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What replaced the Bretton Woods system? a. the gold standard b. a pooled currency system c. a free float system d. a managed float system e. fixed exchange rates Individuals maximize utility in allocating their time only when a. any […]

Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both fell. Therefore, demand must have __________ in this __________ industry. a. fallen; increasing cost b. fallen; decreasing cost […]

One reason investors may prefer bonds over stocks is a. potential profits are larger b. bond prices never vary c. bondholders get paid before stockholders d. owning bonds implies owning a part of the company e. interest rates do not […]

Exhibit 9-6 What is the maximum profit the monopolist in Exhibit 9-6 can earn? a. -$5 b. $40.80 c. $43.60 d. $44.20 e. $42.60 Which of the following is not a reason for international specialization? a. some countries have educated, […]

If income were distributed solely according to marginal productivity, a. every family would be above the poverty level b. it would be distributed evenly c. it would be distributed normally d. workers in capital-intensive industries would earn less than workers […]

In economics, marginal means a. incremental or decremental b. unimportant c. level or size d. a border-line situation e. a bad alternative Resource price differentials that trigger the reallocation of resources so as to equalize payments for similar resources are […]

The quantity of labor an individual supplies to any market a. always increases as the market wage rate rises b. is contingent upon the wage rates offered in other labor markets c. always decreases as the market wage rate rises […]

If a given value of x is associated with a particular value of y, a. then x causes y b. then y causes x c. then x and y must be logically connected d. there are no other variables that […]

Exhibit 6-5 In Exhibit 6-5, the marginal utility of consuming the fourth scone is a. 4 b. 7 c. 6 d. 24 e. 2 If two large firms from different industries merge, a. industry concentration rises b. industry concentration falls […]

Exhibit 6-21 Refer to Exhibit 6-21. In equilibrium the consumer surplus in this market is area A + B. a. True b. False Foreign aid can take the form of a. only money, capital goods, or technical assistance b. only […]

Goods with an income elasticity of demand greater than 1 are called a. necessities b. inferior goods c. normal goods d. luxuries e. complements The study of how nations deal with the problem of scarcity is the domain of a. […]

An increase in the number of producers of a good will a. increase the market supply because the price will rise b. increase the market supply only if market demand increases too c. increase the market supply because market supply […]

To a firm facing constant input prices, increasing marginal returns a. means that each additional unit of output costs more to produce than the previous unit b. means that the marginal product of the variable input decreases as more of […]

Exhibit 12-9 In Exhibit 12-9, the labor supply and labor demand in a unionized labor market is represented by the demand curve D0 and Supply curve S0. Which of the market equilibria is the most likely outcome of a successful […]

Demand is unit elastic whenever a. price elasticity has an absolute value of 1 b. price elasticity has an absolute value greater than 1 c. price elasticity has an absolute value less than 1 d. price elasticity is negative e. […]

Opportunity cost is the difference between the benefits and the costs of a choice. a. True b. False A firm with positive accounting profit may be suffering an economic loss. a. True b. False Answer: A A disadvantage of the […]

Of the three levels of government in the United States, a. only the federal government provides public goods b. only the federal government has the power to tax c. local governments are primarily responsible for primary and secondary education d. […]

The demand for a resource is derived from the demand for the final product it helps to produce. a. True b. False If the demand for a good is very price elastic, the imposition of a tax on that good […]

If the U.S. dollar depreciates, it means that a. the value of the U.S. dollar has increased b. the value of foreign exchange has decreased c. fewer U.S. dollars are required to purchase foreign exchange d. more U.S. dollars are […]

The midpoint quantity between 100 and 300 units is a. 100 units b. 200 units c. 300 units d. 150 units e. 20,000 units Darryl graduated with honors from college. However, he obtained his outstanding grades by cheating on every […]

Exhibit 16-5 Exhibit 16-5 represents the market for leaf tobacco. Suppose the government imposes a floor of $1.25 in this market. How much consumer surplus would be gained in the face of this price support? a. $900 b. $975 c. […]

