Archives: Quiz
Chapter 11 These Students Will Not Receive Their Final
Public Goods and Common Resources 2875 74. Many species of animals are common resources, and many must be protected by law to keep them from extinction. Why is the cow not one of these endangered species even though there is […]
Chapter 11 The provision of a public good generates a
Public Goods and Common Resources 2855 32. Three business people meet for lunch at an Indian restaurant. They decide that each person will order an item off the menu, and they will share all dishes. They will split the cost […]
Chapter 11 For most goods in an economy, the primary signal that
Public Goods and Common Resources Multiple Choice – Section 00: Introduction 1. For private goods allocated in markets, a. prices guide the decisions of buyers and sellers and these decisions lead to an efficient allocation of resources. b. prices guide […]
Chapter 10 A negative externality arises when a person engages in an activity
Externalities 2683 © 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. 43. Suppose that Company A’s railroad cars pass through Farmer B’s corn […]
Chapter 10 An externality isa. the costs that parties incur in the process
Externalities 2603 © 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 02: Public Policies toward Externalities 1. Refer to […]
Chapter 10 The impact of one person’s actions on the
Externalities 2503 © 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. 9. The supply curve for a product reflects the a. willingness to […]
Chapter 9 the price of fish in Wheatland exceeds the world price of fish
Application: International Trade 2445 16. If Belgium exports chocolate to the rest of the world, then Belgian chocolate producers benefit from higher producer surplus, Belgian chocolate consumers are worse off because of lower consumer surplus, and total surplus in Belgium […]
Chapter 9 In other countries, you can buy 1 pound of corn for 2 pounds of fish
Application: International Trade 2405 Figure 9-22 The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is $40 per unit. 24. Refer to Figure 9-22. With free […]
Chapter 9 How do the gains from trade compare to the losses?
Application: International Trade 2345 145. A tariff on a product makes a. domestic sellers better off and domestic buyers worse off. b. domestic sellers worse off and domestic buyers worse off. c. domestic sellers better off and domestic buyers better […]
Chapter 8 Which of the following statements summarizes
Application: The Costs of Taxation 2191 69. In a 2012 Wall Street Journal column, economists Edward Prescott and Lee Ohanian claimed that, in order to promote faster economic growth, the government should a. increase tax rates on individuals with high […]
Chapter 8 The vertical distance between points A and B represents
Application: The Costs of Taxation 2051 115. Refer to Figure 8-4. The tax results in a loss of consumer surplus that amounts to a. $105. b. $140. c. $170. d. $210. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Challenging LEARNING OBJECTIVES: […]
Chapter 7 The market equilibrium price for televisions
1972 Consumers, Producers, and the Efficiency of Markets Problems 1. What do economists call the highest amount a consumer will pay to purchase a good? ANSWER: The (maximum) willingness to pay. POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.30 – LO: […]
Chapter 7 The particular price that results in quantity supplied
Consumers, Producers, and the Efficiency of Markets 1913 88. Refer to Figure 7-26. At the equilibrium price, producer surplus is a. $600. b. $900. c. $1,200. d. $1,800. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: ECON.MANK.15.32 – LO: 7-3 […]
Chapter 7 the government helps poor people
Consumers, Producers, and the Efficiency of Markets 1753 65. You are offered a free ticket to see the Chicago Cubs play the Chicago White Sox at Wrigley Field. Assume the ticket has no resale value. Willie Nelson is performing on […]
Chapter 7 Buyers always want to pay less and sellers
Consumers, Producers, and the Efficiency of Markets Multiple Choice – Section 00: Introduction 1. Which of the following statements is correct? a. Buyers always want to pay less and sellers always want to be paid more. b. Buyers always want […]
Chapter 6 Which of the following is the most likely explanation
Supply, Demand, and Government Policies 1655 74. In an unregulated labor market, the wage adjusts to balance labor supply and labor demand. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: ECON.MANK.15.27 – LO: 6-1 NATIONAL STANDARDS: […]
Chapter 6 A price ceiling isa. often imposed on markets in
Supply, Demand, and Government Policies 1615 170. Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will decrease the effective […]
