b. discrimination in sports. c. the beauty premium. d. None of the above is correct. ANS: D PTS: 1 DIF: 2 REF: 19-2 NAT: Analytic LOC: Labor markets TOP: Labor-market discrimination MSC: Interpretive ANS: D
Principles of Microeconomics 6th Edition
668182
Exam Prep
Economics Chapter 19 When The Supply Of Workers Is Plentiful, One Would Predict
1 ANS: D PTS: 1 DIF: 1 REF: 19-1 NAT: Analytic LOC: Labor markets TOP: Wages MSC: Interpretive 1 ANS: D PTS: 1 DIF: 1 REF: 19-1 NAT: Analytic LOC: Labor markets TOP: Wages MSC: Interpretive 1 ANS: D PTS: 1 DIF: 1 REF: 19-1 NAT: Analytic LOC: Labor
Principles of Microeconomics 6th Edition
668185
Exam Prep
Economics Chapter 19 Workers With More Human Capital On Average Earn Substantially
Chapter 19/Earnings and Discrimination 21 96. Workers with more human capital on average earn substantially higher pay than workers with less human capital in a. most countries but not in the United States. b. the United States but not in most other countries. c. the United States and
Principles of Microeconomics 6th Edition
668188
Exam Prep
Economics Chapter 19 You May Assume That Worker A And Worker
Chapter 19/Earnings and Discrimination 41 181. Which of the following statements is not correct? a. Some firms pay wages that are above the equilibrium wage. b. Workers sometimes form labor unions to push their wages up. c. Wages never deviate from the balance of supply and demand in
Principles of Microeconomics 6th Edition
667927
Exam Prep
Economics Chapter 2 Economists Use Some Familiar Terms In Specialized
Chapter 2 Thinking Like an Economist MULTIPLE CHOICE 1. Which of the following is not correct? a. Economists use some familiar words in specialized ways. b. Economics has its own language and its own way of thinking, but few other fields of study do. c. Supply, demand,
Principles of Microeconomics 6th Edition
667930
Exam Prep
Economics Chapter 2 Production Possibilities Frontier Economic Growth Applicative Thinking
Chapter 2/Thinking Like an Economist 21 108. Refer to Figure 2-2. If Box A of this circular-flow diagram represents firms, then which box represents households? a. Box B b. Box C c. Box D d. Any one of the other boxes (B, C, or D) could represent households.
Principles of Microeconomics 6th Edition
667936
Exam Prep
Economics Chapter 2 The Study Economics And Definitions Economic Stop
Chapter 2/Thinking Like an Economist 61 59. Congress relies on economists at the Congressional Budget Office to a. enforce the nation's antitrust laws. b. set the nations monetary policy. c. provide evidence that incumbent members of Congress are performing well in their jobs. d. provide independent evaluations of
Principles of Microeconomics 6th Edition
667933
Exam Prep
Economics Chapter 2 Which Of The Following Is Not A Result Of The Shift Of The Economy’s
Chapter 2/Thinking Like an Economist 41 197. Refer to Figure 2-8, Panel (a). The opportunity cost of moving from point J to point L is a. 2 donuts. b. 2 donuts and 2 cups of coffee. c. 2 cups of coffee. d. 6 cups of coffee.