Devaluation of a domestic currency a. is also called revaluation b. refers to an increase in a floating exchange rate c. refers to a decrease in a floating exchange rate d. refers to an increase in a fixed exchange rate […]

If an industrial union would strike if it does not receive a particular wage rate, then the supply curve of labor in this market a. is horizontal at that particular wage rate until it intersects the original supply of labor […]

If one person has the absolute advantage in producing both of two goods, then that person a. must also have a comparative advantage in both goods b. cannot benefit from trade c. cannot have a comparative advantage in either good […]

In the range of increasing marginal returns, total product is a. increasing at a constant rate b. increasing at an increasing rate c. increasing at a decreasing rate d. decreasing at an increasing rate e. decreasing at a decreasing rate […]

If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource, a. more of the resource should be used b. less of the […]

College students often spend summers in internships that pay little or no income because internships provide benefits in the form of higher future incomes. a. True b. False In the collective bargaining process, once the United Auto Workers and General […]

The market price of output affects a. the supply of the resources used to produce it b. the demand for the resources used to produce it c. the marginal product of the resources used to produce it d. the marginal […]

Exhibit 7-6 In Exhibit 7-6, the marginal cost of the 40th unit of output is a. $20 b. $35 c. $200 d. $350 e. $1,000 Exhibit 9-10 Answer: A What output would maximize the profit of the nondiscriminating monopolist in […]

The economic question of what will be produced is a. primarily answered by the government in a system of pure capitalism b. primarily answered by markets in a command economy c. faced by all economies regardless of their wealth d. […]

The part of a graph that is most applicable to marginal analysis is the a. origin b. slope c. horizontal axis d. dependent variable e. inverse relation Economists believe that people respond in a predictable way to changes in costs […]

Exhibit 8-2 Given the information in Exhibit 8-2, the price of a wool blanket a. is $10 b. is $20 c. is $30 d. is $40 e. depends on the quantity sold In economics, capital is defined as a. natural […]

Exhibit 17-5 In Exhibit 17-5, if the government sells the right to pollute a river, a. firms will emit Q1 units of pollutant at a price of P0 each b. firms will emit Q2 units of pollutant at a price […]

If a candy bar sells for 50 cents and video games are 25 cents each, the horizontal (candy) intercept of Ann’s budget line is 12 and the vertical (video game) intercept of Ann’s budget line is 24. Giving up one […]

One of the ways that a perfectly competitive firm and a nondiscriminating monopolist are different is that a. the marginal cost curve is U-shaped for a perfectly competitive firm but not for a monopolist b. P = AR for a […]

A service like CARFAX, which provides a used car buyer with the complete history of a used car, is profitable because of the problem of moral hazard. a. True b. False A leftward shift of a supply curve represents a […]

If a consumer moves from point a to point b on the indifference curve shown in Exhibit 6-22, a. the marginal rate of substitution between books and movies falls b. the marginal rate of substitution between books and movies stays […]

Firms that emit toxins into the air tend to a. underproduce because the private cost of production exceeds the social cost b. overproduce because the social cost of production exceeds the private cost c. produce the same as nonpolluting firms […]

In autarky, a. each country’s consumption possibilities are the same as its production possibilities b. equilibrium is attained with the maximum gains from specialization and trade c. equilibrium is attained with the maximum amount of international trade d. a nation […]

Resources are divided into the following broad categories: a. people, money, and machines b. saving, spending, investment, and capital c. human, technological, and government d. natural resources, labor, capital, and entrepreneurial ability e. free, scarce, abundant, and unlimited The chances […]

In every age group, average income in the United States increases with education. a. True b. False If, as a firm increases its rate of output, total cost increases as well, a. profit cannot be maximized b. revenue cannot be […]

