Archives: Quiz
Chapter 7 Welfare economics is the study of how
Consumers, Producers, and the Efficiency of Markets 1733 29. Refer to Table 7-2. If the market price is $3.80, a. David’s consumer surplus is $4.70 and total consumer surplus for the five individuals is $9.50. b. Megan’s consumer surplus is […]
Chapter 6 Buyers of milk, recognizing that the price ceiling
1694 Supply, Demand, and Government Policies 12. Refer to Figure 6-31. If the government set a price floor at $17, would there be a shortage or surplus, and how large would be the shortage/surplus? ANSWER: A price floor set at […]
Chapter 6 Policymakers have studied the effects of the
Supply, Demand, and Government Policies 1675 133. Who bears the majority of a tax burden depends on whether the tax is placed on the buyers or the sellers. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: […]
Chapter 6 often imposed when sellers of a good are successful
Supply, Demand, and Government Policies 1635 14. A price ceiling is a legal minimum on the price at which a good or service can be sold. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.27 – […]
Chapter 6 Prices have the crucial job of balancing supply
Supply, Demand, and Government Policies 1575 94. Refer to Figure 6-22. The price paid by buyers after the tax is imposed is a. $3.00. b. $3.50. c. $5.00. d. $6.00. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: ECON.MANK.15.28 – […]
Chapter 6 Price controls always produce a fair outcome
Supply, Demand, and Government Policies 1535 17. If a tax is levied on the sellers of a product, then there will be a(n) a. downward shift of the demand curve. b. upward shift of the demand curve. c. decrease in […]
Chapter 6 the usual forces of supply and demand were not able
Supply, Demand, and Government Policies 1515 208. The minimum wage has its greatest impact on the market for a. female labor. b. older labor. c. black labor. d. teenage labor. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.27 – […]
Chapter 6 The presence of a price control in a market
Supply, Demand, and Government Policies 1495 168. Refer to Table 6-5. Suppose the government imposes a price ceiling of $3 on this market. What will be the size of the shortage in this market? a. 0 units b. 30 units […]
Chapter 6 when policymakers tax a good
Supply, Demand, and Government Policies 1475 137. Refer to Figure 6-13. If the government imposes a price floor of $7 on this market, then there will be a. no surplus. b. a surplus of 10 units. c. a surplus of […]
Chapter 6 Rent-control laws dictate
Supply, Demand, and Government Policies 1435 71. When a binding price floor is imposed on a market to benefit sellers, a. every seller in the market benefits. b. all buyers and sellers benefit. c. every seller who wants to sell […]
Chapter 6 Which of the following is not an example of a public
Supply, Demand, and Government Policies 1415 33. When a binding price ceiling is imposed on a market to benefit buyers, a. every buyer in the market benefits. b. every buyer and seller in the market benefits. c. every buyer who […]
Chapter 5 Demand is said to be price elastic if
Elasticity and Its Application 1357 36. If a firm is facing elastic demand, then the firm should decrease price to increase revenue. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.23 – LO: 5-1 NATIONAL […]
Chapter 5 firms to produce more of a good as price rises
Elasticity and Its Application 1337 32. In the early 1970s, OPEC’s goal was to a. decrease the world-wide price of oil so that the quantity demanded increased, thus raising total revenues for OPEC members. b. increase the world–wide price of […]
Chapter 5 how much more of a good consumers will demand when incomes rise
Elasticity and Its Application 1297 54. A t-shirt maker would be willing to supply 75 t-shirts per day at a price of $18.00 each. At a price of $20.00, the t- shirt maker would be willing to supply 100 t-shirts. […]
Chapter 5 Because gasoline is a necessity, consumers do not decrease
Elasticity and Its Application 1237 Figure 5-13 10. Refer to Figure 5-13. Between point A and point B, price elasticity of demand using the midpoint method is equal to a. 0.71. b. 0.85. c. 1.18. d. 1.40. ANSWER: b POINTS: […]
Chapter 5 A 10 percent increase in gasoline prices reduces gasoline
Elasticity and Its Application 1197 188. Get Smart University is contemplating an increase in tuition to enhance revenue. If GSU feels that raising tuition would enhance revenue, it is a. ignoring the law of demand. b. assuming that the demand […]
