Archives: Quiz
978-1259723223 Test Bank TBChap007 Part 1
Chapter 07 Utility Maximization Answer Key Multiple Choice Questions 1. The utility of a good or service A. is synonymous with usefulness. B. is the satisfaction or pleasure one gets from consuming it. C. is easy to quantify. D. rarely […]
978-1259723223 Test Bank Chapter 7 Part 2
24. What are two related effects that combine to make a consumer able and willing to buy more of a specific product at a lower price than a higher price? Explain the logic of both effects. 25. A student asserts […]
978-1259723223 Test Bank Chapter 7 Part 1
CHAPTER 7 Utility Maximization A. Short-Answer, Essays, and Problems 1. Describe the law of diminishing marginal utility. On what assumptions is this law based? 4. What is the difference between total utility and marginal utility? 5. Can marginal utility be […]
978-1259723223 Test Bank TBChap006 Part 9
6-154 Topic: Cross Elasticity and Income Elasticity of Demand 306. A consumer‘s weekly income is $300, and the consumer buys 5 bars of chocolate per week. When income increases to $330, the consumer buys 6 bars per week. The income […]
978-1259723223 Test Bank TBChap006 Part 8
Refer to the above graph. Which of the following statements is correct? A. Demand is perfectly elastic. B. Demand is perfectly inelastic. C. Supply is perfectly elastic. D. Supply is perfectly inelastic. AACSB: Knowledge Application Blooms: Understand Di ff ic […]
978-1259723223 Test Bank TBChap006 Part 7
236. Refer to the above graph. Consider a situation where price decreases from P2 to P1. In this price range, demand is relatively A. inelastic because the loss in total revenue (areas D + G + I + J) is […]
978-1259723223 Test Bank TBChap006 Part 6
206. Consider the parallel demand curves in the figure above. Which curve is relatively more elastic at P1? A. AA B. BB C. The answer cannot be determined. D. Both have the same slope; therefore both have the same elasticity. […]
978-1259723223 Test Bank TBChap006 Part 5
for the initial purchase of the software. This implies that Microsoft views the demand curve for the software upgrade to be A. more elastic than the demand for the original software. B. upsloping rather than downsloping. C. less elastic than […]
978-1259723223 Test Bank TBChap006 Part 4
117. Price per Ticket Quantity Demanded $13 1,000 11 2,000 9 3,000 7 4,000 5 5,000 3 6,000 Refer to the information. If the Mudhens’ management wanted to maximize total ticket revenue from the game, it would set the ticket […]
978-1259723223 Test Bank TBChap006 Part 3
79. Price elasticity of demand is generally A. greater in the long run than in the short run. B. greater in the short run than in the long run. C. the same in both the short run and the long […]
978-1259723223 Test Bank TBChap006 Part 2
43. Suppose the total-revenue curve is derived from a particular linear demand curve. That demand curve must be A. inelastic for price declines that increase quantity demanded from 2 units to 3 units. B. elastic for price declines that increase […]
978-1259723223 Test Bank TBChap006 Part 1
Chapter 06 Elasticity Answer Key Multiple Choice Questions 1. The price elasticity of demand coefficient measures A. buyer responsiveness to price changes. B. the extent to which a demand curve shifts as incomes change. C. the slope of the demand […]
978-1259723223 Test Bank Chapter 6 Part 2
6-142 18. Using the demand data given, complete the following table by computing total revenue at each of the prices. Indicate whether demand is elastic, inelastic, or unitary between each set of prices. Price Quantity demanded Total revenue Character of […]
978-1259723223 Test Bank Chapter 6 Part 1
CHAPTER 6 Elasticity A. Short-Answer, Essays, and Problems 1. What is the main difference between the law of demand and the price elasticity of demand? 2. The following data shows the relationship between price and quantity demanded at four different […]
978-1259723223 Test Bank TBChap005 Part 6
D. not be produced, even if voters vote in favor of it. AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Diff i c u l t y: 02 Medium Learning Objective: 05–03 Appendix: Explain the difficulties of conveying economic preferences […]
978-1259723223 Test Bank TBChap005 Part 5
5-81 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Blooms: Understand Difficulty: 02 Medium Learning Objective: 05–02 Discuss government failure and explain why it happens. Test Bank: II […]
978-1259723223 Test Bank TBChap005 Part 4