Which of the following markets best approximates the perfectly competitive market structure? a. automobile manufacturing b. insurance c. world commodity markets d. airlines e. manufacture of stereo equipment In a natural monopoly, throughout the range of market demand, a. marginal […]

If the price of a resource falls, other things constant, a. demand for the product it produces will increase b. demand for a substitute product will increase c. demand for a substitute resource will fall d. supply of that resource […]

Exhibit 7-17 In Exhibit 7-17, the firm would prefer producing at point b to a. points a and c only because b represents the same output at lower cost b. points a and c only because b represents higher output […]

Suppose a perfectly competitive increasing-cost industry is in long-run equilibrium when market demand suddenly decreases. What happens to the industry in the long run? a. It experiences no change from the original equilibrium b. It experiences a higher equilibrium price […]

People make mistakes in allocating their time a. only when leisure time is an inferior good b. because expectations are not always fulfilled c. more often when the cost of making a mistake is high d. only when economists remove […]

Government regulation of the prices and entry conditions in an industry is an example of a. safety regulation b. economic regulation c. Herfindahl regulation d. antitrust regulation e. Social Security legislation A profit-maximizing firm will hire units of an input […]

If a perfectly competitive firm shuts down in the short run, its total cost equals zero. a. True b. False Exhibit 2-4 Point g in Exhibit 2-4 is efficient because a. the only way to increase production of A is […]

Fred Ramirez is a farmer who charts the relationship between number of acres planted in corn and number of bushels of corn harvested. Which marginal concept can Fred measure with this data? a. marginal utility b. marginal product c. marginal […]

Exhibit 11-9 In Exhibit 11-9, what is the marginal revenue product of the fifth unit of the variable resource? a. $260 b. $130 c. $22 d. $44 e. -$18 The prisoner’s dilemma is applicable only when considering the illegal behavior […]

The law of demand states that a. quantity demanded is inversely related to price b. quantity demanded is directly related to income c. marginal utility is inversely related to quantity consumed d. total revenue is directly related to price e. […]

Universities sometimes hire professors who are poor teachers but have good research skills because a. research ability is more important in education than teaching ability b. students don’t listen to professors anyway c. teaching can be learned; research ability cannot […]

A decrease in demand for a good could mean that a. consumers are willing to pay a higher price for each quantity of the good b. consumers are willing to buy larger quantities of the good at each price c. […]

Exhibit 9-3 The total cost for the firm in Exhibit 9-3, a monopolist that maximizes profit while charging all customers the same price, is a. $3,300 b. $3,400 c. $2,808 d. $2,340 e. $1,638 Necessities and luxuries are both types […]

The explanation for the law of demand begins with a. a small number of wants satisfied by scarce resources b. finite wants satisfied by infinite resources c. unlimited wants confronting scarce resources d. unlimited wants matching up with unlimited resources […]

Compared to regular grocery stores, convenience stores have a. higher prices and a more limited selection of goods b. higher prices and a greater selection of goods c. lower prices and a more limited selection of goods d. lower prices […]

The optimal level of water and air quality a. is zero, which is a pollution-free environment b. occurs when the marginal private cost of air quality equals its marginal social cost c. is greater if the marginal social cost curve […]

Compared to the short run, the long-run market supply curve is a. less elastic b. equally elastic c. more elastic d. always negatively sloped e. None of the answers is correct. Which pair of groups benefits from an import quota […]

What would happen to the budget line if the price of orange juice increased and orange juice is measured on the vertical axis? a. It would shift to the right. b. It would rotate outward along the horizontal axis. c. […]

A nation has an unfavorable balance of trade when a. it has a surplus in its balance of payments b. it has a deficit in its balance of payments c. the value of its imports of goods is greater than […]

Which of the following is one of the chief reasons for the increased number of married women in the U.S. work force? a. The marginal cost of working in the labor force has increased. b. Jobs provide greater independence and […]

