If a U.S. company operates within a competitive environment and chooses to offshore
part of its production process, the resulting change in the firm’s costs should shift the
______________ curve for its product ___________________, thus _____________
the price of the product being produced.
a. supply; leftward; lowering
b. supply; rightward; raising
c. demand rightward; raising
d. supply; rightward; lowering
Agriculture productivity has increased more rapidly in the U.S. than has nonagriculture
productivity.
a. True
b. False
Bad weather is likely to
a. raise the total revenue farmers receive for their foodstuffs, assuming that demand for
their products is inelastic.
b. lower the total revenue farmers receive for their foodstuffs, assuming that demand for
their products is elastic.
c. leave the total revenue farmers receive for their foodstuffs unchanged.
d. change the income elasticity of demand for food.
e. c and d
Economists sometimes refer to the resource category land as natural resources.
a. True
b. False
If countries 1 and 2 produce only two goods, A and B, and they have the same
opportunity cost for the production of good A (and thus good B), then
a. each country will specialize in the production of one good and engage in trade.
b. neither country will specialize in the production of a good, but both will engage in
trade.
c. one country will specialize in the production of a good, and both will engage in trade.
d. neither country will specialize in the production of a good, and there will be no
incentive for trade.
Promoting from within should __________ be regarded as an act of discrimination
because the information costs of inside versus outside employees are __________.
a. always; the same
b. always; higher for the insiders
c. sometimes not; the same
d. sometimes not; higher for the outsiders
Which of the following statements is true?
a. If the Gini coefficient is large, then the space between the Lorenz curve and the line
of perfect income equality will be small.
b. If the Gini coefficient is 1.00, then the Lorenz curve and the line of perfect income
equality coincide.
c. If the government succeeds in decreasing income inequality, then the Gini coefficient
will decrease.
d. If the Gini coefficient is 0.50, then one-half of the households earn one-half of the
income, and the other half of the households earn the other half.
Political candidates tend to identify themselves as being “middle-of-the-roaders”, while
they tend to label their opponents as a member of the political fringe.
a. True
b. False
Exhibit 22-3
The marginal cost figures in blanks (F) and (G), respectively, are
a. $2.00 and $1.33.
b. $2.00 and $1.60.
c. $20.00 and $13.33.
d. $2.00 and $2.66.
e. none of the above
Economies of scale refer to
a. the minimum point on the short-run average total cost curve.
b. the flat portion of the long-run average total cost curve.
c. a decrease in the long-run average total cost of production as output increases.
d. a and b
e. none of the above
Exhibit 30-1
Suppose the supply curve is S2 and the price is A. Economic rent equals area
a. EBD.
b. ABD.
c. ODBC.
d. EBA.
e. none of the above