Principles of Microeconomics 6th Edition
667939
Exam Prep
Economics Chapter 2 While The Scientific Method Is Applicable To Studying Natural
Chapter 2/Thinking Like an Economist 81 Figure 2-17 Relationship Between Years of Education and Annual Income income education 2 4 6 8 10 12 14 16 18 20 years of 20000 40000 60000 80000 100000 120000 140000 annual 66. Refer to Figure 2-17. The graph above is a a. bar graph b. scatterplot c. pie chart d. time
Principles of Microeconomics 6th Edition
668206
Exam Prep
Economics Chapter 20 Below What Level Of Income Would Families Start To Receive 
58 Chapter 20/Income Inequality and Poverty 30. Since the early 1970s, welfare benefits have declined, a. which is largely due to the success of the negative income tax program. b. which is largely due to the success of private charities. c. yet the percentage of children living with
Principles of Microeconomics 6th Edition
668197
Exam Prep
Economics Chapter 20 Labor Earnings Are What Percent Of Total Income
1 ANS: B PTS: 1 DIF: 1 REF: 20-0 NAT: Analytic LOC: Efficiency and equity TOP: Income inequality MSC: Applicative 1 ANS: B PTS: 1 DIF: 1 REF: 20-0 NAT: Analytic LOC: Efficiency and equity TOP: Income inequality MSC: Applicative 1 ANS: B PTS: 1 DIF: 1 REF: 20-0 NAT:
Principles of Microeconomics 6th Edition
668203
Exam Prep
Economics Chapter 20 Which Of The Following Statements Is Characteristic Of 
Chapter 20/Income Inequality and Poverty 41 9. Utilitarianism is a. a liberal religion that focuses on individual rights. b. a political philosophy that believes the government should choose policies deemed to be just by an impartial observer. c. a political philosophy that believes the government should not redistribute
Principles of Microeconomics 6th Edition
668200
Exam Prep
Economics Chapter 20 Who Lived In A Female-headed Household Lived Below 
Chapter 20/Income Inequality and Poverty 21 81. The distribution of income for Danville is as follows: Number of Families Income 500 less than $15,000 600 between $15,000 and $20,000 1,000 between $20,000 and $25,000 700 between $25,000 and $30,000 500 over $30,000 If
Principles of Microeconomics 6th Edition
668216
Exam Prep
Economics Chapter 21 A Consumer Consumes Two Normal Goods, Popcorn And Pepsi
Chapter 21/The Theory of Consumer Choice 81 115. A consumer consumes two normal goods, popcorn and Pepsi. The price of Pepsi rises. The substi- tution effect, by itself, suggests that the consumer will consume a. more popcorn and more Pepsi. b. less popcorn and less Pepsi. c. more popcorn
Principles of Microeconomics 6th Edition
668214
Exam Prep
Economics Chapter 21 Changes Income Affect The Slope
Chapter 21/The Theory of Consumer Choice 61 27. A consumer chooses an optimal consumption point where the a. marginal rate of substitution equals the relative price ratio. b. slope of the indifference curve equals the slope of the budget constraint. c. ratio of the marginal utilities equals the
Principles of Microeconomics 6th Edition
668218
Exam Prep
Economics Chapter 21 Draw Budget Constraint That Consistent With The
98 Chapter 21/The Theory of Consumer Choice 49. Assume that consumption when young and consumption when old are both normal goods. The in- come effect of an increase in the interest rate will result in a. an increase in saving when young. b. an increase in saving when old.
Principles of Microeconomics 6th Edition
668212
Exam Prep
Economics Chapter 21 He Divides His Leisure Hours Between The Two Outdoor
Chapter 21/The Theory of Consumer Choice 41 48. Bob enjoys fishing and hunting. He divides his leisure hours between the two outdoor activities. Suppose we were to draw Bobs indifference curves for the two activities, placing fishing on the horizontal axis and hunting on the vertical axis. If
Principles of Microeconomics 6th Edition
668210
Exam Prep
Economics Chapter 21 Walter Prefers Watching Football Watching Baseball But
Chapter 21/The Theory of Consumer Choice 21 paperback novels. Which consumer(s) can afford to purchase 5 slices of pizza and 5 paperback nov- els? a. Jack only b. Diane only c. both Jack and Diane d. neither Jack nor Diane ANS: D PTS: 1 DIF: 2 REF: 21-1 NAT: Analytic
Principles of Microeconomics 6th Edition
668208
Exam Prep
Economics Chapter 21 Which Of The Following Does Not Represent A Tradeoff Facing
1 ANS: A PTS: 1 DIF: 1 REF: 21-0 NAT: Analytic LOC: Utility and consumer choice TOP: Consumer choice MSC: Interpretive 1 ANS: A PTS: 1 DIF: 1 REF: 21-0 NAT: Analytic LOC: Utility and consumer choice TOP: Consumer choice MSC: Interpretive 1 ANS: A PTS: 1 DIF: 1
Principles of Microeconomics 6th Edition
668220
Exam Prep
Economics Chapter 22 Axident Agent This Principal Agent Problem C This Moral
1 ANS: B PTS: 1 DIF: 1 REF: 22-0 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Frontiers of microeconomics MSC: Interpretive 1 ANS: B PTS: 1 DIF: 1 REF: 22-0 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Frontiers of
Principles of Microeconomics 6th Edition
668226
Exam Prep
Economics Chapter 22 Economic Policy That Appears To Be Ideal In An Economics
Chapter 22/Frontiers in Microeconomics 61 141. Economic policy that appears to be ideal in an economics textbook may not be the final policy that is approved by elected politicians because a. sometimes a politicians self interest may conflict with the national interest. b. economics professors have a notoriously
Principles of Microeconomics 6th Edition
668224
Exam Prep
Economics Chapter 22 Refer Scenario 224 The Vote Were Conducted
Chapter 22/Frontiers in Microeconomics 41 Table 22-6 Voter Type Type 1 Type 2 Type 3 Percent of electorate 55 30 15 First choice C B A Second choice B A B Third choice A C C 73. Refer to Table 22-6. The table shows the preferences
Principles of Microeconomics 6th Edition
668222
Exam Prep
Economics Chapter 22 The Paradox Implies That Pairwise Voting Sometimes
Chapter 22/Frontiers in Microeconomics 21 84. Budweiser typically purchases several 30 second advertising spots during the Super Bowl at a very high cost. Miller Brewing Co. typically does not advertise during the Super Bowl. Which of the following is correct? a. Budweiser chooses to signal during the Super
Principles of Microeconomics 6th Edition
667957
Exam Prep
Economics Chapter 3 Gains From Trade, Specialization And Trade
92 Chapter 3/Interdependence and the Gains from Trade Figure 3-11 The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month. (in pounds) (in pounds) 40 80 120 160 200 240 280 320 360 400 Ham 40 80 120 160 200 240 280 320 360 Cheese 28.