One way to reduce pressure for Mexicans to cross the U.S. border illegally is to create job opportunities in Mexico. a. True b. False The “rules of the game,” the set of conditions that shape individual incentives and constraints, are […]

Most economics graphs reflect the relationship between how many economic variables? a. three b. two c. four d. thirty e. twenty Firms in a high-wage nation such as the U.S. can compete effectively with imports from low-wage nations if a. […]

Exhibit 16-1 Consider Exhibit 16-1. Considering government expenditures on surplus milk but ignoring storage costs, how much do consumers pay per gallon for the quantity purchased at the support price? a. $3.00 b. $4.00 c. $5.00 d. $1.00 e. $2.00 […]

Levying a tax on a good when demand is very elastic will generate a large amount of tax revenue for the government. a. True b. False A production possibilities frontier will shift inward if there is more unemployment of labor. […]

Monopolistic competition is best described as a. many firms with some control over price, and some product differentiation b. many firms with no control over price, producing identical products c. a few firms with some control over price, producing highly […]

A firm that minimizes average cost will not survive in the long run. a. True b. False Marginal revenue product is obtained by multiplying the price of the product by the marginal resource cost. a. True b. False Answer: B […]

If the United States has an absolute advantage in producing computer components, it should export them worldwide. a. True b. False According to the law of diminishing marginal rate of substitution, a. as consumption of good A increases, other things […]

Under which of the following market conditions is it most difficult to maintain a cartel agreement? a. There are many firms in the industry and these firms have similar costs. b. There are many firms in the industry and these […]

Exhibit 5-8 Which of the following statements is true in the range of the total revenue curve labeled A in Exhibit 5-8? a. Demand is elastic. b. Demand is inelastic. c. Demand is unit elastic. d. We cannot tell anything […]

Cross-price elasticity of demand measures a. elasticity of demand at the intersection of the supply and demand curves b. elasticity of supply at the intersection of supply and demand curves c. the relative elasticity of supply and demand at the […]

If a consumer’s income rises, a. her indifference curves shift inward b. her indifference curves shift outward c. her budget line shifts outward d. her budget line shifts inward e. the slope of her budget line increases Exhibit 14-3 Jira […]

Which of the following is true of public goods? a. The market mechanism helps to signal the quantity that is demanded by the public. b. Payment for consumption is efficiently provided by market prices. c. Consumption by one person does […]

If you are planning to visit wildlife preserves in Kenya, you hope the U.S. dollar appreciates against Kenya’s currency. a. True b. False The tendency for the poorest risks to buy health insurance and the tendency of the insured to […]

A lump-sum tax per unit on imports is known as a. a specific tariff b. an effective tariff c. a specific quota d. an effective quota e. anad valorem quota Two reasons why a few individuals earn very high pay […]

Taxes and in-kind transfers make the distribution of income more unequal. a. True b. False Exhibit 2-11 Refer to exhibit 2-11. In Costa Rica the opportunity cost of 1 ton of rice is: a. 1/2 of a T-shirt Answer: B […]

If the marginal resource cost of the tenth worker hired by a firm is $4 and the wage of the tenth worker is $3, the firm will hire ten workers if the marginal revenue product of the tenth worker is […]

Oil is an example of a renewable resource. a. True b. False Suppose a firm is a price searcher in the product market and hires labor in a perfectly competitive labor market. If the wage rate is $20, the marginal […]

Which of the following is true about sole proprietorship in the United States? a. It is the most common form of business organization. b. It is responsible for a large portion of total production of goods and services. c. It […]

Employers rely on a job applicant’s signals a. because they are always an accurate indication of the applicant’s skills b. because actual abilities are not observable prior to employment c. because actual abilities are not observable after the applicant is […]

Exhibit 6-17 Consider Exhibit 6-17 which represents the market demand for DVDs. If the price of DVDs is $20 how much is consumer’s surplus? a. $0 b. $20 c. $40 d. $60 e. $80 Ten cases of spring water are […]

