Figure 4-10 Figure 4-10 shows the
market for apartments in Bay City. Recently, the government imposed a rent ceiling at
R0. What is the area that represents consumer surplus after the imposition of the
ceiling?
A) A + B+ D
B) A + B + C
C) A + B + D + F
D) A + B + D + F + G
Table 14-8
Two rival oligopolists in the athletic
supplements industry, the Power Fuel Company and the Brawny Juice Company, have
to decide on their pricing strategy. Each can choose either a high price or a low price.
Table 14-8 shows the payoff matrix with the profits that each firm can expect to earn
depending on the pricing strategy it adopts. Which of the following is true?
A) Power Fuel’s dominant strategy is to select a low price.
B) Brawny Juice’s dominant strategy is to select a high price.
C) Power Fuel does not have a dominant strategy.
D) Brawny Juice does not have a dominant strategy.
What is the dominant strategy in the prisoner’s dilemma?
A) Each prisoner confesses because this is the rational action to pursue.
B) Do nothing in the hope that the other prisoner will also do nothing.
C) Do not confess because the other prisoner will most likely confess.
D) There is no dominant strategy.
Table 11-3
The table above refers to the relationship between the quantity of workers employed
and the number of cardboard boxes produced per day by Manny’s House of Boxes. The
capital used to produce the boxes is fixed. Diminishing returns to labor are first
observed in this example after Manny hires the ________ worker.
A) second
B) third
C) fourth
D) fifth
Which of the following products allows the seller to identify different groups of
consumers (segment the market) and practice price discrimination?
A) clothing items sold through Macy’s Department Store
B) a hamburger sold at Burger King
C) a cafe latte sold at Starbucks
D) tickets to matinee shows at a movie theatre
According to ________, entrepreneurship does not contribute anything of value to
production.
A) Robert Lucas and Thomas Sargent
B) Milton Friedman
C) John Maynard Keynes
D) Karl Marx
In 2012, over 75 percent of the revenue of the U.S. federal government was raised
through
A) individual income and social insurance taxes.
B) property and social insurance taxes.
C) sales and corporate income taxes.
D) individual income and property taxes.
Suppose you have worked at a local sandwich shop for six months and now you plan to
ask your manager for a raise. How can you convince your manager that you are worth
more money than you are currently being paid?
A) by threatening to quit if he refuses to give you a raise
B) by demonstrating to your manager the marginal revenue product your employment
contributes to the sandwich shop
C) by explaining to him how difficult it is for you to save enough money to go to
college
D) by convincing him that you are a dedicated worker and ready to take on more
responsibilities at the shop
If the number of unemployed workers is 19 million, the number in the working-age
population is 500 million, and the unemployment rate is 4%, what is the labor force
participation rate?
A) 4.75%
B) 7.8%
C) 95%
D) 96.2%
Which of the following goods is directlycounted in GDP?
A) the lettuce that Subway purchases for its sandwiches
B) the bread that Subway purchases for its sandwiches
C) a 12-inch Subway sandwich purchased by a student
D) the plastic bags that Subway purchases to wrap its sandwiches