Principles of Microeconomics 6th Edition
667951
Exam Prep
Economics Chapter 3 Interdependence And The Gains From Trade181
Chapter 3/Interdependence and the Gains from Trade 61 133. Refer to Table 3-11. Varick has an absolute advantage in the production of a. wheat. b. cloth. c. both goods. d. neither good. ANS: B PTS: 1 DIF: 2 REF: 3-2 NAT: Analytic LOC: Gains from trade, specialization and
Principles of Microeconomics 6th Edition
667942
Exam Prep
Economics Chapter 3 Production Analytical Interdependence And The Gains From
1 ANS: A PTS: 1 DIF: 2 REF: 3-1 NAT: Analytic LOC: Gains from trade, specialization and trade TOP: Gains from trade MSC: Applicative 1 ANS: A PTS: 1 DIF: 2 REF: 3-1 NAT: Analytic LOC: Gains from trade, specialization and trade TOP: Gains from trade MSC: Applicative 1
Principles of Microeconomics 6th Edition
667948
Exam Prep
Economics Chapter 3 Suppose That A Worker In Radioland Can Produce Either 4 Radios
Chapter 3/Interdependence and the Gains from Trade 41 38. Which of the following statements is not correct? a. Trade allows for specialization. b. Trade has the potential to benefit all nations. c. Trade allows nations to consume outside of their production possibilities curves. d. Absolute advantage is the
Principles of Microeconomics 6th Edition
667945
Exam Prep
Economics Chapter 3 The Rate Of Trade Off Between Producing Chairs And Producing
Chapter 3/Interdependence and the Gains from Trade 21 67. Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches depends on how many chairs and couches are being produced in a. Panel (a). b. Panel (b). c. both Panel (a) and Panel (b). d.
Principles of Microeconomics 6th Edition
667954
Exam Prep
Economics Chapter 3 Worldwide Production Goods And Services Would Increase C
Chapter 3/Interdependence and the Gains from Trade 81 218. Refer to Table 3-1. Relative to the rancher, the farmer has a comparative advantage in the production of a. meat, but not in the production of potatoes. b. potatoes, but not in the production of meat. c. both meat
Principles of Microeconomics 6th Edition
667965
Exam Prep
Economics Chapter 4 Holding The Nonprice Determinants Of Supply Constant
Chapter 4/The Market Forces of Supply and Demand 41 7. Holding the nonprice determinants of supply constant, a change in price would a. result in either a decrease in supply or an increase in supply. b. result in a movement along a stationary supply curve. c. result in
Principles of Microeconomics 6th Edition
667970
Exam Prep
Economics Chapter 4 The Market Forces Supply And Demand
Chapter 4/The Market Forces of Supply and Demand 81 94. Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market? a. Equilibrium price would decrease, but
Principles of Microeconomics 6th Edition
667968
Exam Prep
Economics Chapter 4 The Quantity Of The Good That Buyers Are Willing And Able To Buy
Chapter 4/The Market Forces of Supply and Demand 61 98. Refer to Figure 4-13. If the supply curves that are drawn represent supply curves for single-family residential houses, then the movement from S to S could be caused by a(n) a. increase in the price of apartments which
Principles of Microeconomics 6th Edition
667973
Exam Prep
Economics Chapter 4 The Signals That Guide The Allocation Of Resources In A Market
98 Chapter 4/The Market Forces of Supply and Demand 2. The signals that guide the allocation of resources in a market economy are a. surpluses and shortages. b. quantities. c. government policies. d. prices. ANS: D PTS: 1 DIF: 1 REF: 4-5 NAT: Analytic LOC: Supply and demand
Principles of Microeconomics 6th Edition
667960
Exam Prep
Economics Chapter 4 The Two Words Most Often Used By Economists Area
1 ANS: D PTS: 1 DIF: 1 REF: 4-0 NAT: Analytic LOC: Supply and demand TOP: Market economies MSC: Definitional 1 ANS: D PTS: 1 DIF: 1 REF: 4-0 NAT: Analytic LOC: Supply and demand TOP: Market economies MSC: Definitional 1 ANS: D PTS: 1 DIF: 1 REF: 4-0
Principles of Microeconomics 6th Edition
667963
Exam Prep
Economics Chapter 4 Which Of The Following Points Is On The Market Demand Curve
Chapter 4/The Market Forces of Supply and Demand 21 52. Suppose Spencer and Kate are the only two demanders of lemonade. Each month, Spencer buys six glasses of lemonade when the price is $1.00 per glass, and he buys four glasses when the price is $1.50 per glass.
