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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.
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 that charges
less than $150 would violate its contract with South Face. What do economists call this
business practice?
a.predatory pricing
b.resale price maintenance
c.tying
d.leverage
7) Figure 9-6
The figure illustrates the market for roses in a country.
Before the
tariff is imposed, this country
a.imports 200 roses.
b.imports 400 roses.
c.exports 200 roses.
d.exports 400 roses.
8) A toll collected from each car traveling during rush hour on a congested road is an
effective correction to the Tragedy of the Commons for all of the following reasons
except the toll provides an incentive for commuters to
a.drive at times other than rush hour.
b.use public transit rather than driving.
c.drive more fuel-efficient cars.
d.car-pool.
9) Table 15-9
Consider the following demand and cost information for a monopoly.
What is the marginal revenue of the 3rd unit?
a. $4
b. $12
c. $20
d. $28
10) Canada's Production Possibilities FrontierMexico's Production Possibilities
Frontier
Canada has an absolute advantage in the production of
a.Good X and Mexico has an absolute advantage in the production of Good Y.
b.Good Y and Mexico has an absolute advantage in the production of Good X.
c.both goods and Mexico has an absolute advantage in the production of neither good.
d.neither good and Mexico has an absolute advantage in the production of both goods.
11) In 2011, approximately how much of federal government spending went to income
security?
a. 10%
b.25%
c.33%
d.50%
12) Which of the following statements is true about patents and copyrights?
(i)They have benefits and costs.
(ii)They lead to higher prices.
(iii)They enhance the ability of monopolists to earn above-average profits.
a.(i) and (ii) only
b.(ii) and (iii) only
c.(ii) only
d.(i), (ii), and (iii)
