Archives: Quiz
Chapter 13 You Should Home And Either Watch Read
Firms in Competitive Markets 3531 219. When determining whether to shut down in the short run, a competitive firm should ignore (i) fixed costs. (ii) variable costs. (iii) sunk costs. a. (iii) only b. (i) and (iii) only c. (ii) […]
Chapter 13 The Short Run The Firm Will
Firms in Competitive Markets 3491 145. Susan quit her job as a teacher, which paid her $36,000 per year, in order to start her own catering business. She spent $12,000 of her savings, which had been earning 10 percent interest […]
Chapter 13 Bev is opening her own court-reporting business
Firms in Competitive Markets 3471 102. Refer to Scenario 14-2. To maximize its profit, the firm should a. increase its output. b. continue to produce 1,000 units. c. decrease its output but continue to produce. d. shut down. ANSWER: a […]
Chapter 13 When deciding to open her own business, she turned down three
Firms in Competitive Markets 3451 64. Refer to Table 14–14. Suppose that due to a decrease in the market demand for bread the market price of bread drops to $2.75 per loaf. At this new price, what is Bob’s profit–maximizing […]
Chapter 13 Which of the following costs would be implicit costs?
Firms in Competitive Markets 3411 77. Firms operating in competitive markets produce output levels where marginal revenue equals a. price. b. average revenue. c. total revenue divided by output. d. All of the above are correct. ANSWER: d POINTS: 1 […]
Chapter 13 Katya owns a math-tutoring business
Firms in Competitive Markets Multiple Choice – Section 00: Introduction 1. A firm has market power if it can a. maximize profits. b. minimize costs. c. influence the market price of the good it sells. d. hire as many workers […]
Chapter 12 A difference between explicit and implicit costs is that
The Costs of Production 3357 Scenario 13–22 Suppose that a small hair styling salon had revenues of $150,000 in a given year. The owner spent $10,000 on utilities, $60,000 on supplies (shampoo, conditioner, hair coloring and other chemicals, etc.), and […]
Chapter 12 His accountant most likely includes which of the following cost son
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 57. There is general agreement among economists that the long-run time period exceeds one […]
Chapter 12 Her accountant most likely includes which of the following
The Costs of Production 3323 2. In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith described a visit he made to a a. car factory. b. pin factory. c. washing machine factory. […]
Chapter 12 Explicit costs require an outlay of money by the firm
The Costs of Production 3263 39. Refer to Table 13-2. What is the marginal product of the fourth worker? a. 300 units b. 200 units c. 100 units d. 50 units ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: […]
Chapter 12 Opportunity costs equal explicit minus implicit costs
The Costs of Production 3243 121. Refer to Scenario 13–13. Christine could earn $6,000 per year preparing taxes. In calculating the economic profit of her cookie jar business, the $6,000 that Christine gives up is counted as part of her […]
Chapter 12 Bubba is a shrimp fisherman who used $2,000 from
The Costs of Production 3223 79. Refer to Scenario 13-1. Suppose Korie purchases the factory using $200,000 of her own money and $200,000 borrowed from a bank at an interest rate of 6 percent. What is Korie’s annual opportunity cost […]
Chapter 12 Last Year Walter Paid 25000 For
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37. Bubba is a shrimp fisherman who used $2,000 from his personal savings account […]
Chapter 11 Private decisions about consumption of common resources and production
2914 Public Goods and Common Resources 7. Are common resources excludable? Are they rival in consumption? ANSWER: No, common resources are not excludable. Yes, they are rival in consumption. POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.50 – LO: 11-1 […]
Chapter 11 Goods And Common Resources Dave And Jesse
Public Goods and Common Resources 2895 13. You and your friends watch a movie in your bedroom. For you and your friends, the enjoyment that you get from watching the movie is not rival in consumption. a. True b. False […]
Chapter 11 Analysts Can’t Sure That The Respondents Surveys
Public Goods and Common Resources 2815 80. Refer to Table 11-3. If the marginal cost of police protection is constant at $72 per person-hour, what is the efficient level of police protection to provide? a. 9 person-hours b. 18 person-hours […]
Chapter 11 A city street is always a public good, whether or not
