1) Neither public goods nor common resources are
a.excludable, but only public goods are not rival in consumption.
b.excludable, but only common resources are not rival in consumption.
c.rival in consumption, but only public goods are not excludable.
d.rival in consumption, but only common resources are not excludable.
2) The Tragedy of the Commons can be corrected by
a.conducting a cost-benefit analysis.
b.assigning property rights to individuals.
c.providing government subsidies for the resource.
d.making certain everyone in the economy has access to the resource.
3) Figure 21-24
The figure shows three indifference curves and a budget constraint for a certain
consumer named Steve.
Refer to Figure 21-24. If Steve’s income is $12.60, then the price of a pound of apples is
a. $4.50.
b. $3.85.
c. $3.00.
d. $2.80.
4) U.S. income data over the last 75 years suggests that the distribution of income
a.has gradually become more equal over the entire time period.
b.has gradually become less equal over the entire time period.
c.gradually became less equal until about 1970, then became more equal from 1970 to
2011.
d.gradually became more equal until about 1970, then became less equal from 1970 to
2011.
5) Figure 16-6
Which of the graphs depicts a monopolistically competitive firm in long-run
equilibrium?
a.panel a
b.panel b
c.panel c
d.None of the above is correct.
6) The theory of consumer choice is representative of how consumers make decisions
but is not intended to be a literal account of the process.
a.True
b.False
7) Holding the nonprice determinants of supply constant, a change in price would
a.result in either a decrease in supply or an increase in supply.
b.result in a movement along a stationary supply curve.
c.result in a shift of demand.
d.have no effect on the quantity supplied.
8) Ramona decides to spend two hours taking a nap rather than attending her classes.
Her opportunity cost of napping is
a.the value of the knowledge she would have received had she attended class.
b.the $24 she could have earned if she had worked at her job for those two hours.
c.the value of her nap minus the value of attending class.
d.nothing, since she valued sleep more than attendance at class.
9) A firm that has little ability to influence market prices operates in a
a.competitive market.
b.strategic market.
c.thin market.
d.power market.
10) Most analysts expect the largest federal spending category to continue to grow in
importance for many years into the future. What category of spending is this?
a.national defense
b.education
c.income security
d.farm support programs
11) Which of the following
movements would illustrate the effect in the market for ballroom dancing lessons
resulting from the introduction of a popular new television show called “Dancing with
the Stars”?
a.Point A to Point B
b.Point C to Point B
c.Point C to Point D
d.Point A to Point D
12) Chile’s Production Possibilities FrontierColombia’s Production Possibilities
Frontier
Col
ombia should specialize in the production of
a.coffee and import soybeans.
b.soybeans and import coffee.
c.both goods and import neither good.
d.neither good and import both goods.
13) Refer to Table 12-6.
The table below shows the marginal tax rates for an unmarried taxpayer for various
levels of taxable income.
For this tax schedule, what is the marginal tax rate for an individual with $212,000 in
taxable income?
a.0%
b.1%
c.2%
d.45%