The intention of the U.S. tariff on Chinese tries was to
A) protect jobs in the U. S. tire industry.
B) protect infant industries in tire U.S. tire market.
C) insure that Chinese tires meet U.S. quality and safety standards.
D) save the government money by restricting the sale of more expensive Chinese-made
tires.
Figure 10-9
If the consumer has $240 to spend on DVDs and CDs, what is the price of a DVD if the
budget constraint is BC1?
A) $10
B) $20
C) $24
D) $40
Because of the shortcomings of concentration ratios, some economists prefer another
measure of competition called
A) the Competition Index.
B) the Marginal Revenue-Marginal Cost Index.
C) the Economic Profit Index.
D) the Herfindahl-Hirschman Index.
The financial success of the movies The Lion King and Toy Story led to
A) a decrease in the salaries of animators and an increase in the number of animators
used to produce films.
B) an increase in demand for actors to play roles in animated films.
C) the Disney studio’s attempt to buy Pixar Animation Studios.
D) a reduction in the price of computers and software relative to the price of labor
(animators) used to produce animated films.
Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3
per unit. Assume that labor is the only input. If the last worker hired produces four units
of output per hour, then to maximize profits the firm should
A) not change the number of workers it currently hires.
B) lay off some workers.
C) hire another worker.
D) There is not enough information to answer the question.
In the United States in 2012, the percentage of people that directly purchased an
individual or family health insurance policy from an insurance company was about
A) 2%.
B) 10%.
C) 17%.
D) 26%.
When a negative externality exists, the private market produces
A) more than the economically efficient output level.
B) less than the economically efficient output level.
C) products at a low opportunity cost.
D) products at a high opportunity cost.
A decrease in the wage rate causes
A) an increase in the quantity of labor demanded.
B) a rightward shift of the firm’s labor demand curve.
C) a leftward shift of the firm’s labor demand curve.
D) a decrease in labor’s productivity.
Explain how each of the following events would affect the short-run aggregate supply
curve.
a. A decrease in the price level
b. A decrease in what the price level is expected to be in the future
c. A price level that is currently lower than expected
d. An unexpected decrease in the price of an important raw material
e. A decrease in the labor force
Consider the following pricing strategies:
a. perfect price discrimination
b. charging different prices to different groups of customers
c. optimal two-part tariff
d. single-price monopoly pricing Which of the pricing strategies allows a producer to
capture the entire consumer surplus that would have gone to consumers under perfect
competitive pricing?
A) a, b, c, and d
B) a, b, and c only
C) a and b only
D) a and c only
Financial securities that represent promises to repay a fixed amount of funds are known
as
A) bonds.
B) stocks.
C) pension funds.
D) insurance premiums.
Figure 4-3 Figure 4-3 shows Kendra’s
demand curve for ice-cream cones.
If the market price is $3.00, what is the consumer surplus on the second ice cream
cone?
A) $0
B) $0.50
C) $3.00
D) $5.50
Figure 7-1 Figure 7-1 represents the
market for vaccinations. Vaccinations are considered a benefit to society, and the figure
shows both the marginal private benefit and the marginal social benefit from
vaccinations.
At the market equilibrium, the deadweight loss is equal to
A) $0.
B) $250,000.
C) $500,000.
D) $1,000,000.
Which of the following are necessary condition(s) for successful price discrimination?
a. zero transaction cost
b. a perfectly competitive market structure
c. an imperfectly competitive market structure
d. at least two different markets with different price elasticities of demand
e. at least two different markets with different price elasticities of supply
A) a, b, and d only
B) c and d only
C) a, c, d and, e only
D) a and c only
Which of the following will reduce consumer expenditures?
A) a decrease in interest rates
B) a general increase in housing prices
C) a decrease in expected future income
D) a decrease in the price level
Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, the
explicit costs of his business are $10,000, and the opportunity costs of his business are
$18,000 per year. What is his economic profit?
A) $14,000
B) $24,000
C) $32,000
D) $34,000
Elvira decreased her consumption of bananas when the price of peanut butter increased.
For Elvira, peanut butter and bananas are
A) substitutes in consumption.
B) both inferior goods.
C) complements in consumption.
D) both luxury goods.
Figure 3-2
An increase in price of inputs would be represented by a movement from
A) A to B.
B) B to A.
C) S1 to S2.
D) S2 to S1.
Which of the following countries had the highest GDP per capita in 2012?
A) Qatar
B) United States
C) Japan
D) Norway
Globalization refers to
A) the process of establishing a common world currency.
B) the willingness of individuals within a given country to share knowledge with one
another.
C) the process of countries becoming more open to foreign trade and investment.
D) the reduction in growth rates of real GDP per capita as a result of trade with foreign
countries.