Economics

1. A legislative committee is weighing the pros and cons of a clean-air program.

1. A legislative committee is weighing the pros and cons of a clean-air program. If it spends $1 million on the program, the air will be cleaned by 35 percent. After comparing opp…

1. A local property tax will be a benefits tax only if A. richer families live i

1. A local property tax will be a benefits tax only if A. richer families live in higher valued properties B. the distribution of property values is approximately the same as the …

1. A machine has a first cost of $15,000. At the end of 4 years, it can be salva

1. A machine has a first cost of $15,000. At the end of 4 years, it can be salvaged for $3,500. What is the depreciation schedule for Year 1 ( that is what depreciation can you cl…

1. A machine that costs $20,000 has a 10-year life and a $2000 salvage depreciat

1. A machine that costs $20,000 has a 10-year life and a $2000 salvage depreciation is used, what is tdhe book value of the mach value. If straight-line ine at the end of the four…

1. A manufacturing plant is planning to replace outdated equipment with more ene

1. A manufacturing plant is planning to replace outdated equipment with more energy-efficient and environmental-friendly equipment. Two models are under consideration. Model A is …

1. A market has linear market MC (might be supply) and demand curves. No one wil

1. A market has linear market MC (might be supply) and demand curves. No one will buy the good if the price is above $200 and the firm will not produce the good if the price is be…

1. A market is a group of competitors selling similar products. True False 2. St

1. A market is a group of competitors selling similar products. True    False 2. Strategy decisions pertaining to product features, packaging, product line assortment, and brandin…

1. A market is made up of two consumers. The first has a demand P 1 = 1200 – 3q

1. A market is made up of two consumers. The first has a demand P1 = 1200 – 3q1 and the other has demand P2 = 1200 – 6q2. There is one firm in the market acting like a monopolist …

1. A monopolist faces the following demand curve: Price Quantity Demanded $51 1

1. A monopolist faces the following demand curve: Price Quantity Demanded $51 1 $47 2 $42 3 $36 4 $29 5 $21 6 $12 7 The monopolist has total fixed costs of $60 and has a constant …

1. A monopolist is good a. one of a large number of small firms that produce a b

1. A monopolist is good a. one of a large number of small firms that produce a b. one of a small number of large firms that produce a differentiated good c. a single seller of a p…

1. A monopolist is good a. one of a large number of small firms that produce a b

1. A monopolist is good a. one of a large number of small firms that produce a b. one of a small number of large firms that produce a differentiated good c. a single seller of a p…

1. A monopolist is seeking to price discriminate by segregating the market. The

1. A monopolist is seeking to price discriminate by segregating the market. The demand in each market is given as follows: Market A: P = 136 - 4Q Market B: P = 162 - 3Q The monopo…

1. A monopolist produces an efficient quantity of output but it is still ineffic

1. A monopolist produces an efficient quantity of output but it is still inefficient because it charges a price that exceeds marginal cost and the resulting profit is a social cos…

1. A monopolist that engages in perfect price discrimination a. divides all buye

1. A monopolist that engages in perfect price discrimination a. divides all buyers into two mutually exclusive groups b. refuses to sell to consumers of certain races, sexes, or c…

1. A monopolist will earn economic profits as long as his price exceeds: a) marg

1. A monopolist will earn economic profits as long as his price exceeds: a) marginal revenue b) average fixed costs c)average variable cost d) average total cost 2. A monopolist w…

1. A monopolistic pro sports franchise called the Reno Wranglers faces ticket de

1. A monopolistic pro sports franchise called the Reno Wranglers faces ticket demand that varies according to the equation Q 16200-100P and earns marginal revenue according to the…

1. A monopolistic pro sports franchise called the Reno Wranglers faces ticket de

1. A monopolistic pro sports franchise called the Reno Wranglers faces ticket demand that varies according to the equation Q 16200-100P and earns marginal revenue according to the…

1. A monopolistically competitive firm is characterized by a. Price equals margi

1. A monopolistically competitive firm is characterized by a. Price equals marginal cost pricing b. Barriers to entry c. Differentiated products d. Similar products 2. Which of th…

1. A monopolistically competitive market could be considered to be inefficient b

1. A monopolistically competitive market could be considered to be inefficient because marginal cost exceeds marginal revenue (MC > MR). price is always greater than average co…

