1)
Suppose the figure shows the market demand for laptop computers. Suppose the price
of wireless printers, a complementary good, decreases. Which of the following changes
would occur?
a.a movement along D2 from point A to point B
b.a movement along D2 from point B to point A
c.a shift from D1 to D2
d.a shift from D2 to D1
2) Which of these activities will most likely impose an external cost?
a.Betty plants flowers in her garden.
b.Bonnie gets a flu vaccine.
c.Bridget drives her car after having too much alcohol to drink.
d.Becky buys a new flat screen television.
3) A lack of cooperation by oligopolists trying to maintain monopoly profits
a.is desirable for society as a whole.
b.is not desirable for society as a whole.
c.may or may not be desirable for society as a whole.
d.is not a concern due to antitrust laws.
4) Which of the following movements
would illustrate the effect in the market for fences of a decrease in the price of wood?
a.Point A to Point B
b.Point C to Point B
c.Point C to Point D
d.Point A to Point D
5) In setting the production level, a firm’s cost curves
a.by themselves do not tell us what decisions the firm will make.
b.dictate what decisions the firm will make.
c.have no bearing on what decisions the firm will make.
d.None of the above is correct.
6) Economic mobility refers to the
a.government’s attempt to distribute monetary assistance to areas most in need.
b.ability of families to freely relocate to find good jobs.
c.movement of people among income classes.
d.movement of resources from one country to another.
7) If duopolists individually pursue their own self-interest when deciding how much to
produce, the profit-maximizing price they will charge for their product will be
a.less than the monopoly price.
b.equal to the perfectly competitive market price.
c.greater than the monopoly price.
d.possibly less than or greater than the monopoly price.
8) Which of the following is an example of customer discrimination?
a.European soccer players earn more than U.S. soccer players since soccer is more
popular in Europe.
b.Male basketball players in the NBA earn higher salaries than female basketball
players in the WNBA since viewers prefer watching NBA games.
c.Golfers on the men’s PGA tour earn more than golfers on the women’s LPGA tour
since people prefer watching the men play golf.
d.All of the above are examples of customer discrimination.
9) Suppose that when the price rises by 10% for a particular good, the quantity
demanded of that good falls by 20%.
The for this good is equal to 2.0.
a.True
b.False
10) Which of the following is an example of a capital input?
a.a computer
b.a share of stock
c.an hour of a worker’s time
d. $50,000
11) An economy can produce at any point on or inside its production possibilities
frontier, but it cannot produce at points outside its production possibilities frontier.
a.True
b.False
12) Based on U.S. data for 2011, the poverty rate is the highest for which group of
people?
a.children
b.married couples
c.female-headed households, no spouse present
d.the elderly
13) Figure 15-3
Which of the following statements is correct?
a.Panel B represents the typical demand curve for a perfectly competitive firm.
b.Panel A represents the typical demand curve for a monopoly.
c.Panel A represents the typical demand curve for a perfectly competitive industry.
d.All of the above are correct.
14) When a market is monopolistically competitive, the typical firm in the market is
likely to experience a
a.positive profit in the short run and in the long run.
b.positive or negative profit in the short run and a zero profit in the long run.
c.zero profit in the short run and a positive or negative profit in the long run.
d.zero profit in the short run and in the long run.
15) Which of the following does not explain the rise in income inequality in the United
States from 1970 to 2011?
a.Changes in technology.
b.An increase in minimum wages.
c.A reduction in the demand for unskilled labor.
d.Increased international trade with low-wage countries.