154. Refer to the provided graph. Suppose that it shows the S and D graphs in a market where production entails a significant amount of pollution. In this case, the government should use its coercive power to make A. the […]
978-1259723223 Test Bank TBChap005 Part 3
A. always increases economic efficiency. B. always decreases economic efficiency. C. involves trading votes to secure favorable outcomes that otherwise could be rejected. D. is an example of the paradox of voting. AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand […]
978-1259723223 Test Bank TBChap005 Part 2
5-21 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Accessibility: Keyboard Navigation Blooms: Understand Diff i c u l t y: 02 Medium Learning Objective: 05–02 Discuss government […]
978-1259723223 Test Bank TBChap005 Part 1
Chapter 05 Government’s Role and Government Failure Answer Key Multiple Choice Questions 1. Which of the following is a key difference between the economic activities of government and those of private firms? A. Private firms face the constraint of scarcity; […]
978-1259723223 Test Bank Chapter 5
CHAPTER 5 Government’s Role and Government Failure A. Short-Answer, Essays, and Problems 1. Describe how the government differs from private firms and individuals participating in a market. 2. The government can improve economic efficiency by forcing individuals and firms to […]
978-1259723223 Test Bank TBChap004 Part 8
AACSB: Knowledge Application A c c e s s i b i l i t y : Keyboard Navigation Blooms: Understand D i f f i c u l t y : 02 Medium Learning Objective: 04–06 Appendix: Describe how […]
978-1259723223 Test Bank TBChap004 Part 7
4-121 AACSB: Knowledge Application A c c e s s i b i l i t y : Keyboard Navigation Blooms: Apply D i f f i c u l t y : 03 Hard Learning Objective: 04–01 Differentiate between […]
978-1259723223 Test Bank TBChap004 Part 6
4-101 D i f f i c u l t y : 02 Medium Learning Objective: 04–04 Explain how positive and negative externalities cause under- and overallocations of resources. Test Bank: II Topic: Externalities 199. In a free-market economy, a […]
978-1259723223 Test Bank TBChap004 Part 5
169. Refer to the provided graph of a competitive market. If the output level is Q2, then there will be A. allocative efficiency. B. maximum deadweight losses. C. maximum consumer surplus. D. greater marginal benefits than marginal costs of the […]
978-1259723223 Test Bank TBChap004 Part 4
C. positive externalities. D. negative externalities. AACSB: Knowledge Application A c c e s s i b i l i t y : Keyboard Navigation Blooms: Understand D i f f i c u l t y : 02 Medium […]
978-1259723223 Test Bank TBChap004 Part 3
A. the display creates negative externalities. B. government should tax the producers of holiday lighting. C. resources are currently overallocated to the provision of holiday lighting in Anytown. D. resources are currently underallocated to the provision of holiday lighting in […]
978-1259723223 Test Bank TBChap004 Part 2
4-21 Test Bank: I Topic: Public Goods 46. Answer the question on the basis of the following information for a public good. Pa and Pb are the prices that individuals A and B are willing to pay for the last […]
978-1259723223 Test Bank TBChap004 Part 1
Chapter 04 Market Failures: Public Goods and Externalities Answer Key Multiple Choice Questions 1. Market failure is said to occur whenever A. private markets do not allocate resources in the most economically desirable way. B. prices rise. C. some consumers […]
978-1259723223 Test Bank Chapter 4 Part 2
4-102 21. The next three questions refer to the below supply and demand graph for a public good. (a) What does point c represent? (b) What does the line segment ef at output Q3 represent? (c) At what output level […]
978-1259723223 Test Bank Chapter 4 Part 1
CHAPTER 4 Market Failures: Public Goods and Externalities A. Short-Answer, Essays, and Problems 1. Explain the two types of market failure and given an example of each one. 2. Define “consumer surplus.” 3. Are consumer surplus and equilibrium price directly […]
978-1259723223 Test Bank TBChap003 Part 11
3-196 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. prices and quantities. Test Bank: II Topic: Changes in Supply, Demand, and Equilibrium 396. An effective price ceiling will […]
978-1259723223 Test Bank TBChap003 Part 10
362. In a market with supply and demand curves as shown above, a price ceiling of $2.50 will result in A. a surplus of 10 units. B. a shortage of 10 units. C. no shortage or surplus. D. a black […]
