At a price of $12, there is a ____________ unit____________ of good X.
a. 195; shortage
b. 230; shortage
c. 195; surplus
d. 230; surplus
e. 180; shortage
Labor unions have caused
a. the fraction of national income that goes to labor (union and nonunion, combined) to
increase.
b. the fraction of national income that goes to labor (union and nonunion, combined) to
decrease.
c. almost no change in the fraction of national income that goes to labor (union and
nonunion, combined).
d. the fraction of national income that goes to profits to rise.
A farmer has 1,000 acres on which he has previously grown corn. His yield per acre is
100 bushels of corn. If the corn payment rate is $0.43 a bushel, his production
flexibility contract payment equals
a. $39,600.
b. $43,000.
c. $36,550.
d. $12,345.
e. none of the above
Exhibit 23-1
The marginal revenue curve represented by the information in this table is
a. downward-sloping.
b. upward-sloping.
c. horizontal.
d. vertical.
Exhibit 23-8
What is the total cost of firm B at the profit-maximizing (or loss-minimizing) level of
production?
a. $11
b. $750
c. $1,650
d. $400
Exhibit 25-7
Total fixed costs are equal to
a. $0.
b. $10.
c. $60.
d. $40.
e. There is not enough information given to answer the question.
Assume the following for a certain industry: (l) there is no incentive for firms to enter
or exit the industry; (2) for some firms in the industry, short-run average total cost is
greater than long-run average total cost at the level of output where marginal revenue
equals marginal cost; (3) all firms in the industry are currently producing the quantity of
output at which marginal revenue equals marginal cost. Is the industry in long-run
competitive equilibrium?
a. Yes.
b. No, because of number 2.
c. No, because of numbers 2 and 3.
d. No, because of numbers 1 and 2.
e. No, because of numbers 1, 2, and 3.
In the market for good X there are three buyers, Adam, Bill, and Carolyn. Adam buys 3
units of good X at $4, Bill buys 7 units of good X at $4, and Carolyn buys 8 units of
good X at $4. One point on the market demand curve for good X consists of a price of
_____________ and a quantity demanded of __________________ units.
a. $4; 10
b. $4; 18
c. $4; 15
d. $5; 8
e. none of the above
Today, the Dow Jones Industrial Average
a. consists of 30 stocks.
b. is a set group of stocks that remains constant over time.
c. contains stocks that are widely held by institutional investors and individuals.
d. contains both stocks and bonds of large American companies.
e. a and c
Country A has a Gini coefficient of 0.5 and country B has a Gini coefficient of 0.7. It
follows that
a. there is greater income inequality in country A than B.
b. there is greater income inequality in country B than A.
c. it is possible for the Lorenz curve in country A is the same as the Lorenz curve in
country B.
d. it is possible that the adjusted Gini coefficient in country A is equal to the Gini
coefficient in country B.
e. c and d
Who has the comparative advantage in the production of good B?
a. Alex
b. Adam
c. Both Alex and Adam
d. Neither Alex nor Adam
In the prisoner’s dilemma setting for producing and stealing, a tax imposed on
participants could end up changing the payoff matrix so that
a. one participant is better off, and one participant is worse off.
b. both participants are worse off.
c. both participants are better off.
d. all of the above are possible
Bonds that are rated in the D category are of higher quality than bonds that are rated in
the A category.
a. True
b. False
Exhibit 5-1
which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. At P =
$0, there is a ________ of freeway space at 8 a.m. and ________ at 11 p.m.
a. shortage; a surplus
b. surplus; a shortage
c. surplus; equilibrium
d. shortage; equilibrium
According to the textbook, Iceland used crowdsourcing to
a. rewrite its constitution.
b. elect members of its parliament.
c. elect its president.
d. rename its capitol city.
Which of the following is not an assumption of the theory of perfect competition?
a. There are many sellers and many buyers, none of which is large in relation to total
sales or purchases.
b. Each firm produces and sells a differentiated product.
c. Buyers and sellers have all relevant information with respect to prices, product
quality, and sources of supply.
d. There is easy entry and exit.
When a person buys a bond of the XYZ Corporation, he or she can expect to
a. pay the corporation a certain amount of money each quarter of the year.
b. receive the face value of the bond each year and the face value of the bond when the
bond matures.
c. receive the coupon rate times the face value of the bond each year and the face value
of the bond when the bond matures.
d. receive the face value of the bond each year in perpetuity.
The combination of low income elasticity of demand for food and high agricultural
productivity leads to the demand for food increasing and the supply of food increasing
even more, which has lead to rising prices of food.
a. True
b. False