1) Which of the following programs is not included in the federal income security
spending?
a.Social Security
b.welfare
c.education
d.unemployment compensation
2) Perry’s Production Possibilities FrontierJordan’s Production Possibilities
Frontier
a.Dave’s job is less dangerous.
b.of efficiency wages.
c.of education as a signal.
d.Dave has more human capital.
11) If the government decided that each family needs a minimum income of $25,000
and promised to make up the difference between whatever a family earned and $25,000,
which of the following is correct?
a.The government is effectively taxing every dollar earned up to $25,000 at a rate of
100%.
b.This program would reduce the incentive to work to earn any wage up to $25,000.
c.If workers are discouraged from working due to this program, they will miss any
on-the-job training that would have otherwise occurred, limiting their ability to improve
their skills.
d.All of the above are correct.
12) In theory, perfect price discrimination
a.decreases the monopolist’s profits.
b.decreases consumer surplus.
c.increases deadweight loss.
d.reduces the number of consumers who purchase the monopoly’s product.
13) If Danielle sells 300 wrist bands for $0.50 each, her total revenues are
a. $150.
b. $299.50.
c. $300.
d. $600.
14) Which of the following goods is rival in consumption and excludable?
a.a DVD
b.a movie in an empty theater
c.an outdoor movie shown at a public park
d.a movie shown on cable television.
15) Differences in human capital among groups of workers is possibly a reflection of
past discrimination.
a.True
b.False
16) A monopolistically competitive market is like a competitive market in that
a.both market structures feature easy entry by new firms in the long run.
b.the main objective of firms in both market structures is something other than profit
maximization.
c.firms in both market structures produce the welfare-maximizing level of output.
d.firms in both market structures set price above marginal cost.
17)
Which of the following would cause the demand curve to shift from Demand C to
Demand A in the market for DVDs?
a.an increase in the price of DVDs
b.a decrease in the price of DVD players
c.a change in consumer preferences toward watching movies in movie theaters rather
than at home
d.an expectation by buyers that their incomes will increase in the very near future
18) Using the midpoint method, the for a good is computed to be approximately 0.75.
Which of the following events is consistent with a 10 percent decrease in the quantity of
the good demanded?
a.a 7.5 increase in the price of the good
b.a 13.33 percent increase in the price of the good
c.an increase in the price of the good from $7.50 to $10
d.an increase in the price of the good from $10 to $17.50