If an employment situation is characterized by adverse selection, a. there are too many applicants for each job b. there are too few applicants for each job c. there are exactly the right number of applicants for each job d. […]

If the minimum efficient scale in toaster production is 500,000 units per year, the average cost of producing 300,000 toasters is greater than the average cost of producing 500,000. a. True b. False When is a balance of payments account […]

If there is a $1 per box tax imposed on the sale of tea and the price paid by consumers increases by $0.50, what may we conclude about the price elasticities of demand and supply? a. The elasticity of supply […]

The Sultan of Brunei, one of the world’s richest people, does not face the problem of scarcity. a. True b. False Exhibit 8-16 Which of the following statements about the perfectly competitive firm represented in Exhibit 8-16 is false? a. […]

A profit-maximizing monopoly will always produce at the minimum point of its average total cost (ATC) curve. a. True b. False In the case of a normal good, an increase in consumers’ incomes would shift the a. demand curve inward […]

Exhibit 2-1 John and Harry’s Production Possibilities for Ironing Shirts and Typing Papers Exhibit 2-1 shows the production possibilities for ironing shirts and typing papers for John and Harry. Each has 5 hours per week to spend on these tasks. […]

As the price of milk increases, producers are normally willing to supply greater quantities. This response is known as the law of a. supply b. demand c. averages d. variable proportions e. increasing costs The current account reflects a. trade […]

Poor welfare recipients face higher marginal tax rates than do the richest families. a. True b. False A tax on imports equal to a percentage of the cost of those imports is known as a. a specific tariff b. an […]

Exhibit 19-1 Exhibit 19-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts. What is the opportunity cost of a coconut in Lambda? a. 1/2 fish b. 1 fish c. 2 fish d. […]

You are more likely to do-it-yourself than hire a plumber to repair a leaky drain pipe a. as the tax rate on your earned income dramatically decreases b. if the opportunity cost of your time decreases c. the less knowledge […]

According to the Coase theorem, in order to solve a negative externality problem efficiently, a. the property right must be assigned to the party with the least-cost alternative b. the property right must be assigned to the victim of pollution […]

Exhibit 15-5 The natural monopoly depicted in exhibit 15-5, if unregulated would earn how much profit? a. $10 b. $20 c. $30 d. $40 e. $50 Exhibit 6-23 Answer: C In Exhibit 6-23, the marginal rate of substitution of food […]

The effect of a decrease in the price of personal computers, other things constant, is likely to be best represented by which of the following? a. a leftward shift of the demand curve b. a movement leftward along the demand […]

A labor union is a group of a. employees who join together to improve their working conditions b. firms that join together to hire workers c. firms that work together to negotiate better prices in the market d. farmers who […]

The average work week in the United States has declined to fewer than 40 hours even though wage rates have been increasing. The best explanation of this phenomenon is that a. the labor supply curve shifted to the right b. […]

If the government breaks up a constant-cost, nondiscriminating monopoly into a perfectly competitive industry, what would we expect with regard to output and price? a. Output and price will decrease. b. Output will increase and price will decrease. c. Output […]

Firms a. are where entrepreneurs combine resources b. are economic units formed by profit-seeking entrepreneurs c. are assumed to try to maximize profit d. reward entrepreneurs with profits, which are sales revenue minus the cost of production e. All of […]

Which of the following conditions would distinguish a competitive firm from a monopolist? a. The existence of a demand curve for the firm. b. The slope of the demand curve facing the firm. c. The rule of profit maximization, i.e., […]

In the short run, a perfectly competitive firm will always shut down if, at all output levels above zero, a. price is less than average total cost b. total revenue is less than total cost c. they cannot pay variable […]

In less developed economies, the distribution of income is a. more concentrated (i.e., distributed less evenly) than in developed economies b. less concentrated than in developed economies c. such that the bottom 20 percent of households define the poverty threshold […]

