Archives: Quiz

Chapter 22 The Percentage Policy Holders Making Claims

Chapter 22 The Percentage Policy Holders Making Claims

Frontiers of Microeconomics 5403 39. Employers can try to overcome the moral–hazard problem involving their employees by a. paying their employees more often. b. paying their employees below-equilibrium wages since the employees will likely shirk some of their responsibilities. c. […]

14 Pages | September 13, 2022
Chapter 22 Which of the following areas of economics would most likely study this

Chapter 22 Which of the following areas of economics would most likely study this

Frontiers of Microeconomics Multiple Choice – Section 00: Introduction 1. Which of the following is not correct? a. Economics is a study of the choices that people make and the resulting interactions they have with one another. b. In areas […]

14 Pages | September 13, 2022
Chapter 21 A consumer’s budget constraint is drawn on a graph with the number

Chapter 21 A consumer’s budget constraint is drawn on a graph with the number

The Theory of Consumer Choice 5359 8. Refer to Figure 21-30. Suppose Budget Constraint B applies. If the consumer’s income is $90 and if he is buying 5 light bulbs, then how much money is he spending on hamburgers? ANSWER: […]

9 Pages | September 13, 2022
Chapter 21 Shelley wins $1 million in her state’s lottery

Chapter 21 Shelley wins $1 million in her state’s lottery

The Theory of Consumer Choice 5343 43. Shelley wins $1 million in her state’s lottery. If Shelley keeps working after she wins the money, we can infer that the substitution effect must exactly offset the income effect for her. a. […]

10 Pages | September 13, 2022
Chapter 21 Your money market account pays an annual interest rate of 

Chapter 21 Your money market account pays an annual interest rate of 

The Theory of Consumer Choice 5323 62. Suppose Reta is planning for retirement in a two-period world. In the first period Reta is young and earns $1 million, and in the second period Reta is old and retired and earns […]

14 Pages | September 13, 2022
Chapter 21 Which of the following is an example of a Giffen good

Chapter 21 Which of the following is an example of a Giffen good

The Theory of Consumer Choice 5303 25. Which of the following is an example of a Giffen good? a. fish in Japan b. rice in the Chinese province of Hunan c. pork in India d. Both a and b are […]

14 Pages | September 13, 2022
Chapter 21 Then the consumer’s optimal choice is to buy

Chapter 21 Then the consumer’s optimal choice is to buy

The Theory of Consumer Choice 5283 Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve. 131. Refer to Figure 21-24. Suppose the price of pears, the price of apples, and Steve’s […]

14 Pages | September 13, 2022
Chapter 21 Dave Will Consume More Both Goods Because

Chapter 21 Dave Will Consume More Both Goods Because

The Theory of Consumer Choice 5263 93. If the income effect counteracts the substitution effect, we know that the good in question is a(n) a. complementary good. b. inferior good. c. luxury good. d. normal good. ANSWER: b POINTS: 1 […]

14 Pages | September 13, 2022
Chapter 21 John Purchases And Consumes The Candy Bar

Chapter 21 John Purchases And Consumes The Candy Bar

The Theory of Consumer Choice 5243 51. A consumer has preferences over two goods, X and Y. Suppose we graph this consumer’s preferences (which satisfy the usual properties of indifference curves) and budget constraint on a diagram with X on […]

14 Pages | September 13, 2022
Chapter 21 The Movie Theater Offers Combinations Of popcorn And

Chapter 21 The Movie Theater Offers Combinations Of popcorn And

The Theory of Consumer Choice 5223 10. Refer to Figure 21-18. Bundle C represents a point where a. MRSxy > Py/Px. b. MRSxy = Px/Py. c. MRSxy < Px/Py. d. MRSxy > Px/Py. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Challenging […]

14 Pages | September 13, 2022
Chapter 21 One Day The Price Wine Falls Bottle

Chapter 21 One Day The Price Wine Falls Bottle

The Theory of Consumer Choice 5203 73. The slope of the budget constraint is determined by the a. relative price of the goods measured on the axes. b. relative price of the goods measured on the axes and the consumer’s […]

14 Pages | September 13, 2022
Chapter 21 The following diagram shows a budget constraint for a particular

Chapter 21 The following diagram shows a budget constraint for a particular

The Theory of Consumer Choice 5183 33. Refer to Figure 21-7. Suppose a consumer has $500 in income, the price of a book is $10, and the value of B is 50. What is the price of a DVD? a. […]