Chapter 5 Without elasticity, it is very difficult to assess
Elasticity and Its Application 1177 148. Refer to Figure 5-3. Jenna says she would buy 10 gallons of gas per week regardless of the price. If this is true, then Jenna‘s demand for gas is represented by demand curve a. […]
Chapter 5 Elasticity allows us to analyze supply and demand
Elasticity and Its Application 1157 © 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. 1158 Elasticity and Its Application Table 5-4 The following […]
Chapter 5 For Particular Good Percent Increase
Elasticity and Its Application 1137 Table 5-1 Good Price Elasticity of Demand A 1.9 B 0.8 73. Refer to Table 5-1. Which of the following is consistent with the elasticities given in Table 5-1? a. A is a luxury and […]
Chapter 5 How does the concept of elasticity allow us to improve upon
Elasticity and Its Application 1117 33. Suppose that Juan Carlos is filling out a survey that he received in the mail. The survey asks him what he would do if the price of his favorite toothpaste increased. Juan Carlos reports […]
Chapter 4 the slope of England’s production possibilities frontier
The Market Forces of Supply and Demand 1087 24. Refer to Table 4-15. Assuming these are the only four suppliers in this market and the function for market demand is QD=1000-100P, where QD is the quantity demanded and P is […]
Chapter 4 bushels of wheat and 48 pounds of beef
The Market Forces of Supply and Demand 1075 ANSWER: © 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. © 2015 Cengage Learning. All […]
Chapter 4 Which of the following represents Aruba’s production
The Market Forces of Supply and Demand 1035 2. In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold. a. True b. False ANSWER: True POINTS: 1 […]
Chapter 4 the slope of England’s production possibilities
© 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. 158. Refer to Figure 4-25. All else equal, the return of college students to […]
Chapter 4 If we were to do this, measuring milk along the
© 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. 83. Refer to Figure 4-20. If price is $25, then quantity demanded and quantity […]
Chapter 4 We could use the information in the table
The Market Forces of Supply and Demand 955 46. Which of the following would cause price to increase? a. an increase in supply b. a decrease in demand c. a surplus of the good d. a shortage of the good […]
Chapter 4 Assume that John and Jane each work 24 hours
The Market Forces of Supply and Demand 935 6. Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at a. prices at and above the equilibrium price. b. […]
Chapter 4 For a self-sufficient producer, the production possibilities
The Market Forces of Supply and Demand 915 83. Suppose there is a decrease in the price of corn. If corn is an input into the production of ethanol, we would expect the supply curve for ethanol to a. shift […]
Chapter 4 On one axis of her production possibilities frontier
The Market Forces of Supply and Demand 895 47. Which of the following events would cause a movement upward and to the right along the supply curve for mangos? a. The number of sellers of mangos increases. b. There is […]
Chapter 4 Anne’s production possibilities frontier is a straight
The Market Forces of Supply and Demand 875 8. Holding the nonprice determinants of supply constant, a change in price would a. result in either a decrease in supply or an increase in supply. b. result in a movement along […]
Chapter 4 As a student, Anne spends 40 hours per week writing
The Market Forces of Supply and Demand 855 Figure 4-5 146. Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses? a. a decrease […]
Chapter 4 The most obvious benefit of specialization and trade
The Market Forces of Supply and Demand 835 106. Two goods are substitutes when a decrease in the price of one good a. decreases the demand for the other good. b. decreases the quantity demanded of the other good. c. […]
Chapter 4 Suppose there are only two people in the world
The Market Forces of Supply and Demand 815 67. Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is a. 0 units. b. 10 units. […]
Chapter 4 The gains from trade between Howard and Mai are least
The Market Forces of Supply and Demand 775 41. Which of the following characteristics is required for a perfectly competitive market? a. The goods offered for sale are exactly the same. b. There are so many buyers and sellers that […]
