Principles of Microeconomics 7th Edition

ISBN 13

978-1285165905

ISBN 10

128516590x

Authors

N. Gregory Mankiw

Exam Prep

Homework Help

920 documents found.

Homework Help

978-1285165905 Chapter 1 Part 1

1 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 1 Part 2

8 Chapter 1/Ten Principles of Economics 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. a. Definition of market failure: a situation in which a market left on its own fails to allocate

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 10 Part 1

182 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 10 Part 2

190 Chapter 10/Externalities 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. pollution, issue permits for that amount, and allow the firms to trade the permits. This reduces pollution while allowing economic efficiency.

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 11 Part 1

197 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 11 Part 2

Chapter 11/Public Goods and Common Resources 203 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 12 Part 1

208 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 12 Part 2

Chapter 12/The Design of the Tax System 215 IV. Conclusion: The Trade-off between Equity and Efficiency IV. Conclusion: The Trade-off between Equity and Efficiency IV. Conclusion: The Trade-off between Equity and Efficiency Activity 2Tax Alternatives Type: In-class assignment Topics: Taxes and fairness Materials needed: None Time:

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 13 Part 1

221 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 13 Part 2

Chapter 13/The Costs of Production 231 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 14 Part 1

241 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 14 Part 2

Chapter 14/Firms in Competitive Markets 251 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 15 Part 1

262 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 15 Part 2

272 Chapter 15/Monopoly 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 15 Part 3

280 Chapter 15/Monopoly 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. c. If the government were to build the bridge, it should set price equal to marginal cost to be efficient. Since

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 16 Part 1

287 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 16 Part 2

Chapter 16/Monopolistic Competition 295 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 17 Part 1

304 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 17 Part 2

Chapter 17/Oligopoly 313 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 18 Part 1

321 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 18 Part 2

Chapter 18/The Markets for the Factors of Production 331 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 19 Part 1

340 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 19 Part 2

346 Chapter 19/Earnings and Discrimination 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 2 Part 1

15 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 2 Part 2

Chapter 2/Thinking Like an Economist 25 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. a. An example of this is a demand curve. b. The demand curve shows how the quantity

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 20 Part 1

352 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 20 Part 2

358 Chapter 20/Income Distribution and Poverty 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 21 Part 1

363 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 21 Part 2

Chapter 21/The Theory of Consumer Choice 373 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 21 Part 3

382 Chapter 21/The Theory of Consumer Choice 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. initial indifference curve at point C. The movement from point A to C represents the substitution effect.

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 22 Part 1

391 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 22 Part 2

398 Chapter 22/Frontiers of Microeconomics 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 3 Part 1

33 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 3 Part 2

Chapter 3/Interdependence and the Gains from Trade 41 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. fish, but if he can trade with natives on the island, he will possibly be able

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 4 Part 1

51 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 4 Part 2

Chapter 4/The Market Forces of Supply and Demand 61 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 4 Part 3

Chapter 4/The Market Forces of Supply and Demand 71 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 4 Part 4

Chapter 4/The Market Forces of Supply and Demand 77 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Because computer software is a complement to computers, the lower equilibrium price of computers

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 5 Part 1

85 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 5 Part 2

94 Chapter 5/Elasticity and Its Application 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. the percentage change in quantity supplied divided by the percentage change in price. 2. Determinants of the

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 6 Part 1

104 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 6 Part 2

112 Chapter 6/Supply, Demand, and Government Policies 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 7 Part 1

121 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 7 Part 2

Chapter 7/Consumers, Producers, and the Efficiency of Markets 131 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 7 Part 3

Chapter 7/Consumers, Producers, and the Efficiency of Markets 137 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 8 Part 1

144 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 8 Part 2

152 Chapter 8 /Application: The Costs of Taxation 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 9 Part 1

160 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 9 Part 2

170 Chapter 9/Application: International Trade 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Homework Help

978-1285165905 Chapter 9 Part 3

176 Chapter 9/Application: International Trade 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

BUS 110 Homework

1) Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are a(n) a.substitute good. b.normal good. c.inferior good. d.complementary good. Answer: c Answer: c Answer: c 2) When incentives

Principles of Microeconomics 7th Edition

Exam Prep

BUS 116 Quiz

1) Kari downloads 7 songs per month when the price is $1.29 per song and 10 songs per month when the price is $0.99 per song. Kari's behavior demonstrates the law of a.price. b.supply. c.demand. d.income. Answer: c Answer: c Answer: c 2) Suppose that a firm operating in perfectly competitive market sells 300 units of output at a

Principles of Microeconomics 7th Edition

Exam Prep

BUS 118 Test

1) Efficiency in a market is achieved when a.a social planner intervenes and sets the quantity of output after evaluating buyers' willingness to pay and sellers' costs. b.the sum of producer surplus and consumer surplus is maximized. c.all firms are producing the good at the same low cost per unit. d.no buyer is willing

Principles of Microeconomics 7th Edition

Exam Prep

BUS 129 Quiz 2

1) When a certain nation abandoned a policy of prohibiting international trade in automobiles in favor of a free-tree policy, the result was that the country began to import automobiles. The change in policy improved the well-being of that nation in the sense that a.both producers of automobiles and consumers of

Principles of Microeconomics 7th Edition

Exam Prep

BUS 160 Test 1

1) An example of a transitory change in income is the a.annual cost of living adjustment to your salary. b.increase in income that results from a job promotion linked to your education. c.increase in income of California orange growers that results from an orange-killing frost in Florida. d.All of the above are correct. Answer: c Answer:

Principles of Microeconomics 7th Edition

Exam Prep

BUS 177 Quiz 1

1) Economists generally agree that the most important tax in the U.S. economy is the a.investment tax. b.sales tax. c.property tax. d.labor tax. Answer: d Answer: d Answer: d 2) Suppose a profit-maximizing firm in a competitive market produces rubber bands. When the market price for rubber bands falls below the minimum of its average total cost, but

Principles of Microeconomics 7th Edition

Exam Prep

BUS 184 Test 2

1) Scenario 13-9 Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper.

Principles of Microeconomics 7th Edition

Exam Prep

BUS 204 Midterm 1

1) The use of the coordinate system allows a.for the display of the flows of dollars, goods and services, and factors of production in an economic system. b.for the display of how labor and other resources are organized in the production process. c.for the display of two variables on a single graph. d.for the creation

Principles of Microeconomics 7th Edition

Exam Prep

BUS 230

1) The marginal rate of substitution is the slope of the indifference curve. a.True b.False Answer: True Answer: True Answer: True 2) Figure 7-10 Which area represents producer surplus when the price is P1? a.BCG b.ACH c.ABGD d.DGH Answer: a Answer: a Answer: a 3) Suppose that Angelo and Sonia each win $500 in a charity raffle. Angelo spends his winnings on a new ipad.

Principles of Microeconomics 7th Edition

Exam Prep

BUS 258 Quiz

1) Which of the following is an example of a factor of production? a.rent b.interest c.land d.Social Security payments Answer: c Answer: c Answer: c 2) Which market structure would likely have the highest concentration ratio? a.Monopoly b.Oligopoly c.Monopolistic competition d.Perfect competition Answer: a Answer: a Answer: a 3) In the markets for factors of production in the circular-flow diagram, a.households provide firms with labor, land, and

Principles of Microeconomics 7th Edition

Exam Prep

BUS 259

1) Bob's Butcher Shop is the only place within 100 miles that sells bison burgers. Assuming that Bob is maximizing his profit, which of the following statements is true? a.The price of Bob's bison burgers will be less than Bob's marginal cost. b.The price of Bob's bison burgers will exceed Bob's marginal

Principles of Microeconomics 7th Edition

Exam Prep

BUS 259 Midterm 2 1 If A Worker

1) If a worker respond to an increase in the opportunity cost of leisure by taking more leisure, then her labor supply curve is a.upward sloping. b.backward sloping. c.horizontal. d.vertical. Answer: b Answer: b Answer: b 2) Scenario 18-7 Suppose the following events occur in the market for university economics professors. Event 1: A recession in the U.S. economy lowers

Principles of Microeconomics 7th Edition

Exam Prep

BUS 263

1) Bill would like to buy a gift for Ann to convey his love for her. Which of the following areas of economics would most likely study this type of decision? a.asymmetric information b.political economy c.behavioral economics d.industrial organization Answer: a Answer: a Answer: a 2) In 2010, the cochairmen of President Obama's deficit reduction commission proposed curtailing

Principles of Microeconomics 7th Edition

Exam Prep

BUS 264

1) Scenario 20-6 Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which Taxes owed = (1/4 of income) - $15,000.

Principles of Microeconomics 7th Edition

Exam Prep

BUS 266 Quiz 3

1) In 2012, the total income of all U.S. residents was approximately $120 billion. a.True b.False Answer: False Answer: False Answer: False 2) Table 15-3 Consider the following demand and cost information for a monopoly. To maximize profit, the monopolist sets price at a. $10. b.$15. c.$20. d.$25. Answer: c Answer: c Answer: c 3) Which of the following is considered human capital? a.the ingredients a chef

Principles of Microeconomics 7th Edition

Exam Prep

BUS 268 Quiz 2

1) Two goods are substitutes when a decrease in the price of one good a.decreases the demand for the other good. b.decreases the quantity demanded of the other good. c.increases the demand for the other good. d.increases the quantity demanded of the other good. Answer: a Answer: a Answer: a 2) Economists make assumptions to a.mimic

Principles of Microeconomics 7th Edition

Exam Prep

BUS 269

1) For a country that is considering the adoption of either a tariff or an import quota on a particular good, an important difference is that a.an import quota has no effect on consumer surplus, while a tariff decreases consumer surplus. b.an import quota has no effect on producer surplus, while a

Principles of Microeconomics 7th Edition

Exam Prep

BUS 284 Homework

1) If marginal cost exceeds marginal revenue, the firm a.is most likely to be at a profit-maximizing level of output. b.should increase the level of production to maximize its profit. c.should reduce its average fixed cost in order to lower its marginal cost. d.may still be earning a positive accounting profit. Answer: d Answer: d Answer: d 2)

Principles of Microeconomics 7th Edition

Exam Prep

BUS 291 Test 2

1) What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film? a.Price will fall, and the effect on quantity

Principles of Microeconomics 7th Edition

Exam Prep

BUS 306 Quiz

1) If the income effect counteracts the substitution effect, we know that the good in question is a(n) a.complementary good. b.inferior good. c.luxury good. d.normal good. Answer: b Answer: b Answer: b 2) Table 12-13 The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under

Principles of Microeconomics 7th Edition

Exam Prep

BUS 309 Quiz 2

1) Refer to Figure 9-17. When comparing no trade to free trade, the gains from trade amount to a. $400. b. $600. c. $750. d. $1,000. Answer: b Answer: b Answer: b 2) When two variables move in the same direction, the curve relating them is downward sloping, and we say the variables are negatively related. a.True b.False Answer: False Answer: False Answer:

Principles of Microeconomics 7th Edition

Exam Prep

BUS 326

1) After a country goes from disallowing trade in coffee with other countries to allowing trade in coffee with other countries, a.the domestic price of coffee will be greater than the world price of coffee. b.the domestic price of coffee will be lower than the world price of coffee. c.the domestic price of

Principles of Microeconomics 7th Edition

Exam Prep

BUS 340

1) Figure 8-3 The vertical distance between points A and C represents a tax in the market. The amount of the tax on each unit of the good is a.P3 - P1. b.P3 - P2. c.P2 - P1. d.P4 - P3. Answer: a Answer: a Answer: a 2) The graph below pertains to the supply of paper to colleges and

Principles of Microeconomics 7th Edition

Exam Prep

BUS 347 Final 1 The Relationship

1) The relationship between advertising and product differentiation is a.positive; the more differentiated the product, the more a firm is likely to spend on advertising. b.negative; the more differentiated the product, the less a firm is likely to spend on advertising. c.zero; there is no relationship between product differentiation and advertising. d.irrelevant; firms with

Principles of Microeconomics 7th Edition

Exam Prep

BUS 357

1) Figure 21-8 Refer to Figure 21-8. If the price of good X is $3, and your budget constraint is BC, what is the price of good Y? a. $3.33 b. $5 c. $15 d. $30 Answer: b Answer: b Answer: b 2) Table 12-20 The following table presents the total tax liability for an unmarried taxpayer under four different

Principles of Microeconomics 7th Edition

Exam Prep

BUS 378 Quiz

1) The pollution market failure is an example of the free rider problem. a.True b.False Answer: False Answer: False Answer: False 2) A profit-maximizing firm in a competitive market is currently producing 200 units of output. It has average revenue of $9 and average total cost of $7. It follows that the firm's a.average total cost curve intersects

Principles of Microeconomics 7th Edition

Exam Prep

BUS 389 Test 1

1) A rational decisionmaker takes an action if and only if a.the marginal benefit of the action exceeds the marginal cost of the action. b.the marginal cost of the action exceeds the marginal benefit of the action. c.the marginal cost of the action is zero. d.the opportunity cost of the action is zero. Answer: a Answer:

Principles of Microeconomics 7th Edition

Exam Prep

BUS 391 Final

1) A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies a.enhance equality. b.enhance efficiency. c.increase the reward for working hard. d.All of the above are correct. Answer: a Answer: a Answer: a 2) Assume that Japan and Korea can switch between producing cars and producing airplanes

Principles of Microeconomics 7th Edition

Exam Prep

BUS 406 Quiz 3

1) Measures of elasticity enhance our ability to study the magnitudes of changes in quantities in response to changes in prices or income. a.True b.False Answer: True Answer: True Answer: True 2) Relationship Between Years of Education and Annual Income The graph above is a a.bar graph b.scatterplot c.pie chart d.time series analysis Answer: b Answer: b Answer: b 3) Assume that the government

Principles of Microeconomics 7th Edition

Exam Prep

BUS 420 Midterm 2

1) Table 18-11 Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $2 each and pays the workers a wage of $325 per day. Refer to Table 18-11. The marginal product of labor begins to diminish with the addition of which worker? a.the 1st worker b.the 2nd worker c.the 3rd worker d.the

Principles of Microeconomics 7th Edition

Exam Prep

BUS 442 Final

1) Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias. a.True b.False Answer: False Answer: False Answer: False 2) At a price of $1.20, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.40, the coffee shop would be

Principles of Microeconomics 7th Edition

Exam Prep

BUS 457 Test

1) Suppose an influenza pandemic were to significantly decrease the population of a country. We would predict a decrease in the marginal product of land in that country. a.True b.False Answer: True Answer: True Answer: True 2) Which of the following illustrates the concept of a negative externality? a.A college professor plays a vigorous game of racquet

Principles of Microeconomics 7th Edition

Exam Prep

BUS 469 Test 2

1) Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. Which of the following represents Iceland's production possibilities frontier when 100 labor hours are available? a. b. c. d. Answer: Answer: Answer: c c c 2) If your income is $40,000 and your income tax liability is $5,000, your a.marginal tax rate is

Principles of Microeconomics 7th Edition

Exam Prep

BUS 470 Test 2

1) A monopolistically competitive market is like both a competitive market and a monopoly in that firms in all three market structures a.can earn economic profits in the short run. b.can earn economic profits in the long run. c.charge a price above marginal cost. d.All of the above are correct. Answer: a Answer: a Answer: a 2) Figure

Principles of Microeconomics 7th Edition

Exam Prep

BUS 474 Test

1) Hosne's Production Possibilities FrontierMerve's Production Possibilities Frontier If the production possibilities frontier shown for Merve is for 8 hours of work, then how long does it take Merve to make one purse? a.1/2 hour b.2 hours c.4 hours d.8 hours Answer: b Answer: b Answer: b 2) When we derive the demand curve for a good, we should remember

Principles of Microeconomics 7th Edition

Exam Prep

BUS 476 Test 2

1) In the market for apples in a certain country, consumer surplus increases and total surplus increases when that country a.abandons a no-trade policy, adopts a free-trade policy, and becomes an importer of apples. b.abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of apples. c.abandons a free-trade policy, adopts

Principles of Microeconomics 7th Edition

Exam Prep

BUS 481 Test 2

1) In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often impractical to a.make use of theory and observation. b.rely upon the scientific method. c.conduct laboratory experiments. d.find articles or books that were written before 1900. Answer: c Answer: c Answer: c 2) An advantage of using the midpoint

Principles of Microeconomics 7th Edition

Exam Prep

BUS 484 Midterm 2

1) The philosopher John Rawls argued that a.people would choose a more equal distribution of income if they had to determine an economic distribution system before knowing their place in it. b.people would choose income inequality to allow the maximum use of their individual talents. c.government has a role to ensure income equality

Principles of Microeconomics 7th Edition

Exam Prep

BUS 495 Midterm 2

1) The indifference curves for perfect substitutes are straight lines. a.True b.False Answer: True Answer: True Answer: True 2) Unemployment could cause this economy to produce at which point(s)? a.L, M b.N, O, P, Q c.N, O, P d.Q Answer: c Answer: c Answer: c 3) The consumer's optimum is where a.MUx/MUy = Py/Px. b.MUx/Py = MUy/Px. c.MUx/MUy = Px/Py. d.None of the above is correct. Answer: c Answer: c Answer:

Principles of Microeconomics 7th Edition

Exam Prep

BUS 499

1) Figure 9-11 Producer surplus in this market after trade is a.C. b.C + B. c.A + B + D. d.B + C + D. Answer: a Answer: a Answer: a 2) Which of the following statements is not correct? a.The government may use antitrust laws to break up an existing company to improve competition. b.The government may break up a

Principles of Microeconomics 7th Edition

Exam Prep

BUS 508 Homework

1) When two goods are perfect complements, the indifference curves are right angles. a.True b.False Answer: True Answer: True Answer: True 2) Critics of the minimum wage argue that a.labor demand is inelastic so firms can adjust production. b.too many older employees benefit at the expense of teenage workers. c.many minimum-wage earners are teenagers from middle-class families. d.All of the

Principles of Microeconomics 7th Edition

Exam Prep

BUS 518 Homework

1) Which of the following factors does not affect the value of a worker's marginal product? a.discrimination against a particular group of workers by a firm's customers b.a worker's level of disposable income c.a worker's level of human capital d.compensating wage differentials Answer: b Answer: b Answer: b 2) Perry's Production Possibilities FrontierJordan's Production Possibilities Frontier c.worse off if

Principles of Microeconomics 7th Edition

Exam Prep

BUS 528 Quiz

1) Why do some policymakers support a consumption tax rather than an earnings tax? a.The average tax rate would be lower under a consumption tax. b.A consumption tax would encourage people to save earned income. c.A consumption tax would raise more revenues than an income tax. d.The marginal tax rate would be higher under

Principles of Microeconomics 7th Edition

Exam Prep

BUS 554 Quiz 1

1) Economists disagree on whether labor taxes cause small or large deadweight losses. This disagreement arises primarily because economists hold different views about a.the size of labor taxes. b.the importance of labor taxes imposed by the federal government relative to the importance of labor taxes imposed by the various states. c.the elasticity of

Principles of Microeconomics 7th Edition

Exam Prep

BUS 563 Quiz 1

1) Figure 10-19 Note that the lines labeled Demand and Social Valueare parallel. Also, the slopes of the lines on the graph reflect the following facts: (1) Private value and social value decrease by $1.00 with each additional unit of the good that is consumed, and (2) private cost increases by

Principles of Microeconomics 7th Edition

Exam Prep

BUS 564 Test

1) Consumer surplus is equal to the a.Value to buyers - Amount paid by buyers. b.Amount paid by buyers - Costs of sellers. c.Value to buyers - Costs of sellers. d.Value to buyers - Willingness to pay of buyers. Answer: a Answer: a Answer: a 2) Scenario 17-2. Imagine that two oil companies, BQ and Exxoff, own adjacent oil

Principles of Microeconomics 7th Edition

Exam Prep

BUS 567 Test 2

1) Ellie and Brendan both produce apple pies and vanilla ice cream. If Ellie's opportunity cost of one apple pie is 1/2 gallon of ice cream and Brendan's opportunity cost of one apple pie is 1/4 gallon of ice cream, a mutually advantageous trade can be struck at a price

Principles of Microeconomics 7th Edition

Exam Prep

BUS 568 Test 1 A Similarity

Principles of Microeconomics 7th Edition

Exam Prep

BUS 572 Homework

1) Table 18-7 Refer to Table 18-7. It is apparent from this table that increasing marginal product a.occurs only after the first worker is hired. b.occurs only after the second worker is hired. c.occurs only after the third worker is hired. d.never occurs. Answer: d Answer: d Answer: d 2) The payroll tax differs from the individual income

Principles of Microeconomics 7th Edition

Exam Prep

BUS 581 Midterm

1) If the government imposes a binding price floor in a market, then the consumer surplus in that market will increase. a.True b.False Answer: False Answer: False Answer: False 2) Under which of the following scenarios would a park be considered a club good? a.Visitors to the park must pay an admittance fee, but there are always

Principles of Microeconomics 7th Edition

Exam Prep

BUS 599

1) The largest budgetary expense for a typical state or local government is a.public order and safety. b.welfare. c.highways. d.education. Answer: d Answer: d Answer: d 2) The imposition of a tariff on imported wine will increase the domestic price of wine, decrease the quantity of wine imported, and increase the quantity of wine produced domestically. a.True b.False Answer: True Answer: True Answer:

Principles of Microeconomics 7th Edition

Exam Prep

BUS 599 Quiz 3

1) Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages? a.Doctors have the stress of being responsible for other peoples' lives while bankers do not. b.Doctors are on call to work nights and weekends, while bankers work

Principles of Microeconomics 7th Edition

Exam Prep

BUS 600

1) All of the following are transfer payments except a.welfare payments. b.unemployment compensation. c.personal income taxes. d.Social Security. Answer: c Answer: c Answer: c 2) An increase in the overall level of prices in an economy is referred to as a.the income effect. b.inflation. c.deflation. d.the substitution effect. Answer: b Answer: b Answer: b 3) Table 15-21 Tommy's Tie Company, a monopolist, has the following cost and revenue

Principles of Microeconomics 7th Edition

Exam Prep

BUS 605 Midterm 1

1) Suppose that everyone prefers to live in a society without poverty. Further suppose that some private charities are successful in reducing poverty. People who do not contribute to the charities a.receive no external benefit from private antipoverty programs. b.decrease the reliance of individuals on antipoverty programs. c.can free ride on the generosity

Principles of Microeconomics 7th Edition

Exam Prep

BUS 607

1) Which of the following is an example of a welfare program? a.Temporary Assistance for Needy Families (TANF). b.Capital Gains Tax (CGT). c.Life Cycle Transfers (LCT). d.North American Free Trade Agreement (NAFTA). Answer: a Answer: a Answer: a 2) along a linear, downward-sloping demand curve decreases as price falls. a.True b.False Answer: True Answer: True Answer: True 3) Table 20-1 The following table shows the

Principles of Microeconomics 7th Edition

Exam Prep

BUS 621 1 Average Variable Cost Is

1) Average variable cost is equal to total variable cost divided by quantity of output. a.True b.False Answer: True Answer: True Answer: True 2) For a typical firm, fixed costs increase in direct proportion to the increases in output. a.True b.False Answer: False Answer: False Answer: False 3) Figure 14-13 Suppose a firm in a competitive industry has the following cost curves: If the

Principles of Microeconomics 7th Edition

Exam Prep

BUS 625

1) An increase in the value of the marginal product of labor has the effect of increasing the a.demand for labor. b.wage. c.quantity of labor employed. d.All of the above are correct. Answer: d Answer: d Answer: d 2) Scenario 20-5 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax

Principles of Microeconomics 7th Edition

Exam Prep

BUS 627 Test

1) By driving onto a congested road for which no toll is charged, a driver a.contributes to the overuse of a common resource. b.contributes to a negative-externality problem. c.is inflicting additional time cost on all of the other drivers. d.All of the above are correct. Answer: d Answer: d Answer: d 2) When a country allows international trade

Principles of Microeconomics 7th Edition

Exam Prep

BUS 638 Quiz 2

1) The federal healthcare spending program that specifically targets the poor is called a.Medicaid. b.Medicare. c.National Institutes of Health. d.Blue Cross/Blue Shield. Answer: a Answer: a Answer: a 2) Which of the following is not an example of a barrier to entry? a.Mighty Mitch's Mining Company owns a unique plot of land in Tanzania, under which lies the only

Principles of Microeconomics 7th Edition

Exam Prep

BUS 638 Test

1) In the short run, a firm operating in a competitive industry will shut down if price is a.less than average total cost. b.less than average variable cost. c.greater than average variable cost but less than average total cost. d.greater than marginal cost. Answer: b Answer: b Answer: b 2) The measures a.buyers' responsiveness to a change in the

Principles of Microeconomics 7th Edition

Exam Prep

BUS 658 Quiz 2

1) The goal of requiring licenses for hunting and fishing is a.to reduce the use of a common resource. b.to ensure that the people hunting and fishing are qualified. c.to generate revenue for the government. d.to monitor compliance with federal gun laws. Answer: a Answer: a Answer: a 2) When a policy succeeds in giving buyers and sellers

Principles of Microeconomics 7th Edition

Exam Prep

BUS 670 Quiz

1) In the employer-worker relationship, the employer is regarded as the "principal" and the worker is regarded as the "agent." a.True b.False Answer: True Answer: True Answer: True 2) When a relevant variable that is not named on either axis changes, a.there will be a movement along the curve. b.the curve will rotate clockwise. c.the curve will be unaffected

Principles of Microeconomics 7th Edition

Exam Prep

BUS 678 Quiz 1

1) If the current allocation of resources in the market for hammers is inefficient, then it must be the case that a.producer surplus exceeds consumer surplus in the market for hammers. b.consumer surplus exceeds producer surplus in the market for hammers. c.the sum of consumer surplus and producer surplus could be increased by

Principles of Microeconomics 7th Edition

Exam Prep

BUS 693

1) Adibok knows that it produces and sells high quality athletic shoes. Wurkout knows that it produces and sells low quality athletic shoes. According to the signaling theory of advertising, a.both Adibok and Wurkout have incentives to spend large amounts of money on advertising for their athletic shoes. b.Adibok has an incentive to

Principles of Microeconomics 7th Edition

Exam Prep

BUS 701 Test 2

1) Figure 7-24 Refer to Figure 7-24. At equilibrium, consumer surplus is a. $18. b.$36. c.$54. d.$72. Answer: a Answer: a Answer: a 2) A monopolist produces an output level where marginal revenue equals marginal cost and charges a price where marginal cost equals average total cost. a.True b.False Answer: False Answer: False Answer: False 3) When a perfectly competitive firm decides to shut down,

Principles of Microeconomics 7th Edition

Exam Prep

BUS 721 Quiz 3

1) The decisions of buyers and sellers that affect people who are not participants in the market create a.market power. b.externalities. c.profiteering. d.market equilibrium. Answer: b Answer: b Answer: b 2) A local manufacturing plant that emitted sulfur dioxide was forced to stop production because it did not comply with local clean air standards. This decision provides an example

Principles of Microeconomics 7th Edition

Exam Prep

BUS 729 Test 2

1) A society consists of three individuals: Larry, Margaret, and Nina. In terms of income and utility, Larry is currently best-off, Margaret ranks in the middle, and Nina is worst-off. Which of the following statements is correct? a.Utilitarianism suggests that government policies should strive to maximize the sum of all three individuals' utility. b.Liberalism

Principles of Microeconomics 7th Edition

Exam Prep

BUS 731 Test 2

1) One method used to control the ability of firms to capture monopoly profit in the United States is through a.government purchase of products produced by monopolists. b.government distribution of a monopolist's excess production. c.enforcement of antitrust laws. d.regulation of firms in highly competitive markets. Answer: c Answer: c Answer: c 2) Which of the following is an

Principles of Microeconomics 7th Edition

Exam Prep

BUS 749 Homework

1) At a price of $24, there is a a.surplus of 4 units. b.surplus of 8 units. c.shortage of 4 units. d.shortage of 8 units. Answer: b Answer: b Answer: b 2) A popular resort restaurant will maximize profits if it chooses to stay open during the lesscrowded off season when its total revenues exceed its fixed costs. a.True b.False Answer: False Answer:

Principles of Microeconomics 7th Edition

Exam Prep

BUS 771 Test 1

1) In a December 2007 New York Times column Paul Krugman argued in favor of a.protectionism based on the national-security argument. b.protectionism based on the infant-industry argument. c.protectionism based on the unfair-competition argument. d.keeping world markets relatively open. Answer: d Answer: d Answer: d 2) Figure 19-5 Refer to Figure 19-5. Given demand for labor, D1, and supply of

Principles of Microeconomics 7th Edition

Exam Prep

BUS 772 Homework

1) Which of the following trade-offs does the production possibilities frontier illustrate? a.If an economy wants to increase efficiency in production, then it must sacrifice equality in consumption. b.Once an economy has reached the efficient points on its production possibilities frontier, the only way of getting more of one good is to

Principles of Microeconomics 7th Edition

Exam Prep

BUS 773 Test 2

1) A 'satisficer" is a person who a.always chooses the best course of action. b.often chooses the worst course of action. c.makes decisions that are merely good enough. d.studies both economics and psychology. Answer: c Answer: c Answer: c 2) Government intervention is necessary to correct all externalities. a.True b.False Answer: False Answer: False Answer: False 3) A monopoly market is characterized by a.many buyers

Principles of Microeconomics 7th Edition

Exam Prep

BUS 777 Test

1) Evidence from experiments in which real people play the ultimatum game supports the idea that people care about fairness as well as about maximization of their personal wealth. a.True b.False Answer: True Answer: True Answer: True 2) Which of the following is not a characteristic of a perfectly competitive market? a.There are many buyers and sellers. b.Firms

Principles of Microeconomics 7th Edition

Exam Prep

BUS 795

1) Economists sometimes give conflicting advice because a.graduate students in economics are encouraged to argue with each other. b.economists have different values and scientific judgment. c.economists acting as scientists do not like to agree with economists acting as policy advisers. d.economics is more of a belief system than a science. Answer: b Answer: b Answer: b 2) Table

Principles of Microeconomics 7th Edition

Exam Prep

BUS 797 Quiz 3

1) A t-shirt maker would be willing to supply 75 t-shirts per day at a price of $18.00 each. At a price of $20.00, the t- shirt maker would be willing to supply 100 t-shirts. Using the midpoint method, the price elasticity of supply for t- shirts is about a.0.37, and

Principles of Microeconomics 7th Edition

Exam Prep

BUS 810

1) If all of the firms in an oligopoly successfully collude and form a cartel, then total profit for the cartel is equal to what it would be if the market were a monopoly. a.True b.False Answer: True Answer: True Answer: True 2) Devin works as an attorney for a corporation and is paid a salary

Principles of Microeconomics 7th Edition

Exam Prep

BUS 815 Homework

1) Figure 18-7 Refer to Figure 18-7. Which of the following would shift the labor supply curve from S1 to S2? a.technological progress b.a decrease in the price of the firm's output c.a change in workers' attitudes toward the work-leisure tradeoff d.an increase in the price of the firm's output Answer: c Answer: c Answer: c 2) Stephen

Principles of Microeconomics 7th Edition

Exam Prep

BUS 818 Midterm 1

1) Arturo's Production Possibilities FrontierDina's Production Possibilities Frontier 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 her income. d.the increase in taxes if her average tax rate were to rise by 1percent. Answer:

Principles of Microeconomics 7th Edition

Exam Prep

BUS 819 Midterm 1

1) A good will have a more inelastic demand, the a.greater the availability of close substitutes. b.broader the definition of the market. c.longer the period of time. d.more it is regarded as a luxury. Answer: b Answer: b Answer: b 2) An equilibrium occurs in a game when a.price equals marginal cost. b.quantity supplied equals quantity demanded. c.all independent strategies counterbalance

Principles of Microeconomics 7th Edition

Exam Prep

BUS 834 Homework 1If The Price

1) If the price increases in the region of the demand curve between points A and B, we can expect total revenue to a.increase. b.stay the same. c.decrease. d.first increase, then decrease until total revenue is maximized. Answer: c Answer: c Answer: c 2) Corrective taxes that are imposed upon the producer of a nasty smell can be successful

Principles of Microeconomics 7th Edition

Exam Prep

BUS 837

1) Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing price charged for goods produced is $12.The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6. The socially efficient level of production is 12 units. The demand

Principles of Microeconomics 7th Edition

Exam Prep

BUS 840 Quiz

1) Along the elastic portion of a linear demand curve, total revenue rises as price rises. a.True b.False Answer: False Answer: False Answer: False 2) Tradable pollution permits a.have prices that are set by the government. b.will be more valuable to firms that can reduce pollution only at high costs. c.are likely to create a higher level of total

Principles of Microeconomics 7th Edition

Exam Prep

BUS 859 Final

1) When a firm is making a profit-maximizing production decision, which of the following principles of economics is likely to be most important to the firm's decision? a.The cost of something is what you give up to get it. b.A country's standard of living depends on its ability to produce goods and

Principles of Microeconomics 7th Edition

Exam Prep

BUS 876 Final

1) Some states do not have a state income tax. a.True b.False Answer: True Answer: True Answer: True 2) In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumstances, what were the economic incentives for producers? a.to produce good quality products so that society would benefit from the

Principles of Microeconomics 7th Edition

Exam Prep

BUS 898 Final

1) Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui's economic profit from running her own business? a. $-55,000 b.