14 Pages | September 13, 2022
Chapter 21 Which of the following does not represent a tradeoff

Chapter 21 Which of the following does not represent a tradeoff

The Theory of Consumer Choice Multiple Choice – Section 00: Introduction 1. Which of the following does not represent a tradeoff facing a consumer? a. choosing to purchase more of all goods b. choosing to spend more time on leisure […]

14 Pages | September 13, 2022
Chapter 20 The regular pattern of income variation over a person’s life

Chapter 20 The regular pattern of income variation over a person’s life

5152 Income Inequality and Poverty 28. The regular pattern of income variation over a person’s life is called the . ANSWER: life cycle POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.96 – LO: 20-1 NATIONAL STANDARDS: United States – BUSPROG: […]

9 Pages | September 13, 2022
Chapter 20 What is the foundation of your critique

Chapter 20 What is the foundation of your critique

Income Inequality and Poverty 5141 62. Explain what is meant by “in-kind transfer” programs. Briefly outline the advantages and disadvantages of an in–kind transfer program. ANSWER: An in-kind transfer program distributes specific goods and services to individuals who meet some […]

9 Pages | September 13, 2022
Chapter 20 One Existing Government Program That Works Much

Chapter 20 One Existing Government Program That Works Much

Income Inequality and Poverty 5121 10. A U.S. family earning $80,000 would be in the top 20 percent of income distribution in 2011. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.96 – LO: 20-1 […]

14 Pages | September 13, 2022
Chapter 20 In kind Transfers Give The Recipient More Utility

Chapter 20 In kind Transfers Give The Recipient More Utility

Income Inequality and Poverty 5101 43. Which of the following is not correct? a. Welfare is a broad term that includes a variety of government programs designed to help poor people. b. Since the early 1970s, welfare benefits adjusted for […]

14 Pages | September 13, 2022
Chapter 20 which income group would philosopher John Rawls

Chapter 20 which income group would philosopher John Rawls

Income Inequality and Poverty 5081 6. When designing public policies, which income group would philosopher John Rawls argue needs the most attention? a. Individuals located in the bottom fifth of the income distribution. b. Individuals located at the average income […]

14 Pages | September 13, 2022
Chapter 20 The maximin criterion is attributed to which political philosophy

Chapter 20 The maximin criterion is attributed to which political philosophy

Income Inequality and Poverty 5061 37. The maximin criterion is attributed to which political philosophy? a. utilitarianism b. liberalism c. libertarianism d. repubicanism ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.97 – LO: 20-2 NATIONAL STANDARDS: United States […]

14 Pages | September 13, 2022
Chapter 20 Inequality And Poverty 19 The Goal Utilitarians Toa

Chapter 20 Inequality And Poverty 19 The Goal Utilitarians Toa

Income Inequality and Poverty 5041 172. Which of the following does not explain why data on income distribution and the poverty rate give an incomplete picture of inequality? a. in-kind transfers b. economic life cycle c. transitory income d. All […]

14 Pages | September 13, 2022
Chapter 20 A family’s ability to buy goods and services depends largely

Chapter 20 A family’s ability to buy goods and services depends largely

Income Inequality and Poverty 5021 131. In the United States, a typical worker‘s income peaks around age a. 70. b. 60. c. 50. d. 40. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.96 – LO: 20-1 NATIONAL STANDARDS: […]

14 Pages | September 13, 2022
Chapter 20 The poverty line is adjusted each year to reflect changes in the

Chapter 20 The poverty line is adjusted each year to reflect changes in the

Income Inequality and Poverty 5001 94. The poverty line is adjusted each year to reflect changes in the a. number of people currently on public assistance. b. level of prices. c. nutritional content of an “adequate” diet. d. size of […]

14 Pages | September 13, 2022
Chapter 20 the poverty rate in the United States was 15 percent

Chapter 20 the poverty rate in the United States was 15 percent

Income Inequality and Poverty 4981 63. The poverty rate is a. a measure of income inequality across families. b. the percentage of the population whose family income falls below a specified level. c. an absolute level of income set by […]

14 Pages | September 13, 2022
Chapter 20 the population had a greater share of the income in 2011 than

Chapter 20 the population had a greater share of the income in 2011 than

Income Inequality and Poverty 4961 Table 20-3 The Distribution of Income in Edgerton Group Annual Family Income Top Fifth $88,000 and over Fourth Fifth $76,000 – 87,999 Middle Fifth $44,000 – 75,999 Second Fifth $28,000 – 43,999 Bottom Fifth Under […]

