1) In 2012, the total income of all U.S. residents was approximately $120 billion.
a.True
b.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.
3) Which of the following is considered human capital?
a.the ingredients a chef uses to prepare meals
b.the pots and pans and other tools a chef uses to prepare meals
c.the financial capital a chef uses to start his own restaurant
d.the skills a chef learns when attending a class about cake decorating
4) Which of the following expressions is correct?
a.accounting profit = economic profit + implicit costs
b.accounting profit = total revenue – implicit costs
c.economic profit = accounting profit + explicit costs
d.economic profit = total revenue – implicit costs
5) Figure 8-2
The vertical distance between points A and B represents a tax in the market.
The per-unit burden of the tax on buyers is
a. $2.
b.$3.
c.$4.
d.$5.
6) A pizza is
a.excludable and rival in consumption.
b.excludable and nonrival in consumption.
c.nonexcludable and rival in consumption.
d.nonexcludable and nonrival in consumption.
7) The Coase theorem asserts that, in the presence of externalities,
a.private economic actors sometimes can reach a bargain that produces an efficient
outcome.
b.private economic actors always can reach a bargain that makes everyone better off.
c.private solutions cannot be very effective.
d.corrective taxes cannot be very effective.
8) Figure 7-26
Refer to Figure 7-26. At the equilibrium price, producer surplus is
a. $600.
b. $900.
c. $1,200.
d. $1,800.
9) Patrice owns a travel agency. Her accountant most likely includes which of the
following costs on her financial statements?
a.wages Patrice could earn giving tennis lessons
b.dividends Patrice’s money was earning in the stock market before Patrice sold her
stock and leased the space for her travel agency
c.the cost of utilities for operating the storefront
d.Both b and c are correct.
10) When two variables have a positive correlation,
a.they tend to move in opposite directions.
b.they tend to move in the same direction.
c.one variable will move while the other remains constant.
d.the variables’ values are never negative.
11) Matthew bakes apple pies that he sells at the local farmer’s market. If the price of
apples increases, the
a.supply curve for Matthew’s pies will increase.
b.supply curve for Matthew’s pies will decrease.
c.demand curve for Matthew’s pies will increase.
d.demand curve for Matthew’s pies will decrease.
12) Figure 19-2
Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized
labor market. If the minimum wage were $7.50, employment in this market would be
a.400
b.500
c.600
d.700
13) The principle that people face tradeoffs applies to
a.individuals.
b.families.
c.societies.
d.All of the above are correct.
14) Suppose a consumer spends her income on two goods: iTunes music downloads and
books. The consumer has $100 to allocate to these two goods, the price of a
downloaded song is $1, and the price of a book is $20. What is the maximum number of
books the consumer can purchase?
a.100
b.20
c.10
d.5
15) In addition to advising the president, one duty of the Council of Economic Advisers
is to
a.prepare the federal budget.
b.write government regulations.
c.advise Congress on economic matters.
d.write the annual Economic Report of the President.
16) The goal of utilitarians is to
a.apply the logic of individual decision making to questions concerning morality and
public policy.
b.measure happiness and satisfaction.
c.redistribute income based on the assumption of increasing marginal utility.
d.All of the above are correct.
17) The percentage of the population whose family income falls below an absolute level
is call the
18) Arturo’s Production Possibilities FrontierDina’s Production Possibilities
Frontier