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 1 Dee Is An Accomplished Actress And A Homeowner Who Pays

Ten Principles of Economics 81 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 1 Maureen’s College Raises The Cost Of Room And Board Per Semester

Ten Principles of Economics 41 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 1 The Overriding Reason Why Households And Societies Face Many Decisions

2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 1 The Success Of Decentralized Market Economies Is Primarily Due

Ten Principles of Economics 101 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 1 What Is The Minimum Price That Would Induce This Company

192 Ten Principles of Economics 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 1 If The Company Produces 501 Graphing Calculators Then

Ten Principles of Economics 61 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 A Cost Imposed On Someone Who Is Neither The Consumer Nor

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 According The Coase Theorem Private Markets Will

Externalities 2663 ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.47 - LO: 10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Externalities KEYWORDS: BLOOM'S: Application ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.47 - LO: 10-3 NATIONAL STANDARDS: United States

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 According The Coase Theorem Whatever The Initial

Externalities 2703 ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Positive Externalities KEYWORDS: BLOOM'S: Comprehension ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 Refer Figure 103 What Price And Quantity

Externalities 2503 ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Negative Externalities KEYWORDS: BLOOM'S: Application ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 Suppose That Company A’s Railroad Cars Pass Through Farmer

Externalities 2683 ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Challenging LEARNING OBJECTIVES: ECON.MANK.15.47 - LO: 10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Coase Theorem KEYWORDS: BLOOM'S: Analysis ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Challenging LEARNING OBJECTIVES: ECON.MANK.15.47 - LO: 10-3 NATIONAL STANDARDS: United

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 The Business Activities Firm Confer Positive Externalities

Externalities 2643 ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.46 - LO: 10-2 ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.46 - LO: 10-2 ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.46 - LO: 10-2 2015 Cengage Learning. All

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 The Number Of Shrubs That Are Planted Is Then

Externalities 2623 ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.46 - LO: 10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Positive Externalities KEYWORDS: BLOOM'S: Analysis NOTES: r ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.46 - LO: 10-2 NATIONAL

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 The Private Cost Producing The 160th Unit

Externalities 2563 ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Positive Externalities KEYWORDS: BLOOM'S: Application ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 The Socially Optimal Quantity Education Will Exceed

Externalities 2583 ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Positive Externalities KEYWORDS: BLOOM'S: Application NOTES: r ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 What Is The Socially Optimal Quantity Of Plastic

Externalities 2543 ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Positive Externalities KEYWORDS: BLOOM'S: Analysis ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 When Negative Externalities Are Present Market A Producers

Externalities 2523 ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Negative Externalities KEYWORDS: BLOOM'S: Knowledge ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.45 - LO: 10-1 NATIONAL STANDARDS: United

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 Each Unit Of Plastics That Is Produced Results In An External

Externalities 2603 ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.46 - LO: 10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public Economics Externalities KEYWORDS: BLOOM'S: Application ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.46 - LO: 10-2 NATIONAL STANDARDS: United States

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 10 Sheryl Sits On Her Patio And Plays Her Guitar While Her

Externalities 2719 ANSWER: Research into new technologies gives rise to a positive externality in that it creates knowledge that other people can use, thereby improving their well-being. POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.44 - LO: 10-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Public

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 Analysis Must Include Not Only The Cost

Public Goods and Common Resources 2815 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 For Private Goods Allocated In Markets

Public Goods and Common Resources Multiple Choice Section 00: Introduction 1. For private goods allocated in markets, a. prices guide the decisions of buyers and sellers and these decisions lead to an efficient allocation of resources. b. prices guide the decisions of buyers and sellers and these decisions

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 Goods And Common Resources 290543 Dave And Jesse

Public Goods and Common Resources 2895 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 Goods And Common Resources 31 Recall The Four

2914 Public Goods and Common Resources 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 The Difference Between Specific Knowledge And General Knowledge

Public Goods and Common Resources 2795 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 The Occupational Safety And Health Administration

Public Goods and Common Resources 2835 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 Which Of The Following Goods Is Excludable But Not Rival

Public Goods and Common Resources 2755 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 Why Is The Cow Not One Of These Endangered Species Even Though

Public Goods and Common Resources 2875 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 Yankee Ville Arises Because The Free Rider Problem Does

Public Goods and Common Resources 2775 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 11 Three Business People Meet For Lunch At An Indian Restaurant

Public Goods and Common Resources 2855 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Calculate The Marginal Tax Rate And The Average

3168 The Design of the Tax System 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Design The Tax System 312167 Which The Following

The Design of the Tax System 3111 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Design The Tax System Tax All Forms

The Design of the Tax System 3011 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Design The Tax System Which Category

The Design of the Tax System Multiple Choice Section 00: Introduction 1. Who observed that "in this world nothing is certain but death and taxes"? a. Mark Twain b. P.T. Barnum c. Ben Franklin d. Richard Nixon ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.54

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Economists Who Favor The Proposal Would Argue That

The Design of the Tax System 3131 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Everyone Owes The Same Amount Tax Regardless

The Design of the Tax System 3071 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Italian Gelato And The Price Rises 5

The Design of the Tax System 2991 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Maurice Earns 60000 Per Year Salary And

The Design of the Tax System 3031 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 States Income Tax Rates For Single Individual

The Design of the Tax System 3051 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Suppose New York City Passes A Local “big Gulp” Tax That

The Design of the Tax System 3091 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 Tax Evasion Is Illegal, But Tax Avoidance Is Legal

The Design of the Tax System 3151 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 The Government Taxes Corporate Income On The Basis Of

The Design of the Tax System 2951 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 12 When Government Receipts Exceed Total Government Spending During

The Design of the Tax System 2971 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 An Inquiry Into The Nature And Causes Of The Wealth Of Nations

The Costs of Production 3323 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 Analyzing The Behavior Of The Firm Enhances Our Understanding

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 Christine Could Earn $6,000 Per Year Preparing Taxes

The Costs of Production 3243 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 Marginal Product Keywords Blooms Analysis78 What Effect Any Does

The Costs of Production 3343 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 Production 51 Refer Figure 139 Which Curve Represents

The Costs of Production 3303 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 She Can Sell 300 Glasses For 050 Each

The Costs of Production 3223 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 Table 1319 What The Average Fixed Cost

The Costs of Production 3357 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 What Is The Marginal Product Of The Fourth Worker

The Costs of Production 3263 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 Which Of The Statements Below Is Most Consistent With The Shape

The Costs of Production 3283 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 13 Bubba Is A Shrimp Fisherman Who Used $2,000 From His Personal

The Costs of Production 3203 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 A Firm Has Market Power If It Can

Firms in Competitive Markets Multiple Choice Section 00: Introduction 1. A firm has market power if it can a. maximize profits. b. minimize costs. c. influence the market price of the good it sells. d. hire as many workers as it needs at the prevailing wage

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 A Firm’s Incentive To Compare Marginal Revenue And Marginal Cost

Firms in Competitive Markets 3611 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 A Profit-maximizing Firm’s Losses Can Be Represented

Firms in Competitive Markets 3511 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 Firms In Competitive Markets Table

Firms in Competitive Markets 3431 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 Firms Operating In Competitive Markets Produce Output Levels Where

Firms in Competitive Markets 3411 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 If Some Resources Used In The Production Of A Good Are Only Available

Firms in Competitive Markets 3627 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 Pd The Short Run The Firm Will

Firms in Competitive Markets 3491 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 Suppose A Competitive Market Is Comprised Of Firms That Face

Firms in Competitive Markets 3551 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 To Maximize Its Profit, The Firm Should

Firms in Competitive Markets 3471 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 TVC You Should Home And Read Book D

Firms in Competitive Markets 3531 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 What Is Bob’s Profit-maximizing Quantity

Firms in Competitive Markets 3451 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 What Is Victor’s Opportunity Costs Of Operating His New

Firms in Competitive Markets 3571 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 Which Of The Following Statements Regarding A Competitive Market

Firms in Competitive Markets 3391 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 14 The Long-run Supply Curve For A Competitive Industry May Be Upward

Firms in Competitive Markets 3591 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 A Monopolist Produces An Output Level Where Marginal

Monopoly 3901 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 A Profit-maximizing Monopolist Would Incur Total Costs Of

Monopoly 3721 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 A Reduction In A Monopolist’s Fixed Costs Would

Monopoly 3781 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 Benefit Monopoly Lower Prices Wide Variety Similar

Monopoly Multiple Choice Section 00: Introduction 1. A competitive firm a. and a monopolist are price takers. b. and a monopolist are price makers. c. is a price taker, whereas a monopolist is a price maker. d. is a price maker, whereas a monopolist is a price taker.

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 Charge Single Price 12 All Passengers C Charge

Monopoly 3841 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 He Has One Bus Which Can Fit 50 People Per Tour And Each

3932 Monopoly 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 One Problem With Government Operation Of Monopolies Is That

Monopoly 3881 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 Perfect Price Discrimination Describes A Situation In Which

Monopoly 3861 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 The Government Chooses To “internalize” The Monopoly By Owning

Monopoly 3921 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 The Monopolist Has Total Fixed Costs Of $40 And A Constant

Monopoly 3761 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 The Output Effect Describes The Situation When A Monopolist Sells

Monopoly 3701 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 The Shape Of The Average Total Cost Curve Reveals Information About

Monopoly 3661 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 When Local Grocery Store Offers Discount Coupons

Monopoly 3821 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 Which Of The Following Reasons Describes The Fundamental Barrier

Monopoly 3681 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 Economic Welfare Is Generally Measured By

Monopoly 3801 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 15 What Is The Marginal Revenue From The Sale Of The 2nd Unit

Monopoly 3741 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 A Monopolistically Competitive Market Has Characteristics

Monopolistic Competition Multiple Choice Section 00: Introduction 1. Which of the following is a characteristic of monopolistic competition? a. ownership of a key resource by a single firm b. free entry c. identical product d. patents ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.77 -

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 A Monopolistically Competitive Market Is Like A Competitive Market

Monopolistic Competition 4161 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 Brand Names May Help Consumers They Provide

Monopolistic Competition 4141 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 Empirical Evidence Suggests That Advertising Usually Leads

Monopolistic Competition 4181 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 Firms That Spend The Greatest Percentage Of Their Revenue

Monopolistic Competition 4121 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 Monopolistic Competition Is An Inefficient Market Structure Because

Monopolistic Competition 4101 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 What Is The Concentration Ratio For Industry A

Monopolistic Competition 3961 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 When A Monopolistically Competitive Firm Is In Long-run Equilibrium

Monopolistic Competition 4081 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 When A Profit-maximizing Firm In A Monopolistically Competitive

Monopolistic Competition 4001 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 Which Letter Identifies The Efficient Level Of Output For This Firm

4198 Monopolistic Competition 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 Which Of The Following Is Likely To Happen In The Long Run In This Market

Monopolistic Competition 4041 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 Which Of The Following Market Structures Is Considered A Differentiated

Monopolistic Competition 3981 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 Which Of The Following Represents The Excess Capacity Of This Firm

Monopolistic Competition 4061 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 16 Which Of The Panels Shown Could Illustrate The Short-run Situation

Monopolistic Competition 4021 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 Abby And Brad Own Wells That Produce

Oligopoly 4433 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 Acme And Pinnacle Agree To Cooperate So As To Maximize

Oligopoly 4313 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 BP Cannot Do Any Better Than Drilling Two Wells

4446 Oligopoly 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 Brians Dominant Strategy Charge High Price C The

Oligopoly 4353 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 Firm Has Dominant Strategy But Firm Does

Oligopoly 4333 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 If The Firms Are Able To Collude Successfully

Oligopoly 4253 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 Resale Price Maintenance Can Lead To More Serviced

Oligopoly 4393 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 The Economics Cooperation1 When Firms Are Faced

Oligopoly 4293 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 The Non-renewal Of MFN Trading Status Is Likely To Involve

Oligopoly 4373 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 Then Equilibrium The Output Effect A Must Dominate

Oligopoly 4273 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 They Bring Water To Town And Sell It At Whatever Price

Oligopoly 4233 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 What Is The Profit-maximizing Price To Charge For A Salad

Oligopoly 4413 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 17 Which Of The Following Statements About Oligopolies Is Not Correct

Oligopoly Multiple Choice Section 00: Introduction 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

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 A Firm’s Demand For Labor Is Derived From Its Decision

The Markets for the Factors of Production 4679 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 A Labor-augmenting Technological Change Suchas A Faster

The Markets for the Factors of Production 4639 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 Dans Demand For The Services Bakers It He Price

The Markets for the Factors of Production 4559 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 How Many Workers Should This Firm Hire To Maximize Its Profit

The Markets for the Factors of Production 4539 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 Juanita Is Trying To Convince The Owner Of A Jewelry Store

The Markets for the Factors of Production 4479 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 Markets For The Factors Production 87 Refer Figure

The Markets for the Factors of Production 4499 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 The Inputs Used To Produce Goods And Services Are Called

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 The Markets For The Factors Production For

The Markets for the Factors of Production 4579 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 The Markets For The Factors Production The

The Markets for the Factors of Production 4699 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 The Reduction The Supply Fire Trucks Increases

The Markets for the Factors of Production 4659 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 What Interval Of Wages, W, Would The Shop Maximize Its Profit

The Markets for the Factors of Production 4711 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 What Is The Value For The Cell Labeled BB

The Markets for the Factors of Production 4519 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 Which Of The Following Events Would Shift A Labor Supply Curve

The Markets for the Factors of Production 4599 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 18 Which Of The Following Is A Possible Explanation Of The Shift

The Markets for the Factors of Production 4619 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 Discrimination Illegal The United States For Firms

Earnings and Discrimination 4903 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 Earnings And Discrimination Sometimes Wages Are Set

Earnings and Discrimination 4823 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 Ferris Is Carefully Considering The Options That Each Recruiter

Earnings and Discrimination 4763 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 If Firms Are Competitive, Then Labor-market Discrimination

Earnings and Discrimination 4883 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 Jobs That Involve Pleasant Work, As Opposed To Jobs That Involve

Earnings and Discrimination 4743 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 Mbas Because Average Their Job Performance Better Than

Earnings and Discrimination 4803 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 Restaurant Customers Preferred Waited White Waitresses Rather

Earnings and Discrimination 4863 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 The Difference In Wages Paid To Major-league Baseball Players

Earnings and Discrimination 4783 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 The National Collegiate Athletic Association (NCAA) Has Long Argued

4922 Earnings and Discrimination 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 The Theory Of Efficiency Wages Challenges The Assumption That

Earnings and Discrimination 4843 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 19 Westland Exports Goods Produced With Skilled Labor And Imports

2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 2 Albert Einstein Once Made The Following Observation About Science

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 A Family’s Ability To Buy Goods And Services Depends Largely

Income Inequality and Poverty 5021 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 In Kind Transfers Give The Recipient More Utility

Income Inequality and Poverty 5101 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 Inequality And Poverty 19 The Goal Utilitarians Toa

Income Inequality and Poverty 5041 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 One Existing Government Program That Works Much

Income Inequality and Poverty 5121 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 The Maximin Criterion Is Attributed To Which Political Philosophy

Income Inequality and Poverty 5061 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 The Population Had A Greater Share Of The Income In 2011 Than

Income Inequality and Poverty 4961 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 The Poverty Line Is Adjusted Each Year To Reflect Changes In The

Income Inequality and Poverty 5001 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 The Poverty Rate In The United States Was 15 Percent

Income Inequality and Poverty 4981 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 The Regular Pattern Of Income Variation Over A Person’s Life

5152 Income Inequality and Poverty 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 What Is The Foundation Of Your Critique

Income Inequality and Poverty 5141 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 Which Income Group Would Philosopher John Rawls

Income Inequality and Poverty 5081 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 20 Which Of The Following Is Most Likely To Occur When

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 A Consumer’s Budget Constraint Is Drawn On A Graph With The Number

The Theory of Consumer Choice 5359 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 Dave Will Consume More Both Goods Because

The Theory of Consumer Choice 5263 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 John Purchases And Consumes The Candy Bar

The Theory of Consumer Choice 5243 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 One Day The Price Wine Falls Bottle

The Theory of Consumer Choice 5203 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 Shelley Wins $1 Million In Her State’s Lottery

The Theory of Consumer Choice 5343 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 The Following Diagram Shows A Budget Constraint For A Particular

The Theory of Consumer Choice 5183 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 The Movie Theater Offers Combinations Of Popcorn And

The Theory of Consumer Choice 5223 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 Then The Consumer’s Optimal Choice Is To Buy

The Theory of Consumer Choice 5283 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 Which Of The Following Does Not Represent A Tradeoff

The Theory of Consumer Choice Multiple Choice Section 00: Introduction 1. Which of the following does not represent a tradeoff facing a consumer? a. choosing to purchase more of all goods b. choosing to spend more time on leisure and less time on work c. choosing to spend

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 Which Of The Following Is An Example Of A Giffen Good

The Theory of Consumer Choice 5303 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 21 Your Money Market Account Pays An Annual Interest Rate Of

The Theory of Consumer Choice 5323 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 A Brand Of Wine Is Priced At Only $5 Per Bottle

Frontiers of Microeconomics 5423 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 Brian And Cody Does Produce Transitive Preferences

Frontiers of Microeconomics 5443 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 Even Though It Is Impossible To Satisfy All Of Arrow’s Properties

Frontiers of Microeconomics 5563 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 Opryland The Winner The Second Vote Will

Frontiers of Microeconomics 5483 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 Participants In A Half-marathon Are Likely To Have Trained

Frontiers of Microeconomics 5543 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 Shana Owns A Boutique That Sells High-end Women’s Clothing

Frontiers of Microeconomics 5577 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 The Percentage Policy Holders Making Claims

Frontiers of Microeconomics 5403 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 The Voters Are Divided Into Three Groups Based On Their

Frontiers of Microeconomics 5463 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 Which Of The Dollar Amounts Will Win Over Any Of The Others

Frontiers of Microeconomics 5503 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 Which Of The Following Areas Of Economics Would Most Likely Study This

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 22 Economic Policy That Appears To Be Ideal In An Economics Textbook

Frontiers of Microeconomics 5523 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 4 Copied Or Duplicated, Or Posted To A Publicly Accessible Website

The Market Forces of Supply and Demand 1087 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 4 The Market Supply Curve Shows How The Total Quantity Supplied

The Market Forces of Supply and Demand 1055 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 A T-shirt Maker Would Be Willing To Supply 75 T-shirts Per Day

Elasticity and Its Application 1297 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Elasticity And Its Application131789 The Price Elasticity

Elasticity and Its Application 1317 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Elasticity Of Demand Is Closely Related To The Slope Of The Demand Curve

Elasticity and Its Application 1157 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Get Smart University Is Contemplating An Increase In Tuition

Elasticity and Its Application 1197 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 If The Price Decreased From $36 To $12, Total Revenue Would

Elasticity and Its Application 1217 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Jenna Says She Would Buy 10 Gallons Of Gas Per Week Regardless

Elasticity and Its Application 1177 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Price Elasticity Of Demand Using The Mid Point

Elasticity and Its Application 1237 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Then The Firm Should Decrease Price To Increase Revenue

Elasticity and Its Application 1357 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Which Of The Following Is Likely To Have The Most Price

Elasticity and Its Application 1117 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Which Of The Following Was Not A Reason OPEC Failed To Keep

Elasticity and Its Application 1337 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Would You Expect The Price Elasticity Of Demand For Natural

1376 Elasticity and Its Application 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 5 Which Of The Following Is Consistent With The Elasticities Given

Elasticity and Its Application 1137 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 A Government-imposed Price Of $24 In This Market Is An Example

Supply, Demand, and Government Policies 1435 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 A Price Ceiling Is A Legal Minimum On The Price At Which

Supply, Demand, and Government Policies 1635 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 Demand And Government Policies 1505188 Rent Control Policies

Supply, Demand, and Government Policies 1495 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 For A Price Ceiling To Be Binding In This Market

Supply, Demand, and Government Policies 1475 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 How Large Would Be The Shortage/surplus

1694 Supply, Demand, and Government Policies 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 If A Tax Is Levied On The Sellers Of A Product, Then There Will Be

Supply, Demand, and Government Policies 1535 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 In Which Of The Following Cases Would Sellers Have To Develop

Supply, Demand, and Government Policies 1455 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 Supply Demand And Government Policies Multiple Choice

Supply, Demand, and Government Policies Multiple Choice Section 00: Introduction 1. Which of the following is not correct? a. Economists have two roles: scientist and policy adviser. b. As scientists, economists develop and test theories to explain the world around them. c. Economic policies rarely have effects that

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 The Minimum Wage Has Its Greatest Impact On The Market

Supply, Demand, and Government Policies 1515 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 The Price Paid By Buyers After The Tax Is Imposed

Supply, Demand, and Government Policies 1575 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 The Price Paid By Buyers In A Market Will Decrease If The Government

Supply, Demand, and Government Policies 1595 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 The Tax Burden Will Fall Most Heavily On Sellers

Supply, Demand, and Government Policies 1615 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 The Wage Adjusts To Balance Labor Supply And Labor Demand

Supply, Demand, and Government Policies 1655 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 When A Tax Is Placed On The Buyers Of Lemonade

Supply, Demand, and Government Policies 1555 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 6 Would This Binding Price Floor Why Would

Supply, Demand, and Government Policies 1675 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 Copied Or Duplicated, Or Posted To A Publicly Accessible Website

Consumers, Producers, and the Efficiency of Markets 1893 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 How Much Is Bob Willing To Pay For The Book

Consumers, Producers, and the Efficiency of Markets 1753 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 Producers And The Efficiency Markets 13 George Produces

Consumers, Producers, and the Efficiency of Markets 1793 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 Second Some New Buyers Enter The Market Because

Consumers, Producers, and the Efficiency of Markets 1953 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 Section 03 Market Efficiency 1 Which Tools Allow

Consumers, Producers, and the Efficiency of Markets 1853 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 Welfare Analysis Keywords Blooms Comprehension 2015 Cengage

Consumers, Producers, and the Efficiency of Markets 1913 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 What Is The Additional Producer Surplus To Initial Producers

Consumers, Producers, and the Efficiency of Markets 1833 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 Which Of The Following Is Not Equal To Total Surplus

Consumers, Producers, and the Efficiency of Markets 1933 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 Which Producers Will Supply Units In The Market

1970 Consumers, Producers, and the Efficiency of Markets 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 Who Experiences The Largest Loss Of Consumer

Consumers, Producers, and the Efficiency of Markets 1733 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 You And Your Friend Agree Offer 500

Consumers, Producers, and the Efficiency of Markets 1813 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 The Distinction Between Efficiency And Equality Can Be Described

Consumers, Producers, and the Efficiency of Markets 1873 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 7 what Happens To Consumer Surplus In The Market

Consumers, Producers, and the Efficiency of Markets 1773 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 8 If T Represents The Size Of The Tax On A Good And Q Represents

Application: The Costs of Taxation 2011 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 8 States Labor Supply More Inelastic More Elastic

Application: The Costs of Taxation 2229 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 8 The Costs Taxation 216115 The Tax Good Doubled

Application: The Costs of Taxation 2151 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 8 The Price Labeled As P2 On The Vertical Axis Represents

Application: The Costs of Taxation 2091 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 8 The Tax Rate To Tax Revenue Raised By The Tax

Application: The Costs of Taxation 2171 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 8 The Tax Results In A Loss Of Consumer Surplus That Amounts

Application: The Costs of Taxation 2051 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 8 Which Of The Following Equations Is Valid For The Deadweight

Application: The Costs of Taxation 2031 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 8 the American Revolution Was Sparked By Anger Over

Application: The Costs of Taxation Multiple Choice Section 00: Introduction 1. In 1776, the American Revolution was sparked by anger over a. the extravagant lifestyle of British royalty. b. the crimes of British soldiers stationed in the American colonies. c. British taxes imposed on the American colonies. d.