14 Pages | September 13, 2022
Chapter 20 Which of the following is most likely to occur when

Chapter 20 Which of the following is most likely to occur when

Income Inequality and Poverty Multiple Choice – Section 00: Introduction 1. In the United States, labor earnings are about what percent of total income? a. 75 percent b. 70 percent c. 67 percent d. 50 percent ANSWER: c POINTS: 1 […]

14 Pages | September 13, 2022
Chapter 19 Discrimination Illegal The United States For Firms

Chapter 19 Discrimination Illegal The United States For Firms

Earnings and Discrimination 4903 11. The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.93 – LO: […]

13 Pages | September 13, 2022
Chapter 19 If firms are competitive, then labor-market discrimination

Chapter 19 If firms are competitive, then labor-market discrimination

Earnings and Discrimination 4883 81. If firms are competitive, then labor-market discrimination a. cannot exist in either the short run or the long run. b. will be more of a problem than if the market were monopolistic or imperfectly competitive. […]

14 Pages | September 13, 2022
Chapter 19 Restaurant Customers Preferred Waited White Waitresses Rather

Chapter 19 Restaurant Customers Preferred Waited White Waitresses Rather

Earnings and Discrimination 4863 36. Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed. A firm offers a higher salary to worker […]

14 Pages | September 13, 2022
Chapter 19 The theory of efficiency wages challenges the assumption that

Chapter 19 The theory of efficiency wages challenges the assumption that

Earnings and Discrimination 4843 241. The theory of efficiency wages challenges the assumption that a. workers are efficient. b. workers have an incentive to shirk their responsibilities to their employers. c. wages must always adjust to balance labor supply and […]

14 Pages | September 13, 2022
Chapter 19 Earnings And Discrimination Sometimes Wages Are Set

Chapter 19 Earnings And Discrimination Sometimes Wages Are Set

Earnings and Discrimination 4823 203. Sometimes wages are set above the equilibrium level when firms pay a. workers with more seniority higher wages than newly-hired workers. b. efficiency wages to reduce turnover. c. compensating differentials to workers who work the […]

14 Pages | September 13, 2022
Chapter 19 Mbas Because Average Their Job performance Better Than

Chapter 19 Mbas Because Average Their Job performance Better Than

Earnings and Discrimination 4803 163. Which of the following statements represents the idea behind signaling in education? a. Education can turn an unproductive person into a productive person. b. Education increases the marginal productivity of naturally productive workers. c. More […]

14 Pages | September 13, 2022
Chapter 19 The difference in wages paid to major-league baseball players 

Chapter 19 The difference in wages paid to major-league baseball players 

Earnings and Discrimination 4783 122. The difference in wages paid to major–league baseball players and minor-league baseball players is most likely due to a. differences in chance. b. differences in natural ability. c. the fact that the players‘ union is […]

14 Pages | September 13, 2022
Chapter 19 Ferris is carefully considering the options that each recruiter

Chapter 19 Ferris is carefully considering the options that each recruiter

Earnings and Discrimination 4763 83. Refer to Scenario 19-1. Ferris is carefully considering the options that each recruiter presents. On the basis of knowledge obtained in his economics class, Ferris concludes that a. the lifeguard job will be more fun […]

14 Pages | September 13, 2022
Chapter 19 Jobs that involve pleasant work, as opposed to jobs that involve 

Chapter 19 Jobs that involve pleasant work, as opposed to jobs that involve 

Earnings and Discrimination 4743 41. Jobs that involve pleasant work, as opposed to jobs that involve unpleasant work, usually pay a. higher wages, because jobs that involve pleasant work typically require more education than do jobs that involve unpleasant work. […]

14 Pages | September 13, 2022
Chapter 19 Westland exports goods produced with skilled labor and imports

Chapter 19 Westland exports goods produced with skilled labor and imports

Earnings and Discrimination Multiple Choice – Section 01: Some Determinants of Equilibrium Wages 1. When the supply of workers is plentiful, one would predict that market wages would be a. determined outside the domain of economic theory. b. determined solely […]

14 Pages | September 13, 2022
Chapter 19 The National Collegiate Athletic Association (NCAA) has long argued

Chapter 19 The National Collegiate Athletic Association (NCAA) has long argued

4922 Earnings and Discrimination 67. The National Collegiate Athletic Association (NCAA) has long argued that nationally-prominent college athletes are compensated with an investment in human capital that far exceeds the monetary reward of playing professional sports. Examine this argument in […]

13 Pages | September 13, 2022
Chapter 18 what interval of wages, W, would the shop maximize its profit

Chapter 18 what interval of wages, W, would the shop maximize its profit

The Markets for the Factors of Production 4711 19. Refer to Figure 18-12. If the shop charges $120 per repair, then what is the value of the marginal product of the third mechanic? ANSWER: The marginal product of the third […]

