1) The median-voter theorem explains why
a.politicians take extreme stands on issues.
b.voters are attracted to political outsiders.
c.two opposing politicians tend to take opposite sides of each issues.
d.politicians tend to take middle-of-the-road positions.
2)
Between point A and point B on the graph, demand is
a.perfectly elastic.
b.inelastic.
c.unit elastic.
d.elastic, but not perfectly elastic.
3) If there is systematic discrimination against a group of workers, then the wage paid
to those workers likely will be
a.lower due to a higher supply of workers in that group.
b.lower due to a lower demand for workers in that group.
c.higher due to a lower supply of workers in that group.
d.higher due to a higher demand for workers in that group.
4) Table 14-5
The table represents a demand curve faced by a firm in a competitive market.
For this firm, the average revenue when 14 units are produced and sold is
a. $9.
b.$11.
c.$13.
d.$15.
5) Figure 8-6
The vertical distance between points A and B represents a tax in the market.
Without a tax, total surplus in this market is
a. $3,000.
b. $4,800.
c. $6,000.
d. $7,200.
6) Scenario 13-1
Korie wants to start her own business making custom furniture. She can purchase a
factory that costs $400,000. Korie currently has $500,000 in the bank earning 3 percent
interest per year.
Suppose Korie purchases the factory using $200,000 of her own money and $200,000
borrowed from a bank at an interest rate of 6 percent. What is Korie’s annual
opportunity cost of purchasing the factory?
a. $3,000
b. $6,000
c. $15,000
d. $18,000
7) A society allocates its scarce resources to various jobs. These scarce resources
include
a.land.
b.people.
c.machines.
d.All of the above are correct.
8) Scenario 18-3
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as
a lift attendant at a ski resort where he earns $13 per hour. During the summer, he drives
a tour bus around the ski resort, earning $11 per hour.
Refer to Scenario 18-3. During the winter months, what is Sam’s opportunity cost of
taking an hour off work to go skiing?
a.$13
b.between $11 and $12
c.$11
d.less than $11
9) Suppose that a worker in Radioland can produce either 4 radios or 1 television per
year, and a worker in Teeveeland can produce either 2 radios or 4 televisions per year.
Each nation has 100 workers. Also suppose that each country completely specializes in
producing the good in which it has a comparative advantage. If Radioland trades 100
radios to Teeveeland in exchange for 100 televisions each year, then each country’s
maximum consumption of new radios and televisions per year will be
a.100 radios, 300 televisions in Radioland and 300 radios, 100 televisions in
Teeveeland.
b.300 radios, 100 televisions in Radioland and 100 radios, 300 televisions in
Teeveeland.
c.200 radios, 100 televisions in Radioland and 100 radios, 200 televisions in
Teeveeland.
d.300 radios, 100 televisions in Radioland and 100 radios, 400 televisions in
Teeveeland.
10) Suppose a consumer has an income of $800 per month and that she spends her
entire income each month on beer and bratwurst. The price of a pint of beer is $5, and
the price of a bratwurst is $4. Which of the following combinations of beers and
bratwursts represents a point that would lie to the interior of the consumer’s budget
constraint?
a.160 beers and 200 bratwursts
b.40 beers and 50 bratwursts
c.80 beers and 100 bratwursts
d.160 beers and 0 bratwursts