If you have a low rate of time preference, then you
a. buy goods right now because “you just can’t wait.”
b. are willing to save a larger percentage of your income than a person who has a high
rate of time preference.
c. find it difficult to save much of your income because money “just sitting around” is
worthless to you.
d. are willing to borrow money to buy goods now.
e. a, c, and d
What is the most prominent rationing device you will likely find at your campus
bookstore?
a. dollar price
b. brute force
c. anti-theft tags on the high-priced items
d. none of the above
Which of the following is true?
a. It is possible for total utility to rise as marginal utility falls.
b. Marginal utility is the same as total utility.
c. As marginal utility falls, total utility always falls.
d. a and c
Exhibit 37-1
where the
higher the number, the better the position for the person to whom the number is
connected.Jaden and Karen have entered into an agreement and are currently in box
1.There is no enforcer to their agreement.Jaden and Karen are likely to
a. remain in box 1.
b. move to box 2, because this box is better for Jaden.
c. move to box 3, because this box is better for Karen.
d. move to box 4.
e. There is not enough information to answer the question.
All economists assert that the National Collegiate Athletic Association (NCAA) is a
type of cartel that enforces the monopsony behavior of universities and colleges in the
market for college athletes.
a. True
b. False
If company A and B combine under single ownership of control, this would be a
__________ merger.
a. horizontal
b. vertical
c. conglomerate
d. Herfindahl
e. There is not enough information to answer the question.
Which of the following will not change the cost curves for good X?
a. a change in the price good X
b. a change in input prices necessary for the production of good X
c. a change in taxes paid by the producers of good X
d. a change in technology in the production of good X
e. b and d
Exhibit 28-1
Four demand curves for labor are displayed: D1, D2, D3, and D4.Which provides the
least pronounced wage-employment tradeoff?
a. D1
b. D2
c. D3
d. D4
Consider a setting in which there is a negative externality, but no positive externality.It
follows that
a. the market outcome is inefficient.
b. the market outcome is efficient.
c. MSC > MPC
d. MPC > MSC
e. a and c
Exhibit 37-1
where the
higher the number, the better the position for the person to whom the number is
connected.Jaden and Karen are currently in box 4, each receiving 10.they would like to
move to box1, where each receives 12.Without someone to ________________ their
agreement, moving from box 4 is ______________________.
a. enforce; likely
b. enforce; unlikely
c. break; unlikely
d. break; likely
e. There is not enough information to answer the question.
A person will become informed on a political issue if
a. it is considered an important issue to society at large.
b. he perceives the benefits of becoming informed as greater than the costs of becoming
informed.
c. it is regularly discussed on television news shows.
d. it is regularly written about in the daily newspapers.
e. none of the above
Factor X is used in the production of good Y. Which of the following will increase the
demand for factor X?
a. a decrease in the demand for Y
b. a rise in the MPP of factor X
c. a fall in the price of good Y
d. a fall in the cost of employing factor X
e. a and b
Exhibit 34-10
Jason’s opportunity cost of mowing the lawn is
a. 0.50 clean houses.
b. 2.40 clean houses.
c. 2.00 clean houses.
d. 0.60 clean houses.