Archives: Quiz

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 12 Consumer Choice and Demand 12.1 Consumption Possibilities 1) A budget line shows the A) quantities of goods a buyer can purchase with given income and prices. […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 11 Externalities and the Environment 11.1 Negative Externalities: Pollution 1) When studying pollution and the environment, economists A) have no role to play. B) concentrate on the […]

101 Copyright © 2011 Pearson Education, Inc. 12) Ten homeowners live around Lake Alice. Unfortunately, the lake is contaminated with various chemicals and the level of contamination is currently 20 parts per million. All the homeowners benefit equally if the […]

91 Copyright © 2011 Pearson Education, Inc. 5) National defense is a ________ because ________. A) public good; it can be an overused resource B) public good; it is nonrival and nonexcludable C) common resource; no one has the incentive […]

81 Copyright © 2011 Pearson Education, Inc. 95) An external benefit is a benefit from a good or service that someone other than the ________ receives. A) seller of the good or service B) government C) foreign sector D) consumer […]

71 Copyright © 2011 Pearson Education, Inc. 74) The figure above shows an education market in which the government is providing households with vouchers. What is the efficient quantity of students? A) 2 million B) 4 million C) 6 million […]

61 Copyright © 2011 Pearson Education, Inc. 49) The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity is ________ units and the […]

51 Copyright © 2011 Pearson Education, Inc. 23) The existence of marginal external benefits for a product like higher education creates a deadweight loss for society because, without government intervention, ________ would be consumed and ________ would be produced. A) […]

41 Copyright © 2011 Pearson Education, Inc. 58) The marginal benefit of a public good is the A) sum of the marginal benefits of all the individuals at each quantity. B) marginal benefit of the individual person who places the […]

31 Copyright © 2011 Pearson Education, Inc. 30) The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo, Oklahoma. Police protection is a public good. If the city of Hugo hires 25 […]

21 Copyright © 2011 Pearson Education, Inc. 4) A good that can be consumed even if the consumer does not pay for it A) is necessarily rival in consumption. B) completely avoids the free rider problem. C) does not exist […]

11 Copyright © 2011 Pearson Education, Inc. 31) To hunters, deer in the woods are an example of a A) public good. B) private good. C) common resource. D) public resource. E) natural monopoly. Answer: C Topic: Common resource Skill: […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 10 Public Goods and Public Choices 10.1 Classifying Goods and Resources 1) A good is nonexcludable if A) only the government can produce it. B) nobody can […]

86 Copyright © 2011 Pearson Education, Inc. 7) Which of the following is true? i. When the world price of a good is lower than the price that balances domestic supply and demand, a country gains from exporting the good. […]

81 Copyright © 2011 Pearson Education, Inc. The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5. The U.S. […]

71 Copyright © 2011 Pearson Education, Inc. 25) A major reason why it is difficult to lower the barriers to free trade is A) that total benefits are less than total costs from free trade. B) the uneven distribution of […]

61 Copyright © 2011 Pearson Education, Inc. 72) A tax on a good that is imposed when it is imported is called A) an import quota. B) a VER. C) a tariff. D) a sanction. E) a border tax. Answer: […]

51 Copyright © 2011 Pearson Education, Inc. 45) If the U.S. government imposes a tariff on imported steel, who else besides U.S. steel producers gains from the tariff? A) U.S. steel consumers B) the U.S. government C) U.S. importers of […]

41 Copyright © 2011 Pearson Education, Inc. 16) Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports. A) rise; an increase B) rise; a decrease C) fall; an increase […]

31 Copyright © 2011 Pearson Education, Inc. 28) The above figure shows the U.S. market for wheat. With international trade, consumer surplus is equal to ________. A) area A + area B + area C B) area E + area […]

21 Copyright © 2011 Pearson Education, Inc. 56) The United States exports a good if its no-trade U.S. price is ________ its world price. With international trade, U.S. production of the good ________ compared to the level of no-trade production. […]

11 Copyright © 2011 Pearson Education, Inc. 30) The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops. A) 300,000 B) 500,000 C) 700,000 D) 0 because the United States exports flip-flops […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 9 Global Markets in Action 9.1 How Global Markets Work 1) Goods and services that the United States buys from other nations are called A) exports. B) […]

96 Copyright © 2011 Pearson Education, Inc. 10) The figure above illustrates the market for antifreeze. Suppose the government decides to impose an $8 sales tax on every gallon of antifreeze sold. a. In the figure, illustrate the effect the […]

