Archives: Quiz

If a penny is tossed four times and comes up heads all four times, the probability of heads on the fifth trial is a. zero b. 1/32 c. 0.5 d. larger than the probability of tails Sixty percent of the […]

Accepting a good-quality lot would be a a. Type I error b. Type II error c. correct decision d. None of the other answers is correct. The skewness measure for the exponential distributions is a. 0 b. 1 c. 2 […]

The critical F value with 6 numerator and 60 denominator degrees of freedom at  = . 05 is a. 3.74 b. 2.25 c. 2.37 d. 1.96 The population being studied is usually considered ______ if it involves an ongoing […]

A real estate agency conducts a study to determine if the median selling price of homes in a particular neighborhood has changed since last year. Last year the median selling price was $188,500. The agency randomly selects 20 recently sold […]

Refer to Exhibit 21-7. For graph (3), if the price of Y is $200, the price of X is Exhibit 21-7 a. $50. b. $40. c. $30. d. $25. e. $15. For a factor price taker, the demand for labor […]

Which of the following statements is true? a. An extra dollar earned by a millionaire necessarily brings him or her less utility than an extra dollar earned by a poor person. b. If marginal utility is constant, then total utility […]

As the interest rate (price for loanable funds) decreases, businesses will a. find it less profitable to invest in capital goods, because the lower interest rate means that they will earn a lower return on their investments. b. find it […]

Suppose at a price of $4 and at a price of $6, John purchases 40 units of good X. Given this information, we know that a. John’s entire demand curve for good X is perfectly elastic. b. John’s entire demand […]

Refer to Exhibit 4-3. If price P3 is a price ceiling, then Exhibit 4-3 a. the price ceiling does not have an effect on the market for good X. b. the price at which exchange takes place is P3. c. […]

The terms scarcity and shortage are synonyms. a. True b. False Assume the following conditions hold: (1) the demand for every type of labor is the same, (2) there are no special nonpecuniary aspects to any job, (3) all labor […]

Rational ignorance refers to voter-citizens choosing to be uninformed about politics and government on an individual basis because a. of apathy. b. of ignorance. c. of laziness. d. they believe the benefits of becoming informed are greater than the costs. […]

Refer to Exhibit 24-9. Total fixed costs are equal to. a. $0. b. $10. c. $25. d. $59. e. There is not enough information to answer the question. Suppose the demand curve for corn is inelastic between the current price […]

If Americans demand goods produced in Mexico, it leads to a demand for Mexican pesos and a supply of U.S. dollars on the foreign exchange market. a. True b. False If a labor union tries to reduce the availability of […]

One of the ways in which some monopolistic competitors try to become more like monopolists is through the use of designer labels. a. True b. False Refer to Exhibit 31-2. If the exhibit represents a positive externality situation, the social […]

The difference between profit seeking under perfect competition and profit seeking under monopoly is that a. under the former output will increase and price will decrease, whereas under the latter only output will increase. b. under the former output will […]

Refer to Exhibit 38-3.Which of the two stocks has a bigger gap between its close price and net earnings per share? Exhibit 38-3 a. Stock ABC b. Stock XYZ c. Both stocks have the same gap between its close price […]

The following statement, “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations, is hereby declared illegal,” is part of the a. Clayton Act. […]

If a seller is a price taker it means that the seller sells his product at the price a. he chooses. b. determined in the market. c. determined by the biggest firm in the market. d. determined by the largest […]

One major reason for the law of demand is that a. one price changing requires at least one other price to change in the opposite direction. b. people substitute relatively lower-priced goods for relatively higher-priced goods. c. a higher price […]

Suppose you are eating buffalo wings at a local happy hour. The total utils from doing so after the fourth, fifth, sixth, and seventh wings are 80, 116, 136, 150, respectively. The marginal utility of the sixth wing is __________ […]

If Luke can bake bread at a lower opportunity cost than Jason, and Jason can produce paintings at a lower opportunity cost than Luke, it follows that a. Lukehas a comparative advantage in paintings and Jason has a comparative advantage […]

If people begin to favor science fiction novels to a greater degree than previously, the demand curve for science fiction novels a. shifts rightward. b. shifts leftward. c. stays constant. d. can shift either rightward or leftward. Refer to Exhibit […]

An increase in the demand for a good will lead to a a. rightward shift of the MRP of labor curve. b. leftward shift of the MRP of labor curve. c. movement up and along a given MRP of labor […]

Refer to Exhibit 23-4. The market equilibrium price is P1and the firm produces Q1. At this level of output, average variable cost and average total cost are indicated by the dots. Given this situation, the firm is Exhibit 23-4 a. […]

A country has a (an) __________ in the production of a good it produces at lower opportunity cost than another country. a. absolute advantage b. specialization disadvantage c. tariff-efficient advantage d. infant-industry advantage e. none of the above Profits are […]

Refer to Exhibit 34-7. The world price of good X is $15. Under a policy of free trade, the U.S. production ofgood X would be Exhibit 34-7 a. 10 units. b. 20 units. c. 25 units. d. 50 units. e. […]

A person buys a bond with a face value of $10,000 for $9,325. Each year until the maturity date the bond buyer receives a coupon payment of $650 from the issuer of the bond. The coupon rate on the bond […]

Refer to Exhibit 2-4. This economy is productive Exhibit 2-4 a. efficient, if it operates at point B or C. b. efficient, if it operates at point A or D. c. inefficient, if it operates at point A or D. […]

Which of the following is a major import for the United States? a. corn b. soybeans c. coal d. fish e. none of the above Refer to Exhibit 22-13.What dollar amounts go in blanks (I) and (J), respectively? Exhibit 22-13 […]

If the demand for a particular farm product is inelastic between price P1 and P2 (where P2 > P1), farmers as a group would want to sell their product at the a. higher price, but an individual farmer would rather […]

Refer to Exhibit 34-1. The opportunity cost of one unit of X in country B is Exhibit 34-1 a. 1 unit of Y. b. 0.33 units of Y. c. 2 units of Y. d. 20 units of Y. Refer to […]

There is no difference between building a theory and evaluating a theory. a. True b. False An increase in the number of sellers of a good will, ceteris paribus, __________________for that good. a. increase equilibrium price and quantity b. increase […]

Which of the following is the best example of a monopoly? a. a local public utility b. a fast-food restaurant c. a department store d. a wheat farmer Concentration ratios are used to determine a. the number of firms in […]

Refer to Exhibit 2-1. A movement from point B to point D Exhibit 2-1 a. could only happen through economic growth. b. is necessarily a movement from a productive efficient point to a productive inefficient point. c. isa movement from […]

According to the textbook, Iceland used crowdsourcing to a. rewrite its constitution. b. elect members of its parliament. c. elect its president. d. rename its capitol city. Implicit in the solution to the diamond-water paradox is the idea that prices […]

Refer to Exhibit 2-1. The opportunity cost of moving from point B to A is Exhibit 2-1 a. 10,000 units of butter. b. 20,000 units of butter. c. 50,000 units of guns. d. the maximum amount of butter that can […]

Refer to Exhibit 3-6. If an increase in income causes the demand for good X to shift from D1 to D2,then good X is Exhibit 3-6 a. a normal good. b. an inferior good. c. a substitute good. d. a […]

Refer to Exhibit 3-8. A shortage exists at any price below Exhibit 3-8 a. $5.00. b. $4.50. c. $4.00. d. $3.50. e. $3.00. To minimize cost, a firm should hire two factors, X and Y, until a. MPPX/PX = MPPY/PY. […]

Jones buys two goods, A and B. Currently, Jones receives marginal utility of 24 utils from good A and pays a price of $1.50 per unit. Jones receives a marginal utility of 43 utils from good B and pays a […]

We start with a 3 percent real interest rate in the United States and in Japan. Next, the real interest rate in Japan falls to 2 percent, and the U.S. real interest remains constant. As a result, a. the yen […]

As the price of good Z falls, the quantity demanded of good Z rises, but the quantity supplied of good Z does not change.Based upon this information we can conclude that the demand curve for good Z is ________________ and […]

Which of the following directly (as opposed to indirectly) raises the price of agricultural products? a. marketing quota system b. acreage allotment program c. paying farmers not to produce d. price supports e. all of the above Third-degree price discrimination […]

The Coase theorem a. shows that under certain conditions the market can internalize externalities. b. states that economic units should specialize in the production of those goods in which they have a comparative advantage. c. asserts that the firm should […]

The profit-maximizing single-price monopolist will charge a price a. equal to marginal revenue. b. greater than marginal cost. c. less than marginal revenue, but greater than marginal cost. d. greater than marginal revenue, but equal to marginal cost. e. a […]

Thomas Edison constructed the first building that was used solely to make a. movies. b. airplanes. c. telephones. d. cameras. Under an acreage allotment program, a. the government sets a limit on the quantity of a product that a farmer […]

Refer to Exhibit 3-5. In the market shown, if equilibrium was originally at point Z and the new equilibrium is now at point V, this change may have been caused by Exhibit 3-5 a. a decrease in consumers’ income (assuming […]

The market demand curve for labor is the horizontal summation of the firms’ demand curves (MRP curves) for labor. a. True b. False The term outsourcing is used to describe work done for a company by individuals working for another […]

Refer to Exhibit 34-12. PW is the price that exists in a free world market. A quota is imposed and imports are Q4 – Q3. Importers gain revenues equal to the area __________. Exhibit 34-12 a. GKL + HIJ b. […]

The term “present value” refers to a. how much something costs today relative to what it could be sold for in the future after it depreciates in value. b. how much you would be willing to pay for a good […]

“To understand the decisions of regulatory bodies, you must first understand how the decisions affect the regulators themselves.” The person who made this statement probably believes in the __________ theory of regulation. a. capture b. public interest c. social interest […]