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 8 Which Of The Following Results Is Most Likely

Application: The Costs of Taxation 2071 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 9 An Important Factor In The Decline Of The U.S

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 9 The Change In Total Surplus In This Market Because Of Trade

Application: International Trade 2325 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 9 The Nation Of Aquilonia Has Decided To End Its Policy Of Not

Application: International Trade 2365 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 9 When A Country Allows International Trade And Becomes

Application: International Trade 2285 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 9 When A Country Allows Trade And Becomes An Exporter

Application: International Trade 2405 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 9 Which Of The Following Events Conceivably Could Cause The Country

Application: International Trade 2305 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

Chapter 9 What Are The Arguments In Favor Of Trade Restrictions

2464 Application: International Trade 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly

Principles of Microeconomics 7th Edition

Exam Prep

ECB 100 Final

1) A decrease in a consumer's income a.increases the slope of the consumer's budget constraint. b.has no effect on the consumer's budget constraint. c.decreases the slope of the consumer's budget constraint. d.has no effect on the slope of the consumer's budget constraint. Answer: d Answer: d Answer: d 2) Which of the following is one of the basic

Principles of Microeconomics 7th Edition

Exam Prep

ECB 107 Final

1) Table 17-6 Imagine a small town in which only two residents, Kunal and Naj, own wells that produce safe drinking water. Each week Kunal and Naj work together to decide how many gallons of water to pump, to bring the water to town, and to sell it at whatever price

Principles of Microeconomics 7th Edition

Exam Prep

ECB 115 Test 1

1) Table 7-19 The following table shows the cost of producing a good for the only four producers in a market. Refer to Table 7-19. If these four producers bid in an auction to supply one unit to a consumer, at what price will the good be sold? Answer: The good will sell

Principles of Microeconomics 7th Edition

Exam Prep

ECB 116 Homework

1) Perry's Production Possibilities FrontierJordan's Production Possibilities Frontier a.25 units of output. b.27 units of output. c.37 units of output. d.184 units of output. Answer: c Answer: c Answer: c 6) The manufacturer of South Face sells jackets to retail stores for $120 each, and it requires the retail stores to charge customers $150 per jacket. Any retailer

Principles of Microeconomics 7th Edition

Exam Prep

ECB 120 Midterm 2

1) Table 20-6 Refer to Table 20-6. A person who is concerned that income inequality has worsened between 2011 and 2012 would cite which of the following statistics to support her position? a.The percentage of people earning less than $25,000 decreased from 2011 to 2012 b.The percentage of people earning more than $100,000

Principles of Microeconomics 7th Edition

Exam Prep

ECB 125 Final

1) Assume, for Japan, that the domestic price of automobiles without international trade is lower than the world price of automobiles. This suggests that, in the production of automobiles, a.Japan has a comparative advantage over other countries and Japan will import automobiles. b.Japan has a comparative advantage over other countries and Japan will

Principles of Microeconomics 7th Edition

Exam Prep

ECB 153 Homework

1) Which of the following statements does not apply to a market economy? a.Firms decide whom to hire and what to produce. b.The invisible hand usually maximizes the wellbeing of society as a whole. c.Households decide which firms to work for and what to buy with their incomes. d.Government policies are the primary forces

Principles of Microeconomics 7th Edition

Exam Prep

ECB 160

1) Economists refer to the inputs that firms use to produce goods and services as a.derived factors. b.derived resources. c.factors of production. d.instruments of revenue. Answer: c Answer: c Answer: c 2) Table 22-15 Diane, Henry, and Linda are voting for who to promote. They can only promote one candidate. Their preferences are given in the table below. Refer to

Principles of Microeconomics 7th Edition

Exam Prep

ECB 166 Test

1) Table 12-10 If Willie has $170,000 in taxable income, his tax liability will be a. $16,781. b. $41,309. c. $41,827. d. $47,600. Answer: b Answer: b Answer: b 2) Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about a.$1 million. b.$5 million. c.$10 million. d.$20 million. Answer: c Answer: c Answer: c 3) Economic

Principles of Microeconomics 7th Edition

Exam Prep

ECB 183 Test 1

1) Goods that do not have close substitutes have downward-sloping demand curves. a.True b.False Answer: True Answer: True Answer: True 2) When a certain monopoly sets its price at $8 it sells 64 units. When the monopoly sets its price at $10 it sells 62 units. The marginal revenue for the firm over this range is a.$22. b.$27. c.$54. d.$108. Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECB 188 Quiz 3

1) Since measurable factors such as years of experience and years of education explain less than half of the variation in wages, ability, effort, and chance must play a significant role in determining wages. a.True b.False Answer: True Answer: True Answer: True 2) The study by economists Cox and Alm found a.inequality in consumption is much smaller

Principles of Microeconomics 7th Edition

Exam Prep

ECB 202

1) Along which of the supply curves does quantity supplied move proportionately more than the price? a.along supply curve B only b.along supply curves B and C c.along all three supply curves d.None. Quantity supplied moves proportionately less than the price along all of the three supply curves. Answer: d Price Elasticity of Supply Answer: d

Principles of Microeconomics 7th Edition

Exam Prep

ECB 202 Midterm

1) Which of the following is a characteristic of a monopoly? a.low fixed costs as a portion of total costs b.free entry and exit c.barriers to entry d.declining marginal cost Answer: c Answer: c Answer: c 2) Table 17-14 This table shows a game played between two players, A and B. The payoffs in the table are shown as

Principles of Microeconomics 7th Edition

Exam Prep

ECB 205 Test 2

1) Suppose that Christine owns her own CPA firm. She uses only two inputs in her business: her hours worked (labor) and a computer (capital). In the short run, Christine most likely considers a.both labor and capital to be fixed. b.both labor and capital to be variable. c.capital to be variable and labor

Principles of Microeconomics 7th Edition

Exam Prep

ECB 213 Final

1) Capital owners are compensated according to the value of the marginal product of that capital. a.True b.False Answer: True Answer: True Answer: True 2) You know an economist has crossed the line from policy adviser to scientist when he or she a.claims that the problem at hand is widely misunderstood by non-economists. b.makes positive statements. c.talks about values. d.makes

Principles of Microeconomics 7th Edition

Exam Prep

ECB 221 Test 1

1) Which of the following does not affect an individual's demand curve? a.expectations b.income c.prices of related goods d.the number of buyers Answer: d Answer: d Answer: d 2) As an alternative to pairwise majority voting, each voter could be asked to rank the possible outcomes, giving 1 point to her lowest choice, 2 points to her second-lowest

Principles of Microeconomics 7th Edition

Exam Prep

ECB 229

1) Firms that operate in perfectly competitive markets try to a.maximize revenues. b.maximize profits. c.equate marginal revenue with average total cost. d.All of the above are correct. Answer: b Answer: b Answer: b 2) Scenario 9-1 The before-trade domestic price of peaches in the United States is $40 per bushel. The world price of peaches is $52 per bushel. The

Principles of Microeconomics 7th Edition

Exam Prep

ECB 233 Test

1) Figure 14-2 Suppose a firm operating in a competitive market has the following cost curves: Which of the four prices corresponds to a firm earning negative economic profits in the short run but trying to remain open? a.Pa b.Pb c.Pc d.Pd Answer: c Answer: c Answer: c 2) When a country abandons a no-trade policy, adopts a free-trade policy,

Principles of Microeconomics 7th Edition

Exam Prep

ECB 243 Test 1

1) Figure 8-10 Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2. Without the tax, the consumer surplus is a.(P0-P2) x Q2. b. 1/2 x (P0-P2) x Q2. c. (P0-P5) x Q5. d. 1/2 x (P0-P5) x Q5. Answer: d Answer: d Answer: d 2) Table 20-4 Source: U.S. Bureau of

Principles of Microeconomics 7th Edition

Exam Prep

ECB 248 Midterm 2

1) With no price discrimination, the monopolist sells every unit at the same price. Therefore a.marginal revenue is equal to price. b.marginal revenue is equal to average revenue. c.price is greater than marginal revenue. d.Both a and b are correct. Answer: c Answer: c Answer: c 2) Efficiency is illustrated by a.both the production possibilities frontier and the circular-flow

Principles of Microeconomics 7th Edition

Exam Prep

ECB 261 Final

1) One theory of advertising suggests that a.advertising is more effective for industrial products than consumer products. b.the content of advertising may be irrelevant to product success in the market. c.regulations limiting advertising benefit consumers, but not producers. d.television advertising is more effective in reducing competition than ads on websites. Answer: b Answer: b Answer: b 2) Using

Principles of Microeconomics 7th Edition

Exam Prep

ECB 270 Quiz 2

1) Monopolistic competition is characterized by a few sellers offering similar products, whereas oligopoly is characterized by many sellers offering differentiated products. a.True b.False Answer: False Answer: False Answer: False 2) When market conditions in a competitive industry are such that firms cannot cover their total production costs, then a.the firms will suffer long-run economic losses. b.the firms

Principles of Microeconomics 7th Edition

Exam Prep

ECB 280 Midterm 1

1) Two countries can achieve gains from trade even if one country has an absolute advantage in the production of both goods. a.True b.False Answer: True Answer: True Answer: True 2) Television advertisements aired during major sporting events are very expensive. A theory asserting that people buy a product simply because it is advertised would suggest that

Principles of Microeconomics 7th Edition

Exam Prep

ECB 281 Quiz 3

1) Which of the following is not correct? a.The slope of a line will be a small positive number for a fairly flat upward-sloping line. b.The slope of a line will be a large positive number for a steep upward-sloping line. c.The slope of a line will be a negative number for a

Principles of Microeconomics 7th Edition

Exam Prep

ECB 293 Homework

1) Scenario 13-14 If Farmer Brown plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 5 bushels of wheat. If he plants 2 bags, he gets 9 bushels. If he plants 3 bags, he gets 12 bushels. A bag of seeds

Principles of Microeconomics 7th Edition

Exam Prep

ECB 296 Quiz 3

1) Germany should specialize in the production of a.boats and import cars. b.cars and import boats. c.both goods and import neither good. d.neither good and import both goods. Answer: b Answer: b Answer: b 2) Which of the following would cause price to increase? a.an increase in supply b.a decrease in demand c.a surplus of the good d.a shortage of the good Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECB 299 Quiz

1) Which of the following is a difference between corrective taxes and tradable pollution permits? a.Corrective taxes are a market-based solution while tradable pollution permits are a command-and-control policy. b.With a corrective tax the government sets the price of pollution; with tradable pollution permits, demand and supply set the price of pollution. c.With

Principles of Microeconomics 7th Edition

Exam Prep

ECB 302 Quiz 3

1) Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: In the short run,if the market price is higher than P4 but less than P6, individual firms in a competitive industry will earn a.positive profits. b.zero profits. c.losses but will remain in business. d.losses and will shut down. Answer: a Answer: a Answer: a 2)

Principles of Microeconomics 7th Edition

Exam Prep

ECB 317 Midterm 1

1) Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time? a.Point A to Point B b.Point C to Point B c.Point C to Point D d.Point A to Point D Answer: a Answer: a Answer: a 2) Figure

Principles of Microeconomics 7th Edition

Exam Prep

ECB 317 Test 2

1) Evidence from a 1988 study of the market for professional basketball players a.found no evidence of consumer-driven wage discrimination. b.found some evidence of consumer-driven wage discrimination. c.found that measurement of marginal productivity was very difficult for basketball players. d.indicated that sports with strong player associations are unlikely to experience wage discrimination. Answer: b Answer: b Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECB 344 Midterm

1) As the number of concrete workers in the United States falls, the wage paid to the remaining concrete workers will necessarily fall as well. a.True b.False Answer: False Answer: False Answer: False 2) Figure 21-21 Refer to Figure 21-21. Suppose that a consumer is originally at point R. Then the price of good X decreases. Which

Principles of Microeconomics 7th Edition

Exam Prep

ECB 354

1) Scenario 13-10 Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. An accountant would

Principles of Microeconomics 7th Edition

Exam Prep

ECB 364 Homework

1) Which of the following is not possible? a.Demand is elastic, and a decrease in price causes an increase in revenue. b.Demand is unit elastic, and a decrease in price causes an increase in revenue. c.Demand is inelastic, and an increase in price causes an increase in revenue. d.Demand is perfectly inelastic, and an

Principles of Microeconomics 7th Edition

Exam Prep

ECB 380 Quiz

1) Table 15-1 Assume this monopolist's marginal cost is constant at $12. What quantity of output (Q) will it produce and what price (P) will it charge? a. Q = 4, P = $29 b. Q = 4, P = $26 c. Q = 5, P = $23 d. Q = 7, P = $17 Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECB 384 Test

1) Table 15-12 The following table provides information on the price, quantity, and average total cost for a monopoly. In order to maximize profits, the firm should produce a.4 units of output. b.8 units of output. c.12 units of output. d.16 units of output. Answer: b Answer: b Answer: b 2) In 2011, the largest source of receipts for state

Principles of Microeconomics 7th Edition

Exam Prep

ECB 385

1) Kyle is planning to take a roadtrip. After he makes his plans, he has to make some unexpected auto repairs. Also, he sees the price of gas has gone up. Which of these two events should Kyle consider in deciding if it is still worthwhile to go on the

Principles of Microeconomics 7th Edition

Exam Prep

ECB 409

1) Refer to Scenario 9-2. Suppose the world price of cardboard is $45 and international trade is allowed. Then Boxland's consumers demand a.110 tons of cardboard and Boxland's producers supply 75 tons of cardboard. b.110 tons of cardboard and Boxland's producers supply 96 tons of cardboard. c.96 tons of cardboard and Boxland's producers supply 75

Principles of Microeconomics 7th Edition

Exam Prep

ECB 409 Midterm

1) Since World War II, GATT has been responsible for reducing the average tariff among member countries from about a.40 percent to about 5 percent. b.40 percent to about 20 percent. c.80 percent to about 20 percent. d.20 percent to about 10 percent. Answer: a Answer: a Answer: a 2) Two CEOs from different firms in the same

Principles of Microeconomics 7th Edition

Exam Prep

ECB 425 Final

1) A statement describing how the world should be a.is a normative statement. b.is a positive statement. c.would only be made by an economist speaking as a scientist. d.would only be made by an economist employed by the government. Answer: a Answer: a Answer: a 2) Figure 8-8 Suppose the government imposes a $10 per unit tax on a

Principles of Microeconomics 7th Edition

Exam Prep

ECB 430 Midterm 2

1) Scenario 15-5 An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on

Principles of Microeconomics 7th Edition

Exam Prep

ECB 430 Quiz 2

1) What is the difference between a "change in supply" and a "change in quantity supplied?" Graph your answer. a.For each of the following changes, determine whether there will be a change in quantity supplied or a change in supply. i.a change in input costs ii.a change in producer expectations iii.a change in price iv.a

Principles of Microeconomics 7th Edition

Exam Prep

ECB 435

1) The Congressional Budget Office, which is staffed by economists, provides Congress with independent evaluations of policy proposals. a.True b.False Answer: True Answer: True Answer: True 2) The theory of efficiency wages suggests that a.above-equilibrium wages increase worker productivity. b.workers with higher levels of education earn more than workers with lower levels of education. c.workers signal their high ability to

Principles of Microeconomics 7th Edition

Exam Prep

ECB 439 Quiz

1) The less freedom young mothers have to work outside the home, the a.more elastic the supply of labor will be. b.less elastic the supply of labor will be. c.more horizontal the labor supply curve will be. d.larger is the decrease in employment that will result from a tax on labor. Answer: b Answer: b

Principles of Microeconomics 7th Edition

Exam Prep

ECB 447 Test 2

1) The U.S. income tax a.discourages saving. b.encourages saving. c.has no effect on saving. d.will reduce the administrative burden of taxation. Answer: a Answer: a Answer: a 2) In 2009, the lowest quintile of income earners paid about a.1 percent of income as taxes and paid less than 1 percent of all taxes. b.5 percent of income as taxes and

Principles of Microeconomics 7th Edition

Exam Prep

ECB 489 Quiz 2

1) Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually has to pay for it. a.True b.False Answer: True Answer: True Answer: True 2) The wage difference between jobs that require education and those that don't a.is not likely to be related to productivity differences. b.is a

Principles of Microeconomics 7th Edition

Exam Prep

ECB 495 Test

1) The movement from point W to point Y could be caused by a.economic growth. b.unemployment. c.an improvement in efficiency. d.an advance in production technology. Answer: b Answer: b Answer: b 2) Inefficient production is represented by which point(s)? a.Q, S b.Q, S, T c.R, U d.T Answer: d Answer: d Answer: d 3) In 1789, the average American paid approximately what percent of income in

Principles of Microeconomics 7th Edition

Exam Prep

ECB 508 Midterm 2

1) Table 17-4 The table shows the town of Mauston's demand schedule for gasoline. For simplicity, assume the town's gasoline seller(s) incur no costs in selling gasoline. Refer to Table 17-4. Suppose there are exactly two sellers of gasoline in Mauston: Shellon and Standstop. If Shellon sells 150 gallons and Standstop sells

Principles of Microeconomics 7th Edition

Exam Prep

ECB 531 1 The Local Bakery Makes

1) The local bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price. If the owner is only interested in increasing revenue, she should a.lower the price of the cinnamon rolls. b.leave the price of the cinnamon rolls unchanged. c.raise the price of

Principles of Microeconomics 7th Edition

Exam Prep

ECB 532

1) The marginal-cost curve intersects the average-total-cost curve at the minimum point of the marginal-cost curve. a.True b.False Answer: False Answer: False Answer: False 2) In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society? a.Two oil companies own adjacent oil

Principles of Microeconomics 7th Edition

Exam Prep

ECB 536 Final

1) An entrepreneur's motivation to start a business arises from a.an innate love for the type of business that he or she starts. b.a desire to earn a profit. c.an altruistic desire to provide the world with a good product. d.All of the above could be correct. Answer: d Answer: d Answer: d 2) Figure 9-14. On the

Principles of Microeconomics 7th Edition

Exam Prep

ECB 554 Final

1) Market failure associated with the free-rider problem is a result of a.a problem associated with pollution. b.benefits that accrue to those who don't pay. c.losses that accrue to providers of the product. d.market power. Answer: b Answer: b Answer: b 2) Figure 16-4 What price will the monopolistically competitive firm charge in this market? a. $400 b. $600 c. $700 d. $800 Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECB 554 Quiz 2

1) In a market, the price of any good adjusts until quantity demanded equals quantity supplied. a.True b.False Answer: True Answer: True Answer: True 2) When leisure is a normal good, the income effect from a decrease in wages is evident in a.a desire to consume more leisure. b.a desire to consume less leisure. c.an upward-sloping labor-supply curve. d.a shift in

Principles of Microeconomics 7th Edition

Exam Prep

ECB 560

1) Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate. Varick has a comparative advantage in the production of a.wheat. b.cloth. c.both goods. d.neither good. Answer: b Answer: b Answer: b 2) You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you

Principles of Microeconomics 7th Edition

Exam Prep

ECB 562 Test

1) Many charities like the Sierra Club are established to deal with externalities. a.True b.False Answer: True Answer: True Answer: True 2) The circular-flow diagram a.is an economic model. b.incorporates two types of decision makers: households and firms. c.represents the flows of inputs, outputs, and dollars. d.All of the above are correct. Answer: d Answer: d Answer: d 3) Scenario 16-3 Peter operates an ice

Principles of Microeconomics 7th Edition

Exam Prep

ECB 569 Quiz

1) Scenario 13-3 Kachina is a senior majoring in graphic design at Awesome University (AU). While she has been attending college, Kachina started a computer consulting business to help senior citizens learn how to use their iPads. Kachina charges $25 per hour for her consulting services. She also works 5

Principles of Microeconomics 7th Edition

Exam Prep

ECB 602

1) In a game, a dominant strategy is a.the best strategy for a player to follow only if other players are cooperative. b.the best strategy for a player to follow, regardless of the strategies followed by other players. c.a strategy that must appear in every game. d.a strategy that leads to one player's interests

Principles of Microeconomics 7th Edition

Exam Prep

ECB 646 Midterm 1

1) A good that is excludable but not rival is known as a club good. a.True b.False Answer: True Answer: True Answer: True 2) Which of the following theories explains why increased education translates into higher wages? a.human-capital theory b.the theory of compensating differentials c.the theory of supply and demand d.comparative advantage Answer: a Answer: a Answer: a 3) Average productivity can be measured

Principles of Microeconomics 7th Edition

Exam Prep

ECB 663

1) Table 13-6 Wooden Chair Factory Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. If the factory produces at a rate of 70 chairs per hour and operates 8 hours per day, what is the

Principles of Microeconomics 7th Edition

Exam Prep

ECB 675 Test

1) Figure 15-7 A profit-maximizing monopolist would incur total costs of a. $81. b. $120. c. $144. d. $240. Answer: b Answer: b Answer: b 2) Figure 7-12 If the equilibrium price rises from $200 to $350, what is the producer surplus to new producers a. $15,000 b. $3,750 c. $7,500 d.$30,000 Answer: c Answer: c Answer: c 3) When the nation of Isoland opens up its steel

Principles of Microeconomics 7th Edition

Exam Prep

ECB 679 Midterm 2

1) Table 17-13 Two home-improvement stores (Lopes and HomeMax) in a growing urban area are interested in expanding their market share. Both are interested in expanding the size of their store and parking lot to accommodate potential growth in their customer base. The following game depicts the strategic outcomes that result from

Principles of Microeconomics 7th Edition

Exam Prep

ECB 685 Midterm 1

1) Figure 7-16 Sellers will be unwilling to sell more than a.1 unit of the good if its price is below $200. b.2 units of the good if its price is below $450. c.3 units of the good if its price is below $700. d.All of the above are correct. Answer: a Answer: a Answer: a 2) Supply is

Principles of Microeconomics 7th Edition

Exam Prep

ECB 688 Quiz 3

1) In general, less productive workers are paid less than more productive workers. a.True b.False Answer: True Answer: True Answer: True 2) Using the midpoint method, what is the price elasticity of supply between $100 and $220? a. 0.58 b.0.67 c.1.00 d.1.73 Answer: a Price Elasticity of Supply Answer: a Price Elasticity of Supply Answer: a Price Elasticity of Supply 3) Bob, the manager

Principles of Microeconomics 7th Edition

Exam Prep

ECB 689 Homework

1) Figure 10-12 Which of the following is an appropriate label for Line 1? a.social cost minus social value b.social value minus private cost c.demand d.private cost Answer: c Answer: c Answer: c 2) The Surgeon General announces that eating apples promotes healthy teeth. As a result, the equilibrium price of apples a.increases, and producer surplus increases. b.increases, and producer surplus

Principles of Microeconomics 7th Edition

Exam Prep

ECB 698 Test 2

1) Figure 9-9 Total surplus in this market after trade is a.A + B. b.A + B + C. c.A + B + C + D. d.B + C + D. Answer: c Answer: c Answer: c 2) Which of the following statements is true for markets in which the demand curve slopes downward and the supply curve slopes

Principles of Microeconomics 7th Edition

Exam Prep

ECB 710 Test 1

1) The Laffer curve illustrates how taxes in markets with greater elasticities of demand compare to taxes in markets with smaller elasticities of supply. a.True b.False Answer: False Answer: False Answer: False 2) For an economist, the idea of making assumptions is regarded generally as a a.bad idea, since doing so leads to the

Principles of Microeconomics 7th Edition

Exam Prep

ECB 722 Quiz

1) Which of the following is correct? a.A horizontal line has an infinite slope, and a vertical line has a zero slope. b.A horizontal line has a slope of 1, and a vertical line has a slope of -1. c.A horizontal line has a zero slope, and a vertical line has an infinite

Principles of Microeconomics 7th Edition

Exam Prep

ECB 727

1) The invisible hand ensures that economic prosperity is distributed equally. a.True b.False Answer: False Answer: False Answer: False 2) Assume that Bart's Batteries has entered into a resale price maintenance agreement with Radio Shanty but not with Prime Purchase. In this case, a.the wholesale price of Bart's Batteries will be different for Radio Shanty than it

Principles of Microeconomics 7th Edition

Exam Prep

ECB 727 Homework

1) If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would a.slope downward. b.be horizontal. c.slope upward. d.slope downward for low output levels and upward for high output levels. Answer: b Answer: b Answer: b 2) Lump-sum taxes are rarely used in the real world because a.while lump-sum taxes

Principles of Microeconomics 7th Edition

Exam Prep

ECB 742 Quiz 1

1) A monopolistically competitive firm's choice of output level is virtually identical to the choice made by a.a perfectly competitive firm. b.a duopolist. c.a monopolist. d.an oligopolist. Answer: c Answer: c Answer: c 2) Table 2-5 shows one set of production possibilities. Which of the following combinations of corn and wheat is not currently attainable but would be

Principles of Microeconomics 7th Edition

Exam Prep

ECB 747 Homework

1) About four out of five millionaires in the United States earned their money rather than inherited it. a.True b.False Answer: True Answer: True Answer: True 2) The Social Security tax, and to a large extent, the federal income tax, are labor taxes. a.True b.False Answer: True Answer: True Answer: True 3) An agreement among firms regarding price and/or production levels is

Principles of Microeconomics 7th Edition

Exam Prep

ECB 750 Quiz 3

1) Rational people make decisions at the margin by comparing a.average costs and benefits. b.total costs and benefits. c.additional costs and benefits. d.opportunity costs and benefits. Answer: c Answer: c Answer: c 2) A profit-maximizing firm will shut down in the short run when a.price is less than average variable cost. b.price is less than average total cost. c.average revenue is

Principles of Microeconomics 7th Edition

Exam Prep

ECB 751

1) A company has two locations where it employs workers doing the same job and working the same hours. Other things the same most workers would prefer to live in location A, but location A has a higher cost of living than location B. a.The company likely needs to pay workers

Principles of Microeconomics 7th Edition

Exam Prep

ECB 755 Quiz

1) According to evidence provided by the U.S. government, the median black a.woman is paid roughly the same as the median white woman. b.woman is paid roughly the same as the median black man. c.man is paid 21 percent less than the median white man. d.All of the above are correct. Answer: c Answer: c Answer: c 2)

Principles of Microeconomics 7th Edition

Exam Prep

ECB 759 Quiz

1) Peter was recently hired as a salesman for a national consulting firm. His job involves spending a significant portion of his time out of the office visiting prospects and attending conferences. His firm is paying him a wage that is higher than the equilibrium wage, but he receives much

Principles of Microeconomics 7th Edition

Exam Prep

ECB 767 Final

1) A competitive firm will hire workers up to the point at which the value of the marginal product of labor equals the a.average total cost. b.average variable cost. c.wage. d.price per unit of output. Answer: c Answer: c Answer: c 2) A positive externality occurs when a.Jack receives a benefit from John's consumption of a certain good. b.Jack receives

Principles of Microeconomics 7th Edition

Exam Prep

ECB 775

1) When the value of a human life is calculated according to the economic contribution a person makes to society (as reflected in her income-earning potential), the troubling implication is that a.it is possible for a retired or disabled person to have no value to society. b.economists are more valuable than entrepreneurs. c.retired

Principles of Microeconomics 7th Edition

Exam Prep

ECB 776

1) Which of the following statements is correct? a.The efficient provision of private goods is intrinsically more difficult than the efficient provision of public goods. b.The efficient provision of public goods is intrinsically more difficult than the efficient provision of private goods. c.Private markets provide quantities of public goods that exceed the socially-efficient quantities

Principles of Microeconomics 7th Edition

Exam Prep

ECB 782 Quiz 2

1) In which of the following tax systems do taxes increase as income increases? a.both proportional and progressive b.proportional but not progressive c.progressive but not proportional d.neither proportional nor progressive Answer: a Answer: a Answer: a 2) Figure 9-2 The figure illustrates the market for calculators in a country. If this country chooses to trade, the price of calculators in

Principles of Microeconomics 7th Edition

Exam Prep

ECB 802

1) The typical state spends the most on a.education. b.Medicare and Social Security. c.highways. d.defense. Answer: a Answer: a Answer: a 2) If men, on average, earn 20 percent more than women in a particular occupation, a.this is clear evidence of discrimination. b.some of this differential could be due to differences in educational levels. c.some of this differential could be due

Principles of Microeconomics 7th Edition

Exam Prep

ECB 813 Homework

1) Scenario 17-3. Consider two countries, Kinglandia and Rovinastan, that are engaged in an arms race. Each country must decide whether to build new weapons or to disarm existing weapons. Each country prefers to have more arms than the other because a large arsenal gives it more influence in world affairs. But

Principles of Microeconomics 7th Edition

Exam Prep

ECB 815 Quiz 3

1) Scenario 20-2 The government is proposing switching from a progressive tax system, in which families pay 15% of the first $40,000 earned, 30% of the next $40,000 earned, and 45% of any income over $80,000 to a tax system in which every family pays 1/4 of its income regardless of how

Principles of Microeconomics 7th Edition

Exam Prep

ECB 823 1 For Which Of The Following

1) For which of the following goods is the income elasticity of demand likely lowest? a.water b.sapphire pendant necklaces c.filet mignon steaks d.fresh fruit Answer: a Income Elasticity of Demand Answer: a Income Elasticity of Demand Answer: a Income Elasticity of Demand 2) Daryn is raking leaves to earn money for his university's economics club. In the first

Principles of Microeconomics 7th Edition

Exam Prep

ECB 830 Quiz

1) Store clerks are known to have low wages. This is likely to reflect the fact that a.store clerk jobs are perceived to be relatively easy, thus attracting low-skill workers. b.store clerk jobs are perceived to be relatively difficult, thus attracting high-skill workers. c.many people perceive the job of store clerk as having

Principles of Microeconomics 7th Edition

Exam Prep

ECB 837

1) Table 16-4 This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm. If the government forces this firm to produce at its efficient output level, how much profit will this firm earn? a.a $12 loss b.a $13 profit c.a $25 profit d.a $32 profit Answer: c Answer: c Answer: c 2) Table

Principles of Microeconomics 7th Edition

Exam Prep

ECB 843 Quiz 3

1) A decrease in population can be expected to a.increase the marginal product of land. b.decrease the supply of land. c.decrease the rents on land. d.increase the demand for land. Answer: c Answer: c Answer: c 2) When a firm experiences economies of scale, long-run average total cost falls as the quantity of output increases. a.True b.False Answer: True Answer: True Answer: True 3)

Principles of Microeconomics 7th Edition

Exam Prep

ECB 869 Quiz 1

1) Table 22-10 The town of Franklin is facing a severe budget shortage. The town administrator has proposed four options to balance the budget: increase property taxes (taxes), cut the school arts budget (arts), turn off half of the streetlights in the town (streetlights), reduce police patrols (police). Exactly one of

Principles of Microeconomics 7th Edition

Exam Prep

ECB 872

1) Using the midpoint method, the between point X and point Y is a. 0.4 b.1 c.2 d.2.5 Answer: d Answer: d Answer: d 2) Economists think that the best way to determine the value of a human life is to a.evaluate the value of a person's expected earnings in the labor market. b.evaluate the risks people are willing to

Principles of Microeconomics 7th Edition

Exam Prep

ECB 877 Quiz 2

1) Barb's aunt gave her $100 for her birthday with the condition that Barb buy herself something. In deciding how to spend the money, Barb narrows her options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally she decides on Option B.