91 Copyright © 2011 Pearson Education, Inc. 9) The figure above shows the impact of an income tax. The revenue collected by the government equals area A) bce. B) feba. C) fed. D) acf. E) None of the above answers […]

81 Copyright © 2011 Pearson Education, Inc. The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit […]

71 Copyright © 2011 Pearson Education, Inc. 16) Which of the following taxes best illustrate the ability-to-pay principle of tax fairness? A) Tuition at public universities is lower for in-state residents than for out-of-state residents. B) The library is funded […]

61 Copyright © 2011 Pearson Education, Inc. 67) Suppose the supply of labor is more inelastic than the demand for labor. Then, a social security tax imposed on employers A) shifts the demand curve for labor leftward. B) lowers the […]

51 Copyright © 2011 Pearson Education, Inc. 41) The above figure shows the labor market for land surveyors. Dave is a land surveyor. What is the tax incidence for this income tax? A) Though the employer pays some of the […]

41 Copyright © 2011 Pearson Education, Inc. 13) Ann pays $3,850 in taxes on an income of $38,500. Therefore her A) marginal tax rate must be ten percent. B) taxes must be progressive in nature. C) average tax rate must […]

31 Copyright © 2011 Pearson Education, Inc. 74) Neither the supply of nor demand for a good is perfectly elastic or perfectly inelastic. So, imposing a tax on the good results in a ________ in the price received and kept […]

21 Copyright © 2011 Pearson Education, Inc. 53) The loss to society resulting from a tax includes the A) deadweight loss. B) consumer surplus paid to the government in the form of tax revenue. C) producer surplus paid to the […]

11 Copyright © 2011 Pearson Education, Inc. 24) The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 8 Taxes 8.1 Taxes on Buyers and Sellers 1) Tax incidence is the A) burden buyers have to absorb from a tax on goods and services. B) […]

90 Copyright © 2011 Pearson Education, Inc. 8) The figure above illustrates the current market for apartments in Washington, D.C. a. If the local government imposes a price ceiling of $1,500 per month, is there a shortage? If so, how […]

81 Copyright © 2011 Pearson Education, Inc. 13) The figure above shows that the government provides a subsidy to the farmers of ________ million. A) $350 B) $1,050 C) $50 D) $100 E) $700 Answer: A Topic: Price support, subsidy […]

71 Copyright © 2011 Pearson Education, Inc. 21) The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals […]

61 Copyright © 2011 Pearson Education, Inc. 71) If a minimum wage is introduced that is above the equilibrium wage rate, A) the quantity of labor demanded increases. B) job search activity increases. C) the supply of labor increases and […]

51 Copyright © 2011 Pearson Education, Inc. 49) The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the deadweight loss? A) area A B) area B C) area C D) […]

41 Copyright © 2011 Pearson Education, Inc. 25) An increase in the minimum wage to $15 per hour would lead to A) an increase in search activity for many workers. B) a decrease in search activity for many workers. C) […]

31 Copyright © 2011 Pearson Education, Inc. 73) The graph shows the market for rental housing in Little Rock. The market for apartments is efficient when ________. A) the quantity of apartments demanded is 12,000 a month B) the rent […]

21 Copyright © 2011 Pearson Education, Inc. 51) The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After […]

11 Copyright © 2011 Pearson Education, Inc. 28) One of the consequences of a rent ceiling set below the equilibrium rent is A) decreased search activity. B) increased search activity. C) the establishment of landlord unions. D) surpluses of apartments. […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 7 Government Actions in Markets 7.1 Price Ceilings 1) A price ceiling A) is an illegal price. B) is the price that exists in a black market. […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 6 Efficiency and Fairness of Markets 6.1 Allocation Methods and Efficiency 1) Walmart has a limited number of day-after Thanksgiving Day special items on sale at prices […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 5 Elasticities of Demand and Supply 5.1 The Price Elasticity of Demand 1) The price elasticity of demand is a measure of A) the equilibrium price of […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 4 Demand and Supply 4.1 Demand 1) A market is defined as A) a physical place where people buy only goods. B) a physical place where people […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 3 The Economic Problem 3.1 Production Possibilities 1) The United States produced approximately ________ worth of goods and services in 2007. A) $14 trillion B) $14 billion […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 2 The U.S. and Global Economies 2.1 What, How, and For Whom? 1) Items that are purchased by individuals for their own enjoyment are called A) consumption […]

1 Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 1 Getting Started 1.1 Definition and Questions 1) Scarcity exists because A) human wants exceed the resources available to satisfy them. B) some individuals have low income. […]