Public Goods and Common Resources 2795 42. The difference between specific knowledge and general knowledge is that a. the creation of general knowledge is usually more profitable for the creator. b. specific knowledge is excludable, while general knowledge is not […]
Chapter 11 congested, but it is a common resource when it is not congested
Public Goods and Common Resources 2775 Multiple Choice – Section 02: Public Goods 1. Because public goods are a. excludable, people have an incentive to be free riders. b. excludable, people do not have an incentive to be free riders. […]
Chapter 11 When goods do not have a price, which of the following
Public Goods and Common Resources 2755 39. Which of the following goods is excludable but not rival in consumption? a. a congested toll road b. fire protection in a small town c. a tornado siren d. whales in the ocean […]
Chapter 10 A positive externality arises when a person engages in
Externalities 2719 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. Sheryl sits on her patio and plays her guitar while her […]
Chapter 10 An externality exists whenever
Externalities 2663 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Multiple Choice – Section 03: Private Solutions to Externalities 1. Externalities can […]
Chapter 10 A cost imposed on someone who is neither the
Externalities 2623 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40. Suppose planting flowering shrubs creates a positive externality equal to $7 […]
Chapter 10 Markets produce too little of a good when positive
Externalities 2563 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 122. One drawback to industrial policy is that a. technology spillovers are […]
Chapter 10 Externalities result in prices that are too high for many
Externalities 2543 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 81. If we know that the supply curve for good x fails […]
Chapter 10 In what sense do externalities cause the “invisible hand”
Externalities 2523 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42. Negative externalities occur when one person’s actions a. cause another person […]
Chapter 10 An externality is the impact of
Externalities Multiple Choice – Section 00: Introduction 1. In a market economy, government intervention a. will always improve market outcomes. b. reduces efficiency in the presence of externalities. c. may improve market outcomes in the presence of externalities. d. is […]
Chapter 9 Wheatland has a comparative advantage, relative to other countries
Application: International Trade 2425 11. Countries that restrict foreign trade are likely to a. forgo the additional surplus that trade allows, but will probably enjoy economies of scale. b. forgo the additional surplus that trade allows, but will be compensated […]
Chapter 9 The nation of Wheatland forbids international trade
Application: International Trade 2385 229. When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an importer of a particular good, a. producer surplus increases and total surplus increases in the market for that good. b. producer […]
Chapter 9 consumer surplus equals producer surplus in the Canadian
Application: International Trade 2365 189. The nation of Aquilonia has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and […]
Chapter 9 the fact that the minimum wage in the U.S
Application: International Trade 2325 106. Refer to Figure 9-9. Consumer surplus in this market before trade is a. A. b. A + B. c. A + B + D. d. C. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: […]
Chapter 9 An important factor in the decline of the U.S. textile industry
Application: International Trade 2305 72. Refer to Figure 9-5. Without trade, consumer surplus amounts to a. $810. b. $1,620. c. $3,240. d. $6,480. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.41 – LO: 9-2 NATIONAL STANDARDS: United States […]
Chapter 9 With which of the Ten Principles of Economics is the study of international trade
Application: International Trade 2285 33. When a country allows international trade and becomes an exporter of a good, a. domestic producers of the good become better off. b. domestic consumers of the good become worse off. c. the gains of […]
Chapter 9 A logical starting point from which the study of international
Application: International Trade 2265 36. Costa Rica allows trade with the rest of the world. We can determine whether Costa Rica has a comparative advantage in producing pharmaceuticals if we a. know whether Costa Rica imports or exports pharmaceuticals. b. […]
Chapter 9 What is the fundamental basis for trade among nations?
