An industry’s long-run supply curve shows
A) the relationship in the long run between market price and quantity supplied.
B) how the government determines the price of the product.
C) how average productivity is changing.
D) greater than normal profit.
In the United States in 2012, of those companies employing more than 200 workers that
offer health care to those workers, about ________ percent of employees accept the
coverage.
A) 10
B) 36
C) 62
D) 98
Figure 9-4 Figure 9-4 shows the U.S.
demand and supply for leather footwear.
Suppose the government allows imports of leather footwear into the United States. The
market price falls to $24. What area represents consumer surplus?
A) R + S
B) R + S + T + U
C) V + W + X + Y
D) R + S + V
Figure 12-15
Assume that the medical screening industry is perfectly competitive and that some
firms are making short-run losses. Suppose the medical screening industry runs an
effective advertising campaign which convinces a large number of people that yearly
CT scans are critical for good health. Which of the diagrams in the figure best describes
what happens in the industry?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
If a consumer receives 20 units of utility from consuming two candy bars, and 25 units
of utility from consuming three candy bars, the marginal utility of the second candy bar
is
A) 25 utility units.
B) 20 utility units.
C) 5 utility units.
D) unknown, as more information is needed to determine the answer.
Figure 3-7
Assume that the graphs in this figure represent the demand and supply curves for used
clothing, an inferior good. Which panel describes what happens in this market as a
result of a decrease in income?
A) Panel (a)
B) Panel (b)
C) Panel (c)
D) Panel (d)
An increase in input costs in the production of electric automobiles caused the price of
electric automobiles to rise. Holding everything else constant, how would this affect the
market for gasoline-powered automobiles (a substitute for electric automobiles)?
A) The supply of gasoline-powered automobiles would increase and the equilibrium
price of gasoline-powered automobiles would decrease.
B) The demand for gasoline-powered automobiles would increase and the equilibrium
price of gasoline-powered automobiles would increase.
C) The demand for gasoline-powered automobiles would decrease because consumers
could afford to buy fewer gasoline-powered automobiles.
D) The demand for gasoline-powered automobiles would increase and the equilibrium
price of gasoline-powered automobiles would decrease.
What is an economic model?
A) It is a description of an economic issue that includes all possible related information.
B) It is a description of an economic issue based on official government information.
C) It is a detailed version of some aspect of economic life used to analyze an economic
issue.
D) It is a simplified version of some aspect of economic life used to analyze an
economic issue.
Table 4-14
The equations above describe the demand and supply for Pauline’s Pickled
Pomegranates. The equilibrium price and quantity for Pauline’s Pickled Pomegranates
are $30 and 15 thousand units. What is the value of consumer surplus?
A) $50 thousand
B) $112.5 thousand
C) $225 thousand
D) $337.5 thousand
How has organizing a successful firm in a market economy changed over the last
century?
A) It has become easier as more and more firms discover how to do it.
B) As government intervention has decreased, firms now have more freedom.
C) There has been no change one way or the other over the last century.
D) It has become more Difficult to organize an efficient and successful firm.
As was demonstrated in 2007, firms in the shadow banking system
A) were very vulnerable to bank runs.
B) were protected from financial ruin by federal deposit insurance.
C) were well insulated from bank runs.
D) were more insulated from the financial crisis than were commercial banks.
The larger the fraction of an investment financed by borrowing,
A) the greater the potential return and potential loss on that investment.
B) the smaller the potential return and potential loss on that investment.
C) the greater the potential return and the smaller the potential loss on that investment.
D) the smaller the potential return and the greater the potential loss on that investment.