Principles of Microeconomics 7th Edition

Exam Prep

ECB 894 Test 1

1) Predatory pricing refers to a.a firm selling certain products together rather than separately. b.a monopoly firm reducing its price in an attempt to maintain its monopoly. c.firms colluding to set prices. d.All of the above are examples of predatory pricing. Answer: b Answer: b Answer: b 2) Table 13-4 Charles's Math Tutoring Suppose that Charles's math tutoring company has

Principles of Microeconomics 7th Edition

Exam Prep

ECB 895 Test 2

1) Table 22-20 The table below shows the preferred city budget (in millions) for in the city of Springfield. Refer to Table 22-20. In an election, each voter will select the budget closest to his or her most preferred budget. Using this information, what is the most preferred budget of the median

Principles of Microeconomics 7th Edition

Exam Prep

ECON 100

1) When it comes to people's tastes, economists generally believe that a.tastes are based on forces that are well within the realm of economics. b.tastes are based on historical and psychological forces that are beyond the realm of economics. c.tastes can only be studied through well-constructed, real-life models. d.because tastes do not directly affect

Principles of Microeconomics 7th Edition

Exam Prep

ECON 110 Quiz 2

1) Economists try to address their subject with a scientist's objectivity. a.True b.False Answer: True Answer: True Answer: True 2) If a consumer experiences a decrease in income, the new budget constraint will have the same slope as the old budget constraint. a.True b.False Answer: True Answer: True Answer: True 3) Table 17-21 The Chicken Game is named for a contest in which

Principles of Microeconomics 7th Edition

Exam Prep

ECON 116

1) Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States? a.a decrease in the price of golf balls b.an increase in the price of green fees c.an expectation by buyers that their incomes will increase

Principles of Microeconomics 7th Edition

Exam Prep

ECON 124 Quiz 2

1) Suppose the between peanut butter and jelly is -2.50. This implies that a 20 percent increase in the price of peanut butter will cause the quantity of jelly purchased to a.fall by 8 percent. b.fall by 50 percent. c.rise by 8 percent. d.rise by 50 percent. Answer: b Answer: b Answer: b 2) Nancy and Sheila are

Principles of Microeconomics 7th Edition

Exam Prep

ECON 132 Final

1) Figure 9-6 The figure illustrates the market for roses in a country. The imposition of a tariff on roses a.increases the number of roses imported by 100. b.increases the number of roses imported by 200. c.decreases the number of roses imported by 200. d.decreases the number of roses imported by 400. Answer: c Answer: c Answer: c 2) Which

Principles of Microeconomics 7th Edition

Exam Prep

ECON 136 1 Figure 728Refer To

1) Figure 7-28 Refer to Figure 7-28. At the quantity Q3, a.the market is in equilibrium. b.consumer surplus is maximized. c.the sum of consumer surplus and producer surplus is maximized. d.the marginal value to buyers is less than the marginal cost to sellers. Answer: d Answer: d Answer: d 2) On a 100-acre farm, a farmer is able to

Principles of Microeconomics 7th Edition

Exam Prep

ECON 158 Test

1) Suppose that Australia imposes a tariff on imported beef. If the increase in producer surplus is $100 million, the increase in tariff revenue is $200 million, and the reduction in consumer surplus is $500 million, the deadweight loss of the tariff is $300 million. a.True b.False Answer: False Answer: False Answer: False 2) If the

Principles of Microeconomics 7th Edition

Exam Prep

ECON 162 Final

1) What is the equilibrium quantity in this market? a.4 units b.8 units c.12 units d.16 units Answer: b Answer: b Answer: b 2) The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in a.performing an experiment in an economic system. b.applying mathematical methods to economic analysis. c.analyzing available

Principles of Microeconomics 7th Edition

Exam Prep

ECON 165 Test 2

1) Zelzar has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs. Which groups in Zelzar are better off as a result of the new

Principles of Microeconomics 7th Edition

Exam Prep

ECON 169 Midterm 1

1) Alice and Betty's Production Possibilities in one 8hour day. Alice's Production Possibilities FrontierBetty's Production Possibilities Frontier d.All of the above are correct. Answer: d Answer: d Answer: d 3) Figure 18-2 The figure below shows the production function for a particular firm. Refer to Figure 18-2. Suppose the firm pays a wage equal to $320 per

Principles of Microeconomics 7th Edition

Exam Prep

ECON 186

1) If a market is allowed to move freely to its equilibrium price and quantity, then an increase in supply will a.increase consumer surplus. b.reduce consumer surplus. c.not affect consumer surplus. d.Any of the above are possible. Answer: a Answer: a Answer: a 2) Table 17-9 The table shows the demand schedule for a particular product. Refer to Table 17-9.

Principles of Microeconomics 7th Edition

Exam Prep

ECON 187 Test 2

1) The Coase theorem asserts that the private market will always solve the problem of externalities and allocate resources efficiently a.even if private parties experience substantial costs of bargaining. b.even if the initial distribution of legal rights is skewed in favor of some private parties over others. c.only when there is a large number

Principles of Microeconomics 7th Edition

Exam Prep

ECON 196

1) Which of the following is a characteristic of a natural monopoly? a.Fixed costs are typically a small portion of total costs. b.Average total cost declines over large regions of output. c.The product sold is a natural resource such as diamonds or water. d.All of the above are correct. Answer: b Answer: b Answer: b 2) Five hundred

Principles of Microeconomics 7th Edition

Exam Prep

ECON 213 Test 2

1) Customers who purchase an audio CD from Sally's Sounds are charged 20% more than customers who purchase the audio CD from the Sally's Sounds website. This is an example of a.perfect price discrimination. b.price discrimination. c.deadweight loss. d.socially inefficient output. Answer: b Answer: b Answer: b 2) There is no shortage of scarce resources in a market economy

Principles of Microeconomics 7th Edition

Exam Prep

ECON 216 Quiz 1

1) A firm maximizes its profit by producing output up to the point where marginal revenue equals marginal cost a.only when the market is a monopoly. b.only when the market is a monopoly or monopolistically competitive. c.only when the market is monopolistically competitive or perfectly competitive. d.when the market is perfectly competitive, monopolistically competitive,

Principles of Microeconomics 7th Edition

Exam Prep

ECON 240 1 If A Small Country

1) If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, the government will gain tariff revenue, and domestic consumers will gain consumer surplus. a.True b.False Answer: False Answer: False Answer: False 2) Monopoly pricing prevents some mutually beneficial trades from taking place. These unrealized, mutually beneficial trades are a.not a

Principles of Microeconomics 7th Edition

Exam Prep

ECON 248 Quiz 3

1) Which of the following programs is not included in the federal income security spending? a.Social Security b.welfare c.education d.unemployment compensation Answer: c Answer: c Answer: c 2) Perry's Production Possibilities FrontierJordan's Production Possibilities Frontier a.Dave's job is less dangerous. b.of efficiency wages. c.of education as a signal. d.Dave has more human capital. Answer: d Answer: d Answer: d 11) If the government decided that each

Principles of Microeconomics 7th Edition

Exam Prep

ECON 250 Test 1

1) Uzbekistan's Production Possibilities FrontierAzerbaijan's Production Possibilities Frontier Sup pose Azerbaijan is willing to trade 3 nails to Uzbekistan for every bolt that Uzbekistan makes and sends to Azerbaijan. Which of the following combinations of bolts and nails could Uzbekistan then consume, assuming Uzbekistan specializes in making bolts and Azerbaijan specializes in

Principles of Microeconomics 7th Edition

Exam Prep

ECON 253 Midterm 2

1) Critics of markets that are characterized by firms that sell brand name products argue that brand names encourage consumers to pay more for branded products that a.have elastic demand curves. b.are very different from generic products. c.are indistinguishable from generic products. d.consumer-advocate groups have found to be inferior. Answer: c Answer: c Answer: c 2) Which of the

Principles of Microeconomics 7th Edition

Exam Prep

ECON 281 Test

1) Table 18-12 The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week. Refer to Table 18-12. Suppose the firm sells each box of envelopes that it produces for $6. What is the value of the marginal product of the second

Principles of Microeconomics 7th Edition

Exam Prep

ECON 282 Test 1

1) Although economists and accountants treat many costs differently, they both treat the cost of capital the same. a.True b.False Answer: False Answer: False Answer: False 2) Which of the following statements is not correct? a.Medical research can be an example of a public good. b.The private market will tend to undersupply public goods. c.The free-rider problem occurs when a

Principles of Microeconomics 7th Edition

Exam Prep

ECON 284 Test 2

1) Figure 13-2 As the number of workers increases, a.total output increases but at a decreasing rate. b.marginal product increases but at a decreasing rate. c.marginal product increases at an increasing rate. d.total output decreases. Answer: a Answer: a Answer: a 2) Along which of these segments of the supply curve is supply most elastic? a.AB b.CD c.DH d.GH Answer: a Price Elasticity of

Principles of Microeconomics 7th Edition

Exam Prep

ECON 285

1) Figure 16-14 Which of the following represents the excess capacity of this firm? a.BJ b.GH c.LM d.There is no excess capacity. Answer: c Answer: c Answer: c 2) In a monopolistically competitive market, a.there are only a few sellers. b.each firm takes the price of its product as given. c.firms can enter or exit the market without restrictions. d.each firm produces a

Principles of Microeconomics 7th Edition

Exam Prep

ECON 294

1) Tom produces baseball gloves and baseball bats. Steve also produces baseball gloves and baseball bats, but Tom is better at producing both goods. In this case, trade could a.benefit both Steve and Tom. b.benefit Steve, but not Tom. c.benefit Tom, but not Steve. d.benefit neither Steve nor Tom. Answer: a Answer: a Answer: a 2) Table 20-7 Refer

Principles of Microeconomics 7th Edition

Exam Prep

ECON 315

1) Total surplus is always equal to the sum of consumer surplus and producer surplus. a.True b.False Answer: False Answer: False Answer: False 2) Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed. A firm offers a higher

Principles of Microeconomics 7th Edition

Exam Prep

ECON 322

1) Economists and accountants both include forgone income as a cost to a small business owner. a.True b.False Answer: False Answer: False Answer: False 2) To achieve the optimal provision of public goods, the a.market should be allowed to arrive at an equilibrium without government intervention. b.government must limit the provision of the goods. c.government must tax producers of

Principles of Microeconomics 7th Edition

Exam Prep

ECON 332 Test 2

1) If the for a good is 6, then a 3 percent decrease in price results in a.a 20 percent increase in the quantity demanded. b.an 18 percent increase in the quantity demanded. c.a 2 percent increase in the quantity demanded. d.a 1.8 percent increase in the quantity demanded. Answer: b Answer: b Answer: b 2) Nancy paid

Principles of Microeconomics 7th Edition

Exam Prep

ECON 340 Test 1

1) In the markets for goods and services in the circular-flow diagram, a.households provide firms with savings for investment. b.households provide firms with labor, land, and capital. c.firms provide households with output. d.firms provide households with profit. Answer: c Answer: c Answer: c 2) Negative externalities lead markets to produce a smaller quantity of a good than is

Principles of Microeconomics 7th Edition

Exam Prep

ECON 342 Quiz 1

1) Figure 17-5. Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies. Refer to Figure 17-5. Suppose we observe

Principles of Microeconomics 7th Edition

Exam Prep

ECON 344 Test

1) Which of the following demonstrates the law of supply? a.When the price of leather belts rose, leather belt sellers increase their quantity supplied of leather belts. b.When car production technology improved, car producers increased their supply of cars. c.When sweater producers expected sweater prices to rise in the near future, they decreased

Principles of Microeconomics 7th Edition

Exam Prep

ECON 355 Quiz 1

1) For competitive firms, the curve that represents the value of marginal product of labor is the same as the demand for labor curve. a.True b.False Answer: True Answer: True Answer: True 2) If one producer has the absolute advantage in the production of all goods, then that same producer will have the comparative advantage in

Principles of Microeconomics 7th Edition

Exam Prep

ECON 355 Test

1) Approximately how much of the income in the United States is earned by workers in the form of wages and fringe benefits? a.25 percent b.50 percent c.67 percent d.90 percent Answer: c Answer: c Answer: c 2) Suppose demand is perfectly elastic, and the supply of the good in question decreases. As a result, a.the equilibrium quantity decreases,

Principles of Microeconomics 7th Edition

Exam Prep

ECON 373 Quiz

1) The circular flow model is not used anymore because it fails to perfectly replicate real world situations. a.True b.False Answer: False Answer: False Answer: False 2) Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars is an example of a a.normative economic statement. b.positive economic statement. c.statement made by an

Principles of Microeconomics 7th Edition

Exam Prep

ECON 384

1) Which of the following would shift a market labor supply curve to the left? a.a decrease in the price of output b.an increase in the price of output c.a labor-augmenting technological change d.better employment opportunities in a closely-related job Answer: d Answer: d Answer: d 2) Consider the market for land. Suppose the value of the marginal

Principles of Microeconomics 7th Edition

Exam Prep

ECON 385 Quiz 3

1) Refer to Figure 9-23. With free trade, the domestic price and domestic quantity demanded are a.$90 and 5. b.$90 and 10. c.$120 and 5. d.$120 and 18. Answer: c Answer: c Answer: c 2) Figure 21-23 Refer to Figure 21-23. When the price of X is $80, the price of Y is $20, and the consumer's income is

Principles of Microeconomics 7th Edition

Exam Prep

ECON 420

1) Figure 8-22 Suppose the government changed the per-unit tax on this good from $3.00 to $1.50. Compared to the original tax rate, this lower tax rate would a.increase tax revenue and increase the deadweight loss from the tax. b.increase tax revenue and decrease the deadweight loss from the tax. c.decrease tax revenue and

Principles of Microeconomics 7th Edition

Exam Prep

ECON 421 Final

1) If the for a good is 0.3, then a 20 percent decrease in price results in a a.0.015 percent increase in the quantity demanded. b.0.6 percent increase in the quantity demanded. c.6 percent increase in the quantity demanded. d.66 percent increase in the quantity demanded. Answer: c Answer: c Answer: c 2) An increase in the price

Principles of Microeconomics 7th Edition

Exam Prep

ECON 423 Test

1) According to the Hamermesh and Biddle study, people deemed more attractive than average earn a.30-40 percent more than unattractive people. b.about 5 percent more than average looking people. c.the same as average looking people and 15-20 percent more than unattractive people. d.25 percent more than average looking people and 50 percent more than

Principles of Microeconomics 7th Edition

Exam Prep

ECON 447 Test

1) Figure 16-9 The figure is drawn for a monopolistically-competitive firm. The quantity of output at which the MC and ATC curves cross is the a.efficient scale of the firm. b.short-run equilibrium quantity of output for the firm. c.long-run equilibrium quantity of output for the firm. d.All of the above are correct. Answer: a Answer: a Answer: a 2) When

Principles of Microeconomics 7th Edition

Exam Prep

ECON 455 Test

1) Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. We could use the information in the table to draw a production possibilities frontier for Maya and a second production possibilities frontier for Miguel. If we were to do this, measuring toasters along

Principles of Microeconomics 7th Edition

Exam Prep

ECON 477 Test 1

1) Figure 8-14 Which of the following combinations will minimize the deadweight loss from a tax? a.supply 1 and demand 1 b.supply 2 and demand 2 c.supply 1 and demand 2 d.supply 2 and demand 1 Answer: a Answer: a Answer: a 2) Tax incidence refers to a.what product or service the tax is levied on. b.who bears

Principles of Microeconomics 7th Edition

Exam Prep

ECON 492 Quiz 2

1) The purchase price of capital is a.the value of the capital to the firm. b.always less than the rental price. c.the price received from the flow of some capital services. d.the price a person pays to own that factor of production indefinitely. Answer: d Answer: d Answer: d 2) Steve borrowed some money from Summit Bank, telling

Principles of Microeconomics 7th Edition

Exam Prep

ECON 506 Quiz 1 1 The Condorcet

1) The Condorcet voting paradox demonstrates that democratic outcomes do not always obey the property of a.narrowness of preferences. b.concavity of preferences. c.asymmetry of preferences. d.transitivity of preferences. Answer: d Answer: d Answer: d 2) Figure 21-4 In each case, the budget constraint moves from BC-1 to BC-2. Refer to Figure 21-4. Which of the graphs in the figure could reflect

Principles of Microeconomics 7th Edition

Exam Prep

ECON 526 Quiz

1) Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve. Refer to Figure 21-24. Steve a.gains 1.1 pounds of pears and becomes better off by moving from point A to point B. b.gains 1.1 pounds of pears and becomes better off by moving from point

Principles of Microeconomics 7th Edition

Exam Prep

ECON 527

1) Which of the following is not an explanation for why better educated workers earn more, on average, than less educated workers? a.The higher wages may be a compensating differential for the cost of acquiring the education. b.Workers with a college degree signal their higher abilities to potential employers. c.Skilled labor is increasingly

Principles of Microeconomics 7th Edition

Exam Prep

ECON 558 Quiz 3

1) John is an athlete. He has $120 to spend and wants to buy either a heart rate monitor or new running shoes. Both the heart rate monitor and running shoes cost $120, so he can only buy one. This illustrates the principle that a.trade can make everyone better off. b.people face

Principles of Microeconomics 7th Edition

Exam Prep

ECON 559

1) If a government could successfully achieve the maximin criterion, each member of society would have an equal income. a.True b.False Answer: False Answer: False Answer: False 2) The following diagram shows a budget constraint for a particular consumer. If the price of X is $5, what is the consumer's income? a.$10 b.$30 c.$150 d.$300 Answer: d Answer: d Answer: d 3) A market demand

Principles of Microeconomics 7th Edition

Exam Prep

ECON 574 Quiz 3

1) When a tax is justified on the basis that the taxpayers who pay the tax receive specific government services from payment of the tax, the tax a.is considered horizontally equitable. b.burden is minimized. c.satisfies the benefits principle. d.is considered vertically equitable. Answer: c Answer: c Answer: c 2) Figure 9-5 The figure illustrates the market for tricycles in

Principles of Microeconomics 7th Edition

Exam Prep

ECON 582 Test 1

1) A central issue in the Microsoft antitrust lawsuit involved Microsoft's integration of its Internet browser into its Windows operating system, to be sold as one unit. This practice is known as a.tying. b.predation. c.wholesale maintenance. d.retail maintenance. Answer: a Answer: a Answer: a 2) The North American Free Trade Agreement a.is an example of the unilateral approach to

Principles of Microeconomics 7th Edition

Exam Prep

ECON 585 Quiz 2

1) Table 13-16 Listed in the table are the long-run total costs for three different firms. Which firm is experiencing constant returns to scale? a.Firm A only b.Firm B only c.Firm C only d.Firm A and Firm B only Answer: b Answer: b Answer: b 2) Assume that Maya and Miguel can switch between producing mixers and producing toasters at

Principles of Microeconomics 7th Edition

Exam Prep

ECON 586 Quiz 1

1) Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. The opportunity cost of 1 pound of tomatoes for the farmer is a.1/2 pound of pork. b.2 hours of labor. c.2 pounds of pork. d.4 hours of labor. Answer: a Answer: a Answer: a 2) Figure 8-2 The vertical distance

Principles of Microeconomics 7th Edition

Exam Prep

ECON 587 Final

1) Utility measures the a.income a consumer receives from consuming a bundle of goods. b.satisfaction a consumer receives from consuming a bundle of goods. c.satisfaction a consumer places on her budget constraint. d.All of the above are correct. Answer: b Answer: b Answer: b 2) Efficient production is represented by which point(s)? a.A, B b.A, B, D c.A, B, C d.C Answer: a Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECON 590 Quiz

1) Assume the market for handkerchiefs is competitive. A decrease in the market price of handkerchiefs a.decreases the demand for workers who make handkerchiefs and decreases their equilibrium wage. b.decreases the demand for workers who make handkerchiefs and increases their equilibrium wage. c.increases the demand for workers who make handkerchiefs and decreases their

Principles of Microeconomics 7th Edition

Exam Prep

ECON 598 Test 2

1) Suppose that policymakers are considering placing a tax on either of two markets. In Market A, the tax will have a significant effect on the price consumers pay, but it will not affect equilibrium quantity very much. In Market B, the same tax will have only a small effect

Principles of Microeconomics 7th Edition

Exam Prep

ECON 601

1) Figure 8-1 Suppose the government imposes a tax of P' - P'''. The deadweight loss due to the tax is measured by the area a.J+K+L+M. b.J+K+L+M+N. c.I+Y. d.I+Y+B. Answer: c Answer: c Answer: c 2) On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value

Principles of Microeconomics 7th Edition

Exam Prep

ECON 610 Test 2

1) Which of the following statements is (are) true of a monopoly? (i)A monopoly has the ability to set the price of its product at whatever level it desires. (ii)A monopoly's total revenue will always increase when it increases the price of its product. (iii)The more a monopoly increases output, the higher the

Principles of Microeconomics 7th Edition

Exam Prep

ECON 619 Test 2

1) Table 13-20 Listed in the table are the long-run total costs for three different firms. Refer to Table 13-20. Firm C is experiencing diseconomies of scale. a.True b.False Answer: True Answer: True Answer: True 2) Figure 18-7 Refer to Figure 18-7. Assume W1 = $15 and W2 = $12, and the market is always in equilibrium. A

Principles of Microeconomics 7th Edition

Exam Prep

ECON 637 Final

1) Figure 20-2 Refer to Figure 20-2. Which of the following is consistent with the data reported in the figure? a.The female poverty rate is higher for all age groups than the male poverty rate. b.The disparity between male and female poverty increases with age. c.Neither a nor b are correct. d.Both a and b

Principles of Microeconomics 7th Edition

Exam Prep

ECON 662

1) Table 16-3 The following table shows the output produced by each of the top eight firms in four industries as well as the total industry output for those industries. Based on the concentration ratio, which industry is the most competitive? a.Industry A b.Industry B c.Industry C d.Industry D Answer: c Answer: c Answer: c 2) Figure 7-11 If the supply

Principles of Microeconomics 7th Edition

Exam Prep

ECON 675

1) According to one survey 76 percent of Americans said they were not saving enough for retirement. This example of inconsistency over time a.is rational behavior. b.likely occurs because saving requires a sacrifice in the present for a reward in the distant future. c.likely occurs because Americans don't care about retirement. d.definitely would not

Principles of Microeconomics 7th Edition

Exam Prep

ECON 699 Quiz

Principles of Microeconomics 7th Edition

Exam Prep

ECON 700 Test 2

1) Table 10-3 Taking into account private and external costs, the maximum total surplus that can be achieved in this market is a.$18. b.$38. c.$46. d.$55. Answer: d Answer: d Answer: d 2) A yard sale is an example of a market. a.True b.False Answer: True Answer: True Answer: True 3) Which of the following conditions is characteristic of a monopolistically competitive firm in long-run

Principles of Microeconomics 7th Edition

Exam Prep

ECON 704 Test

1) Using the midpoint method, what is the price elasticity of supply between points B and C? a. 1.67 b.1.19 c.0.84 d.0.61 Answer: b Price Elasticity of Supply Answer: b Price Elasticity of Supply Answer: b Price Elasticity of Supply 2) Based on the studies of human decision making, which of the following statements is correct? a.Most people are

Principles of Microeconomics 7th Edition

Exam Prep

ECON 711

1) Neither public goods nor common resources are a.excludable, but only public goods are not rival in consumption. b.excludable, but only common resources are not rival in consumption. c.rival in consumption, but only public goods are not excludable. d.rival in consumption, but only common resources are not excludable. Answer: a Answer: a Answer: a 2) The Tragedy of

Principles of Microeconomics 7th Edition

Exam Prep

ECON 731 Midterm

1) Table 12-20 The following table presents the total tax liability for an unmarried taxpayer under four different tax schedules for the income levels shown. Which tax schedules are progressive? a.Tax Schedule A only b.Tax Schedule A and Tax Schedule B c.Tax Schedule A, Tax Schedule B, and Tax Schedule C d.All four Tax Schedules are

Principles of Microeconomics 7th Edition

Exam Prep

ECON 747 Midterm 2

1) The laws governing patents and copyrights a.promote monopolies. b.are intended to serve private interests, not the public's interest. c.have costs but not benefits. d.eliminate the need for firms to engage in research and development. Answer: a Answer: a Answer: a 2) The difference between a supply schedule and a supply curve is that a supply schedule a.incorporates demand

Principles of Microeconomics 7th Edition

Exam Prep

ECON 765 Quiz 1

1) The self-interest of the participants in an economy is guided into promoting general economic self-interest by a.the invisible hand. b.market power. c.government intervention. d.oikonomos. Answer: a Answer: a Answer: a 2) One characteristic of a monopoly market is that the product is virtually identical to products produced by competing firms. a.True b.False Answer: False Answer: False Answer: False 3) Table 12-15 In this tax system

Principles of Microeconomics 7th Edition

Exam Prep

ECON 781

1) Brazil's Production Possibilities Frontier The fact that the line slopes downward reflects the fact that a.for Brazil, it is more costly to produce peanuts than it is to produce cashews. b.Brazil will produce more peanuts and fewer cashews as time goes by. c.Brazil faces a tradeoff between producing peanuts and producing cashews. d.Brazil

Principles of Microeconomics 7th Edition

Exam Prep

ECON 795 Midterm

1) In this market, equilibrium price and quantity, respectively, are a.$10 and 30 units. b.$10 and 50 units. c.$10 and 70 units. d.$4 and 50 units. Answer: b Answer: b Answer: b 2) Buyers and sellers who have no influence on market price are referred to as a.market pawns. b.monopolists. c.price takers. d.price setters. Answer: c Answer: c Answer: c 3) The LookGood BePopular (LGBP) Clothing

Principles of Microeconomics 7th Edition

Exam Prep

ECON 795 Test 2

1) In the prisoners' dilemma game, one prisoner is always better off confessing, no matter what the other prisoner does. a.True b.False Answer: True Answer: True Answer: True 2) Bill is restoring a car and has already spent $4,000 on the restoration. He expects to be able to sell the car for $6,200. Bill discovers that

Principles of Microeconomics 7th Edition

Exam Prep

ECON 795 Test 2 1 The Outer Loop Of

1) The outer loop of the circular-flow diagram represents the flows of dollars in the economy. Which of the following does not appear on the outer loop? a.wages b.income c.capital d.rent Answer: c Answer: c Answer: c 2) Discrimination is usually not a profit-maximizing strategy. a.True b.False Answer: True Answer: True Answer: True 3) If firms in an oligopoly agree to produce according to

Principles of Microeconomics 7th Edition

Exam Prep

ECON 800 Quiz 3

1) Assume, for Mexico, that the domestic price of beets without international trade is higher than the world price of beets. This suggests that, in the production of beets, a.Mexico has a comparative advantage over other countries and Mexico will export beets. b.Mexico has a comparative advantage over other countries and Mexico

Principles of Microeconomics 7th Edition

Exam Prep

ECON 805 1 Scenario 153A Monopoly

1) Scenario 15-3 A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $30, its average revenue is $60, and its average total cost is $34. At Q = 500, the firm's marginal cost is a. less than $30. b. $30. c.$34. d.greater

Principles of Microeconomics 7th Edition

Exam Prep

ECON 806 Quiz

1) Which of the following is not a difference between monopolies and perfectly competitive markets? a.Monopolies can earn profits in the long run while perfectly competitive firms break even. b.Monopolies charge a price higher than marginal cost while perfectly competitive firms charge a price equal to marginal cost. c.Monopolies choose to produce the

Principles of Microeconomics 7th Edition

Exam Prep

ECON 815 Midterm 2

1) The income effect of a price change is the change in consumption that results from the movement to a new indifference curve. a.True b.False Answer: True Answer: True Answer: True 2) All else equal, an increase in demand will cause an increase in producer surplus. a.True b.False Answer: True Answer: True Answer: True 3) State and local governments receive the largest

Principles of Microeconomics 7th Edition

Exam Prep

ECON 823 Midterm 1

1) The Arrow impossibility theorem shows that a.democracy should be abandoned as a form of government. b.it is impossible to improve upon democratic voting methods as a mechanism for social choice. c.all voting systems are flawed as a mechanism for social choice. d.the median voter's preferences will always win in a twoway vote. Answer: c Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECON 837 Test 2

1) What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly fell, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you? a.Price will fall, and the effect on quantity

Principles of Microeconomics 7th Edition

Exam Prep

ECON 838 Final

1) Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. Japan has an absolute advantage in the production of a.cars and a comparative advantage in the production of cars. b.cars and a comparative advantage in the production of airplanes. c.neither good and a comparative advantage in

Principles of Microeconomics 7th Edition

Exam Prep

ECON 843

1) The mainstream view among economists is that a.society faces a tradeoff between unemployment and inflation, but only in the short run. b.society faces a tradeoff between unemployment and inflation, but only in the long run. c.society faces a tradeoff between unemployment and inflation, both in the short run and in the long

Principles of Microeconomics 7th Edition

Exam Prep

ECON 848 Quiz 1

1) If a market is allowed to adjust freely to its equilibrium price and quantity, then an increase in demand will a.increase producer surplus. b.reduce producer surplus. c.not affect producer surplus. d.Any of the above are possible. Answer: a Answer: a Answer: a 2) Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market.

