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1) The Condorcet voting paradox demonstrates that democratic outcomes do not always
obey the property of
a.narrowness of preferences.
b.concavity of preferences.
c.asymmetry of preferences.
d.transitivity of preferences.
2) Figure 21-4
In each case, the budget constraint moves from BC-1 to BC-2.
Refer to Figure 21-4. Which of the graphs in the figure could reflect a decrease in
income?
a.graph a
b.graph b
c.graph d
d.None of the above is correct.
3) The government's benefit from a tax can be measured by
a.consumer surplus.
b.producer surplus.
c.tax revenue.
d.All of the above are correct.
4) When a profit-maximizing firm in a competitive market experiences rising prices, it
will respond with an increase in production.
a.True
b.False
5) We can measure the profits earned by a firm in a competitive industry as
a.(P - ATC) x Q.
b.(P - MC) x Q.
c.MR x MC.
d.(MC - ATC) x Q.
6) Figure 7-27
Refer to Figure 7-27. Sellers whose costs are less than the equilibrium price are
represented by which line segment?
a.AC.
b.CK.
c.BC.
d.CH.
7) Lisa's Production Possibilities FrontierBryce's Production Possibilities Frontier
a.only Sam is made better off by trade.
b.only Annie is made better off by trade.
c.both Sam and Annie are made better off by trade.
d.neither Sam nor Annie are made better off by trade.
12)
Which supply curve is most likely relevant over a very long period of time?
a.S1
b.S2
c.S3
d.All of the above are equally likely to be relevant over a very long period of time.