Chapter 3 A production possibilities frontier is bowed outward when
742 Interdependence and the Gains from Trade 7. Refer to Scenario 3-1. Which if any good(s) does Greg have an absolute advantage producing? ANSWER: Greg has an absolute advantage in both the production of ice cream and cake. POINTS: 1 […]
Chapter 3 An economy’s production possibilities frontier is
Interdependence and the Gains from Trade 707 19. Refer to Table 3-37. Iceland should export a. coolers and import radios. b. radios and import coolers. c. both goods and import neither good. d. neither good and import both goods. ANSWER: […]
Chapter 3 The production possibilities frontier
Interdependence and the Gains from Trade 687 245. Which of the following is not correct? a. Economists are generally united in their support of free trade. b. The conclusions of Adam Smith and David Ricardo on the gains from trade […]
Chapter 3 Liam is better than Abby at baking brownies and at growing
Interdependence and the Gains from Trade 667 207. Refer to Figure 3-21. Suppose Uzbekistan decides to increase its production of bolts by 10. What is the opportunity cost of this decision? a. 1/2 nail b. 2 nails c. 5 nails […]
Chapter 3 Olivia cannot grow corn and Andrew cannot bake cakes
Interdependence and the Gains from Trade 627 136. Refer to Table 3-30. Varick has a comparative advantage in the production of a. wheat. b. cloth. c. both goods. d. neither good. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: […]
Chapter 3 Steve also produces baseball gloves and baseball bats
Interdependence and the Gains from Trade 587 57. Refer to Table 3-20. Brad has a comparative advantage in the production of a. wheat and Theresa has a comparative advantage in the production of beef. b. beef and Theresa has a […]
Chapter 3 Tom produces baseball gloves and baseball bats
Interdependence and the Gains from Trade 567 16. Travis can mow a lawn in two hours or he can trim a tree in one hour. Ricardo can mow a lawn in three hours or he can trim a tree in […]
Chapter 3 when the first country is better at producing both goods
Interdependence and the Gains from Trade 547 99. Refer to Figure 3-7. If Bintu must work 2 hours to make each cup, then her production possibilities frontier is based on how many hours of work? a. 2 hours b. 4 […]
Chapter 3 when the first country can produce both goods
Interdependence and the Gains from Trade 527 67. Refer to Table 3-17. If the production possibilities frontier is a straight line, then “?” must be a. 180. b. 200. c. 220. d. 240. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Moderate […]
Chapter 3 when the first country can only produce the first
Interdependence and the Gains from Trade 507 31. Refer to Table 3-6. Which of the following represents Zimbabwe’s and Portugal’s production possibilities frontiers when each country has 60 minutes of machine time available? a. Zimbabwe Portugal b. Zimbabwe Portugal c. […]
Chapter 3 When an economist points out that you and millions of other
Interdependence and the Gains from Trade Multiple Choice – Section 00: Introduction 1. People who provide you with goods and services a. are acting out of generosity. b. do so because they get something in return. c. have chosen not […]
Chapter 2 Which of the following is an example of a capital input?
Thinking Like an Economist 475 24. Refer to Figure 2-14. What is the opportunity cost of moving from point R to point Q? ANSWER: 80 bushels of apples POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 – LO: 2-1 NATIONAL […]
Chapter 2 Factors of production area. used to produce goods
© 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. 133. Draw a production possibilities frontier showing increasing opportunity cost of hammers in terms […]
Chapter 2 Which two groups of decision makers are included in the simple
© 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. The effects of borrowing by the federal government would be studied by a […]
Chapter 2 In the simple circular-flow diagram, the participants in
© 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. 22. A circular-flow diagram is a visual model of the economy. a. True b. […]
Chapter 2 Which of the following statements about the circular-flow
Thinking Like an Economist 403 50. A relatively steep demand curve indicates that a. quantity demanded will adjust only slightly to a price change. b. quantity demanded will adjust significantly to a price change. c. quantity demanded will not adjust […]