1. A monopoly firm is different from a competitive firm in that: A. There are ma

1. A monopoly firm is different from a competitive firm in that: A. There are many substitutes for the monopolist's product, whereas there are no close substitutes for the competi…

1. A monopoly has total cost and marginal cost given by: TC = Q2 + 5Q + 100 MC =

1. A monopoly has total cost and marginal cost given by: TC = Q2 + 5Q + 100 MC = 2Q + 5 The market demand curve is given by P = 65 2Q a) Use the twice-as-steep rule to find the eq…

1. A movement from one point on a production possibilities frontier to another r

1. A movement from one point on a production possibilities frontier to another represents A. full employment of labor but not capital. B. an advance in technology. C. a tradeoff. …

1. A nation\'s gross domestic product (GDP): A) is the dollar value of the total

1. A nation's gross domestic product (GDP): A) is the dollar value of the total output produced within the borders of the nation. B) is the dollar value of the total output produc…

1. A natural monopolist has a cost structure C(g) 400+25q and faces market deman

1. A natural monopolist has a cost structure C(g) 400+25q and faces market demand D(p) 200-2p Solve for monopolist's profit, output and consumer surplus when: a. Price is set to m…

1. A new graduate is evaluating buying a car after graduation. She has saved $20

1.      A new graduate is evaluating buying a car after graduation. She has saved $2000 which she will use as a down payment. Calculate for an interest rate of 2% and 10%. Hyundai…

1. A new type of technology has been invented that allows the widget factory to

1. A new type of technology has been invented that allows the widget factory to produce widgets using capital instead of labor. The daily production choices faced by the firm are …

1. A normal profit is a. revenues minus opportunity cost of zero. b. revenues mi

1. A normal profit is a. revenues minus opportunity cost of zero. b. revenues minus accounting cost of zero. c. revenues minus accounting and opportunity cost of zero. 2. Accordin…

1. A noted economist recently stated, \"This last recession, that ended in Novem

1. A noted economist recently stated, "This last recession, that ended in November 2010, had lasted 32 months, which is almost 4 times longer than the average recession (which is …

1. A number of famous studies found that teenagers that come from families that

1. A number of famous studies found that teenagers that come from families that usually eat dinner together are less likely to develop drug addictions than teenagers that come fro…

1. A number of researchers have studied the effects that the EITC has on motivat

1. A number of researchers have studied the effects that the EITC has on motivating more people to work (extensive margin) and on the hours worked among low-income recipients. The…

1. A payment to a firm for every unit exported is called: A) an export tariff. B

1. A payment to a firm for every unit exported is called: A)   an export tariff.       B) an export stipend. C) an export restriction   D) an export subsidy. 2. In general, an exp…

1. A perfectly competitive firm can A. usually not sell all the output it produc

1. A perfectly competitive firm can A. usually not sell all the output it produces, but still "over-produces" because there are some periods when it can sell the extra output at v…

1. A perfectly competitive firm is currently in long run equilibrium. Its total

1. A perfectly competitive firm is currently in long run equilibrium. Its total revenue is $100,000, and the average total cost of production is $100. Which of the following can b…

1. A person that chooses the alternative that has the highest Expected Value, wh

1. A person that chooses the alternative that has the highest Expected Value, when risk is involved, violates the assumptions of expected utility maximisation. True or False 2. An…

1. A person with a long position in a commodity futures contract wants the price

1. A person with a long position in a commodity futures contract wants the price of the commodity to ______. A. decrease substantially B. increase substantially C. remain unchange…

1. A person\'s demand for gizmos is given by the following equation q = 6-0.5p +

1. A person's demand for gizmos is given by the following equation q = 6-0.5p + 0.00021 where q is the quantity demanded at price p when the person's income is I.Assume initially …

1. A policy implication of Keynesian economics is that a. full employment will a

1. A policy implication of Keynesian economics is that a. full employment will always be maintained. b. countercyclical monetary and fiscal policies can be used to achieve full em…

1. A policy that collect payments or resources broadly but concentrates direct b

1. A policy that collect payments or resources broadly but concentrates direct benefits on relatively few is called regulatory policy developmental policy 2. A program that guaran…

1. A poor applicant pool represents an adverse selection problem when: 2. In ord

1. A poor applicant pool represents an adverse selection problem when: 2. In order to reduce the undesirable effects of adverse selection, an insurance company can: 3. