Which of the following is false?
a. For bond buyers, the higher the yield the better it is for them.
b. For bond buyers, the higher the price of the bond the better it is for them.
c. For bond buyers, the lower the yield the worse it is for them.
d. The term yield on a bond is the same as the term interest rate on a bond.
An artificial rent is an economic rent that would not exist without government.
a. True
b. False
If Jack bought 18 CDs last year when his income was $20,000 and he buys 19 CDs this
year when his income is $25,000, then for Jack CDs are
a. an inferior good.
b. a normal good.
c. a substitute good.
d. a complementary good.
e. There is not enough information to answer this question.
Which of the following statements is true?
a. Oil is classified as part of the resource category land.
b. A person working for a company is classifiedas part of the resource category capital.
c. A machine in a factory is classified as part of the resource category land.
d. A person with the particular talent for organizing the resources of land, labor, and
capital to produce goods, seek new business opportunities, and develop new ways of
doing things is classified as part of the resource category labor.
e. a and d
If the government attempts to aid farmers by implementing a policy that results in a
leftward shift in the supply curve of agricultural products, the policy in question is most
likely
a. a price support.
b. an acreage allotment program.
c. a target price.
d. any of the above
For a monopolist, if price is above average total cost, the monopolist is
a. earning an economic profit.
b. taking an economic loss.
c. minimizing total fixed costs.
d. minimizing total variable costs.
If real income rises in the economy and, at the same time, productivity in the agriculture
sector rises, too, then it follows that the demand for food will
a. rise (assuming that income elasticity of demand for food is greater than 1) and the
supply of food will remain constant.
b. rise (assuming that income elasticity of demand for food is greater than 0) and the
supply of food will increase, too.
c. fall (assuming that income elasticity of demand for food is greater than 1) and the
supply of food will fall, too.
d. fall (assuming that income elasticity of demand for food is equal to 1) and the supply
of food will rise.
e. none of the above
Exhibit 22-4
Curve D is a(n) __________ cost curve.
a. marginal
b. average variable
c. average total
d. average fixed
A positive externality exists when
a. a person’s or group’s actions cause a benefit that is felt by others.
b. a person’s or group’s actions cause a cost that is felt by others.
c. market output is less than socially optimal output.
d. a and c
e. b and c
Resource X is necessary to the production of good Y. If the price of resource X rises,
the _____________ curve for good Y will shift ____________ resulting in a(n)
_____________ in the equilibrium price of Y and a(n) ____________ in the
equilibrium quantity of Y.
a. supply; rightward; decrease; increase.
b. demand; leftward; decrease; decrease
c. demand; rightward; increase; increase
d. supply; leftward; increase; decrease
e. supply; leftward; increase; increase
Suppose that both the demand for and supply of agricultural products increases.If the
increase in the supply of agricultural products is greater than the increase in demand,
prices of agricultural products
a. increase.
b. decrease.
c. remain the same.
d. may increase, decrease, or remain the same.
Points that lie outside (or beyond) the PPF are
a. attainable.
b. unattainable.
c. efficient.
d. inefficient.