978-1259723223 Test Bank TBChap003 Part 9
3-161 prices and quantities. Test Bank: II Topic: Changes in Supply, Demand, and Equilibrium 334. A and B are substitute goods, but A and C are complementary goods. If the cost of producing A decreases, then the demand for A. […]
978-1259723223 Test Bank TBChap003 Part 8
Refer to the above table. In this competitive market, the price and quantity will settle at A. $10 and 2,000 units. B. $15 and 1,600 units. C. $20 and 900 units. D. $25 and 1,200 units. AACSB: Knowledge Application Blooms: […]
978-1259723223 Test Bank TBChap003 Part 7
3-121 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Diffic ulty: 02 Medium Learning Objective: 03–02 Describe demand and explain how it can change. Test Bank: II To […]
978-1259723223 Test Bank TBChap003 Part 6
3-101 216. Producing a good in the least costly way is known as allocative efficiency. FALSE AACSB: Knowledge Application A c c e s s i b i l i t y : Keyboard Navigation Blooms: Understand Diff iculty: 02 […]
978-1259723223 Test Bank TBChap003 Part 5
3-81 Diffic ulty: 02 Medium Learning Objective: 03–04 Relate how supply and demand interact to determine market equilibrium. Test Bank: I Top ic: Market Equilibrium 171. (Advanced analysis) The demand for commodity X is represented by the equation P = […]
978-1259723223 Test Bank TBChap003 Part 4
138. Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. A shift in the demand curve from D0 to D1 might be caused by a(n) A. decrease in income if X is […]
978-1259723223 Test Bank TBChap003 Part 3
3-41 Per Month Bushel Month 45 $5 77 50 4 73 56 3 68 61 2 61 67 1 57 If price was initially $4 and free to fluctuate, we would expect the A. quantity supplied to continue to exceed […]
978-1259723223 Test Bank TBChap003 Part 2
55. Refer to the diagram. A decrease in quantity demanded is depicted by a A. move from point x to point y. B. shift from D1 to D2. C. shift from D2 to D1. D. move from point y to […]
978-1259723223 Test Bank TBChap003 Part 1
Chapter 03 Demand, Supply, and Market Equilibrium Answer Key Multiple Choice Questions 1. A market A. reflects upsloping demand and downsloping supply curves. B. entails the exchange of goods, but not services. C. is an institution that brings together buyers […]
978-1259723223 Test Bank Chapter 3 Part 2
3-71 36. In the space below each of the following, indicate the effect [increase (+), decrease (−)] on equilibrium price (P) and equilibrium quantity (Q) of each of these changes in demand and/or supply. P Q (a) Increase in demand, […]
978-1259723223 Test Bank Chapter 3 Part 1
3-54 CHAPTER 3 Demand, Supply, and Market Equilibrium A. Short-Answer, Essays, and Problems 1. Explain what is meant by a competitive market. 2. Define “demand.” 3. State the law of demand and explain why the other-things-equal assumption is critical to […]
978-1259723223 Test Bank TBChap002 Part 6
2-96 Learning Objective: 02-05 Describe the mechanics of the circular flow model. Test Bank: II Topic: The Circular Flow Model 223. In the circular flow diagram, households get their ability to pay for their consumption expenditures from the A. revenues […]
978-1259723223 Test Bank TBChap002 Part 5
2-81 Lear n i n g O b j e ctiv e: 0 2 – 0 3 E x pl ai n h o w t he mar k e t s y s t e m a n s […]
978-1259723223 Test Bank TBChap002 Part 4
2-61 Topic: Characteristics of the Market System 142. Which of the following statements about markets and prices is correct? A. In a market system, buyers and sellers must be in face–to-face contact with each other. B. Prices affect the distribution […]
978-1259723223 Test Bank TBChap002 Part 3
A. goods and resources, respectively. B. money incomes and output, respectively. C. output and money incomes, respectively. D. resources and goods, respectively. AACSB: Knowledge Application Blooms: Understand D i f f i c u l t y : 02 Medium […]
978-1259723223 Test Bank TBChap002 Part 2
B. realize an economic profit of $4. C. not earn any economic profit. D. shut down rather than incur a loss by producing. AACSB: Knowledge Application Blooms: Understand D i f f i c u l t y : 02 […]
978-1259723223 Test Bank TBChap002 Part 1
Chapter 02 The Market System and the Circular Flow Answer Key Multiple Choice Questions 1. Which of the following is a distinguishing feature of a command system? A. private ownership of all capital B. central planning C. heavy reliance on […]