The change in total revenue that results from a one-unit change in the amount of a variable resource used is a. average resource cost b. marginal resource cost c. marginal product d. marginal revenue product e. average revenue product Goods […]

Two goods are considered substitutes only if a(n) a. decrease in the demand for one leads to a decrease in the supply of the other b. increase in the demand for one leads to a decrease in the supply of […]

A perfectly competitive firm is allocatively efficient because price is identical to marginal cost at every quantity a. True b. False One important source of challenge to De Beers’ control of the diamond market is a. the additional market supply […]

People have less incentive to invest the more concerned they are that their investment will not be a. appropriated by government b. stolen by thieves c. protected from high tax rates d. destroyed by civil unrest e. blown up by […]

The world price of a good is a. the price paid by consumers in all nations b. the price at which it is traded internationally c. the price paid in U.S. dollars d. the price paid in foreign currency e. […]

Tacit collusion occurs in industries that a. are monopolistically competitive b. contain price leaders c. experience rapid technological change d. are regulated e. produce very differentiated products Which of the following would be considered a secondary effect of rent control. […]

Monopolistic competition is different from perfect competition because monopolistic competitors produce a. a homogeneous product b. a homogeneous but unique product c. identical products d. differentiated products e. products similar to those produced by a monopoly A good or service […]

Exhibit 7-1 Sally owns a small business that she operates in a small building she owns. Given the information in Exhibit 7-1, Sally’s normal profit is a. $80,000 b. $41,000 c. $65,000 d. $35,000 e. $24,000 If the country of […]

As the price paid to a resource increases, a. the supply of that resource will increase in the resource market b. the supply of that resource will decrease in the resource market c. resources will shift from other resource markets […]

If government regulators force a natural monopoly to produce where price equals marginal cost, the monopoly will earn a. a “fair return” b. positive economic profit c. zero economic profit d. negative economic profit e. greater economic profit than if […]

The supply of loanable funds curve is a. upward sloping because fewer people are persuaded to forgo current consumption as the interest rate rises b. downward sloping, showing that more investment will be undertaken as inflation decreases c. upward sloping […]

When government regulations force a natural monopoly to produce where price equals average total cost, social welfare is a. maximized b. less than it would be without regulation c. greater than it would be without regulation, but it is not […]

The loanable funds market brings together savers and borrowers to determine the a. marginal rate of return on investment b. rate of time preference c. market rate of interest d. marginal resource cost of investment e. marginal revenue product of […]

Exhibit 12-1 Along which part of the labor supply curve in Exhibit 12-1 does the income effect of a wage change just equal the substitution effect? a. between points a and b b. between points a and c c. between […]

Perfectly elastic demand curves are a. downward sloping b. upward sloping c. vertical d. horizontal e. steep The dean of your college is considering hiring another economics professor. If the additional revenue that the college can earn from employing the […]

As the price of land decreases along its demand curve, the relative price of land a. increases because the prices of other resources have also decreased b. decreases because the prices of other resources have also decreased c. increases because […]

Game theory focuses on a. strategic behavior among interdependent firms b. professional athletic events c. competition between the players in board games d. competition between those in the political arena and those in the market place e. the interaction between […]

The minimum efficient scale for a firm is the a. lowest rate of output at which long-run average cost is at a minimum b. lowest rate of output at which short-run average total cost is at a minimum c. lowest […]

The present value of a given payment will be lower a. if the payment comes sooner than expected b. the lower the prevailing interest rate c. the further in the future the payment is to be received d. the sooner […]

Which of the following is not an explicit cost? a. salaries b. sales taxes c. the cost of utilities, such as gas and electricity d. insurance premiums e. the value of a firm owner’s time Which of the following is […]

Exhibit 7-18 In Exhibit 7-18, the rotation from AC to AB reflects a(n) a. increase in the price of labor b. increase in the price of land c. decrease in the price of labor d. decrease in the price of […]