Application: International Trade Multiple Choice – Section 00: Introduction 1. An important factor in the decline of the U.S. textile industry over the past 100 or so years is a. foreign competitors that can produce quality textile goods at low […]
Chapter 8 For the 20th unit, the difference between the
Application: The Costs of Taxation 2171 35. The Laffer curve relates a. the tax rate to tax revenue raised by the tax. b. the tax rate to the deadweight loss of the tax. c. the price elasticity of supply to […]
Chapter 8 Suppose a 20th unit of the good were sold by a seller
Application: The Costs of Taxation 2151 63. Refer to Figure 8-17. Suppose the government imposes a $1 tax in each of the four markets represented by demand curves D1, D2, D3, and D4. The deadweight will be the smallest in […]
Chapter 8 For the 20th unit, the difference between
Application: The Costs of Taxation 2111 238. Refer to Figure 8-12. Suppose a $3 per-unit tax is placed on this good. The amount of deadweight loss resulting from this tax is a. $7.50. b. $15.00. c. $22.50. d. $45.00. ANSWER: […]
Chapter 8 Before the tax is imposed, the equilibrium price is
Application: The Costs of Taxation 2091 199. Refer to Figure 8-9. The per-unit burden of the tax on sellers is a. $20. b. $200. c. $300. d. $500. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.35 – LO: […]
Chapter 8 What happens to total surplus in this market when
Application: The Costs of Taxation 2071 158. Refer to Figure 8-8. The tax causes consumer surplus to decrease by the area a. A. b. B+C. c. A+B+C. d. A+B+C+D+F. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.35 – […]
Chapter 8 When a tax is levied on a good, the buyers and sellers
Application: The Costs of Taxation 2031 77. Refer to Figure 8-1. Suppose the government imposes a tax of P’ – P”’. The deadweight loss due to the tax is measured by the area a. J+K+L+M. b. J+K+L+M+N. c. I+Y. d. […]
Chapter 8 In 1776, the American Revolution was sparked by anger
Application: The Costs of Taxation Multiple Choice – Section 00: Introduction 1. In 1776, the American Revolution was sparked by anger over a. the extravagant lifestyle of British royalty. b. the crimes of British soldiers stationed in the American colonies. […]
Chapter 7 The government sets the quantity of televisions
Consumers, Producers, and the Efficiency of Markets 1953 29. All else equal, a decrease in demand will cause an increase in producer surplus. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: ECON.MANK.15.31 – LO: 7-2 NATIONAL […]
Chapter 7 maximizes tax revenue for the government
Consumers, Producers, and the Efficiency of Markets 1933 125. Steak and chicken are substitutes. A sharp reduction in the supply of steak would a. increase consumer surplus in the market for steak and decrease producer surplus in the market for […]
Chapter 7 A country’s standard of living depends on its ability
Consumers, Producers, and the Efficiency of Markets 1893 51. Refer to Figure 7-21. When the price is P1, area A represents a. total benefit. b. producer surplus. c. consumer surplus. d. None of the above is correct. ANSWER: d POINTS: […]
Chapter 7 Which of the Ten Principles of Economics does welfare
Consumers, Producers, and the Efficiency of Markets 1873 14. Total surplus is represented by the area below the a. demand curve and above the price. b. price and up to the point of equilibrium. c. demand curve and above the […]
Chapter 7 The study of how the allocation of resources affects
Consumers, Producers, and the Efficiency of Markets 1853 97. Refer to Figure 7-17. If the supply curve is S and the demand curve is D, what is total producer surplus at the equilibrium price? a. $202.50 b. $405 c. $810 […]
Chapter 7 Decreases Amount Equal Increases Amount
Consumers, Producers, and the Efficiency of Markets 1833 64. Refer to Figure 7-11. If the supply curve is S and the demand curve shifts from D to D’, what is the increase in producer surplus due to new producers a. […]
Chapter 7 Lebron More Than 700d Lebron More Than
Consumers, Producers, and the Efficiency of Markets 1813 30. Refer to Table 7-11. If the price is $1,l50, who would be willing to supply the product? a. Abby and Bobby b. Abby, Bobby, and Dianne c. Carlos, Dianne, and Evaline […]
Chapter 7 Welfare economics is the study of taxes and subsidies
Consumers, Producers, and the Efficiency of Markets 1793 137. Refer to Figure 7-8. If the government imposes a price floor of $100 in this market, then consumer surplus will decrease by a. $150. b. $325. c. $650. d. $675. ANSWER: […]
Chapter 7 Consumers, Producers, and the Efficiency of Markets
Consumers, Producers, and the Efficiency of Markets 1773 105. Which of the following will cause a decrease in consumer surplus? a. an increase in the number of sellers of the good b. a decrease in the production cost of the […]