Principles of Microeconomics 6th Edition
667982
Exam Prep
Economics Chapter 5 Moving Downward And To The Right Along A Linear Demand Curve
Chapter 5/Elasticity and Its Application/ 41 198. Moving downward and to the right along a linear demand curve, we know that total revenue a. first increases, then decreases. b. first decreases, then increases. c. always increases. d. always decreases. ANS: A PTS: 1 DIF: 2 REF: 5-1 NAT:
Principles of Microeconomics 6th Edition
667988
Exam Prep
Economics Chapter 5 Necessities Tend To Have Inelastic Demands, Whereas Luxuries
92 Chapter 5/Elasticity and Its Application 11. Necessities tend to have inelastic demands, whereas luxuries tend to have elastic demands. ANS: T PTS: 1 DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand | Elastic demand | Inelastic demand MSC: Interpretive ANS: T PTS:
Principles of Microeconomics 6th Edition
667986
Exam Prep
Economics Chapter 5 Us Customs Agents Perform DNA Testing On The
Chapter 5/Elasticity and Its Application/ 81 Figure 5-17 SupplyA Quantity Price Supply B Quantity Price Supply C Quantity Price Supply D Quantity Price 85. Refer to Figure 5-17. Which of the following statements is not correct? a. Supply curve A is perfectly inelastic. b. Supply curve B is perfectly elastic. c. Supply curve C is unit elastic. d. Supply
Principles of Microeconomics 6th Edition
667979
Exam Prep
Economics Chapter 5 Using The Midpoint Approach Calculate The Price Elasticity
Chapter 5/Elasticity and Its Application/ 21 Table 5-2 Price Quantity $100 0 $80 10 $60 20 $40 30 $20 40 $0 50 102. Refer to Table 5-2. Using the midpoint method, if the price falls from $80 to $60, the absolute value of the price elasticity of demand
Principles of Microeconomics 6th Edition
667984
Exam Prep
Economics Chapter 5 Using The Midpoint Method Supply Isa Elastic And
Chapter 5/Elasticity and Its Application/ 61 41. Cross-price elasticity of demand measures how a. the price of one good changes in response to a change in the price of another good. b. the quantity demanded of one good changes in response to a change in the quantity demanded
Principles of Microeconomics 6th Edition
667976
Exam Prep
Economics Chapter 5 Which Of The Following Statements Most Likely Applicable
1 ANS: A PTS: 1 DIF: 2 REF: 5-0 NAT: Analytic LOC: Elasticity TOP: Elasticity MSC: Applicative 1 ANS: A PTS: 1 DIF: 2 REF: 5-0 NAT: Analytic LOC: Elasticity TOP: Elasticity MSC: Applicative 1 ANS: A PTS: 1 DIF: 2 REF: 5-0 NAT: Analytic LOC: Elasticity TOP: Elasticity MSC:
Principles of Microeconomics 6th Edition
667994
Exam Prep
Economics Chapter 6 A Binding Minimum Wage Tends To 
Chapter 6/Supply, Demand, And Government Policies 41 175. The minimum wage does not apply to a. jobs for teenagers. b. jobs for members of minority groups. c. unpaid internships. d. jobs that include on-the-job training. ANS: C PTS: 1 DIF: 1 REF: 6-1 NAT: Analytic LOC: Supply and
Principles of Microeconomics 6th Edition
667997
Exam Prep
Economics Chapter 6 How Is The Burden Of The Tax Shared Between Buyers And Sellers
Chapter 6/Supply, Demand, And Government Policies 61 79. Refer to Figure 6-15. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed? a. $3 b. between $3 and $5 c. between $5 and $7
Principles of Microeconomics 6th Edition
668000
Exam Prep
Economics Chapter 6 If A Tax Were Levied On The Sellers Of Both Of These
Chapter 6/Supply, Demand, And Government Policies 81 171. Suppose that a tax is placed on books. If the sellers pay the majority of the tax, then we know that the a. demand is more inelastic than the supply. b. supply is more inelastic than the demand. c. government