Principles of Microeconomics 7th Edition

Exam Prep

ECON 857 Quiz 1

1) If the price falls from point A to point B, total revenue a.increases, and demand is price elastic. b.decreases, and demand is price elastic. c.increases, and demand is price inelastic. d.decreases, and demand is price inelastic. Answer: a Answer: a Answer: a 2) Suppose a tax is imposed on bananas. In which of the following cases will

Principles of Microeconomics 7th Edition

Exam Prep

ECON 862 Quiz 1

1) Which of the following events best exemplifies the concept of signaling? a.A college student's parents, having learned that their child is short of money, send her a check for $1,000. b.A new company making high quality bicycles at a reasonable price sends free bikes to reviewers working for bicycle magazines. c.A grocery store

Principles of Microeconomics 7th Edition

Exam Prep

ECON 880

1) Figure 8-4 The vertical distance between points A and B represents a tax in the market. The equilibrium price before the tax is imposed is a.$12, and the equilibrium quantity is 35. b.$8, and the equilibrium quantity is 50. c.$5, and the equilibrium quantity is 35. d.$5, and the equilibrium quantity is 50. Answer: b Answer: b

Principles of Microeconomics 7th Edition

Exam Prep

ECON 884 Midterm

1) Oligopoly is characterized by a few sellers offering similar products, whereas monopolistic competition is characterized by many sellers offering differentiated products. a.True b.False Answer: True Answer: True Answer: True 2) Table 17-15 This table shows a game played between two players, A and B. The payoffs in the table are shown as (Payoff to A, Payoff

Principles of Microeconomics 7th Edition

Exam Prep

ECON 885

1) Which of the following statements is not correct? a.Critics of advertising argue that firms advertise to manipulate consumers' tastes. b.Defenders of advertising argue that advertising provides valuable product information to consumers. c.An industry with many brand name products will be more competitive than one with many generic products. d.The willingness of a firm to

Principles of Microeconomics 7th Edition

Exam Prep

ECON 885 Quiz 3

1) Anna borrows $5,000 from a bank and withdraws $1,000 from her personal savings to start a coffee shop. The interest rate is 5 percent for both the bank loan and her personal savings. Her opportunity cost of capital is $250. a.True b.False Answer: False Answer: False Answer: False 2) Which of the following statements is

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 105 Test 2

1) Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a small amount. a.True b.False Answer: False Answer: False Answer: False 2) Which of the following statements accurately explains the superstar phenomenon in wages? a.Better carpenters earn more than average carpenters because people are willing to

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 110 Quiz

1) Which of the following statements is correct? a.If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit. b.If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 120 Midterm 1

1) In this market for sunscreen, there is a decrease in the price of zinc oxide, an input into sunscreen, and more producers enter the market. The equilibrium price a.increases and the equilibrium quantity decreases. b.decreases and the equilibrium quantity increases. c.is ambiguous and the equilibrium quantity increases. d.decreases and the equilibrium quantity is

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 127 Test

1) The U.S. federal government collects taxes in a number of ways. Rank the following sources of revenue from the largest to the smallest. a.corporate income taxes, individual income taxes, social insurance taxes b.social insurance taxes, individual income taxes, corporate income taxes c.individual income taxes, social insurance taxes, corporate income taxes d.individual income taxes,

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 130 Midterm

1) The largest budgetary expense for the federal government in 2011 was a.interest on the national debt. b.health. c.highways. d.income security. Answer: d Answer: d Answer: d 2) Which of the following is true of minimum-wage laws? a.They affect skilled workers' wages. b.They create above-equilibrium wages for some unskilled workers. c.They create a shortage of unskilled labor. d.They negatively affect the employment

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 146 Test 1

1) A tit-for-tat strategy, in a repeated game, is one in which a player starts by cooperating and then does whatever the other player did last time. a.True b.False Answer: True Answer: True Answer: True 2) A production function is a relationship between inputs and a.quantity of output. b.revenue. c.costs. d.profit. Answer: a Answer: a Answer: a 3) Figure 16-5 Which of the graphs depicts

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 158 Test 1

1) Knowledge that is patented is a a.public good, whereas knowledge that is not patented is a common resource. b.private good, whereas knowledge that is not patented is a club good. c.common resource, whereas knowledge that is not patented is a private good. d.club good, whereas knowledge that is not patented is a public

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 165 Test 1

1) The typical firm in the US economy a.has some degree of market power. b.sells its product for a price that is equal to the marginal cost of producing the last unit. c.is perfectly competitive. d.is a monopoly. Answer: a Answer: a Answer: a 2) Panel (a) Panel (b) The graphs show the demand for cigarettes. In Panel (b),

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 169 Test 1 1 If The

1) If the government were to impose a tax that assigned everyone the same tax liability, it would be a.a lump-sum tax. b.an equitable tax. c.supported by the poor. d.a progressive tax. Answer: a Lump Sum Answer: a Lump Sum Answer: a Lump Sum 2) What is the most important factor that explains differences in living standards across

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 170 Midterm 1

1) If the price of a good is low, a.firms would increase profit by increasing output. b.the quantity supplied of the good could be zero. c.the supply curve for the good will shift to the left. d.firms can and should raise the price of the product. Answer: b Answer: b Answer: b 2) Individual demand curves are summed

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 174

1) A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the 100th unit for $4.75. The firm should continue to produce 100 units in order to maximize its profits

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 235 Quiz 1

1) Boxes A and B of this circular-flow diagram represent a.firms and households. b.households and government. c.the markets for goods and services and the markets for financial assets. d.the markets for goods and the markets for services. Answer: a Answer: a Answer: a 2) A reduction in a monopolist's fixed costs would a.decrease the profit-maximizing price and increase the

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 238 Midterm 2

1) University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. What could the federal government do to equate the equilibrium quantity of university research and the socially optimal quantity of university research produced? a.tax

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 251 Quiz

1) Suppose that Family A borrows money when its car breaks down and saves money when the wife receives a holiday bonus from her employer. Suppose that Family B borrows money to buy elaborate birthday presents for the children and spends the husband's holiday bonus on a vacation to Florida.

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 256 Quiz 1

1) The movement from point A to point B on the graph shows a(n) a.decrease in demand. b.increase in demand. c.decrease in quantity demanded. d.increase in quantity demanded. Answer: d Answer: d Answer: d 2) Assume that Nick and Faldo can switch between producing wheat and producing cloth at a constant rate. Assume that Nick and Faldo each has

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 257 Quiz 1

1) Refer to Figure 7-23. Figure 7-23 The equilibrium price is a.P1. b.P2. c.P3. d.P4. Answer: b Answer: b Answer: b 2) In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called a.spending. b.revenue. c.income. d.wages, rent, and profit. Answer: d Answer: d Answer: d 3) If Darby values a soccer ball at $50, and she

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 274

1) Suppose the point (Q = 3,400, P = $20) is the midpoint on a certain downward-sloping, linear demand curve. Then a.a decrease in price from $18 to $16 will increase total revenue. b.a decrease in price from $24 to $22 will decrease total revenue. c.a decrease in the price from $21 to

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 288 Test

1) Effective signals a.convey useful information from informed parties to uninformed parties. b.impose little or no cost on the signaler. c.cannot be conveyed accurately when there is an information asymmetry. d.raise the quantity sold but reduce the price sellers receive. Answer: a Answer: a Answer: a 2) Suppose Hank and Tony can both produce corn. If Hank's opportunity

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 294 Quiz 2

1) Government spending is projected to rise over the next few decades. Three of the most important reasons are spending on Social Security, Medicare, and healthcare. a.True b.False Answer: True Answer: True Answer: True 2) Table 7-17 Both the demand curve and the supply curve are straight lines. If 6 units are bought and sold, then total

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 301 Midterm 2

1) A positive externality a.causes the product to be overproduced. b.provides an additional benefit to market participants. c.benefits consumers because it results in a lower equilibrium price. d.is a benefit to a market bystander. Answer: d Answer: d Answer: d 2) A signaling theory of education suggests that educational attainment a.is a signal of high marginal productivity. b.is correlated with

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 304 Quiz 2

1) A tax on insulin is likely to cause a very large deadweight loss to society. a.True b.False Answer: False Answer: False Answer: False 2) Trevor's Tire Company produced and sold 500 tires. The average cost of production per tire was $50. Each tire sold for a price of $65. Trevor's Tire Company's

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 308 Test 1

1) Frank owns a dog-grooming business. Which of the following costs would be implicit costs? (i)dog shampoo (ii)rent on the storefront (iii)wages Frank could earn as a substitute elementary-school teacher (iv)interest that Frank's money was earning before he spent his savings to set up the dog grooming business a.(i) and (ii) only b.(iv) only c.(iii) and (iv) only d.(i),

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 313 Test

1) Suppose that a worker can produce 100 units of output in 7 hours. In the 8th hour, he can produce 12 units of output. The worker can produce 112 units of output in 8 hours. a.True b.False Answer: True Answer: True Answer: True 2) Table 22-19 The 600 voters of Appleton are deciding by majority rule

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 333 Test 2

1) Supporters of raising the minimum wage argue that minimum-wage laws are a.a tax-free way to help the working poor. Businesses bear the burden of paying higher wages, not the government. b.better than the Earned Income Tax Credit (EITC) in targeting the working poor. The EITC may benefit teenagers from middle-class families

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 335 Midterm 2

1) Figure 21-18 Refer to Figure 21-18. Bundle B represents a point where a.MRSxy > Py/Px. b.MRSxy = Px/Py. c.MRSxy < Px/Py. d.MRSxy > Px/Py. Answer: d Answer: d Answer: d 2) Technology spillover is one type of a.negative externality. b.positive externality. c.subsidy. d.producer surplus. Answer: b Answer: b Answer: b 3) To increase living standards, public policy should a.ensure that workers are well educated and have the

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 336

1) The classic example of adverse selection is the a.market for used cars. b.market for new cars. c.relationship between shareholders and managers. d.relationship between a coach and an athlete. Answer: a Answer: a Answer: a 2) Figure 10-1 This graph represents the tobacco industry. The socially optimal price and quantity are a.$1.90 and 38 units, respectively. b.$1.80 and 35 units, respectively. c.$1.60

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 337 Test 2

1) Susie wins $2 million in her state's lottery. If Susie keeps working after she wins the money, we can infer that the income effect is larger than the substitution effect for her. a.True b.False Answer: False Answer: False Answer: False 2) A view of a spectacular sunset along a private beach is an example of

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 357

1) If a production function shows declining marginal product of an input as the quantity of the input increases, then the production function exhibits a.diminishing profitability. b.increasing returns to scale. c.increasing marginal product. d.decreasing marginal product. Answer: d Answer: d Answer: d 2) If the signaling theory of education is correct, a.education increases productivity and educated workers are paid more. b.education

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 370 Test

1) For economists, conducting experiments is often difficult and sometimes impossible. a.True b.False Answer: True Answer: True Answer: True 2) Which of the following events must cause equilibrium quantity to fall? a.demand increases and supply decreases b.demand and supply both decrease c.demand decreases and supply increases d.demand and supply both increase Answer: b Answer: b Answer: b 3) Scenario 17-5 Assume that a local restaurant

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 382 Quiz 2

1) Suppose that a rare virus infects and kills a significant percentage of the population. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners? a.Both wages and rents would increase. b.Both wages and rents

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 383 Quiz 2

1) Table 16-2 The following table shows the total output produced by the top six firms as well as the total industry output for each industry. What is the concentration ratio for Industry L? a.about 99% b.about 77% c.about 41% d.about 16% Answer: b Answer: b Answer: b 2) Congresswoman Gaga represents a state in which several firms manufacture furniture.

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 388 Quiz 3

1) Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income? a.Price will fall, and the effect

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 389 Homework

1) Which of the following would not be considered a negative externality? a.Smelter, Inc. creates steel and pollution. b.Your friend buys a new puppy that barks every night. c.You have an adverse reaction to a medication your doctor prescribed for you. d.Your neighbor plays loud music that you dislike through stereo speakers set up

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 395 Final

1) Table 17-25 There are just two producers of a certain product. Each is considering offering promotional discounts. Refer to Table 17-25. The dominant strategy a.for both firms is to offer the discount. b.for both firms is to not offer the discount. c.for firm A is to offer the discount. The dominant strategy for

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 396 Quiz

1) Which of the following is correct? a.The word economy comes from the Greek word for rational thinker. b.Economists study the management of scarce resources. c.Because economists believe that people pursue their best interests, they are not interested in how people interact. d.All of the above are correct. Answer: b Answer: b Answer: b 2) The amount of

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 398

1) Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires a.more international travel to dangerous locations. b.two night shifts per month. c.careful handling of toxic chemicals. d.an advanced degree. Answer: d Answer: d Answer: d 2) Tom walks Bethany's dog once a day for

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 404 Midterm 1

1) Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: The firm will earn positive economic profit if the market price is a.positive. b.$6. c.above $6. d.There is no price at which the firm earns positive economic profits. Answer: c Answer: c Answer: c 2) A pie chart is a way to display information

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 404 Quiz

1) A tax on an imported good is called a. Answer: tariff Answer: tariff Answer: tariff 2) An externality arises when a person engages in an activity that influences the well-being of a.buyers in the market for that activity and yet neither pays nor receives any compensation for that effect. b.sellers in the market for that

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 413 Quiz 2

1) Which of the following industries is most likely to exhibit the characteristic of free entry? a.electricity b.satellite radio c.mineral mining d.tennis shoes Answer: d Answer: d Answer: d 2) A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings? a.Restaurant customers preferred to be waited on

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 436 Quiz 1

1) Refer to Figure 7-22. Assume demand increases, which causes the equilibrium price to increase from $50 to $70. The increase in producer surplus to producers already in the market would be a. $1,600. b. $600. c. $800. d. $1,200. Answer: d Answer: d Answer: d 2) A person who makes decisions that are "merely good enough" is called a(n) a.optimizer. b.rational

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 446 Quiz

1) Which of the following statements is correct regarding a firm's decision-making? a.The decision to shut down and the decision to exit are both short-run decisions. b.The decision to shut down and the decision to exit are both long-run decisions. c.The decision to shut down is a short-run decision, whereas the decision to

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 452 Test 1 One Reason Why

1) One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs, especially for those workers who deal with the public. a.True b.False Answer: True Answer: True Answer: True 2) Refer to Figure 9-17. Relative to the free-trade outcome, the imposition of the tariff a.decreases imports

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 453

1) Implicit costs are costs that do not require an outlay of money by the firm. a.True b.False Answer: True Answer: True Answer: True 2) Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. The firm experiences economies of scale at which output levels? a.output levels less than M b.output levels between M

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 457 Midterm 2

1) Table 13-3 If the firm can sell its output for $1 per unit, what is the profit-maximizing level of output? a.240 units b.230 units c.190 units d.170 units Answer: b Answer: b Answer: b 2) Consider a small town with only three families, the Greene family, the Brown family, and the Black family. The town does not currently have

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 469

1) Economists at the U.S. Department of Justice help enforce the nation's antitrust laws. a.True b.False Answer: True Answer: True Answer: True 2) Figure 14-14 Suppose a firm in a competitive market, like the one depicted in panel (a), observes market price rising from P1 to P2. Which of the following could explain this observation? a.The entry of

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 475 Midterm 1

1) The most important tax in the U.S. economy is the tax on corporations' profits. a.True b.False Answer: False Answer: False Answer: False 2) Which of these instances would constitute labor-market discrimination? Henry receives a higher wage than Ryan. Henry and Ryan are identical in all of their labor-market characteristics except that a.Henry is a college graduate, and

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 476

1) The Condorcet paradox shows that a.allocations of resources based on majority rule are always inefficient. b.problems in counting votes can negate legitimate democratic outcomes. c.the order on which things are voted can affect the result. d.transitive preferences are inconsistent with rationality. Answer: c Answer: c Answer: c 2) A Giffen good is a good for which an

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 484

1) Which of the following policies is the government most inclined to use when faced with a positive externality? a.taxation b.permits c.subsidies d.usage fees Answer: c Answer: c Answer: c 2) Which of the following is a plausible explanation for a firm paying above-equilibrium wages to its workers? a.It increases the probability that a worker who shirks will be

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 490 Test

1) Figure 7-24 Refer to Figure 7-24. If 6 units of the good are produced and sold, then a.efficiency is achieved in this market. b.the marginal value to buyers equals the marginal cost to sellers. c.the sum of consumer surplus and producer surplus is maximized. d.All of the above are correct. Answer: d Answer: d Answer: d 2) A

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 499

1) When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell. a.True b.False Answer: False Answer: False Answer: False 2) Patent protection is one way to deal with technology spillovers. a.True b.False Answer: True Answer: True Answer: True 3) A firm that is a natural monopoly a.is not likely to be concerned about new

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 518 Midterm

1) The task of economic regulation is to a.protect monopoly profits. b.approximate the results of the competitive market. c.replace competition with government ownership. d.increase competition within the market. Answer: b Answer: b Answer: b 2) One drawback to industrial policy is that a.technology spillovers are too expensive to control. b.measuring the size of spillovers from different markets is difficult. c.spillovers often

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 529 1 If People Can Be

1) If people can be prevented from using a certain good, then that good is called a.rival in consumption. b.excludable. c.a common resource. d.a public good. Answer: b Answer: b Answer: b 2) An example of an information asymmetry is when a worker knows more than his employer about his work effort. a.True b.False Answer: True Answer: True Answer: True 3) Suppose an economist

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 530 Quiz

1) The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the a.amount of the other good that must be given up. b.market price of the additional amount produced. c.amount of resources that must be devoted to its production. d.number of dollars that must be spent to

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 537 Final

1) Maxine's Production Possibilities FrontierDaisy's Production Possibilities Frontier Each has in mind a maximum amount that he will bid. This maximum is called a.a resistance price. b.willingness to pay. c.consumer surplus. d.producer surplus. Answer: b Answer: b Answer: b 4) The statement that "measures of the distribution of income are based on money income" relates to which problem in

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 544 Midterm 2

1) If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75. a.True b.False Answer: False Answer: False Answer: False 2) In a competitive market the current price is $5. The typical

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 545 Quiz

1) The consumer's optimum choice is represented by a.MUx/MUy = Px/Py. b.MUx/Px = MUy/Py. c.MRSxy = Px/Py. d.All of the above are correct. Answer: d Answer: d Answer: d 2) Suppose that an MBA degree creates no externality because the benefits of an MBA are internalized by the student in the form of higher wages. If there are

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 546

1) Two goods are complements when a decrease in the price of one good a.decreases the quantity demanded of the other good. b.decreases the demand for the other good. c.increases the quantity demanded of the other good. d.increases the demand for the other good. Answer: d Answer: d Answer: d 2) Mrs. Smith operates a

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 556 1 What Happens To The

1) What happens to the price and quantity sold of a drug when its patent runs out? (i)The price will fall. (ii)The quantity sold will fall. (iii)The marginal cost of producing the drug will rise. a.(i) only b.(i) and (ii) only c.(ii) and (iii) only d.(i), (ii), and (iii) Answer: a Answer: a Answer: a 2) Suppose the income elasticity of

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 569 Quiz

1) Table 22-21 The following table shows the number of voters preferring various amounts of spending to develop a river to make it more attractive for canoeing and kayaking. Refer to Table 22-21. What is the preferred spending amount of the median voter? a.$1.0 b.$1.5 c.$2.0 d.None of the above are correct. Answer: c Answer: c Answer: c 2) An optimizing

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 570 Midterm

1) Which of the following is not generally regarded by economists as a legitimate reason for the government to intervene in a market? a.to promote efficiency b.to promote equality c.to enforce property rights d.to protect an industry from foreign competition Answer: d Answer: d Answer: d 2) In economics, a difference in access to relevant knowledge is called

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 575

1) When John F. Kennedy said, "A rising tide lifts all boats," to what was he referring? a.With government intervention, all citizens receive a greater allocation of resources. b.With market forces working independently, everyone receives an equitable share of resources. c.With economic growth, more families are pushed above the poverty line. d.None of the

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 577 Quiz 3

1) Suppose a firm in a competitive market produces and sells 8 units of output and has a marginal revenue of $8. What would be the firm's total revenue if it instead produced and sold 4 units of output? a.$4 b.$8 c.$32 d.$64 Answer: c Answer: c Answer: c 2) Suppose an economy produces two goods, food and machines.

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 599 Quiz

1) Which of the following types of goods are rival in consumption? a.private goods and club goods b.private goods and common resources c.public goods and club goods d.public goods and common resources Answer: b Answer: b Answer: b 2) A monopolist produces a.more than the socially efficient quantity of output but at a higher price than in a competitive

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 611

1) Table 18-9 The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. Refer to Table 18-9. Suppose this firm charges a price of $5 per unit of output and pays

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 616 Test

1) Scenario 17-2. Imagine that two oil companies, BQ and Exxoff, own adjacent oil fields. Under the fields is a common pool of oil worth $144 million. Drilling a well to recover oil costs $5 million per well. If each company drills one well, each will get half of the oil

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 621 Midterm

1) Of the total income earned in the U.S. economy, approximately a.33 percent is earned by workers, and 67 percent is earned by landowners. b.50 percent is earned by workers, 25 percent is earned by landowners, and 25 percent is earned by owners of capital. c.67 percent is earned by workers, and 33

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 631

1) In economics, a difference in access to relevant knowledge is called a(n) a.relevancy frontier. b.knowledge gap. c.information asymmetry. d.information equilibrium. Answer: c Answer: c Answer: c 2) Table 13-2 What is the marginal product of the second worker? a.300 units b.200 units c.100 units d.50 units Answer: b Answer: b Answer: b 3) Table 15-9 Consider the following demand and cost information for a monopoly. What is the

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 635 Test 1

1) Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses? a.a decrease in the price of mattresses b.a decrease in the price of custom wooden sleigh bed frames c.a change in consumer tastes away from wooden bedroom furniture d.a decrease in

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 649 Final

1) The monopolist's profit-maximizing quantity of output is determined by the intersection of which of the following two curves? a.marginal cost and demand b.marginal cost and marginal revenue c.average total cost and marginal revenue d.average variable cost and average revenue Answer: b Answer: b Answer: b 2) In a market economy, who makes the decisions that guide most

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 662 Quiz 3

1) Patent and copyright laws a.encourage creative activity. b.promote competition among firms. c.discourage creative activity. d.Both a and b are correct. Answer: a Answer: a Answer: a 2) Price cannot fall so low that some sellers choose to supply a quantity of zero. a.True b.False Answer: False Answer: False Answer: False 3) Consider two individuals - Marquis and Serena - each of whom would

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 663 1 Home Is A Country That

1) Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change? a.Home

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 674 Test

1) Scenario 20-5 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed = (1/4 of income) - $10,000 Refer to Scenario 20-5. A family earning $70,000 before taxes would have how much after-tax income? a.$7,500 b.$52,500 c.$62,500 d.$77,500 Answer: c Answer: c Answer: c 2) Because of diminishing returns,

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 677 Midterm 1

1) As a firm moves along its long-run average cost curve, it is adjusting the size of its factory to the quantity of production. a.True b.False Answer: True Answer: True Answer: True 2) The externality associated with technology spillovers a.cannot be internalized by government. b.is a negative externality. c.can be internalized, potentially, through taxation of firms that are responsible

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 677 Quiz 3

1) Which of the following examples illustrates an oligopoly market? a.a farmers' market with many individuals selling sweet corn and tomatoes b.a city whose electrical service is provided by one electric co-operative c.a city with two firms who are licensed to sell school uniforms for the local schools d.a city with many independently-owned hair

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 689

1) If a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then a.a one-unit increase in output will increase the firm's profit. b.a one-unit decrease in output will increase the firm's profit. c.total revenue exceeds total cost. d.total cost exceeds total revenue. Answer: a Answer: a Answer: a 2) Jane

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 713 Homework

1) A monopolistically competitive firm has the following cost structure: The firm faces the following demand curve: If the government forces this firm to produce at its efficient scale, it will a.produce 3 units and make $9. b.produce 4 units and make $6. c.produce 5 units and lose $5. d.produce 7 units and lose $49. Answer: c Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 713 Midterm 2

1) Figure 8-9 The vertical distance between points A and C represents a tax in the market. The per-unit burden of the tax on sellers is a. $20. b. $200. c. $300. d. $500. Answer: c Answer: c Answer: c 2) When a market experiences a positive externality, a.the demand curve does not reflect the value to society of the good. b.too

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 713 Test 1

1) Willingness to pay a.measures the value that a buyer places on a good. b.is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. c.is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 724 Homework

1) A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.90 per unit. The marginal revenue of the 151st unit of output is a. -$5.10. b. -$0.10. c. $2.45. d. $5.10. Answer: a Answer: a Answer: a 2) Figure 20-1 Number of Poor Refer to Figure

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 732 Quiz 3

1) Table 17-4 The table shows the town of Mauston's demand schedule for gasoline. For simplicity, assume the town's gasoline seller(s) incur no costs in selling gasoline. Refer to Table 17-4. If the market for gasoline in Mauston is perfectly competitive, then the equilibrium price of gasoline is a.$7 and the equilibrium quantity

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 741

1) If four firms comprise the entire golf club industry, the market would be a.competitive. b.characterized by interdependence of firms. c.a duopoly. d.a monopoly. Answer: b Answer: b Answer: b 2) In the signaling theory of education, a.schooling itself does not lead to more productive workers. b.chance plays more of a role than in the human-capital theory. c.schooling enhances worker productivity. d.compensating

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 746 Test 2

1) Figure 15-9 The monopolist's maximum profit a. is $1,600. b. is $2,000. c. is $2,500. d. cannot be determined from the diagram. Answer: d Answer: d Answer: d 2) The characteristics of jobs and workers affect a.labor supply. b.labor demand. c.equilibrium wages. d.All of the above are correct. Answer: d Answer: d Answer: d 3) Figure 15-6 What area measures the monopolist's profit? a.(K-C)*W b.(L-A)*T c.(K-B)*W d. 0.5[(K-C)*(Z-T)] Answer: c Answer: c Answer: c 4)

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 760 Quiz 1

1) Using the midpoint method, what is the price elasticity of supply between points C and D? a. 0.21 b.0.29 c.0.73 d.1.36 Answer: c Price Elasticity of Supply Answer: c Price Elasticity of Supply Answer: c Price Elasticity of Supply 2) Gwen has decided to start her own photography studio. To purchase the necessary equipment, Gwen withdrew

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 764 Midterm

1) Which of the following statements is correct? a.The more similar Firm A's product is to Firm B's product, the more likely Firm A is to advertise. b.Monopolistically competitive firms advertise in order to increase the elasticity of the demand curve they face. c.According to the signaling theory, the more product information an

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 775 Quiz 2

1) Consumer surplus is a.a concept that helps us make normative statements about the desirability of market outcomes. b.represented on a graph by the area below the demand curve and above the price. c.a good measure of economic welfare if buyers' preferences are the primary concern. d.All of the above are correct. Answer: d Answer: d Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 778 Midterm

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 792 Midterm 1

1) Chris and Tony's Production Opportunities Chris and Tony both produce tomatoes and pasta sauce. The table shows their possible production per month if both work the same number of 8 hour days. If Chris and Tony both decide to specialize and produce only the good in which they have

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 795 Final

1) For a competitive, profit-maximizing firm, the labor demand curve is the same as the a.marginal cost curve. b.value of marginal product curve. c.production function. d.profit function. Answer: b Answer: b Answer: b 2) Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 801 Homework

1) In-kind transfers a.are cash payments given to the poor from the government. b.are available to citizens of all income levels, but usually only sought by the poor. c.are non-monetary items given to the poor. d.include food stamps, but not housing vouchers or medical services. Answer: c Answer: c Answer: c 2) Suppose that a firm operating in

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 804

1) Which of the following helped reduce sulfur dioxide emissions, a leading cause of acid rain? (i)corrective taxes (ii)tradable pollution permits (iii)amendments to the Clean Air Act a.(i) only b.both (i) and (ii) c.(iii) only d.both (ii) and (iii) Answer: d Answer: d Answer: d 2) Table 20-11 Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 818 Final

1) Which of the following transactions takes place in the markets for the factors of production in the circular-flow diagram? a.Dylan receives a salary for his work as a financial analyst for an investment firm. b.Kristin buys two business suits to wear to her job as a Chief Information Officer. c.Jim receives clean

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 827 Quiz 2

1) Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. We could illustrate

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 830

1) New firms will likely enter a monopolistically competitive market when price exceeds a.marginal revenue. b.average revenue. c.marginal cost. d.average total cost. Answer: d Answer: d Answer: d 2) Figure 8-2 The vertical distance between points A and B represents a tax in the market. The imposition of the tax causes the quantity sold to a.increase by 1 unit. b.decrease by 1

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 830 Homework

1) Table 13-3 The marginal product of the second worker is a.90 units. b.85 units. c.80 units. d.20 units. Answer: c Answer: c Answer: c 2) Scenario 14-4 The information below applies to a competitive firm that sells its output for $40 per unit. - When the firm produces and sells 150 units of output, its average total cost is $24.50. -

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 835

1) Labor-augmenting technological advances decrease the marginal productivity of labor. a.True b.False Answer: False Answer: False Answer: False 2) In 2011, which category represented the largest source of receipts for the U.S. federal government? a.Medicare b.Social Security c.corporate income taxes d.individual income taxes Answer: d Answer: d Answer: d 3) Total revenue equals a.price x quantity. b.price/quantity. c.(price x quantity) - total cost. d.output - input. Answer: a Answer: a Answer: a 4)

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 835 Test

1) Assume that a college student spends her income on books and pizza. The price of a pizza is $8, and the price of a book is $15. If she has $120 in income, she could choose to consume a.8 pizzas and 4 books. b.4 pizzas and 6 books. c.5 pizzas and 5

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 855

1) A firm's opportunity costs of production are equal to its a.explicit costs only. b.implicit costs only. c.explicit costs + implicit costs. d.explicit costs + implicit costs + total revenue. Answer: c Answer: c Answer: c 2) Caroline earns more than John. Under a new tax system, some of the taxes paid by Caroline would go to John.