Chapter 6 A legal maximum on the price at which a good
Supply, Demand, and Government Policies 1595 130. Refer to Figure 6-27. Suppose a tax of $3 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed? a. $16 b. between $16 […]
Chapter 6 In a free, competitive market, what is the
Supply, Demand, and Government Policies 1555 59. If the government removes a $2 tax on buyers of cigars and imposes the same $2 tax on sellers of cigars, then the price paid by buyers will a. not change, and the […]
Chapter 6 Minimum-wage laws dictate
Supply, Demand, and Government Policies 1455 105. Refer to Figure 6-6. In which of the following cases would sellers have to develop a rationing mechanism? a. a price ceiling set at $8 b. a price ceiling set at $6 c. […]
Chapter 5 When quantity demanded responds strongly to changes
1376 Elasticity and Its Application 7. Suppose the price of natural gas, a typical fuel for heating homes, rises in January in Alaska. Would you expect the price elasticity of demand for natural gas to more inelastic immediately after the […]
Chapter 5 Other things equal, if good x has close substitutes and
Elasticity and Its Application 1277 14. Some firms eventually experience problems with their capacity to produce output as their output levels increase. For these firms, a. market power is substantial. b. supply is perfectly inelastic. c. supply is more elastic […]
Chapter 5 About 10 percent of the long-run reduction in
Elasticity and Its Application 1217 226. Refer to Figure 5-5. Using the midpoint method, demand is unit elastic between prices of a. $20 and $40. b. $40 and$50. c. $40 and$60. d. $50 and$70. ANSWER: c POINTS 1 DIFFICULTY: Difficulty: […]
Chapter 4 We could use the information in the table to draw a production
The Market Forces of Supply and Demand 1055 62. Individual supply curves are summed vertically to obtain the market supply curve. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.19 – LO: 4-3 NATIONAL STANDARDS: […]
Chapter 4 Market Forces Supply And Demand
© 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. If consumers often purchase muffins to eat while they drink their lattés at […]
Chapter 4 Howard is very good at knitting sweaters and at
The Market Forces of Supply and Demand 795 33. When we move along a given demand curve, a. only price is held constant. b. income and price are held constant. c. all nonprice determinants of demand are held constant. d. […]
Chapter 4 The gains from trade between Marquis and Serena are most obvious
The Market Forces of Supply and Demand Multiple Choice – Section 00: Introduction 1. The two words most often used by economists are a. prices and quantities. b. resources and allocation. c. supply and demand. d. efficiency and equity. ANSWER: […]
Chapter 3 when the rate of tradeoff between the two goods being
Interdependence and the Gains from Trade 727 37. Two countries can achieve gains from trade even if one country has an absolute advantage in the production of both goods. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Moderate […]
Chapter 3 In which of the following cases is it impossible
Interdependence and the Gains from Trade 647 171. Refer to Figure 3-17. Suppose Maxine decides to increase her production of tarts by 5. What is the opportunity cost of this decision? a. 2/5 pie b. 2 pies c. 5/2 pies […]
Chapter 2 Few economic models incorporate assumptions
Thinking Like an Economist 323 230. Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy? a. G, H b. F, I, L c. F, G, H, I, L d. J, […]
Chapter 1 Productivity is defined as the
192 Ten Principles of Economics Scenario 1-5 Suppose that you have a choice between going to the movies with a friend for three hours or working at your job. If you go to the movies, you will spend $12 on […]
Chapter 1 The average American has a longer life expectancy
Ten Principles of Economics 181 43. Variations in the standard of living across countries are due almost entirely to differences in each nation’s total output of goods and services. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Difficulty: Moderate […]
Chapter 1 How the Economy as a Whole Works
Ten Principles of Economics 161 65. In the short run, which of the following is not correct? a. Increasing the money supply increases the demand for goods and services. b. Increasing the money supply encourages firms to hire more workers. […]
Chapter 1 Which of these activities will most likely result in an external
Ten Principles of Economics 121 88. The willingness of citizens to pay for vaccinations does not include the benefit society receives from having vaccinated citizens who cannot transmit an illness to others. This extra benefit society gets from vaccinating its […]
