Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1) A pair of jeans is rival but non-excludable.
a.True
b.False
2) Connie can clean windows in large office buildings at a cost of $1 per window. The
market price for window- cleaning services is $3 per window. If Connie cleans 100
windows, her producer surplus is $200.
a.True
b.False
3) The concept of slope can be used to answer questions about how much one variable
responds to changes in another variable.
a.True
b.False
4) Assume that Huang and Min can switch between producing parasols and producing
porcelain plates at a constant rate.
The opportunity cost of 1 parasol for Min is
a.1/3 plate.
b.1/2 plate.
c.2 plates.
d.3 plates.
5) Which of the following is not true about government spending on national defense?
a.It is the third-largest spending category for the U.S. federal government.
b.It includes salaries of military personnel.
c.It fluctuates over time as the political climate changes.
d.It is not financed with tax revenue.
6) Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013.
Harry is a single person whose taxable income is $35,000 a year. What is his marginal
tax rate in 2012?
a.15%
b.28%
c.31%
d.36%
7) When a variable that is not named on either axis of a graph changes, we read the
change as a movement along the curve.
a.True
b.False
8) If a tax shifts the demand curve downward (or to the left), we can infer that the tax
was levied on
a.buyers of the good.
b.sellers of the good.
c.both buyers and sellers of the good.
d.We cannot infer anything because the shift described is not consistent with a tax.
9)
If the price rises from point D to point C, total revenue
a.increases, and demand is price elastic.
b.decreases, and demand is price elastic.
c.increases, and demand is price inelastic.
d.decreases, and demand is price inelastic.
10) Inefficiency exists in an economy when a good is
a.being produced with less than all available resources.
b.not distributed fairly among buyers.
c.not being produced by the lowest-cost producers.
d.being consumed by buyers who value it most highly.
11) Table 22-4
The fortunate residents of Anytown have a budget surplus. The mayor decided that it is
only fair to have the residents vote on what to do with the surplus. The mayor has
narrowed the options down to three possible projects: a playground, a library, or a
swimming pool. The voters fall into three categories and have preferences as illustrated
in the table.
Refer to Table 22-4. If the mayor decides to use a Borda count rather than pairwise
voting,
a.the swimming pool will win.
b.the library will win.
c.the playground will win.
d.the results will be the same as with pairwise voting.