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 855 Quiz 2

1) As a result of a fire, a small business owner loses some of her computers and other equipment. If the property of diminishing returns applies to all factors of production, she should expect to see a.an increase in the marginal productivity of her remaining capital and an increase in the

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 864

1) Figure 10-10 Taking into account private and external costs, the maximum total surplus that can be achieved in this market is a. $760. b. $1,080. c. $1,440. d. $1,920. Answer: b Answer: b Answer: b 2) Demand is inelastic if the is greater than 1. a.True b.False Answer: False Answer: False Answer: False 3) Figure 16-13 Which letter represents the profit-maximizing quantity? Answer: L Answer: L Answer: L 4)

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 864 1 A Positive

1) A positive externality a.is a benefit to the producer of the good. b.is a benefit to the consumer of the good. c.is a benefit to someone other than the producer and consumer of the good. d.results in an optimal level of output. Answer: c Answer: c Answer: c 2) Adam Smith's book The Wealth of Nations was

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 869

1) Suppose France subsidizes French wheat farmers, while Germany offers no subsidy to German wheat farmers. As a result of the French subsidy, sales of French wheat to Germany a.may prompt German farmers to invoke the unfair-competition argument. b.increase the consumer surplus of German buyers of wheat. c.increase the total surplus of the

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 871 Midterm 2

1) The debate over the efficiency of markets in which products with brand names are sold a.is framed by the role of regulation in advertising. b.is likely to be resolved by reference to anecdotal evidence. c.hinges on whether consumers are rational in their choices. d.hinges on the effectiveness of advertising that identifies price differences. Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 873 Test 1

1) State and local governments generate revenue from all of the following sources except a.sales taxes. b.the federal government. c.corporate income taxes. d.customs duties. Answer: d Answer: d Answer: d 2) Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 875 Quiz 1

1) George and Brad are waiters at a local restaurant. The female customers prefer to be seated at the tables that George waits on because they think George is better looking than Brad. If George earns more than Brad because of his better looks, this is an example of a.effort playing

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 880 Midterm

1) Based on U.S. income data from 2011, the bottom fifth of all families received approximately what percent of all income? a.48.9 percent b.21.3 percent c.8.6 percent d.3.8 percent Answer: d Answer: d Answer: d 2) For a monopolist, marginal revenue is a.equal to price, as it is for a perfectly competitive firm. b.less than price, as it is for

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 881 Midterm 1

1) Granting a pharmaceutical company a patent for a new medicine will lead to (i)a product that is priced higher than it would be without the exclusive rights. (ii)incentives for pharmaceutical companies to invest in research and development. (iii)higher quantities of output than without the patent. a.(i) and (ii) only b.(ii) and (iii) only c.(i) and

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 888 Midterm

1) Which of the following is not an example of a compensating differential? a.paying workers who do dull, boring work higher wages than workers who do fun, interesting work, all else equal b.paying workers who work on the night shift higher wages than workers who work the day shift, all else equal c.paying

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 890 Test 1

1) A city street is a.always a public good, whether or not it is congested. b.a public good when it is congested, but it is a common resource when it is not congested. c.a common resource when it is congested, but it is a public good when it is not congested. d.always a common

Principles of Microeconomics 7th Edition

Exam Prep

ECON A 895 Quiz 3

1) If the price of natural gas rises, when is the likely to be the highest? a.immediately after the price increase b.one month after the price increase c.three months after the price increase d.one year after the price increase Answer: d Answer: d Answer: d 2) A Giffen good is a good for which a.a decrease in the price

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 109 Midterm 1

1) Which of the following require firms to pay to pollute? (i)corrective taxes (ii)tradable pollution permits (iii)pollution regulations a.(i) only b.both (i) and (ii) c.(iii) only d.both (ii) and (iii) Answer: b Answer: b Answer: b 2) In the long run, a firm will exit a competitive industry if a.total revenue exceeds total cost. b.the price exceeds average total cost. c.average total cost exceeds

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 110 Quiz 3

1) Food and clothing tend to have a.small income elasticities because consumers, regardless of their incomes, choose to buy relatively constant quantities of these goods. b.small income elasticities because consumers buy proportionately more of both goods at higher income levels than they buy at low income levels. c.large income elasticities because they are

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 121 Test 2

1) The lack of progress in reducing the poverty rate since the early 1970s is most closely related with which of the following factors? a.increasing income inequality b.a reduction in the poverty line c.rapid economic growth d.a reduction in international trade Answer: a Answer: a Answer: a 2) The demand for bread is less elastic than the demand

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 148 Quiz 3

1) When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy, a.consumer surplus increases and total surplus increases in the market for that good. b.consumer surplus increases and total surplus decreases in the market for that good. c.consumer surplus decreases and total surplus increases in the

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 149

1) Which of the following statements is not correct? a.The percentage of the population that suffers from long-term poverty is far smaller than the percentage of the population that suffers from short-term poverty because there is a high level of economic mobility in the United States. b.Permanent income is a better measure of

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 154

1) Anthony and Addie are playing the ultimatum game, starting with $100. The coin flip results in Anthony being the one to propose a division of the $100. Anthony proposes that he gets $99 and Addie gets $1. Which of the following statements is correct? a.Because the 991 split isn't fair, Anthony

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 174 Homework

1) Majority rule will produce the outcome most preferred by the median voter. a.True b.False Answer: True Answer: True Answer: True 2) Which of the following is not an example of in-kind transfers? a.food stamps b.Medicaid c.the Earned Income Tax Credit d.housing vouchers Answer: c Answer: c Answer: c 3) Which of the following statements is not correct? a.Two examples of early antitrust laws are

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 178

1) An example of a firm with market power is a a.delicatessen in New York. b.cable TV provider in Tulsa. c.clothing store in Chicago. d.family farm in Kansas. Answer: b Answer: b Answer: b 2) Figure 9-9 Total surplus in this market before trade is a.A + B. b.A + B + C. c.A + B + C + D. d.B + C

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 192

1) Refer to Figure 9-15. With the tariff, the quantity of saddles imported is a.Q3 - Q1. b.Q3 - Q2. c.Q4 - Q1. d.Q4 - Q2. Answer: b Answer: b Answer: b 2) Table 13-6 Wooden Chair Factory Assume the Wooden Chair Factory currently employs 2 workers. What is the marginal product of labor when

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 192 1 A Competitive Firms

1) A competitive firm's short-run supply curve is part of which of the following curves? a.marginal revenue b.average variable cost c.average total cost d.marginal cost Answer: d Answer: d Answer: d 2) Suppose that policymakers are doing cost-benefit analysis on a proposal to add traffic barriers to divide the flow of traffic in an effort to increase safety

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 198 Midterm 1

1) Which of the following frontier fields of economics identifies that people do not always act rationally? a.asymmetric information b.political economy c.behavioral economics d.existential economics Answer: c Answer: c Answer: c 2) Suppose when a monopolist produces 75 units its average revenue is $10 per unit, its marginal revenue is $5 per unit, its marginal cost is $6

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 199 Quiz 1

1) Assume that your roommate is very messy. Suppose she gets a $25 benefit from being messy but imposes a $50 cost on you. The Coase theorem would suggest that an efficient solution would be for you to a.pay your roommate at least $25 but no more than $50 to clean

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 210 Quiz 3

1) Adam Smith used a famous example of what type of firm to illustrate economies of scale? a.Apple b.a pin factory c.a lumber mill d.a British university Answer: b Answer: b Answer: b 2) Table 14-12 Bill's Birdhouses What is the marginal revenue from selling the 5th unit? a. $12 b. $68 c. $80 d. $480 Answer: c Answer: c Answer: c 3) Which of the following statements

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 223

1) Alice and Betty's Production Possibilities in one 8hour day. Alice's Production Possibilities FrontierBetty's Production Possibilities Frontier a.Alice's opportunity cost of 1 pizza is 1/2 of a pitcher of lemonade and Betty's opportunity cost of 1 pizza is 2/3 of a pitcher of lemonade. b.Alice's opportunity cost of 1 pizza is 1

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 227

1) Bintu's Production Possibilities FrontierJuba's Production Possibilities Frontier Bintu has a comparative advantage in the production of a.bowls and Juba has a comparative advantage in the production of cups. b.cups and Juba has a comparative advantage in the production of bowls. c.both goods and Juba has a comparative advantage in the production of

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 232 Quiz 1

1) Figure 10-15 Which of the following is not necessary in order for the corrective tax and pollution permit to have equivalent effects? a.PB must be equivalent to the corrective tax. b.QA must be equivalent to the amount of pollution allowed to the pollution permit holders. c.The equilibrium price and quantity of pollution

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 233 Midterm

1) Energy drinks and granola bars are normal goods. When the price of energy drinks decreases, the income effect causes a a.shift to a lower indifference curve, and the consumer buys fewer granola bars. b.shift to a higher indifference curve, and the consumer buys more granola bars. c.movement along the indifference curve, and

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 240 Test 1

1) Figure 14-14 Assume that the market starts in equilibrium at point W in panel (b) and that panel (a) illustrates the cost curves facing individual firms. Suppose that demand increases from D0 to D1. Which of the following statements is not correct? a.Point W is a long-run equilibrium point. b.Points W, Y,

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 251 Homework

1) Which of the following events would bring about a change in the value of the marginal product of labor? a.technological progress that alters the amount a worker can produce b.a change in the marginal product of labor c.a change in the price of the product that the firm sells d.All of the above

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 253 Quiz 3

1) An increase in price causes an increase in total revenue when demand is a.elastic. b.inelastic. c.unit elastic. d.All of the above are possible. Answer: b Answer: b Answer: b 2) The distribution of income for Dismal is as follows: If the poverty rate in Dismal is 50 percent, what is the poverty line in Dismal? a.$10,000. b.$20,000. c.$30,000. d.$40,000. Answer: b Answer: b Answer: b 3)

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 261 Midterm 1

1) Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 12, Q = 122) and (L = 13, Q = 130). Then the marginal product of the 13th worker

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 262 Test 2

1) Which of the following statements is correct regarding a tax on a good and the resulting deadweight loss? a.The greater are the price elasticities of supply and demand, the greater is the deadweight loss. b.The greater is the price elasticity of supply and the smaller is the price elasticity of demand,

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 292 Test 1

1) "The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy? a.liberalism b.utilitarianism c.libertarianism d.welfarism Answer: c Answer: c Answer: c 2) Scenario 13-8 Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 297 Test 1

1) If a firm notices that its average revenue equals the current market price, that firm must be participating in a competitive market. a.True b.False Answer: False Answer: False Answer: False 2) Karens cat causes Danny to sneeze. Karen values her cats companionship at $300 per year. The cost to Danny of tissues and her allergy

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 298

1) Which of the following industries is least likely to exhibit the characteristic of free entry? a.ethnic restaurants b.municipal water and sewer c.corn farming d.grocery stores Answer: b Answer: b Answer: b 2) If the price of walnuts rises, many people would switch from consuming walnuts to consuming pecans. But if the price of salt rises, people would

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 305 Quiz 1

1) When goods do not have a price, which of the following primarily ensures that the good is produced? a.buyers b.sellers c.government d.the market Answer: c Answer: c Answer: c 2) Which arrow represents the flow of land, labor, and capital? a.A b.B c.C d.D Answer: c Answer: c Answer: c 3) The Sherman Antitrust Act states that if a person can prove that he was

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 312 Final

1) An efficient tax system is one that imposes small deadweight losses and small administrative burdens. a.True b.False Answer: True Answer: True Answer: True 2) Suppose that when the price of ginger ale is $2 per bottle, firms can sell 4 million bottles. When the price of ginger ale is $3 per bottle, firms can sell

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 322 Quiz

1) Graphs such as bar graphs and pie charts are limited in that they a.can only show variables that are positively related. b.can only show variables that have a negative correlation. c.provide information on only one variable. d.provide information on no more than two variables. Answer: c Answer: c Answer: c 2) Consider the production possibilities frontier for

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 331 Midterm

1) Figure 14-9 In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms. When 100 identical firms participate in this market, at what price will

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 338 Final

1) Congress relies on economists at the Congressional Budget Office to a.enforce the nation's antitrust laws. b.set the nation's monetary policy. c.provide evidence that incumbent members of Congress are performing well in their jobs. d.provide independent evaluations of policy proposals. Answer: d Answer: d Answer: d 2) Figure 15-1 The shape of the average total cost curve in the

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 344 Test 2

1) To be successful, a cartel must a.find a way to encourage members to produce more than they would otherwise produce. b.agree on the total level of production for the cartel, but they need not agree on the amount produced by each member. c.agree on the total level of production and on the

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 354 Test

1) In the circular-flow diagram, firms produce a.goods and services using factors of production. b.output using inputs. c.factors of production using goods and services. d.Both (a) and (b) are correct. Answer: d Answer: d Answer: d 2) Table 16-4 This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm. If the government forces

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 360 Homework

1) Table 13-17 Consider the following table of long-run total cost for four different firms: Firm 4's efficient scale occurs at what quantity? a.2 b.3 c.4 d.5 Answer: b Answer: b Answer: b 2) A demand curve shows the relationship a.between income and quantity demanded. b.between price and income. c.between price and quantity demanded. d.among income, price, and quantity demanded. Answer: c Answer: c Answer: c 3) In

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 376

1) Which of the following is not an example of signaling? a.screening b.advertising c.getting an education d.gift giving Answer: a Answer: a Answer: a 2) Table 7-3 The only four consumers in a market have the following willingness to pay for a good: If the price is $20, then consumer surplus in the market is a.$20, and Wilbur and Ming-la purchase

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 378 Midterm

1) Which of the following problems can not be alleviated by a gasoline tax? a.traffic congestion b.traffic accidents c.the undersupply of goods that produce positive externalities d.air pollution Answer: c Answer: c Answer: c 2) The argument that consumers will not be willing to pay any more for two items sold as one than they

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 379 Test 2

1) Of the following countries, which country's government collects the largest amount of tax revenue as a percentage of that country's total income? a.Denmark b.United States c.Canada d.Greece Answer: a Answer: a Answer: a 2) Table 12-7 The following table shows the marginal tax rates for unmarried individuals for two years. For an individual who earned $80,000 of taxable income

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 393 Quiz 2

1) Table 17-27 Each year the United States considers renewal of Most Favored Nation (MFN) trading status with Farland (a mythical nation). Historically, legislators have made threats of not renewing MFN status because of human rights abuses in Farland. The non-renewal of MFN trading status is likely to involve some retaliatory

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 419 Quiz

1) Inflation measures the increase in the quantity of goods and services produced from each hour of a worker's time. a.True b.False Answer: False Answer: False Answer: False 2) Figure 7-22 At the equilibrium price, consumer surplus is a. $1,000. b. $2,000. c. $3,500. d. $500. Answer: a Answer: a Answer: a 3) Assume that a consumer faces the following budget constraints. a.Assuming that income is

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 438 Midterm

1) Some economists suggest that increased international trade with countries that have a greater proportion of unskilled workers has led to an expanding wage gap between high-skill and low-skill workers in the United States. a.True b.False Answer: True Answer: True Answer: True 2) Figure 10-2. The graph depicts the market for plastic. The private value of the

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 458 Test 2

1) A firm operating in a perfectly competitive industry will shut down in the short run if its economic profits fall to zero because it is likely to be earning negative accounting profits. a.True b.False Answer: False Answer: False Answer: False 2) In the simple circular-flow diagram, households a.are the only decision makers. b.own the factors of production. c.are buyers

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 466 Quiz

1) Suppose that a country that has a high level of output per person agrees to trade with a country that has a low level of output per person. Which country can benefit? a.only the one with a low level of output per person. b.only the one with a high level of

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 469 Test

1) The notion that similar taxpayers should pay similar amounts of taxes is known as a.vertical equity. b.the benefits principle. c.horizontal equity. d.taxpayer efficiency. Answer: c Answer: c Answer: c 2) Table 12-8 The following table presents the total tax liability for an unmarried taxpayer under four different tax schedules for the income levels shown. For an individual with $200,000

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 476 Final

1) Table 18-12 The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week. Refer to Table 18-12. Let Q represent the number of boxes of envelopes produced per week. One point on this firm's production function is a.(L = 1, Q =

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 478 Quiz 3

1) In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars. a.True b.False Answer: True Answer: True Answer: True 2) Scenario 14-1 Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q =

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 481 Quiz 3

1) At which point is this economy producing its maximum possible quantity of doors? a.R b.S c.T d.U Answer: d Answer: d Answer: d 2) Figure 21-2 The downwardsloping line on the figure represents a consumer's budget constraint. Refer to Figure 21-2. Which of the following statements is not correct? a.Points W, X, and Y all cost the consumer the same

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 487

1) Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family that earned $20,000 owe? a.-$8,000 b.-$2,400 c.$0 d.$2,400 Answer: b Answer: b Answer: b 2) Monopolies use their market power to a.charge prices that equal minimum average total cost. b.increase the quantity sold

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 487 Quiz

1) 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 quantity of money in the economy Answer: d Answer: d Answer: d 2) In an oligopoly, each firm knows that

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 494 Quiz 2

1) When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good, a.producer surplus increases and total surplus increases in the market for that good. b.producer surplus increases and total surplus decreases in the market for that good. c.producer surplus decreases and total surplus increases

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 507 Test

1) When buyers in a competitive market take the selling price as given, they are said to be a.market entrants. b.monopolists. c.free riders. d.price takers. Answer: d Answer: d Answer: d 2) Figure 16-2. The figure is drawn for a monopolistically competitive firm. If the average total cost is $30 at the profitmaximizing quantity, then the firm's maximum

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 517 Final

1) For a snow-removal business, the capital stock would include inputs such as snow blowers and shovels. a.True b.False Answer: True Answer: True Answer: True 2) Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. The opportunity cost of 1 pound of pork for the rancher is a.1

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 524 Homework

1) A society consists of three individuals: Sam, Tristan, and Ulyana. In terms of income and utility, Sam is currently best-off, Tristan ranks in the middle, and Ulyana is worst-off. Which of the following statements is correct? a.Utilitarianism suggests that government policies should strive to maximize Ulyana's utility. b.Liberalism suggests that government

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 529

1) Figure 7-16 Suppose the price of the good is $450. Then, on the first unit of the good that is sold, producer surplus is a.$250, and on the second unit of the good that is sold, producer surplus is $100. b.$250, and on the second unit of the good that is sold,

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 546

1) Becky is a single mother of two young children who spend their days at a daycare center while Becky goes to work. The daycare center closes at 5:30. If parents do not pick up their children at or before 5:30, the daycare center charges a late fee of $5

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 550 Final

1) Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 20 workers in Cornland and 20 workers in

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 564 Midterm 1

1) The national defense of the United States is not excludable because a.my enjoyment of the national defense does not diminish your enjoyment of the national defense of the United States. b.my enjoyment of the national defense does diminish your enjoyment of the national defense of the United States. c.once the nation is

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 580 Quiz

1) In the long run, a competitive market with 1,000 identical firms will experience an equilibrium price equal to the minimum of each firm's average total cost. a.True b.False Answer: True Answer: True Answer: True 2) What must be given up to obtain an item is called a.out-of-pocket cost. b.comparative worth. c.opportunity cost. d.absolute value. Answer: c Answer: c Answer: c 3) Figure 7-23 Refer

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 600

1) To fully understand how taxes affect economic well-being, we must a.assume that economic well-being is not affected if all tax revenue is spent on goods and services for the people who are being taxed. b.compare the taxes raised in the United States with those raised in other countries, especially France. c.compare the

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 605

1) Economists argue that we can calculate the value of a human life by observing voluntary risks that people take every day. a.True b.False Answer: True Answer: True Answer: True 2) Assume Leo buys coffee beans in a competitive market. It follows that a.Leo has a limited number of sellers from which to buy coffee beans. b.Leo will

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 613 Homework

1) The supply of labor in any one market depends on the opportunities available in other markets. a.True b.False Answer: True Answer: True Answer: True 2) Figure 10-19 Note that the lines labeled Demand and Social Valueare parallel. Also, the slopes of the lines on the graph reflect the following facts: (1) Private value and social value

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 622 Test 1

1) Scenario 12-1 Ken places a $20 value on a cigar, and Mark places a $17 value on it. The equilibrium price for this brand of cigar is $15. Suppose the government levies a tax of $1 on each cigar, and the equilibrium price of a cigar increases to $16. Because total

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 635 Test 2

1) About what percent of total world trade is accounted for by countries that belong to the World Trade Organization? a.54 percent b.72 percent c.89 percent d.97 percent Answer: d Answer: d Answer: d 2) The United States has more income inequality than Japan, Germany, and France. a.True b.False Answer: True Answer: True Answer: True 3) Positive statements are descriptive, while normative statements are

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 638 Midterm 1

1) In the long run the primary effect of increasing the quantity of money is higher prices. a.True b.False Answer: True Answer: True Answer: True 2) Studies indicate that the for beer is about 0.9. A government policy aimed at reducing beer consumption changed the price of a case of beer from $10 to $20. According to

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 649

1) In 2011, the poverty line for a family of four in the U.S. was a.$60,974. b.$23,021. c.$20,988. d.$17,642. Answer: b Answer: b Answer: b 2) Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price. At 10 units of production the firm has average fixed cost equal to $10

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 668 Quiz 1

1) A manufacturer of light bulbs sells its products to retail stores and requires the stores to sell the bulbs to customers for $2 per bulb. This practice is known as tying. a.True b.False Answer: False Answer: False Answer: False 2) Table 17-26 Two prescription drug manufacturers (Firm A and Firm B) are faced with lawsuits from

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 672

1) Labor unions will raise the quantity of labor demanded. a.True b.False Answer: False Answer: False Answer: False 2) Table 16-2 The following table shows the total output produced by the top six firms as well as the total industry output for each industry. What is the concentration ratio for Industry M? a.about 96% b.about 52% c.about 40% d.about 22% Answer: c Answer: c Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 712 Test 2

1) If a country allows free trade and its domestic price for a given good is lower than the world price, then it will import that good. a.True b.False Answer: False Answer: False Answer: False 2) The idea that people in equal conditions should pay equal taxes is referred to as a.horizontal equity. b.vertical equity. c.the ability-to-pay principle. d.the marriage

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 717 Midterm 2

1) Economists normally assume that the goal of a firm is to (i)earn profits as large as possible, even if it means reducing output. (ii)earn revenues as large as possible, even if it means reducing profits. (iii)minimize costs, regardless of profits. a.(i) only b.(i) and (ii) only c.(ii) and (iii) only d.(i), (ii), and (iii) Answer: a Answer: a Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 722

1) Which of the following events must result in a higher price in the market for cigars? a.Demand for cigars increases, and supply of cigars decreases. b.Demand for cigars and supply of cigars both decrease. c.Demand for cigars decreases, and supply of cigars increases. d.Demand for cigars and supply of cigars both increase Answer: a Answer:

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 723 Quiz 1

1) Table 7-1 If price of the product is $135, then the total consumer surplus is a. $-50. b. $-35. c. $15. d. $150. Answer: c Answer: c Answer: c 2) Refer to Figure 9-16. The tariff a.decreases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F. b.decreases producer

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 728 Quiz 1

1) President Gerald Ford referred to inflation as a.a blight on our nation's economy. b.a necessary evil to combat high unemployment. c.public enemy number one. d.a fly in the ointment. Answer: c Answer: c Answer: c 2) The price elasticity of supply measures how responsive a.equilibrium price is to equilibrium quantity. b.sellers are to a change in buyers' income. c.sellers are

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 750

1) The optimal tax is difficult to determine because although revenues rise and fall as the size of the tax increases, deadweight loss continues to increase. a.True b.False Answer: True Answer: True Answer: True 2) Scenario 17-3. Consider two countries, Kinglandia and Rovinastan, that are engaged in an arms race. Each country must decide

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 753 Quiz

1) Table 10-5 The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A to eliminate a second

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 759 Midterm 2

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 777 Quiz 3

1) Perry's Production Possibilities FrontierJordan's Production Possibilities Frontier revenue will be equal to zero at a. Q = 10. b. Q = 15. c. Q = 20. d. Q = 30. Answer: b Answer: b Answer: b 7) Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate. Falda has

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 796 Quiz 2

1) The nation of Spritzland used to prohibit international trade, but now trade is allowed, and Spritzland is exporting wristwatches. Relative to the previous no-trade situation, total surplus in the market for wristwatches in Spritzland has increased. a.True b.False Answer: True Answer: True Answer: True 2) Suppose Firm X and Firm Y are the only two

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 802 Homework

1) When a single person (or small group) has the ability to influence market prices, there is a.competition. b.market power. c.an externality. d.a lack of property rights. Answer: b Answer: b Answer: b 2) Scenario 8-1 Erin would be willing to pay as much as $100 per week to have her house cleaned. Ernesto's opportunity cost of cleaning Erin's

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 804

1) Some countries win in international trade, while other countries lose. a.True b.False Answer: False Answer: False Answer: False 2) For a given country, comparing the world price of aluminum and the domestic price of aluminum before trade indicates whether that country's demand for aluminum exceeds the demand for aluminum in other countries. a.True b.False Answer: False Answer: False Answer: False 3)

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 805 Homework 1 Suppose

1) Suppose that an industrial accident at a factory destroys a significant number of high-speed blenders that bartenders use to mix frozen drinks. What will happen in the labor market for bartenders? a.Both wages and employment will increase. b.Both wages and employment will decrease. c.Wages will increase, and employment will decrease. d.Wages will decrease,

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 809 Test 1

1) An increase in quantity demanded a.results in a movement downward and to the right along a demand curve. b.results in a movement upward and to the left along a demand curve. c.shifts the demand curve to the left. d.shifts the demand curve to the right. Answer: a Answer: a Answer: a 2) Abby, Bobbi, and Deborah each

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 812 Test

1) A normative economic statement such as The minimum wage should be abolished a.would likely be made by an economist acting as a scientist. b.would require values and data to be evaluated. c.would require data but not values to be evaluated. d.could not be evaluated by economists acting as policy advisers. Answer: b Answer: b Answer: b 2)

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 813 Test 1

1) When two variables have a negative correlation, a.when the x-variable decreases, the y-variable decreases. b.when the x-variable decreases, the y-variable increases. c.when the x-variable increases, the y-variable increases. d.More than one of the above is correct. Answer: b Answer: b Answer: b 2) A monopolist maximizes profits by a.producing an output level where marginal revenue equals marginal cost. b.charging

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 825

1) Which of the following is an example of an implicit cost? (i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm (ii) interest paid on the firm's debt (iii) rent paid by the firm to lease office space a.(ii) and (iii) only b.(i)

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 835 Quiz 1

1) Scenario 18-3 Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $13 per hour. During the summer, he drives a tour bus around the ski resort, earning $11 per hour. Refer to Scenario

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 839 Final

1) Sellers' total revenue would increase if the price a.increased from $12 to $15. b.decreased from $39 to $36. c.decreased from $27 to $24. d.All of the above are correct. Answer: d Answer: d Answer: d 2) Human capital is a.an important determinant of wages, but it does not affect the production of goods and services. b.an important determinant of

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 843

1) Scenario 9-1 The before-trade domestic price of peaches in the United States is $40 per bushel. The world price of peaches is $52 per bushel. The U.S. is a price-taker in the market for peaches. If trade in peaches is allowed, U.S. producers of peaches a.will be better off. b.will be worse off. c.will be

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 853 Midterm 2

1) Research into new technologies conveys neither negative externalities nor positive externalities. a.True b.False Answer: False Answer: False Answer: False 2) A congested side street in your neighborhood is a.excludable and rival in consumption. b.excludable and not rival in consumption. c.not excludable and rival in consumption. d.not excludable and not rival in consumption. Answer: c Answer: c Answer: c 3) On a certain supply

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 856

1) The supply curve for stand up paddle boards a.shifts when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph. b.shifts when the price of stand up paddle boards changes because the quantity supplied of stand up

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 864 Test

1) Which of the following events must cause equilibrium price to fall? a.demand increases and supply decreases b.demand and supply both decrease c.demand decreases and supply increases d.demand and supply both increase Answer: c Answer: c Answer: c 2) Table 14-2 The table represents a demand curve faced by a firm in a competitive market. For this firm, the marginal

