Microeconomics<\/p>\n
1.Which of the following is not a basic question that each economy must answer?<\/p>\n
A)Which resources are scarce?
B) For whom shall the goods be produced?
C) How shall goods be produced?
D) What goods shall be produced?<\/p>\n
2.If Kim can either wash 10 cars or wax 2 cars during a day, and Vince can either wash 17 cars or wax 2 cars during a day, then according to the law of comparative advantage,<\/p>\n
A) Vince\u2019s opportunity cost of waxing a car is less than Kim\u2019s.
B) their total output can be expanded if Kim specializes in waxing and Vince in washing.
C) their total output can be expanded if Kim specializes in washing and Vince in waxing.
D) it would be impossible for Vince and Kim to increase their total output through specialization and mutual exchange.<\/p>\n
3.The following question(s) relate(s) to the material in the addendum to Chapter 2. Use the production possibilities data for Lebos and Slavia below to answer the question(s).<\/p>\n
Table 2-4<\/p>\n
| Lebos<\/td>\n | Slavia<\/td>\n<\/tr>\n | ||
| Food<\/td>\n | Clothing<\/td>\n | Food<\/td>\n | Clothing<\/td>\n<\/tr>\n |
| 0<\/td>\n | 8<\/td>\n | 0<\/td>\n | 8<\/td>\n<\/tr>\n |
| 2<\/td>\n | 6<\/td>\n | 1<\/td>\n | 6<\/td>\n<\/tr>\n |
| 4<\/td>\n | 4<\/td>\n | 2<\/td>\n | 4<\/td>\n<\/tr>\n |
| 6<\/td>\n | 2<\/td>\n | 3<\/td>\n | 2<\/td>\n<\/tr>\n |
| 8<\/td>\n | 0<\/td>\n | 4<\/td>\n | 0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Refer to Table 2-4. Which of the following is correct?<\/p>\n
4. Which of the following is NOT true of opportunity cost?<\/p>\n
5. Assume the demand curve for cookies is downward sloping. If the price of cookies falls from $1.50 to $1.25 per dozen,<\/p>\n
6. The price of a good will tend to rise when<\/p>\n
7. If we observe an increase in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by<\/p>\n
8. Suppose demand increases and supply increases. Which of the following will happen?<\/p>\n
9. The invisible hand principle, as developed by Adam Smith inThe Wealth of Nations, states that<\/p>\n
10.<\/p>\n
Refer to Figure 3-18. Which area represents the increase in consumer surplus when the price falls from P1 to P2?<\/p>\n
11. According to the law of supply, as the price of a good decreases<\/p>\n
12. If the demand for a good increases, which of the following will generally occur in a market setting?<\/p>\n
13. Other things constant, as the price of a resource increases<\/p>\n
14. If a government price control succeeds in affecting price, it can be expected to lead to a corresponding<\/p>\n
15. When a price floor is imposed above the equilibrium price of a commodity,<\/p>\n
16. If Heather\u2019s tax liability increases from $10,000 to $13,500 when her income increases from $30,000 to $40,000, her marginal tax rate is<\/p>\n
17. According to the Laffer curve,<\/p>\n
18. When the government increased its involvement in rescue efforts on Mount McKinley (the tallest peak in North America), the number of mountain climbing deaths<\/p>\n
19. Use the figure below to answer the following question(s).<\/p>\n
Refer to Figure 4-7. The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Imposing the tax causes the equilibrium price of gasoline to increase from<\/p>\n
20. Refer to Figure 4-7. The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Which of the following states the actual burden of the tax?<\/p>\n
21. Use the figure below to answer the following question(s).<\/p>\n
Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax?<\/p>\n
22.<\/p>\n
Refer to Figure 4-17. Suppose a price floor of $7.00 is imposed. As a result,<\/p>\n
23.<\/p>\n
Refer to Figure 4-25. The equilibrium price before the tax is imposed is<\/p>\n
24. Black markets that operate outside the legal system are often characterized by<\/p>\n
25. Suppose external costs are present in a market which results in the actual market price of $50 and market output of 800 units. How does this outcome compare to the efficient, ideal equilibrium?<\/p>\n
26. Suppose external costs are present in a market which results in the actual market price of $84 and market output of 320 units. How does this outcome compare to the efficient, ideal equilibrium?<\/p>\n
27. Compared to ideal economic efficiency, when the production of a good generates external benefits, competitive markets will likely result in an output that is too<\/p>\n
28. A car sells at different prices at different dealerships in a local market. If a consumer has imperfect information about the price of a car at each dealership, he should<\/p>\n
29. The problem created when it is difficult to exclude nonpaying customers is called the<\/p>\n
30. Which of the following provides the best summary of the basic idea of public choice analysis?<\/p>\n
31. In a representative democracy, government action results from the<\/p>\n
32. Which of the following increases the political power of special interest groups and makes counterproductive government action more likely?<\/p>\n
33. Use the figure below to answer the following question(s).<\/p>\n
Figure 6-1 illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which type would the government most likely fail to undertake many projects that would be considered efficient or productive (in other words, do too few of them relative to economic efficiency)?<\/p>\n
34. Despite many differences, the market and public sectors are similar in which one of the following respects?<\/p>\n
35. Studies indicate that the demand for fresh tomatoes is much more elastic than the demand for salt. These findings reflect that<\/p>\n
36. The principle of diminishing marginal utility says that<\/p>\n
37. The demand curve for a good is very unlikely to be perfectly vertical because<\/p>\n
38. As the period for firms to expand output is lengthened, the elasticity of the market supply curve will<\/p>\n
39. The price elasticity of demand for automobiles measures the responsiveness of<\/p>\n
40. Which of the following is true regarding the price elasticity of demand?<\/p>\n
41. Essay (AnswerONE of the Following Question)<\/p>\n \u00b7Economists maintain that the price of a product has no effect on demand. How can this be true?<\/p>\n \u00b7National defense is considered a public good because there appears to be no limits to the nonrivalry-in-consumption characteristic, and exclusion of nonpayers is impossible. Are there any other goods that so perfectly meet both public goods criteria?<\/p>\n \u00b7Congressman Localstuff always votes for a balanced budget amendment to the U.S. Constitution. He also always votes for spending bills supported by the leadership of his political party. Is this rational?Click here to have a similar paper done for you by one of our writers within the set deadline at a discounted<\/a>\u2026<\/i><\/p>\n","protected":false},"excerpt":{"rendered":" Microeconomics 1.Which of the following is not a basic question that each economy must answer? A)Which resources are scarce? B) For whom shall the goods be produced? C) How shall goods be produced? D) What goods shall be produced? 2.If Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-77332","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=77332"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77332\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=77332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=77332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=77332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |
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