Consider the market for blackjack dealers in Las Vegas. In each of the following cases,
explain what happens to the equilibrium wage rate and the quantity of blackjack dealers
hired. a. Three new large resort casinos open in Las Vegas.
b. Fewer students are attending classes to learn to become blackjack dealers.
c. Traditionally, blackjack dealing is a field that attracts foreign workers. However,
changes in immigration laws have made it more difficult for foreign workers to come to
Las Vegas to obtain jobs. The demand for blackjack dealers, however, does not change.
d. Advances in technology have increased the popularity of electronic blackjack
machines and decreased the popularity of live table games which require the use of a
dealer.
Carrie Bradshaw claims that when it comes to buying shoes, “price is no object.” If this
is true, then her demand for shoes is
A) perfectly elastic.
B) perfectly inelastic.
C) unit-elastic.
D) horizontal.
In 2013, Smileytown consumed 12,000 gallons of mouthwash. In 2014, mouthwash
consumption rose to 17,000 gallons. Calculate the percentage change in mouthwash
consumption.
A) 17.2%
B) 29.4%
C) 41.7%
D) 70.6%
Figure 10-6
The loanable funds market is in equilibrium, as shown in the figure above. An increase
in the supply of loanable funds could result in which of the following combinations of
the real interest rate and quantity of loanable funds at a new equilibrium?
A) The real interest rate is 5 percent, and the quantity of loanable funds is $150 million.
B) The real interest rate is 5 percent, and the quantity of loanable funds is $90 million.
C) The real interest rate is 3 percent, and the quantity of loanable funds is $150 million.
D) The real interest rate is 3 percent, and the quantity of loanable funds is $90 million.
The value you give today to money you will receive in the future is called the future
payment’s
A) time-sensitive value.
B) future value.
C) present value.
D) historical value.
Falling interest rates can
A) increase a firm’s stock price, which causes firms to issue more stock shares, and thus
increases funds for investment.
B) raise the cost of borrowing for firms and decrease investment.
C) raise the cost of buying new homes and fewer new homes will be purchased.
D) lower the cost of buying new homes and fewer new homes will be purchased.
Which of the following statements about economic resources is false?
A) Economic resources include financial capital and money.
B) Economic resources are also called factors of production.
C) Economic resources are used to produce goods and services.
D) Some economic resources are human-made while others are found in nature.
A public good is
A) a good that is rival and excludable.
B) good that is nonrival and nonexcludable.
C) a good that is nonrival and excludable.
D) a good that is rival and nonexcludable.
Figure 5-1 Figure 5-1 represents the market
for vaccinations. Vaccinations are considered a benefit to society, and the figure shows
both the marginal private benefit and the marginal social benefit from vaccinations. At
the efficient equilibrium,
A) economic surplus is maximized.
B) economic surplus is minimized.
C) economic surplus is zero.
D) economic surplus is negative.
For which of the following products is social influence likely to have the greatest
impact?
A) toothpaste
B) restaurants
C) high-blood pressure medication
D) school textbook
Assume that Honduras has a comparative advantage in producing bananas and exports
bananas to Brazil. We can conclude that
A) Honduras also has an absolute advantage in producing bananas relative to Brazil.
B) Honduras has a lower opportunity cost of producing bananas relative to Brazil.
C) Brazil has an absolute disadvantage in producing bananas relative to Honduras.
D) Labor costs are higher for banana producers in Brazil than in Honduras.
The government proposes a tax on imported champagne. Buyers will bear the entire
burden of the tax if the
A) supply curve for imported champagne is vertical.
B) demand curve for imported champagne is vertical.
C) demand curve for imported champagne is horizontal.
D) demand curve is downward sloping and the supply curve is upward sloping.
Figure 4-2
What area represents the increase in producer surplus when the market price rises from
P1to P2?
A) B + D
B) A + C + E
C) C + E
D) A + B
When an oligopoly market is in Nash equilibrium,
A) firms have colluded to set their prices.
B) firms will not behave as profit maximizers.
C) a firm will not take into account the strategies of its rivals.
D) a firm will choose its best pricing strategy, given the strategies that it observes other
firms have taken.
If a firm raised its price and discovered that its total revenue fell, then the demand for
its product is
A) perfectly inelastic.
B) relatively inelastic.
C) perfectly elastic.
D) relatively elastic.