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 869 Test

1) The broken window fallacy a.explains why inflation is so high. b.is a justification for the government to print more money. c.is illustrated when a government program is justified not on its merits but on the number of jobs it will create. d.has nothing to do with public policy. Answer: c Answer: c Answer: c 2) If the

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 871 Quiz 3

1) The government enforces property rights by a.requiring property owners to pay property taxes. b.providing police and courts. c.forcing people to own property. d.providing public parks and recreation facilities. Answer: b Answer: b Answer: b 2) Using the midpoint method, between prices of $50 and $60, is about a. 0.22 b. 0.82 c. 1.22 d. 2 Answer: c Answer: c Answer: c 3) Assume that Japan

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 872 Test

1) Above-equilibrium wages caused by efficiency wages will most likely result in a.a shortage of labor. b.increased unemployment. c.compensating wage differentials. d.an decrease in the quantity of labor supplied. Answer: b Answer: b Answer: b 2) Most studies have found that tobacco and marijuana are substitutes rather than complements. a.True b.False Answer: False Answer: False Answer: False 3) Private markets fail to reach a

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 875 Quiz 3

1) According to the Coase theorem, in the presence of externalities a.private parties can bargain to reach an efficient outcome. b.government assistance is necessary to reach an efficient outcome. c.the assignment of legal rights can prevent externalities. d.the initial distribution of property rights will determine the efficient outcome. Answer: a Answer: a Answer: a 2) The Mansfield Public

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 881 Test 1

1) Which of the following is an example of an implicit cost? a.salaries paid to owners who work for the firm b.interest on money borrowed to finance equipment purchases c.cash payments for raw materials d.foregone rent on office space owned and used by the firm Answer: d Answer: d Answer: d 2) A decrease in quantity demanded a.results in

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 893 Homework

1) Figure 14-4 Suppose a firm operating in a competitive market has the following cost curves: When price falls from P3 to P1, the firm finds that it a.decreases its fixed costs. b.should produce Q1 units of output. c.should produce Q3 units of output. d.should shut down immediately. Answer: d Answer: d Answer: d 2) Scenario 13-6 Ziva is an organic

Principles of Microeconomics 7th Edition

Exam Prep

ECON E 898 Homework

1) Production Possibilities for Picnicland What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900? a.150 burgers b.225 burgers c.300 burgers d.450 burgers Answer: b Answer: b Answer: b 2) Table 22-10 The town of Franklin is facing a severe budget shortage. The town administrator has proposed four options to balance the

Principles of Microeconomics 7th Edition

Exam Prep

Economics 102 Quiz 1

1) In which of the following market structures is(are) there a large number of sellers? (i)monopolistic competition (ii)perfect competition (iii)oligopoly a.(i) and (ii) only b.(ii) and (iii) only c.(ii) only d.(i), (ii), and (iii) Answer: a Answer: a Answer: a 2) An increase in demand will cause an increase in price, which will cause an increase in quantity supplied. a.True b.False Answer: True Answer: True Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 104

1) At price of $1.25, a paper manufacturer is willing to supply 150 spiral notebooks per day. At a price of $1.50, the paper manufacturer is willing to supply 175 spiral notebooks per day. Using the midpoint method, the price elasticity of supply is about a. 1.18 b. 1.00 c. 0.85 d. 0.25 Answer: c

Principles of Microeconomics 7th Edition

Exam Prep

Economics 110

1) Figure 20-3 Refer to Figure 20-3. Which of the following best describes the poverty rates by age from 1965 to 2011? a.The poverty rates by age have declined for all age groups. b.The percentage of people living in poverty has consistently been highest for the elderly aged 65 and over and lowest

Principles of Microeconomics 7th Edition

Exam Prep

Economics 112 Quiz 1 1 A Lumpsum

1) A lump-sum tax would take different amounts from the poor and the rich. a.True b.False Answer: False Answer: False Answer: False 2) The poverty line is based on the percentage of people who cannot afford an adequate diet. a.True b.False Answer: False Answer: False Answer: False 3) Figure 14-7 At what price is the firm's maximum profit zero? a.$80 b.$90 c.$100 d.$125 Answer: c Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 113 Quiz 3

1) The median-voter theorem explains why a.politicians take extreme stands on issues. b.voters are attracted to political outsiders. c.two opposing politicians tend to take opposite sides of each issues. d.politicians tend to take middle-of-the-road positions. Answer: d Answer: d Answer: d 2) Between point A and point B on the graph, demand is a.perfectly elastic. b.inelastic. c.unit elastic. d.elastic, but not perfectly

Principles of Microeconomics 7th Edition

Exam Prep

Economics 143 Midterm 2 1 In A

1) In a perfectly competitive market, the market supply curve is a.the marginal cost curve above average total cost for a representative firm. b.the horizontal sum of all the individual firms' supply curves. c.the vertical sum of all the individual firms' supply curves. d.always a horizontal line. Answer: b Answer: b Answer: b 2) Factory workers who work

Principles of Microeconomics 7th Edition

Exam Prep

Economics 151 Test

1) Productivity is defined as the quantity of goods and services produced from each unit of labor input. a.True b.False Answer: True Answer: True Answer: True 2) The following table shows the number of cases of water each seller is willing to sell at the prices listed. If the four suppliers listed are the only suppliers in this

Principles of Microeconomics 7th Edition

Exam Prep

Economics 157 Test 1

1) Pollution is a negative externality, but it is not appropriate to view the problem of pollution as a common-resource problem. a.True b.False Answer: False Answer: False Answer: False 2) Table 15-17 A monopolist faces the following demand curve: Which of the following statements best describes the relationship between the price and the marginal revenue associated with values in

Principles of Microeconomics 7th Edition

Exam Prep

Economics 161 Midterm

1) Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless printers, a complementary good, decreases. Which of the following changes would occur? a.a movement along D2 from point A to point B b.a movement along D2 from point B to point A c.a shift from D1 to

Principles of Microeconomics 7th Edition

Exam Prep

Economics 164 Test 2

1) Figure 18-9 Refer to Figure 18-9. If the apple pickers start working fewer hours because they are taking more vacation time, the equilibrium wage will a.fall below w1 due to a shift in demand. b.fall below w1 due to a shift in supply. c.rise above w1 due to a shift in demand. d.rise above

Principles of Microeconomics 7th Edition

Exam Prep

Economics 165 Quiz 1

1) In the circular-flow diagram, which of the following items flows from firms to households through the markets for goods and services? a.goods and services b.dollars paid to land, labor, and capital c.dollars spent on goods and services d.wages, rent, and profit Answer: a Answer: a Answer: a 2) US citizens have better nutrition, better healthcare, and a

Principles of Microeconomics 7th Edition

Exam Prep

Economics 176 Quiz 2

1) When a firm decides to retain its earnings instead of paying dividends, the stockholders necessarily suffer. a.True b.False Answer: False Answer: False Answer: False 2) When the marginal product of an input declines as the quantity of that input increases, the production function exhibits a.increasing marginal product. b.diminishing marginal product. c.diminishing total product. d.Both b and c are correct. Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 180 Test

1) Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because a.those who stand to gain have an incentive to tell the truth. b.those who stand to lose have an incentive to exaggerate their true costs. c.answers to the survey questions will

Principles of Microeconomics 7th Edition

Exam Prep

Economics 184 Final

1) Consider the market for capital equipment. Suppose the value of the marginal product of capital equipment increases. Holding all else constant, the equilibrium rental price of capital equipment will a.increase. b.decrease. c.not change. d.It is not possible to determine what will happen to the equilibrium rental price of capital equipment. Answer: a Answer: a Answer: a 2)

Principles of Microeconomics 7th Edition

Exam Prep

Economics 194 Midterm 1

1) When small changes in price lead to infinite changes in quantity demanded, demand is perfectly a.elastic, and the demand curve will be horizontal. b.inelastic, and the demand curve will be horizontal. c.elastic, and the demand curve will be vertical. d.inelastic, and the demand curve will be vertical. Answer: a Answer: a Answer: a 2) When a shortage

Principles of Microeconomics 7th Edition

Exam Prep

Economics 209 Final

1) Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely a.be provided by a private firm rather than the government. b.have a free-rider problem. c.not exist. d.be limited

Principles of Microeconomics 7th Edition

Exam Prep

Economics 212 Quiz 1

1) Panel (a) Panel (b) The graphs show the demand for cigarettes. In Panel (a), the arrows are consistent with which of the following events? a.The price of marijuana, a complement to cigarettes, increased. b.Mandatory health warnings were placed on cigarette packages. c.Several foreign countries banned U.S. cigarettes in their countries. d.A tax was placed

Principles of Microeconomics 7th Edition

Exam Prep

Economics 218 1 The Signaling

1) The signaling theory of education is most similar to the a.human capital theory of education. b.discrimination theory of advertising. c.signaling theory of advertising. d.efficiency wage theory of labor economics. Answer: c Answer: c Answer: c 2) One reason why better-looking workers may have higher earnings is that physical attractiveness is correlated with intelligence. a.True b.False Answer: False Answer: False Answer: False 3) Figure

Principles of Microeconomics 7th Edition

Exam Prep

Economics 233 Quiz 1

1) Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply? a.production technology b.expectations c.input prices d.the number of sellers Answer: d Answer: d Answer: d 2) Suppose the cost of operating a 100 room hotel for a night is $10,000 and there are 5 empty rooms

Principles of Microeconomics 7th Edition

Exam Prep

Economics 234 Final

1) If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise? a.Both the equilibrium price and quantity would increase. b.Both the equilibrium price and quantity would decrease. c.The equilibrium price would increase, and the equilibrium quantity would decrease. d.The

Principles of Microeconomics 7th Edition

Exam Prep

Economics 249 Quiz 3

1) Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. Which of the following combinations of toothbrushes and hairbrushes could Portugal produce in 30 minutes? a.1 toothbrush and 4 hairbrushes b.4 toothbrushes and 2 hairbrushes c.5 toothbrushes and 6 hairbrushes d.6 toothbrushes and 5 hairbrushes Answer: a Answer: a Answer: a 2)

Principles of Microeconomics 7th Edition

Exam Prep

Economics 254 1Assume For The Good

1) Assume, for the good in question, two specific points on the demand curve are (Q = 2,000, P= $15) and (Q = 2,400, P = $12). Then which of the following scenarios is possible? a.Both of these points lie on section BC of the demand curve. b.The vertical intercept of the

Principles of Microeconomics 7th Edition

Exam Prep

Economics 265 Test

1) "Trade raises the economic wellbeing of a nation in the sense that the gains of the winners exceed the losses of the losers." This statement is correct for a nation that exports manufactured goods, but it is not correct for a nation that imports manufactured goods. a.True b.False Answer: False Answer: False Answer: False 2)

Principles of Microeconomics 7th Edition

Exam Prep

Economics 268 Quiz 2

1) Table 16-2 The following table shows the total output produced by the top six firms as well as the total industry output for each industry. Which industry has the lowest concentration ratio? a.Industry J b.Industry K c.Industry L d.Industry M Answer: b Answer: b Answer: b 2) Which of the following sets of preferences can not satisfy the property

Principles of Microeconomics 7th Edition

Exam Prep

Economics 304 Midterm 2

1) Which of the following is an example of screening? a.a man buys an expensive birthday present for his girlfriend b.an insurance company offers a policy with a high deductible c.the seller of a used motorcycle knows more about its true condition than a prospective buyer d.society supports long prison terms for corporate criminals Answer: b Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 305

1) Figure 9-14. On the diagram below, Q represents the quantity of crude oil and P represents the price of crude oil. 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

Principles of Microeconomics 7th Edition

Exam Prep

Economics 313

1) Carolyn's Pottery Shop produces vases that sell for $15 each. Assume that labor is the only input that varies for the firm. If Carolyn hires 10 workers, she can produce and sell 500 vases per week. If she hires 11 workers, she can produce and sell 560 vases per

Principles of Microeconomics 7th Edition

Exam Prep

Economics 320

1) Table 18-11 Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $2 each and pays the workers a wage of $325 per day. Refer to Table 18-11. What is the marginal profit of the sixth worker? a.$100 b.-$50 c.-$75 d.-$125 Answer: d Answer: d Answer: d 2) Suppose that smoking creates a negative externality.

Principles of Microeconomics 7th Edition

Exam Prep

Economics 330 Quiz

1) When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced. a.True b.False Answer: True Answer: True Answer: True 2) A profit-maximizing firm in a competitive market will earn zero accounting profits in the long run. a.True b.False Answer: False Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 335

1) One advantage market economies have over centrally-planned economies is that market economies a.provide an equal distribution of goods and services to households. b.establish a significant role for government in the allocation of resources. c.solve the problem of scarcity. d.are more efficient. Answer: d Answer: d Answer: d 2) Deadweight losses occur in markets in which a.firms decide to

Principles of Microeconomics 7th Edition

Exam Prep

Economics 341 Final

1) Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. Maya has an absolute advantage in the production of a.both goods and a comparative advantage in the production of mixers. b.both goods and a comparative advantage in the production of toasters. c.neither good and a comparative

Principles of Microeconomics 7th Edition

Exam Prep

Economics 341 Quiz 1

1) To maximize its profit, a monopolistically competitive firm a.takes the price as given and chooses its quantity, just as a competitive firm does. b.takes the price as given and chooses its quantity, just as a colluding oligopolist does. c.chooses its quantity and price, just as a competitive firm does. d.chooses its quantity and

Principles of Microeconomics 7th Edition

Exam Prep

Economics 342 Midterm 1

1) The essence of an oligopolistic market is that there are only a few sellers. a.True b.False Answer: True Answer: True Answer: True 2) Inefficiency exists in an economy when a good is a.not being consumed by buyers who value it most highly. b.not distributed fairly among buyers. c.not produced because buyers do not value it very highly. d.being produced

Principles of Microeconomics 7th Edition

Exam Prep

Economics 344 Test

1) Which of the following statements is true of the tax on gasoline? a.The cost of collecting a gasoline tax outweighs the revenues raised by the tax. b.It is preferred to tolls as the best solution to road congestion. c.It discourages driving on noncongested roads, even though there is no congestion externality for

Principles of Microeconomics 7th Edition

Exam Prep

Economics 350 Quiz 2

1) A tax on a good causes the size of the market to increase. a.True b.False Answer: False Answer: False Answer: False 2) Which of the following contributes to the projected rise in government spending on Social Security and Medicare as a percentage of GDP? a.increasing life expectancies b.increasing healthcare costs c.increasing fertility rates d.Both a and b are correct. Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 351 Quiz

1) Figure 8-2 The vertical distance between points A and B represents a tax in the market. The loss of consumer surplus as a result of the tax is a. $1.50. b. $3. c. $4.50. d. $6. Answer: c Answer: c Answer: c 2) Table 15-18 A monopolist faces the following demand curve: Suppose marginal cost is constant at $8 per unit. Suppose

Principles of Microeconomics 7th Edition

Exam Prep

Economics 366 Test

1) Figure 15-14 If the monopoly operates at an output level less than Q0, then an increase in output toward (but not exceeding) Q0 would a.raise the price and raise total surplus. b.lower the price and raise total surplus. c.raise the price and lower total surplus. d.lower the price and lower total surplus. Answer: b Answer: b Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 373 Midterm 1

1) The "unfaircompetition" argument might be cited by an American who believes that a.almost every country has a comparative advantage, relative to the United States, in producing almost all goods. b.young industries should be protected against foreign competition until they become profitable. c.the American automobile industry should be protected against Japanese firms that

Principles of Microeconomics 7th Edition

Exam Prep

Economics 377 Test 1

1) Scenario 12-2 Suppose that Bob places a value of $10 on a movie ticket and that Lisa places a value of $7 on a movie ticket. In addition, suppose the price of a movie ticket is $5. Suppose the government levies a tax of $3 on a movie ticket and that, as

Principles of Microeconomics 7th Edition

Exam Prep

Economics 379

1) Table 17-9 The table shows the demand schedule for a particular product. Refer to Table 17-9. Suppose the market for this product is served by two firms that have formed a cartel. If the marginal cost of production is $0 and there is no fixed cost, the combined profit of the

Principles of Microeconomics 7th Edition

Exam Prep

Economics 387 Homework

1) Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. Which of the following combinations of coolers and radios could Aruba produce in one 40- hour week? a.3 coolers and 7 radios b.5 coolers and 6 radios c.11 coolers and 4 radios d.13 coolers and 3 radios Answer: b Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 392 Final

1) When the nation of Duxembourg allows trade and becomes an importer of software, a.residents of Duxembourg who produce software become worse off; residents of Duxembourg who buy software become better off; and the economic well-being of Duxembourg rises. b.residents of Duxembourg who produce software become worse off; residents of Duxembourg who

Principles of Microeconomics 7th Edition

Exam Prep

Economics 399 Midterm

1) Most firms have a.no monopoly pricing power. b.some monopoly pricing power. c.absolute monopoly pricing power. d.the ability to earn monopoly profits. Answer: b Answer: b Answer: b 2) Table 20-3 The Distribution of Income in Edgerton Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $76,000? a.20 percent. b.40 percent. c.60 percent. d.80 percent. Answer: c Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 411 Midterm 1 1 The

1) The value of the for a good will be relatively large when a.there are no good substitutes available for the good. b.the time period in question is relatively short. c.the good is a luxury rather than a necessity. d.All of the above are correct. Answer: c Answer: c Answer: c 2) Figure 16-3 This figure depicts a situation

Principles of Microeconomics 7th Edition

Exam Prep

Economics 416

1) If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous. a.True b.False Answer: False Answer: False Answer: False 2) Which is the most accurate statement about trade? a.Trade

Principles of Microeconomics 7th Edition

Exam Prep

Economics 416 Quiz 3

1) Which of the following events would cause the price of oranges to fall? a.There is a shortage of oranges. b.The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. c.The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. d.All of the above

Principles of Microeconomics 7th Edition

Exam Prep

Economics 433 Midterm 1

1) A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it. a.True b.False Answer: False Answer: False Answer: False 2) Figure 10-4 This market a.has no need for government intervention. b.would benefit from a tax on the product. c.would benefit from a subsidy for the product. d.would maximize

Principles of Microeconomics 7th Edition

Exam Prep

Economics 434 Quiz 1

1) Which of the following is an example of government intervention to solve a Tragedy of the Commons problem? a.subsidizing basic research b.building lighthouses c.toll charges on congested roads d.cost-benefit analysis Answer: c Answer: c Answer: c 2) Table 17-20 Nadia and Maddie are two college roommates who both prefer a clean common space in their dorm room, but

Principles of Microeconomics 7th Edition

Exam Prep

Economics 481 Midterm 1

1) Suppose the price of a bag of tortilla chips decreases from $3.00 to $2.50 and, as a result, the quantity of tortilla chips demanded increases from 200 bags to 300 bags. Using the midpoint method, the for tortilla chips in the given price range is a. 0.33. b. 0.45. c. 2.20. d. 3.00. Answer:

Principles of Microeconomics 7th Edition

Exam Prep

Economics 484 Quiz 2

1) Consider a small town with only three families, the Greene family, the Brown family, and the Black family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how

Principles of Microeconomics 7th Edition

Exam Prep

Economics 484 Test 2

1) Positive statements are not a.descriptive. b.prescriptive. c.claims about how the world is. d.made by economists speaking as scientists. Answer: b Answer: b Answer: b 2) If a government simplified its tax system the likeliest result would be a decrease in a.consumer surplus. b.producer surplus. c.in deadweight loss. d.tax revenues. Answer: c Deadweight Loss Answer: c Deadweight Loss Answer: c Deadweight Loss 3) Economists make use

Principles of Microeconomics 7th Edition

Exam Prep

Economics 488 Midterm 2

1) Table 13-1 What is total output when 3 workers are hired? a.15 b.60 c.105 d.135 Answer: d Answer: d Answer: d 2) Table 18-12 The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week. Refer to Table 18-12. Suppose the firm sells each box of envelopes that it produces

Principles of Microeconomics 7th Edition

Exam Prep

Economics 497 Test

1) Suppose there is an increase in supply that reduces market price. Consumer surplus increases because (1) consumer surplus received by existing buyers increases and (2) new buyers enter the market. a.True b.False Answer: True Answer: True Answer: True 2) Duties of the Council of Economic Advisers include a.advising the president and writing the annual Economic Report

Principles of Microeconomics 7th Edition

Exam Prep

Economics 499

1) Figure 21-23 Refer to Figure 21-23. When the price of X is $80, the price of Y is $20, and the consumer's income is $160, the consumer's optimal choice is D. Then the price of X decreases to $20. The substitution effect can be illustrated as the movement from a.D to

Principles of Microeconomics 7th Edition

Exam Prep

Economics 508 Midterm 1

1) In the transition from the short run to the long run, the number of firms in a competitive industry is a.fixed. b.increasing at a constant rate. c.decreasing. d.able to adjust to market conditions. Answer: d Answer: d Answer: d 2) If employers are profit-maximizers, then a.competition will always eventually eliminate employment discrimination. b.employment discrimination may persist if consumers discriminate. c.employment

Principles of Microeconomics 7th Edition

Exam Prep

Economics 529 Midterm 1

1) In 2011, the federal government spent 9 percent of the budget on net interest. Which of the following statements regarding net interest is correct? a.If the government pays down its debt, the amount of the budget needed for net interest decreases. b.If the government accrues more debt, the amount of the budget

Principles of Microeconomics 7th Edition

Exam Prep

Economics 532 Test 1

1) DeShawn has spent $600 purchasing and repairing an old fishing boat, which he expects to sell for $900 once the repairs are complete. DeShawn discovers that, in addition to the $600 he has already spent, he needs to make an additional repair, which will cost another $400, in order

Principles of Microeconomics 7th Edition

Exam Prep

Economics 533 Final

1) Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless the marginal a.cost of teaching increased. b.benefit of teaching increased. c.cost

Principles of Microeconomics 7th Edition

Exam Prep

Economics 534 Quiz 2

1) A movement along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied. a.True b.False Answer: False Answer: False Answer: False 2) Answer the following questions based on the table. A consumer is able to consume the following bundles of rice and

Principles of Microeconomics 7th Edition

Exam Prep

Economics 558

1) A likely example of substitute goods for most people would be a.tables and chairs. b.bicycles and helmets. c.apple juice and orange juice. d.coffee and sugar. Answer: c Answer: c Answer: c 2) Table 12-10 If Jace has $33,000 in taxable income, his marginal tax rate is a. 10%. b.15%. c.25%. d.28%. Answer: b Answer: b Answer: b 3) Table 18-3 Refer to Table 18-3.

Principles of Microeconomics 7th Edition

Exam Prep

Economics 560

Principles of Microeconomics 7th Edition

Exam Prep

Economics 564 Quiz

1) Suppose that the market for labor is initially in equilibrium. Suppose that workers' tastes change so that they choose to retire at age 55 rather than age 67. Then the equilibrium wage a.and the equilibrium quantity of labor will rise. b.and the equilibrium quantity of labor will fall. c.will rise, and the equilibrium

Principles of Microeconomics 7th Edition

Exam Prep

Economics 570 Quiz 3

1) Table 18-7 Refer to Table 18-7. What is the value of the cell labeled II? a.-$100 b.$100 c.$200 d.$300 Answer: c Answer: c Answer: c 2) College-age athletes who drop out of college to play professional sports a.are not rational decision makers. b.are well aware that their opportunity cost of attending college is very high. c.are concerned more about present

Principles of Microeconomics 7th Edition

Exam Prep

Economics 606 Midterm 2

1) Hosne's Production Possibilities FrontierMerve's Production Possibilities Frontier If Hosne and Merve both spend all of their time making wallets, then total production is a.7 wallets. b.8 wallets. c.14 wallets. d.28 wallets. Answer: c Answer: c Answer: c 2) The president of the United States receives tax policy advice from economists in the a.Federal Reserve. b.Department of Justice. c.Department of the Treasury. d.Congressional

Principles of Microeconomics 7th Edition

Exam Prep

Economics 614 Quiz 3

1) The theory of efficiency wages suggests that firms may pay above-equilibrium wages a.to reduce employee turnover. b.to prevent unions from recruiting members. c.to reduce the need for minimum wage laws. d.to increase the demand for better-skilled workers. Answer: a Answer: a Answer: a 2) The marginal tax rate for a lump-sum tax a.is always positive. b.is always negative. c.is zero. d.can

Principles of Microeconomics 7th Edition

Exam Prep

Economics 618 Test 2

1) Rational people make decisions at the margin by a.following marginal traditions. b.behaving in a random fashion. c.thinking in black-and-white terms. d.comparing marginal costs and marginal benefits. Answer: d Answer: d Answer: d 2) When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change. a.True b.False Answer: True Answer: True Answer: True 3) In a vote between options A,

Principles of Microeconomics 7th Edition

Exam Prep

Economics 628

1) Suppose planting flowering shrubs creates a positive externality equal to $7 per shrub. Further suppose that the local government offers a $7 per-shrub subsidy to planters. The number of shrubs that are planted is then a.less than the socially optimal quantity. b.greater than the socially optimal quantity. c.equal to the socially optimal

Principles of Microeconomics 7th Edition

Exam Prep

Economics 636 Test

1) You have driven 800 miles on a vacation and then you notice that you are only 15 miles from an attraction you hadn't known about, but would really like to see. In computing the opportunity cost of visiting this attraction you had not planned to visit, you should include a.both

Principles of Microeconomics 7th Edition

Exam Prep

Economics 642 Test 2

1) Which of the following allows you to provide information about the relationship between two variables? a.coordinate system. b.pie chart c.bar graph d.time-series graph Answer: a Answer: a Answer: a 2) Figure 21-9 Refer to Figure 21-9. If the consumer has $600 in income, what is the price of good X? a. $20 b.$6 c.$3 d. $0.33 Answer: b Answer: b Answer: b 3) Even with market

Principles of Microeconomics 7th Edition

Exam Prep

Economics 645 Quiz 1

1) In deciding whether a good is a public good, one must determine the a.incomes of those who benefit from the good. b.value of the external benefits that accrue to resource owners. c.excludability of the good. d.All of the above are correct. Answer: c Answer: c Answer: c 2) When a country allows trade and becomes an importer

Principles of Microeconomics 7th Edition

Exam Prep

Economics 647 Midterm 1

1) Some companies merge in order to lower costs through efficient joint production. a.True b.False Answer: True Answer: True Answer: True 2) Suppose that the country of Xenophobia chose to isolate itself from the rest of the world. Its ruler proclaimed that Xenophobia should become self-sufficient, so it would not engage in foreign trade. From an

Principles of Microeconomics 7th Edition

Exam Prep

Economics 653 Quiz 2

1) Which of these activities will most likely impose an external cost? a.An athlete works out at a gym. b.A secretary smokes a cigarette in a crowded break room. c.A young mother pushes her baby in a stroller. d.A construction worker eats a hotdog during his lunch break. Answer: b Answer: b Answer: b 2) In addition to

Principles of Microeconomics 7th Edition

Exam Prep

Economics 667 Test 1

1) The federal government is concerned about the negative effects of cigarette smoking in the United States. Suppose Congress is considering two plans. One plan would limit the production of cigarettes. The other would require manufacturers to include graphic photos on cigarette packages of people suffering cancer's effects. Which of

Principles of Microeconomics 7th Edition

Exam Prep

Economics 670

1) Table 22-17 Voter Type Refer to Table 22-17. The table shows the preferences of three types of voters over three possible outcomes: A, B, and C. In addition, the table shows the percentage of voters of each type. Based on this information, which of the following statements is true? a.As the Condorcet

Principles of Microeconomics 7th Edition

Exam Prep

Economics 679 Test

1) If duopoly firms that are not colluding were able to successfully collude, then a.price and quantity would rise. b.price and quantity would fall. c.price would rise and quantity would fall. d.price would fall and quantity would rise. Answer: c Answer: c Answer: c 2) The resources that a taxpayer devotes to complying with the tax laws are

Principles of Microeconomics 7th Edition

Exam Prep

Economics 680 Midterm

1) If the demand for light bulbs increases, producer surplus in the market for light bulbs a.increases. b.decreases. c.remains the same. d.may increase, decrease, or remain the same. Answer: a Answer: a Answer: a 2) Which of the following conditions is characteristic of a monopolistically competitive firm in short-run equilibrium? a.P = AR b.MR = MC c.P > MC d.All of the

Principles of Microeconomics 7th Edition

Exam Prep

Economics 683 Test 1

1) Karen, Tara, and Chelsea each buy ice cream and paperback novels to enjoy on hot summer days. Ice cream costs $5 per gallon, and paperback novels cost $8 each. Karen has a budget of $80, Tara has a budget of $60, and Chelsea has a budget of $40 to

Principles of Microeconomics 7th Edition

Exam Prep

Economics 691 Quiz 3

1) Figure 10-11 Which of the following statements is correct? a.The private value of the 420th unit of output is $15. b.The social value of the 420th unit of output is $42. c.The external benefit of the 420th unit of output is $27. d.All of the above are correct. Answer: d Answer: d Answer: d 2)

