1) Assume that Zimbabwe and Portugal can switch between producing toothbrushes and
producing hairbrushes at a constant rate.
Which of the following combinations of toothbrushes and hairbrushes could Portugal
produce in 30 minutes?
a.1 toothbrush and 4 hairbrushes
b.4 toothbrushes and 2 hairbrushes
c.5 toothbrushes and 6 hairbrushes
d.6 toothbrushes and 5 hairbrushes
2) Certain factors that are probably important in determining wages are nevertheless
difficult to measure. Consequently, labor economists find those factors difficult to
incorporate into their studies of labor markets and wages. Those factors include
a.effort and natural ability.
b.natural ability and years of experience.
c.years of experience and job characteristics.
d.race and job characteristics.
3) In which of the following markets are strategic interactions among firms most likely
to occur?
a.markets to which patent and copyright laws apply
b.the market for piano lessons
c.the market for tennis balls
d.the market for corn
4) Figure 9-6
The figure illustrates the market for roses in a country.
When a tariff
is imposed in the market, domestic producers
a.gain $100 of producer surplus.
b.gain $150 of producer surplus.
c.gain $200 of producer surplus.
d.gain $300 of producer surplus.
5)
The movement from point A to point B on the graph represents
a.an increased willingness and ability on the part of suppliers to supply the good at each
possible price.
b.an increase in the number of suppliers.
c.a decrease in the price of a relevant input.
d.an increase in the price of the good that is being supplied and the suppliers’ responses
to that price change.
6) Which of the following statements is correct?
a.The value of the marginal product curve is the labor demand curve for competitive,
profit-maximizing firms.
b.A competitive, profit-maximizing firm hires workers up to the point where the value
of the marginal product of labor equals the wage.
c.By hiring labor up to the point where the value of the marginal product of labor equals
the wage, the firm is producing where price equals marginal cost.
d.All of the above are correct.
7) Goods that are rival in consumption but not excludable would be considered
a.club goods.
b.common resources.
c.public goods.
d.private goods.
8) The graph below represents the various combinations of ham and cheese (in pounds)
that the nation of Bonovia could produce in a given month.
For Bonovia, what is the opportunity cost of a pound of cheese?
a.0.8 pounds of ham
b.1.25 pounds of ham
c.8 pounds of ham
d.16 pounds of ham
9) Suppose that the equilibrium price in the market for tomatoes is $3 per pound. If a
law reduced the maximum legal price for tomatoes to $2 per pound,
a.any possible increase in consumer surplus would be larger than the loss of producer
surplus.
b.any possible increase in consumer surplus would be smaller than the loss of producer
surplus.
c.the resulting increase in producer surplus would be larger than any possible loss of
consumer surplus.
d.the resulting increase in producer surplus would be smaller than any possible loss of
consumer surplus.
10) If the labor supply curve is nearly vertical, a tax on labor
a.has a large deadweight loss.
b.raises a small amount of tax revenue.
c.has little impact on the amount of work that workers are willing to do.
d.results in a large tax burden on the firms that hire labor.