The demand curve facing a firm will be more elastic, a. the fewer the number of competing firms b. the more differentiated the product c. the more substitutes there are for its product d. the greater the firm’s ability to […]

The most important characteristic of the equilibrium price is that it a. guarantees that producers earn profit b. clears the market, leaving neither a surplus nor a shortage c. maximizes the quantity demanded d. minimizes the quantity demanded e. guarantees […]

Which of the following is not a credit item (+) in the U.S. balance of payments? a. imports of cars from Japan b. any transaction that results in an inflow of dollars c. a capital outflow d. a U.S. firm’s […]

The exchange of secondhand securities a. takes place in an oligopolistic market b. does not provide funds to the firm that issued those securities c. includes the initial sale when securities are issued by a firm d. involves very few […]

Exhibit 9-17 In Exhibit 9-17, which area represents the amount of consumer surplus received by consumers under perfect price discrimination? a. area a b. area b c. area a + b + c d. area b + e e. there […]

How much of U.S. garbage is disposed of in landfills? a. 25 percent b. 40 percent c. 60 percent d. 70 percent e. 100 percent If an increase in the price of a product from $100 to $200 per unit […]

Resources are efficiently allocated when production occurs at that point at which a. marginal cost intersects average variable cost b. price is equal to average revenue c. price is equal to marginal cost d. marginal revenue equals marginal cost e. […]

In the market for chewing gum, the current price is 50 cents per pack and 100,000 packs are sold. Which of the following events would lead to a new equilibrium price of 60cents and quantity of 90,000 packs? a. an […]

Exhibit 5-5 In Exhibit 5-5, what is the total revenue at point a? a. $4 b. $5 c. $10 d. $50 e. $100 Exhibit 8-13 Answer: D For the market shown in Exhibit 8-13, at what price will a perfectly […]

Which of the following is a fixed cost for Wendy’s Hamburgers? a. the cost of beef b. electricity to light up the Wendy’s sign c. gasoline for the trucks that deliver supplies to the various franchises d. interest on funds […]

If the demand for a good is elastic, then total revenue a. increases as price increases b. remains constant as quantity demanded increases c. increases as price decreases d. decreases as quantity demanded increases e. decreases as price decreases Exhibit […]

The Superfund for toxic waste was established for all of the following reasons except one. Which is the exception. a. sites get a lot of media attention b. Superfund sites are more hazardous than other sources of pollution, e.g., fertilizer […]

Marginal utility is defined as the a. average amount of satisfaction gained from consuming a product b. total amount of satisfaction gained from consuming a product c. additional satisfaction gained from consuming one more unit of a product d. total […]

When diminishing marginal returns set in, marginal product is a. positive and increasing b. positive and decreasing c. negative and increasing d. negative and decreasing e. zero Unions whose membership is confined to workers with a particular skill are known […]

Exhibit 14-1 Which of the following is indicated in Exhibit 14-1? a. Rubber is cheaper to produce than tires. b. The total cost of producing 100,000 tires is greater than the total cost of producing 200,000 tires. c. The minimum […]

If a tripling of price triples the quantity of a good supplied, the price elasticity of supply is a. 3 b. 300 c. 1 d. -1 e. -3 If a perfectly competitive firm’s marginal revenue is $35, a. the next […]

Tim Tupper contracts with two other students to help him provide a term paper-typing service. In the last two weeks of the semester, he sees a tremendous increase in demand. His profit-maximizing response would be represented by a. a rightward […]

Exhibit 7-5 In Exhibit 7-5, what are variable costs at 15 units of output? a. $30 b. $10 c. $1 d. $20 e. it is impossible to calculate variable cost unless we know the daily wage Exhibit 9-4 Answer: D […]

Any movement along the production possibilities frontier involves the production of a. more of both goods b. more of one good and less of the other c. less of both goods d. more resources e. better technology Exhibit 7-2 Given […]