Economics Supplement L Demand Increases From D2b Demand Decreases From
1. The labor supply curve is fundamentally a representation of the trade-off people face between which of the following? a. work and wages b. work and leisure c. wages and productivity d. technology and wages ANSWER: b DIFFICULTY: Moderate LEARNING […]
Economics Supplement L Examine Firms Competitive
1. The production decisions of perfectly competitive firms follow one of the Ten Principles of Economics, which states that rational people a. consider sunk costs. b. equate prices to the average costs of production. c. prefer to purchase products from […]
Economics Supplement L Some Firms Will Enter The Industry Price
c. operating costs. d. fixed costs. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.275 – Given data on total revenue, implicit costs, and explicit costs, compare economic profit and accounting profit. TOPICS: Economic thinking Opportunity cost KEYWORDS: BLOOM’S: Comprehension CUSTOM ID: […]
Economics Supplement L The Figure Below Panel A
Figure 14-9 In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms. 1. […]
Economics Supplement L when they realize that price controls alone are insufficient
1. Which of the following is not correct? a. Economists have two roles: scientist and policy adviser. b. As scientists, economists develop and test theories to explain the world around them. c. Economic policies rarely have effects that their architects […]
Economics Supplement L Sellers Respond Very Small Changes Price
c. 0.79 when the price increased from $1.00 to $1.50 and 1.19 when the price increased from $1.50 to $2.00. d. 1.27 when the price increased from $1.00 to $1.50 and 0.84 when the price increased from $1.50 to $2.00. […]
Economics Supplement L In the long run, the quantity supplied of most goods
1. The price elasticity of supply measures how much a. the quantity supplied responds to changes in input prices. b. the quantity supplied responds to changes in the price of the good. c. the price of the good responds to […]
Economics Supplement L Which of the following movements would illustrate
155. Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from a. DA to DB. b. DB to DA. c. x to y. d. y to […]
Economics Supplement L If scientists discover that steamed milk
LEARNING OBJECTIVES: ECON.MANK.279 – Given information on supply and demand in a market, determine the equilibrium price and quantity of a good. TOPICS: Supply and demand Equilibrium KEYWORDS: BLOOM’S: Analysis CUSTOM ID: 120.04.4 – MC – MANK08 121. If consumers […]
Economics Supplement L Given information on supply and demand in a market
CUSTOM ID: 062.04.4 – MC – MANK08 63. Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches and that the market demand violates the law of demand. Then, in the table, the value of […]
Economics Supplement L Identify The Effect Surplus Shortage
1. The unique point at which the supply and demand curves intersect is called a. market harmony. b. coincidence. c. equivalence. d. equilibrium. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.279 – Given information on supply and demand in a market, […]
Economics Supplement L Determine the market supply curve for a good by summing two or more
$2 3 4 2 1 $4 6 8 4 2 $6 9 12 6 3 $8 12 16 8 4 $10 15 20 10 5 61. Refer to Table 4-7. If these are the only four sellers in the market […]
Economics Supplement L Given a scenario, determine if that scenario will
1. The quantity supplied of a good is the amount that a. buyers are willing and able to purchase. b. sellers are able to produce. c. buyers and sellers agree will be brought to market. d. sellers are willing and […]
Economics Supplement L In a market economy, supply determines demand and demand
1. The two words most often used by economists are a. prices and quantities. b. resources and allocation. c. supply and demand. d. efficiency and equity. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.071 – Determine the effects of an event […]
Economics Chapter 22 A travel agency offers a money-back guarantee for vacationers
Subjective Short Answer 1. When some people are better informed than others and the imbalance affects the choices they make, economists say there is ANSWER: asymmetric information. POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.002 – Analyze how asymmetric information distorts […]
Economics Chapter 22 Which Findings From Behavioral Economics This Observation
1. Economists use basic psychological insights in the field of study called a. psychological economics. b. transitional economics. c. behavioral economics. d. social economics. ANSWER: c DIFFICULTY: Easy REFERENCES: Behavioral Economics LEARNING OBJECTIVES: ECON.MANK.316 – Recognize the role psychology plays […]