Principles of Microeconomics 6th Edition
667990
Exam Prep
Economics Chapter 6 The Presence Of A Price Control In A Market For A Good
1 ANS: B PTS: 1 DIF: 2 REF: 6-0 NAT: Analytic LOC: Supply and demand TOP: Price controls MSC: Interpretive 1 ANS: B PTS: 1 DIF: 2 REF: 6-0 NAT: Analytic LOC: Supply and demand TOP: Price controls MSC: Interpretive 1 ANS: B PTS: 1 DIF: 2 REF: 6-0
Principles of Microeconomics 6th Edition
667992
Exam Prep
Economics Chapter 6 Then The Government Imposes A Price Control, As Represented By
Chapter 6/Supply, Demand, And Government Policies 21 86. Refer to Figure 6-5. Suppose the market is initially in equilibrium. Then the government imposes a price control, as represented by the horizontal line on the graph. If the price control is a price floor, then the price control a.
Principles of Microeconomics 6th Edition
668003
Exam Prep
Economics Chapter 6 When Policymakers Set Prices By Legal Decree, They Obscure
94 Chapter 6/Supply, Demand, and Government Policies 82. A binding minimum wage creates a surplus of labor. ANS: T PTS: 1 DIF: 2 REF: 6-1 NAT: Analytic LOC: Supply and demand TOP: Minimum wage MSC: Interpretive ANS: T PTS: 1 DIF: 2 REF: 6-1 NAT: Analytic LOC: Supply
Principles of Microeconomics 6th Edition
668006
Exam Prep
Economics Chapter 7 A Result Of Welfare Economics Is That The Equilibrium
1 ANS: D PTS: 1 DIF: 1 REF: 7-0 NAT: Analytic LOC: Supply and demand TOP: Welfare MSC: Definitional 1 ANS: D PTS: 1 DIF: 1 REF: 7-0 NAT: Analytic LOC: Supply and demand TOP: Welfare MSC: Definitional 1 ANS: D PTS: 1 DIF: 1 REF: 7-0 NAT: Analytic
Principles of Microeconomics 6th Edition
668009
Exam Prep
Economics Chapter 7 Cameron Visits A Sporting Goods Store To Buy A New Set Of Golf
Chapter 7/Consumers, Producers, and the Efficiency of Markets 21 85. Cameron visits a sporting goods store to buy a new set of golf clubs. He is willing to pay $750 for the clubs but buys them on sale for $575. Cameron's consumer surplus from the purchase is a.
Principles of Microeconomics 6th Edition
668018
Exam Prep
Economics Chapter 7 If A Market Is Allowed To Adjust Freely To Its Equilibrium
80 Chapter 7/Consumers, Producers, and the Efficiency of Markets 104. The 2005 Boston Globe article discussing ticket scalping points out that the price people will pay for tickets will rise when a. supply and demand are both limited. b. supply is limited and demand is not limited. c.
Principles of Microeconomics 6th Edition
668015
Exam Prep
Economics Chapter 7 Suppose The Willingness To Pay Of The Marginal Buyer Of The 3rd
Chapter 7/Consumers, Producers, and the Efficiency of Markets 61 26. Refer to Table 7-11. At a price of $2.00, total surplus is a. larger than it would be at the equilibrium price. b. smaller than it would be at the equilibrium price. c. the same as it would
Principles of Microeconomics 6th Edition
668012
Exam Prep
Economics Chapter 7 What Area Represents The Increase In Producer
Chapter 7/Consumers, Producers, and the Efficiency of Markets 41 Figure 7-7 Supply 1 2 3 4 Quantity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Price 42. Refer to Figure 7-7. If the price of the good is $9.50, then producer surplus is a. $2.50. b. $6.50. c. $8.00. d. $10.00. ANS: D PTS: 1 DIF: 2 REF:
Principles of Microeconomics 6th Edition
668033
Exam Prep
Economics Chapter 8 As The Size Of A Tax Rises, The Deadweight Loss
76 Chapter 8/Application: The Costs of Taxation 43. As the size of a tax rises, the deadweight loss a. rises, and tax revenue first rises, then falls. b. rises as does tax revenue. c. falls, and tax revenue first rises, then falls. d. falls as does tax revenue.
