When a celebrity has the desire to have his image protected following his death, this is
best described as an example of the protection of
A) an invention.
B) a patent.
C) a trademark.
D) intellectual property.
One important difference between the political process and the market process is that
A) the political process results in collective actions in which not everyone is required to
participate, while in the market process individuals are obliged to participate.
B) the political process results in collective actions in which everyone is obliged to
participate, while in the market process individuals are free to participate or not.
C) the political process results in collective actions that maximize economic surplus,
while the market process may lead to efficiency losses.
D) the political process results in collective actions in which everyone is made better
off, while the market process results in actions that favor some groups only.
The market for smartphones has become very competitive. The increase in competition
in this market is an example of how the market responds to
A) decreases in the price of desktop computers (a substitute for the product).
B) increases in income.
C) changes in population.
D) changes in consumer tastes.
Table 2-2 Production choices for Nadia’s Neckware
Assume Nadia’s Neckware only produces ascots and bowties. A combination of 24
ascots and 12 bowties would appear
A) along Nadia’s production possibilities frontier.
B) inside Nadia’s production possibilities frontier.
C) outside Nadia’s production possibilities frontier.
D) at the horizontal intercept of Nadia’s production possibilities frontier.
The major shortcoming of a barter economy is
A) the requirement of a double coincidence of wants.
B) the requirement of specialization and exchange.
C) that goods and services are not traded.
D) that money loses value from inflation.
Which of the following is a consequence of minimum wage laws?
A) Low skilled workers benefit because minimum wage increases the number of jobs
providing low skilled workers with training.
B) Employers will be reluctant to offer low-skill workers jobs with training.
C) Producers have an incentive to offer workers non-wage benefits such as health care
benefits and convenient working hours rather than a higher wage.
D) All workers benefit when the minimum wage is increased.
Table 10-2
Table 10-2 above shows Keira’s utility from soup and sandwiches. The price of soup is
$2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two
goods. What is Keira’s marginal utility per dollar spent on the third cup of soup?
A) 72 units of utility
B) 36 units of utility
C) 12 units of utility
D) 6 units of utility
The delivery of first-class mail by the U.S. Postal Service is an example of
A) a monopoly.
B) perfect competition because consumers have access to other methods of written
communication; for example, email and text messaging.
C) monopolistic competition, because mail delivery is a differentiated product provided
by many firms.
D) an oligopoly because a few other firms provide delivery of letters and packages.
A merger between U.S. Steel and General Motors would be an example of a
A) vertical merger.
B) horizontal merger.
C) conglomerate merger.
D) conspiracy in restraint of trade.
An increase in real GDP can shift
A) money demand to the right and decrease the equilibrium interest rate.
B) money demand to the right and increase the equilibrium interest rate.
C) money demand to the left and decrease the equilibrium interest rate.
D) money demand to the left and increase the equilibrium interest rate.