Which of the following statements is true?
a. A major corporation would tend to pay a higher interest rate for a $10,000 loan than a
single parent working for a fast food restaurant.
b. The more risky the loan, the higher the interest rate charged, ceteris paribus.
c. The less risky the loan, the higher the interest rate charged, ceteris paribus.
d. The duration (length) of a loan is unrelated to the interest rate charged for the loan.
e. c and d
Producers’ surplus is the difference between the price __________ receive for a good
and the __________ price for which they would have __________ the good.
a. sellers; maximum; sold
b. buyers; maximum; bought
c. sellers; minimum; sold
d. buyers; minimum; bought
In the textbook, economics is defined as the science of
a. money and business.
b. choices.
c. scarcity.
d. price.
e. individuals’ actions.
For Maya, the opportunity cost of producing one unit of good X is ___________ unit(s)
of good Y.
a. 2.00
b. 1.00
c. 10.00
d. 0.50
Exhibit 4-8
If the wheat market is in competitive equilibrium the producers€ surplus will equal
a. area 1 + 2 + 3
b. area 1 + 2 + 4
c. area 3 + 5
d. area 1 + 2 + 3 + 4 + 5
e. area 6
Exhibit 29-2
This graph depicts the Lorenz curve for two countries, country 1 (Lorenz curve 1) and
country 2 (Lorenz curve 2).Although the Gini coefficient is __________ in country 1
than in country 2, the bottom quintile in ____________ receives a larger share of
income compared to the bottom quintile in _______________.
a. lower; country 1; country 2
b. lower; country 2; country 1
c. higher; country 1; country 2
d. higher; country 2; country 1
A perfectly competitive market is initially in long-run competitive equilibrium. Then,
market demand increases. As a result,
a. the marginal revenue curve for each firm shifts upward.
b. the demand curve for each firm shifts upward.
c. marginal cost for each firm falls.
d. average total cost for each firm rises.
e. a and b
Which of the following statements is true?
a. The union-as-collective-voice view of the labor union holds that labor unions have a
negative impact on productivity and efficiency.
b. The traditional view of the labor union is that the union acts as a collective voice for
workers and probably leads to lower quit rates (among employees).
c. The union-as-collective-voice view of the labor union holds that labor unions often
have unnecessary staffing requirements, which means that they insist that only certain
persons be allowed to do certain jobs.
d. b and c
e. none of the above
The theory of oligopoly assumes
a. a few sellers and many buyers.
b. a few buyers and many sellers.
c. significant barriers to entry.
d. a and c
e. b and c
Which of the following is not an example of in-kind transfer payments?
a. food stamps
b. subsidized public housing
c. subsidized public education
d. Aid to Families with Dependent Children (AFDC)
e. Medicaid