There is public dissaving if
A) G + TR > T.
B) G + TR < T.
C) TR > G + T.
D) TR < G + T.
Figure 2-13 Figure 2-13
shows the production possibilities frontiers for Tahiti and Bora Bora. Each country
produces two goods, milk and honey.
What is the opportunity cost of producing one gallon of honey in Tahiti?
A) 5/6 gallon of milk
B) 0.9 gallon of milk
C) 1.2 gallons of milk
D) 1 1/3 gallons of milk
Figure 12-8
Suppose the firm produces 4,000 units. What does the shaded area labeled A represent?
A) total variable cost
B) profit
C) total fixed cost
D) total revenue
The average period of unemployment was ________ following the 2007-2009 recession
as following any other recession since the end of World War II.
A) three times as low
B) approximately the same
C) twice as high
D) eight times as high
Table 4-3
The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes
in producing men’s clothing. If the price of polo shirts increases from $15 to $20
A) consumers will buy no polo shirts.
B) the marginal cost of producing the third polo shirt will increase to $20.
C) producer surplus will rise from $13 to $28.
D) there will be a surplus of polo shirts.
The price of a seller’s product in perfect competition is determined by
A) the individual seller.
B) a few of the sellers.
C) market demand and market supply.
D) the individual demander.
Which of the following is true?
A) National income = Consumption + Savings – Taxes
B) National income = Consumption – Savings – Taxes
C) National income = Consumption + Savings + Taxes
D) National income = Consumption – Savings + Taxes
Table 11-7
Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
What is the average variable cost per unit of production when the firm produces 90
lanterns?
A) $490
B) $33.67
C) $7.67
D) $5.44
FICA is a payroll tax imposed on employers and workers that is used to fund Social
Security and Medicare. Which of the following statements regarding the tax is true?
A) Employers are required to pay a greater share of the tax than workers but most
economists believe the burden of the tax is shared equally.
B) Congress wanted the burden of the tax to be greater for employers than for workers.
C) Most economists believe the burden of the tax falls almost entirely on workers.
D) Most economists believe the burden of the tax falls mostly on employers.
If the marginal utility Ida Mae receives from eating chicken wings is negative, then
A) her total utility from eating chicken wings has fallen.
B) her total utility from eating chicken wings is negative as well.
C) Ida Mae definitely does not like chicken wings.
D) her total utility has risen, but by less from the last chicken wing than from the next
to last chicken wing.
Blu-ray players were introduced to the market in 2006, and new technology has allowed
for the cost of manufacturing the players to decline significantly since the initial
introduction. How did this change in technology affect the market for Blu-ray players?
A) The new technology caused an increase in the supply of Blu-ray players and a
decrease in price of Blu-ray players.
B) The new technology caused an increase in the supply of Blu-ray players and an
increase in price of Blu-ray players.
C) The new technology caused an decrease in the demand for Blu-ray players.
D) The new technology caused an increase in the quantity of Blu-ray players supplied.