Assuming that total fixed costs are $30, the average variable cost of producing 2 units
of output is
a. $35.
b. $75.
c. $45.
d. $55.
e. There is not enough information given to answer this question.
When the equilibrium dollar price of a foreign currency decreases due to changes in
demand for or supply of the foreign currency, the domestic currency
a. has appreciated.
b. has depreciated.
c. is overvalued.
d. is undervalued.
e. is revalued.
As discussed in the textbook, various studies in the past have shown that there are
________________ degrees of separation between any two people in the world. Social
media would be expected to _______________ the number of degrees of separation,
making the world ________________.
a. 5 to 7; reduce; ‘smaller”
b. 8 to 10; reduce; “bigger”
c. 5 to 7; raise; “bigger”
d. 8 to 10; raise; “bigger”
Points that lie inside (or below) the PPF are
a. unattainable.
b. attainable and productive efficient.
c. attainable but productive inefficient.
d. attainable and neither productive efficient nor productive inefficient.
The demand for loanable funds curve is
a. upward sloping.
b. downward sloping.
c. perfectly elastic.
d. perfectly inelastic.
Suppose that prices in the United States rise relative to prices in Japan. We expect that
a. the dollar will appreciate and the yen will depreciate.
b. the dollar will depreciate and the yen will appreciate.
c. both the dollar and the yen will appreciate.
d. both the dollar and the yen will depreciate.
George is a gift giver and Roger is a gift recipient.George has Roger in his utility
function, but Roger does not have George in his utility function.Roger may try to get
George to __________________ George’s efficient number of gifts to (give).
a. give more gifts to him than
b. reduce the number of gifts he receives below
c. increase the number of gifts he receives beyond
d. a and b
e. a and c
Exhibit 22-14
Assume that labor is the only variable input and that each additional laborer is paid
$600.
What is the level of output with 2 and 3 laborers working [blanks (A) and (B)],
respectively?
a. 175 units; 225 units
b. 100 units; 175 units
c. 100 units; 225 units
d. 50 units; 175 units
e. none of the above
Exhibit 31-5
If a positive externality exists, then curve __________ represents the marginal social
benefit curve and the area __________ represents the market failure.
a. 2; BDC
b. 1; ABC
c. 3; ABC
d. 2; ABC
e. 1; BDC
Exhibit 32-1
The exhibit shows the breakdown of benefits and costs for a four-person town of a
proposed $1,200 purchase of books for the public library. How will each of the four
persons, A-D, vote? (The first answer in the list is how person A would vote, the second
is how person B would vote, and so on, so that €for€ indicates that the individual would
be in favor of having the additional books purchased by the library.)
a. for; for; for; for
b. against; for; against; against
c. for; against; against; against
d. for; against; for; for
e. none of the above
The elasticity of demand for labor is 2.16. It follows that if the
a. wage rate changes by 10 percent, the demand for labor changes by 2.16 percent.
b. demand for labor changes by 2.16 percent, the wage rate changes by 1.0 percent.
c. wage rate changes by 10 percent, the quantity demanded of labor changes by 21.6
percent.
d. wage rate changes by 2.16 percent, the quantity demanded of labor changes by 2.16
percent.
e. none of the above
Suppose that one fixed and one variable input are used to produce good X. As the
marginal physical product of the variable input increases, the marginal cost
a. increases.
b. decreases.
c. remains constant.
d. There is not enough information to answer the question.
Exhibit 34-10
Jason’s opportunity cost of cleaning the house is
a. 0.50 mowed lawns.
b. 1.00 mowed lawns.
c. 2.00 mowed lawns.
d. 0.60 mowed lawns.
A subset of the general population that holds an intense preference with respect to a
particular government activity is called a
a. public-service group.
b. special interest group.
c. union.
d. federation.