Principles of Microeconomics 6th Edition
668027
Exam Prep
Economics Chapter 8 Diana Is A Personal Trainer Whose Client Charles Pays
Chapter 8/Application: The Costs of Taxation 41 184. Diana is a personal trainer whose client Charles pays $80 per hour-long session. Charles values this service at $100 per hour, while the opportunity cost of Dianas time is $75 per hour. The government places a tax of $10 per
Principles of Microeconomics 6th Edition
668030
Exam Prep
Economics Chapter 8 Tax Revenue More Likely Increase When Low
Chapter 8/Application: The Costs of Taxation 61 42. Taxes on labor have the effect of encouraging a. workers to work more hours. b. the elderly to postpone retirement. c. second earners within a family to take a job. d. unscrupulous people to take part in the underground economy.
Principles of Microeconomics 6th Edition
668021
Exam Prep
Economics Chapter 8 The American Revolution Was Sparked By Anger Over
1 ANS: C PTS: 1 DIF: 2 REF: 8-0 NAT: Analytic LOC: Supply and demand TOP: Taxes | Economic welfare MSC: Interpretive 1 ANS: C PTS: 1 DIF: 2 REF: 8-0 NAT: Analytic LOC: Supply and demand TOP: Taxes | Economic welfare MSC: Interpretive 1 ANS: C PTS: 1 DIF:
Principles of Microeconomics 6th Edition
668024
Exam Prep
Economics Chapter 8 The Loss Of Producer Surplus Associated With Some Sellers
Chapter 8/Application: The Costs of Taxation 21 93. Refer to Figure 8-2. The loss of producer surplus associated with some sellers dropping out of the market as a result of the tax is a. $0. b. $1. c. $2. d. $3. ANS: B PTS: 1 DIF: 3 REF:
Principles of Microeconomics 6th Edition
668042
Exam Prep
Economics Chapter 9 A Result Of This Country Allowing International Trade In Crude
Chapter 9/Application: International Trade 41 143. Refer to Figure 9-14. A result of this country allowing international trade in crude oil is as follows: a. The well-being of domestic crude-oil producers is now higher in that they now sell more crude oil at a higher price per barrel.
Principles of Microeconomics 6th Edition
668036
Exam Prep
Economics Chapter 9 An Important Factor In The Decline Of The U.S. Textile Industry
1 ANS: D PTS: 1 DIF: 1 REF: 9-0 NAT: Analytic LOC: Gains from trade, specialization and trade TOP: International trade MSC: Interpretive 1 ANS: D PTS: 1 DIF: 1 REF: 9-0 NAT: Analytic LOC: Gains from trade, specialization and trade TOP: International trade MSC: Interpretive 1 ANS: D
Principles of Microeconomics 6th Edition
668045
Exam Prep
Economics Chapter 9 If Freedonia Changes Its Laws To Allow International Trade
Chapter 9/Application: International Trade 61 237. If Freedonia changes its laws to allow international trade in software and the world price is higher than its do- mestic price, then it must be the case that a. both consumer surplus and producer surplus increase. b. consumer surplus increases and producer
Principles of Microeconomics 6th Edition
668048
Exam Prep
Economics Chapter 9 Percent Said Free International Trade Helped The Economy
74 Chapter 9/Application: International Trade 34. In a December 2007 New York Times column, Paul Krugman noted that a. it is difficult to find instances of trade between high-wage countries in the modern era. b. it is difficult to find instances of trade between high-wage countries and low-wage
Principles of Microeconomics 6th Edition
668039
Exam Prep
Economics Chapter 9 Which Of The Following Comes With Trade
Chapter 9/Application: International Trade 21 58. Refer to Figure 9-3. Relative to a no-trade situation, which of the following comes with trade? a. Consumer surplus increases by $1,800 and producer surplus increases by $1,600. b. Consumer surplus decreases by $1,000 and producer surplus increases by $1,500. c. Consumer
Principles of Microeconomics 6th Edition

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