9 Pages | September 13, 2022
Chapter 18 The Markets For The Factors Production The

Chapter 18 The Markets For The Factors Production The

The Markets for the Factors of Production 4699 61. The marginal product of land depends on the quantity of land that is available. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.91 – LO: 18-4 […]

9 Pages | September 13, 2022
Chapter 18 A firm’s demand for labor is derived from its decision

Chapter 18 A firm’s demand for labor is derived from its decision

The Markets for the Factors of Production 4679 True/False and Short Answer 1. A firm’s demand for labor is derived from its decision to supply a good in another market. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: […]

14 Pages | September 13, 2022
Chapter 18 The Reduction The Supply Fire Trucks Increases

Chapter 18 The Reduction The Supply Fire Trucks Increases

The Markets for the Factors of Production 4659 28. Assume all capital is owned by firms, rather than by households. Under this assumption, capital is paid according to the value of its marginal product a. only if this income is […]

14 Pages | September 13, 2022
Chapter 18 A labor-augmenting technological change suchas a faster

Chapter 18 A labor-augmenting technological change suchas a faster

The Markets for the Factors of Production 4639 68. Consider the labor market for short-order cooks. A labor-augmenting technological change such as a faster food processor will cause a. both equilibrium wages and equilibrium employment to increase. b. both equilibrium […]

14 Pages | September 13, 2022
Chapter 18 Which of the following is a possible explanation of the shift

Chapter 18 Which of the following is a possible explanation of the shift

The Markets for the Factors of Production 4619 30. Consider the labor market for short-order cooks. An increase in the wages paid to fast-food workers will cause a. both equilibrium wages and equilibrium employment to increase in the market for […]

14 Pages | September 13, 2022
Chapter 18 Which of the following events would shift a labor supply curve

Chapter 18 Which of the following events would shift a labor supply curve

The Markets for the Factors of Production 4599 42. Which of the following events would shift a labor supply curve? (i) immigration of high-skilled workers (ii) immigration of low-skilled workers (iii) changes in the number of women willing to work […]

14 Pages | September 13, 2022
Chapter 18 The Markets For The Factors Production For

Chapter 18 The Markets For The Factors Production For

The Markets for the Factors of Production 4579 2. For a worker, the opportunity cost of an hour of leisure a. rises by $8 when his wage rises by $8 per hour. b. falls by $8 when his wage rises […]

14 Pages | September 13, 2022
Chapter 18 Dans Demand For The Services Bakers it he Price

Chapter 18 Dans Demand For The Services Bakers it he Price

The Markets for the Factors of Production 4559 189. Refer to Scenario 18-2. If the price of fresh Pacific salmon were to decrease significantly, it is most likely that Gertrude would a. reduce her demand for crew members. b. hire […]

14 Pages | September 13, 2022
Chapter 18 How many workers should this firm hire to maximize its profit

Chapter 18 How many workers should this firm hire to maximize its profit

The Markets for the Factors of Production 4539 152. Refer to Table 18-9. Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day. How many workers should this […]

14 Pages | September 13, 2022
Chapter 18 What is the value for the cell labeled BB

Chapter 18 What is the value for the cell labeled BB

The Markets for the Factors of Production 4519 110. Refer to Table 18-1. Suppose that the firm pays its workers $50 per day. Each unit of output sells for $20. How many days of labor should the firm hire? a. […]

14 Pages | September 13, 2022
Chapter 18 Markets For The Factors Production 87 Refer Figure

Chapter 18 Markets For The Factors Production 87 Refer Figure

The Markets for the Factors of Production 4499 69. Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that labor is the only input that varies […]

14 Pages | September 13, 2022
Chapter 18 Juanita is trying to convince the owner of a jewelry store

Chapter 18 Juanita is trying to convince the owner of a jewelry store

The Markets for the Factors of Production 4479 28. Juanita is trying to convince the owner of a jewelry store to hire her. She argues that she could help the shop sell an additional three rings per day for a […]

14 Pages | September 13, 2022
Chapter 18 The inputs used to produce goods and services are called

Chapter 18 The inputs used to produce goods and services are called

The Markets for the Factors of Production Multiple Choice – Section 00: Introduction 1. In 2012, the total income of all U.S. residents was about a. $10 billion. b. $15 billion. c. $10 trillion. d. $15 trillion. ANSWER: d POINTS: […]

14 Pages | September 13, 2022