When the government makes a firm the exclusive legal provider of a good or service, it
grants the firm
A) a copyright.
B) a network externality.
C) a quota.
D) a public franchise.
Some firms practice odd pricing because
A) they believe that customers will buy a larger quantity with an odd price.
B) it is a way to price discriminate.
C) it is too difficult for sellers to reeducate buyers into accepting even prices.
D) it lowers transactions costs.
The sum of the value added of every firm involved in producing all final goods and
services ________ gross domestic product.
A) equals
B) is greater than
C) is less than
D) is sometimes greater than and other times less than
Under the Patient Protection and Affordable Care Act (ACA), residents who do not
have health insurance will not be allowed to seek employment.
Table 3-4
The table above shows the demand schedules for cashews of two individuals (Jordy and
Amy) and the rest of the market. If the price of cashews rises from $4 to $6, the market
quantity demanded would
A) decrease by 33 lbs.
B) increase by 39 lbs.
C) increase by 33 lbs.
D) decrease by 39 lbs.
What type of protection does U.S. law grant the creator of a book, film or piece of
music?
A) a public franchise, which grants the exclusive right to use the creation during the
author’s lifetime and to his or her heirs for 70 years after the author’s death
B) a copyright, which grants exclusive rights to the creation’s author for 20 years after
the work is created
C) a patent, which grants the exclusive right to use the creation during the author’s
lifetime and to his or her heirs for 70 years after the author’s death
D) a copyright, which grants the exclusive right to use the creation during the author’s
lifetime and to his or her heirs for 70 years after the author’s death
The “underground economy” refers to
A) the buying and selling of goods that is concealed from the government.
B) the production of goods and services used by the government for covert spy
operations.
C) the sector of the economy that earns profits that are higher than average.
D) the formal sector of the economy in developing countries.
Figure 2-14
Which two arrows in the diagram depict the following transaction: LaDonna sells 20
pairs of sunglasses at the Oakley store.
A) J and M
B) J and G
C) K and M
D) K and G
Robert Shiller posed the following question to workers: “Imagine that next year the
inflation rate unexpectedly doubles. How long would it probably take, in these times,
before your income is increased enough so that you can afford the same things as you
do today?” Shiller found that ________ percent of the workers he interviewed reported
that it would take several years to restore the purchasing power of their wages or that
this power would never be restored.
A) 25
B) 42
C) 64
D) 81
In a small economy, consumption spending in 2013 is $6,000, government spending is
$1,200, gross investment is $1,500, exports are $2,000, and imports are $1,000. What is
gross domestic product in 2013?
A) $9,700
B) $9,800
C) $10,800
D) $11,700
By definition, economics is the study of
A) how to make money in the stock market.
B) how to make money in a market economy.
C) the choices people make to attain their goals, given their scarce resources.
D) supply and demand.
Figure 9-2
Suppose the U.S. government
imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this
tariff. If the tariff was replaced by a quota which limited rice imports to 16 million
pounds, the amount of revenue received by rice importers would equal
A) $6.4 million.
B) $9.6 million.
C) $16 million.
D) $19.8 million.
Which of the following would be considered an implicit cost of operating a business?
A) advertising expenses
B) wages paid to workers
C) a normal rate of return for investors
D) any explicit cost