Principles of Microeconomics 7th Edition

Exam Prep

Economics 702 Homework

1) Figure 10-9 c.buyers are to a change in production costs. d.equilibrium price is to a change in supply. Answer: a Price Elasticity of Supply Answer: a Price Elasticity of Supply Answer: a Price Elasticity of Supply 8) The theory of consumer choice most closely examines which of the following Ten Principles of Economics? a.People face trade-offs. b.Governments

Principles of Microeconomics 7th Edition

Exam Prep

Economics 727

1) What is the equilibrium price in this market? a.$8 b.$12 c.$16 d.$20 Answer: c Answer: c Answer: c 2) What percent of families are poor for eight or more years? a.more than 20 percent b.between 15 and 20 percent c.approximately 10 percent d.less than 3 percent Answer: d Answer: d Answer: d 3) An increase in the price of a good will a.increase demand. b.decrease demand. c.increase quantity

Principles of Microeconomics 7th Edition

Exam Prep

Economics 744 Quiz

1) Ellen receives a raise at her current part-time job from $8 to $10 per hour. If her labor supply curve is upward sloping, she will work fewer hours after receiving the pay raise. a.True b.False Answer: False Answer: False Answer: False 2) Consider the production possibilities curve for a country that can produce sweaters, apples

Principles of Microeconomics 7th Edition

Exam Prep

Economics 752 Homework

1) Figure 8-9 The vertical distance between points A and C represents a tax in the market. The total surplus without the tax is a. $8,000. b. $12,000. c. $20,000. d. $40,000. Answer: c Answer: c Answer: c 2) When one firm sells its pollution permit to another firm, a.both firms benefit. b.the total amount of pollution remains the same. c.the total amount

Principles of Microeconomics 7th Edition

Exam Prep

Economics 752 Midterm 2

1) Which combination would produce a decrease in equilibrium quantity and an indeterminate change in equilibrium price? a.A b.B c.C d.D Answer: d Answer: d Answer: d 2) Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. The opportunity cost of 1 pound of pork for the farmer is a.1/2

Principles of Microeconomics 7th Edition

Exam Prep

Economics 777 1 A Competitive Firm

1) A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per

Principles of Microeconomics 7th Edition

Exam Prep

Economics 782 Midterm 2

1) If a poor family has three children in public school and a rich family has two children in private school, the benefits principle would suggest that a.the poor family should pay more in taxes to pay for public education than the rich family. b.the rich family should pay more in taxes to

Principles of Microeconomics 7th Edition

Exam Prep

Economics 792 Midterm

1) Goods with close substitutes tend to have more elastic demands than do goods without close substitutes. a.True b.False Answer: True Answer: True Answer: True 2) Economists say that a market where goods are not consumed by those valuing the goods most highly is a.laissez-faire.. b.unequal. c.inefficient. d.rational. Answer: c Answer: c Answer: c 3) Table 17-1 Imagine a small town in which only two

Principles of Microeconomics 7th Edition

Exam Prep

Economics 815 Quiz 1

1) According to utilitarians, the ultimate objective of public actions should be to a.ensure the poor can afford an adequate diet. b.distribute income uniformly. c.maximize the sum of individual utility. d.prevent all people from experiencing diminishing marginal utility. Answer: c Answer: c Answer: c 2) Who gets scarce resources in a market economy? a.the government b.whoever the government decides gets

Principles of Microeconomics 7th Edition

Exam Prep

Economics 818 Homework

1) Suppose a firm in each of the two markets listed below were to increase its price by 25 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not? a.restaurants and MP3 players b.electricity

Principles of Microeconomics 7th Edition

Exam Prep

Economics 838

1) Suppose a tax of $3 is imposed on each new garden hose that is sold, resulting in a deadweight loss of $22,500. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. Before the tax was imposed, the equilibrium quantity

Principles of Microeconomics 7th Edition

Exam Prep

Economics 863

1) Boxes C and D of this circular-flow diagram represent a.households and government. b.firms and government. c.the markets for goods and services and the markets for financial assets. d.the markets for goods and services and the markets for factors of production. Answer: d Answer: d Answer: d 2) Suppose that the cost of installing an overhead pedestrian walkway

Principles of Microeconomics 7th Edition

Exam Prep

Economics 864 Midterm 2

1) Scenario 18-6 Rocchetta Industries manufactures and supplies bottled water in Mexico. As a result of a contamination of water supplies at many of Mexico's resort communities, the demand for bottled water has increased. Refer to Scenario 18-6. When the labor market adjusts to its new equilibrium, we would expect the a.marginal product

Principles of Microeconomics 7th Edition

Exam Prep

Economics 865 Quiz 1

1) Table 7-6 For each of three potential buyers of apples, the table displays the willingness to pay for the first three apples of the day. Assume Xavier, Yadier, and Zavi are the only three buyers of apples, and only three apples can be supplied per day. If the market price of an

Principles of Microeconomics 7th Edition

Exam Prep

Economics 878

1) The Laffer curve illustrates that a.deadweight loss rises by the square of the increase in a tax. b.deadweight loss rises exponentially as a tax increases. c.tax revenue first rises, then falls as a tax increases. d.Both a) and b) are correct. Answer: c Answer: c Answer: c 2) Which of the following statements is

Principles of Microeconomics 7th Edition

Exam Prep

Economics 878 Midterm 1

1) Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier Chi le and Colombia would not be able to gain from trade if Colombia's opportunity cost of one pound of soybeans changed to a.1/2 pound of coffee. b.3/4 pound of coffee. c.4/3 pounds of coffee. d.2 pounds of coffee. Answer: c Answer: c Answer: c 2) In class action lawsuits interested

Principles of Microeconomics 7th Edition

Exam Prep

Economics 896 Quiz

1) Figure 21-5 Refer to Figure 21-5. In graph (b), what is the price of good X relative to the price of good Y (i.e., Px/Py)? a. 1/3 b.1 c.3 d.10 Answer: a Answer: a Answer: a 2) If rectangle D is larger than rectangle A, then a.demand is elastic between prices P1and P2 b.a decrease in price from

Principles of Microeconomics 7th Edition

Exam Prep

Economics 898

1) A good is excludable if a.one person's use of the good diminishes another person's enjoyment of it. b.the government can regulate its availability. c.it is not a normal good. d.people can be prevented from using it. Answer: d Answer: d Answer: d 2) When negative externalities are present in a market, a.producers will be affected but consumers will

Principles of Microeconomics 7th Edition

Exam Prep

If Point A Represents Alice’s Current Production

1) The opportunity cost of moving from point B to point D is 15 doghouses. a.True b.False Answer: False Answer: False Answer: False 2) A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level. a.True b.False Answer: True Answer: True Answer: True 3) If point A represents Alice's current production and point B represents Betty's current production,

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 108 Quiz 2

1) Table 13-16 Listed in the table are the long-run total costs for three different firms. Which firm is experiencing diseconomies of scale? a.Firm A only b.Firm B only c.Firm C only d.Firm A and Firm B only Answer: c Answer: c Answer: c 2) At what price would there be an excess supply of 200 units of the good? a.$15 b.$20 c.$30 d.$35 Answer:

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 109

1) Figure 18-7 Refer to Figure 18-7. Which of the following would shift the labor supply curve from S1 to S2? a.a change in workers' attitudes toward the work-leisure tradeoff b.decreases in wages in other labor markets c.immigration of workers into the region or country d.All of the above are correct. Answer: d Answer: d Answer: d 2)

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 111

1) The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008. The cost of imposing a regulation that would ban the chemical is $32 million. If the value of a

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 126 Test 2

1) For a typical worker, her income will be lower when she is younger, peak around age 50, and decrease drastically when she retires. This pattern of changes in income for a typical worker is called a.the life cycle. b.permanent income. c.transitory income. d.in-kind transfers. Answer: a Answer: a Answer: a 2) Figure 19-1 Refer to Figure 19-1. If the

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 151

1) If the supply of a product decreases, then we would expect equilibrium price a.to increase and equilibrium quantity to decrease. b.to decrease and equilibrium quantity to increase. c.and equilibrium quantity to both increase. d.and equilibrium quantity to both decrease. Answer: a Answer: a Answer: a 2) Suppose the federal government doubles the gasoline tax. The deadweight loss

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 159 Midterm 2

1) A family's income tax liability is a.a standard percentage of all income earned. b.determined by wage income rather than dividend and interest income. c.based on total income. d.constant from year to year. Answer: c Answer: c Answer: c 2) When total revenue is less than variable costs, a firm in a competitive market will a.continue to operate as

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 161

1) Economics is the study of a.production methods. b.how society manages its scarce resources. c.how households decide who performs which tasks. d.the interaction of business and government. Answer: b Answer: b Answer: b 2) Normative conclusions a.come from positive analysis alone. b.are based on ignorance of positive analysis. c.involve value judgments. d.reflect the economist's role as scientist. Answer: c Answer: c Answer: c 3) Table 18-1 Refer

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 162 Quiz 1

1) Soup is an inferior good if the demand a.for soup falls when the price of a substitute for soup rises. b.for soup rises when the price of soup falls. c.curve for soup slopes upward. d.for soup falls when income rises. Answer: d Answer: d Answer: d 2) One of the things that employers can do to lessen

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 165

1) If government officials break up a natural monopoly into four smaller firms, then a.each firm will be unable to maximize profits due to increased competition. b.competition will force firms to produce surplus output, which drives up price. c.the average cost of production will increase. d.consumers will benefit from lower average total costs. Answer: c Answer:

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 167 Homework

1) Economic studies of lottery winners and people who have inherited large amounts of money show that a.the income effect of winning the lottery or inheriting large amounts of money likely outweighs the substitution effect for most people. b.the substitution effect of winning the lottery or inheriting large amounts of money likely

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 169 Test 1

1) Scenario 13-4 Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%. Abdul's implicit cost of capital is a.

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 170

1) Corporate profits are a.included in payroll taxes. b.exempt from taxes. c.taxed twice, once as profit and once as dividends. d.taxed to pay for Medicare. Answer: c Answer: c Answer: c 2) The two taxes that together provide the U.S. federal government with almost 80 percent of its revenue are a.individual income taxes and property taxes. b.individual income taxes and

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 174

1) Which of the following countries has the largest tax burden? a.Mexico b.Canada c.United States d.Denmark Answer: d Answer: d Answer: d 2) Lisa's Production Possibilities FrontierBryce's Production Possibilities Frontier s opportunity costs of operating his new business? a. $25,000 b. $75,000 c. $100,000 d. $175,000 Answer: d Answer: d Answer: d 5) The opportunity cost of moving from point A to point D is 10

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 207 Final

1) Which of the following events always would increase the size of the deadweight loss that arises from the tax on gasoline? a.The demand for gasoline becomes more inelastic. b.The slope of the supply curve for gasoline becomes steeper. c.The amount of the tax per gallon of gasoline increases. d.All of the above are

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 210 Quiz 3

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 229 Quiz 1

1) Suppose that a large lake in the middle of Minnesota evaporates, leaving more fertile farm land for growing corn available. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and rents earned by landowners? a.Both wages and rents

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 231 Quiz 2

1) Figure 16-13 What is the first step in this industry's adjustment to long run equilibrium? Answer: firms will enter Answer: firms will enter Answer: firms will enter 2) Table 18-10 Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 244

1) When, in our analysis of the gains and losses from international trade, we assume that a country is small, we are in effect assuming that the country a.cannot experience significant gains or losses by trading with other countries. b.cannot have a significant comparative advantage over other countries. c.cannot affect world prices by

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 247

1) Dog owners do not bear the full cost of the noise their barking dogs create and often take too few precautions to prevent their dogs from barking. Local governments address this problem by a.making it illegal to "disturb the peace." b.having a well-funded animal control department. c.subsidizing local animal shelters. d.encouraging people to adopt

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 311

1) A paper plant produces water pollution during the production process. If the government forces the plant to internalize the negative externality, then the a.supply curve for paper would shift to the right. b.supply curve for paper would shift to the left. c.demand curve for paper would shift to the right. d.demand curve for

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 312 Midterm 2

1) Scenario 14-3 Suppose a certain competitive firm is producing Q=500 units of output. The marginal cost of the 500th unit is $17, and the average total cost of producing 500 units is $12. The firm sells its output for $20. At Q=500, the firm's profits equal a. $1,000. b. $4,000. c. $7,000. d. $10,000. Answer: b Answer:

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 313

1) A competitive firm is currently producing a quantity of output at which marginal revenue exceeds marginal cost. In order to increase its profit, the firm should a.increase the price of the good that it produces and sells. b.increase its quantity of output. c.decrease its total cost. d.decrease its average total cost. Answer: b Answer: b Answer:

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 315 Homework

1) When a country has a comparative advantage in producing a certain good, a.the country should import that good. b.the country should produce just enough of that good for its own consumption. c.the country's opportunity cost of that good is high relative to other countries' opportunity costs of that same good. d.None of the

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 317 Quiz

1) When a country allows trade and becomes an importer of a good, a.domestic producers become better off, and domestic consumers become worse off. b.domestic producers become worse off, and domestic consumers become better off. c.domestic consumers become better off, but the effect on the well-being of domestic producers is ambiguous. d.domestic producers become

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 318

1) We must be knowledgeable of how people behave in strategic situations if we are to understand a.perfectly competitive markets. b.monopolistically competitive markets. c.oligopolistic markets. d.All of the above are correct. Answer: c Answer: c Answer: c 2) Trade can make everybody better off because it a.increases cooperation among nations. b.allows people to specialize according to comparative advantage. c.requires some workers

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 327 Test 1

1) If one person's use of a good diminishes another person's enjoyment of it, the good is a.rival in consumption. b.excludable. c.normal. d.exhaustible. Answer: a Answer: a Answer: a 2) Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b)? a.the tradeoff between the production of

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 337 Midterm 2

1) Figure 21-2 The downwardsloping line on the figure represents a consumer's budget constraint. Refer to Figure 21-2. If the consumer's income is $100, then what is the price of an apple? a. $0.50 b. $0.75 c. $1.00 d. $1.25 Answer: a Answer: a Answer: a 2) Table 17-14 This table shows a game played between two players, A and B.

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 361 Midterm

1) An example of asymmetric information is when a seller of a house knows more than the buyer about the house's condition. a.True b.False Answer: True Answer: True Answer: True 2) An increase in a consumer's income a.increases the slope of the consumer's budget constraint. b.has no effect on the slope of the consumer's budget constraint. c.decreases the slope

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 366 Test 1

1) Figure 18-9 Refer to Figure 18-9. If the price of apples decreases, the equilibrium wage will a.increase, and more apple pickers will be hired. b.decrease, and more apple pickers will be hired. c.increase, and fewer apple pickers will be hired. d.decrease, and fewer apple pickers will be hired. Answer: d Answer: d Answer: d 2) A marginal

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 378 Final

1) Table 7-5 For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day. If the market price of

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 378 Homework

1) People can be prevented from using a good if the good is a.a private good or a club good. b.a private good or a common resource. c.a public good or a common resource. d.a private good or a public good. Answer: a Answer: a Answer: a 2) For a firm in a competitive market, an increase in

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 379 Midterm

1) Which of the following is true of markets characterized by positive externalities? a.Social value exceeds private value, and market quantity exceeds the socially optimal quantity. b.Social value is less than private value, and market quantity exceeds the socially optimal quantity. c.Social value exceeds private value, and market quantity is less than the

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 384 Midterm

1) Table 12-11 If Bud has taxable income of $78,000, his marginal tax rate is a. 19.3%. b. 24.0%. c. 26.8%. d. 34.0%. Answer: d Answer: d Answer: d 2) Scenario 22-3 At issue in a particular city vote is how much to spend, per person, on road repair next year. Among the 10,000 voters, 2,900 prefer to spend $500

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 428

1) Education and on-the-job training are sources of human capital. a.True b.False Answer: True Answer: True Answer: True 2) If Ernie's individual labor supply curve is upward sloping, then Ernie responds to an increase in the a.wage by working more hours per week. b.opportunity cost of leisure by working fewer hours per week. c.opportunity cost of leisure by taking

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 430 Midterm 1

1) In the field of study called political economy, economists make use of insights from the field of psychology. a.True b.False Answer: False Answer: False Answer: False 2) An increase in price from $15 to $20 would a.increase total revenue by $500 b.decrease total revenue by $500. c.increase total revenue by $1,000. d.decrease total revenue by $1,000. Answer: b Answer: b Answer: b 3)

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 446 Quiz 3

1) This economy cannot produce at which point(s)? a.L, M b.N, O, P, Q c.N, O, P d.Q Answer: d Answer: d Answer: d 2) The difference between economic profit and accounting profit is that economic profit is calculated based on both implicit and explicit costs whereas accounting profit is calculated based on explicit costs only. a.True b.False Answer: True Answer: True Answer: True 3)

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 472 1 If Nations

1) If nations such as Germany, Japan, and the United States prohibited international trade in automobiles, a likely effect would be that a.the price effect would become a more significant consideration for each firm that makes automobiles. b.the excess of price over marginal cost would become less pronounced in the automobile market. c.all

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 474 Test

1) The discovery of a new hybrid wheat would increase the supply of wheat. As a result, wheat farmers would realize an increase in total revenue if the a.supply of wheat is elastic. b.supply of wheat is inelastic. c.demand for wheat is inelastic. d.demand for wheat is elastic. Answer: d Answer: d Answer: d 2) As the tax on

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 493 Midterm

1) For a profit-maximizing monopolistically competitive firm, marginal revenue equals marginal cost in a.the short run but not in the long run. b.the long run but not in the short run. c.both the short run and the long run. d.neither the short run nor the long run. Answer: c Answer: c Answer: c 2) Labor-market discrimination based solely

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 501 Quiz

1) Capital income does not include income paid to households for the use of their capital. a.True b.False Answer: False Answer: False Answer: False 2) Table 17-7 The information in the table below shows the total demand for internet radio subscriptions in a small urban market. Assume that each company that provides these subscriptions incurs an annual

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 510

1) The nation of Cranolia used to prohibit international trade, but now trade is allowed, and Cranolia is exporting furniture. Relative to the previous no-trade situation, buyers of furniture in Cranolia are now better off. a.True b.False Answer: False Answer: False Answer: False 2) A new Mexican restaurant opened in the town of Manchester. The residents

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 518 Test

1) Suppose that Elmer's hourly wage increases, and he decides to work fewer hours. For Elmer, the substitution effect of the wage change is a.only partially offset by the income effect. b.more than offset by the income effect. c.exactly offset by the income effect. d.We do not have enough information with which to answer the question. Answer:

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 522 Homework

1) If a market is in equilibrium, then it is impossible for a social planner to raise economic welfare by increasing or decreasing the quantity of the good. a.True b.False Answer: True Answer: True Answer: True 2) Which of the following events must cause equilibrium quantity to rise? a.demand increases and supply decreases b.demand and supply both decrease c.demand

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 540

1) An excise tax is a tax on a specific good, like gasoline. a.True b.False Answer: True Excise Tax Answer: True Excise Tax Answer: True Excise Tax 2) Figure 21-2 The downwardsloping line on the figure represents a consumer's budget constraint. Refer to Figure 21-2. Which points are affordable? a.W, X, and Y only b.Z only c.V, W, X, and Y

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 544

1) A discovery that increases wheat yields per acre helps farmers by increasing both supply and total revenues. a.True b.False Answer: False Answer: False Answer: False 2) 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

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 560 Homework

1) Table 22-14 Amy, Beth, and Connie are on a hiring committee. They have interviewed 3 candidates identified by their last names and are going to vote on which one is hired. Refer to Table 22-14. Which of the following is correct for this election? There is a.both transitivity and independence of irrelevant

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 564 1 Individual

1) Individual demand curves are summed vertically to obtain the market demand curve. a.True b.False Answer: False Answer: False Answer: False 2) A change in the supply of one factor of production a.will not change either the marginal productivities or the prices of other factors. b.will not change the prices of other factors, but it may change their

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 589 Quiz 1

1) Refer to Figure 9-17. Without trade, total surplus is a. $600. b. $1,200. c. $1,800. d. $2,250. Answer: b Answer: b Answer: b 2) Suppose that in 2020 the average citizen's federal tax bill is $11,888 per person, and total federal spending is $13,997 per person. In 2020, the federal government will have a.a per person budget

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 597 Quiz 2

1) The idea that rational employers think at the margin is central to understanding how many units of labor they choose to employ. a.True b.False Answer: True Answer: True Answer: True 2) Supply-side economics is a term associated with the views of a.Ronald Reagan and Arthur Laffer. b.Karl Marx. c.Bill Clinton and Greg Mankiw. d.Milton Friedman. Answer: a Answer: a Answer: a 3) The

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 617 Quiz 1

1) If soybean farmers know that the demand for soybeans is inelastic, in order to increase their total revenues they should a.use more fertilizers and weed killers to increase their yields. b.plant additional acres to increase their output. c.reduce the number of acres they plant to decrease their output. d.Both a and b are

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 620 Homework

1) Externalities are a.side effects passed on to a party other than the buyers and sellers in the market. b.side effects of government intervention in markets. c.external forces that cause the price of a good to be higher than it otherwise would be. d.external forces that help establish equilibrium price. Answer: a Answer: a Answer: a 2) Free

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 629 1 If

1) If preferences exhibit the property of transitivity, then a.the preferences are irrational. b.individuals prefer more government involvement in private markets than do people whose preferences are not transitive. c.preferences change over time more quickly than when preferences are not transitive. d.preferences satisfy one of the properties assumed to be desirable by Kenneth Arrow

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 632

1) Table 17-5 The information in the table below shows the total demand for premium-channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $200,000 (per year) to provide premium digital channels in the market area and that the marginal cost

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 639 Test 1

1) Which of the following statements is (are) correct? a.Relative to some other scientists, economists find it more difficult to conduct experiments. b.Theory and observation are important in economics as well as in other sciences. c.To obtain data, economists often rely upon the natural experiments offered by history. d.All of the above are correct. Answer:

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 640 Final

1) Table 17-24 Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm. Refer to Table 17-24. What is the Nash equilibrium? a.A and B both stay

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 646 Test 1

1) While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that a.trade can make everyone better off. b.rational people think

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 650 Quiz

1) Table 18-5 Refer to Table 18-5. The price of output is a.$1 b.$2. c.$3. d.$4. Answer: b Answer: b Answer: b 2) Table 15-13 The following table gives information on the price, quantity, and total cost of production for a monopolist. How much profit will the firm earn at the profit-maximizing price? a. $9 b. $12 c. $15 d. $18 Answer: b Answer: b Answer: b 3)

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 669

1) If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price, a.the country will be an exporter of the good. b.the country will be an importer of the good. c.the country will be neither an exporter nor an importer of the good. d.Additional

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 702 Test

1) Figure 10-11 The graph represents a market in which a.there is no externality. b.there is a positive externality. c.there is a negative externality. d.The answer cannot be determined from inspection of the graph. Answer: b Answer: b Answer: b 2) Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. Zimbabwe's opportunity cost

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 709 Quiz

1) When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent a.a transfer of benefits from the consumer to the producer. b.a loss in total welfare. c.the higher marginal costs incurred by the monopolists in comparison to competitive firms. d.the higher marginal revenues gained

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 733

1) The average tax rate measures the a.fraction of spending paid in taxes. b.fraction of income paid in taxes. c.incremental rate of tax on income. d.average deadweight loss from all taxes. Answer: b Answer: b Answer: b 2) Table 22-5 The citizens of Anytown will decide whether to build a new library, a recreation center, or an arena. Exactly

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 743 Homework

1) A firm operating in a perfectly competitive industry will continue to operate if it earns zero economic profits because it is likely to be earning positive accounting profits. a.True b.False Answer: True Answer: True Answer: True 2) The following table contains some production possibilities for an economy for a given month. If the production possibilities frontier

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 751 Homework

1) It is argued that competitive markets provide a "natural remedy" to discriminatory wage practices. Which of the following is widely recognized as a potential limit to the potency of that natural remedy? a.Governments sometimes mandate discriminatory practices. b.Some employees have a lot of job experience; others have little job experience. c.In a

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 760 Final

1) The diagram below pertains to the demand for turkey in the United States. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from a.DA to DB. b.DB to DA. c.x to y. d.y to x. Answer: c Answer: c Answer: c 2) The maximin criterion suggests

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 760 Test 2

1) Discrimination by a manager in the hiring process a.decreases the firm's costs. b.increases the firm's costs. c.is evident if a white manager refuses to hire a certain black applicant. d.is evident if a male manager fails to hire a certain female applicant. Answer: b Answer: b Answer: b 2) Which of the following is not correct? a.Poverty is

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 765 Midterm 2

1) If the government regulates the price that a natural monopolist can charge to be equal to the firm's average total cost, the firm will a.earn zero profits. b.earn positive profits, causing other firms to enter the industry. c.earn negative profits, causing the firm to exit the industry. d.minimize costs in order to lower the

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 767 Test 2

1) Which of the following statements is correct? a.A disadvantage of a minimum-wage law is that it may benefit unskilled workers who are not low-income workers. b.A disadvantage of a negative income tax program is that a poor person who chooses not to work many hours would receive a cash benefit. c.A disadvantage

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 768

1) A disadvantage associated with in-kind transfers to reduce poverty is that they a.alter peoples' incentives, whereas a negative income tax does not alter peoples' incentives. b.do not allow poor families to make purchases based on their preferences. c.can only be distributed by the federal government. d.cannot restrict the group of recipients and some

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 772 Quiz

1) Unless markets are perfectly competitive, they may fail to maximize the total benefits to buyers and sellers. a.True b.False Answer: True Answer: True Answer: True 2) Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: If the market price rises above $6.30, the firm will earn a.positive economic profits in the short

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 819 Quiz 1

1) The slope of a horizontal line is infinite, and the slope of a vertical line is zero. a.True b.False Answer: False Answer: False Answer: False 2) Aristotle writes, "What is common to many is taken least care of, for all men have greater regard for what is their own than for what they possess in

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 823 Midterm

1) A pair of jeans is rival but non-excludable. a.True b.False Answer: False Answer: False Answer: False 2) Connie can clean windows in large office buildings at a cost of $1 per window. The market price for window- cleaning services is $3 per window. If Connie cleans 100 windows, her producer surplus is $200. a.True b.False Answer: True Answer: True Answer:

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 832 Test 1

1) Other things equal, a particular job will likely pay a higher wage if it involves a.danger to the worker. b.personal enjoyment for the worker. c.intellectual stimulation for the worker. d.All of the above are correct. Answer: a Answer: a Answer: a 2) Increases in productivity are not responsible for increased standards of living in the United States. a.True b.False Answer:

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 833

1) Accounting profit is equal to a.marginal revenue minus marginal cost. b.total revenue minus the explicit cost of producing goods and services. c.total revenue minus the opportunity cost of producing goods and services. d.average revenue minus the average cost of producing the last unit of a good or service. Answer: b Answer: b Answer: b 2) Suppose that

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 850 Quiz 3

1) Scenario 13-6 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 868 Test 1

1) If the number of buyers in a market decreases, then a.demand will increase. b.demand will decrease. c.supply will increase. d.supply will decrease. Answer: b Answer: b Answer: b 2) If the income elasticity of demand for a good is negative, then the good must be an inferior good. a.True b.False Answer: True Income Elasticity of Demand Answer: True Income Elasticity of

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 869

1) The value of the marginal product of labor can be calculated as the price of the final good minus the marginal product of labor. a.True b.False Answer: False Answer: False Answer: False 2) The market for ice cream is a a.monopolistic market. b.highly competitive market. c.highly organized market. d.Both b and c are correct. Answer: b Answer: b Answer: b 3) People who

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 870 Final 1 Henry

1) Henry can make a bird house in 3 hours and he can make a bird feeder in 1 hour. The opportunity cost to Henry of making a bird house is 1/3 bird feeder. a.True b.False Answer: False Answer: False Answer: False 2) If the demand curve for Good X shifts from Da to Db, then a.firms would be

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 878 Quiz 3

1) For a monopolist, when the output effect is greater than the price effect, marginal revenue is a.positive. b.negative. c.zero. d.maximized. Answer: a Answer: a Answer: a 2) The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income. Refer to Table 12-6. For this tax schedule, what is the total tax

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 885 Midterm 1

1) If Shawn can produce donuts at a lower opportunity cost than Sue, then a.Shawn has a comparative advantage in the production of donuts. b.Sue has a comparative advantage in the production of donuts. c.Shawn should not produce donuts. d.Shawn is capable of producing more donuts than Sue in a given amount of time. Answer:

Principles of Microeconomics 7th Edition

Exam Prep

MicroEconomic 888 Test 2

1) Scenario 8-2 Roland mows Karla's lawn for $25. Roland's opportunity cost of mowing Karla's lawn is $20, and Karla's willingness to pay Roland to mow her lawn is $28. Assume Roland is required to pay a tax of $10 each time he mows a lawn. Which of the following results is most

Principles of Microeconomics 7th Edition

Exam Prep

Which Of The Following Is Not An Example Of The Principle That Trade Can Make Everyone Better Off?

1) Which of the following is not an example of the principle that trade can make everyone better off? a.Americans buy tube socks from China. b.Residents of Maine drink orange juice from Florida. c.A homeowner hires the kid next door to mow the lawn. d.All of the above are examples of the principle that

Principles of Microeconomics 7th 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 7th Edition

Trusted by Thousands ofStudents

Albert

Anna

Collins

Jill

Drake

Karen

Hill

Rachel

Kristopher

Resources

Company

Legal

Trusted by Thousands of
Students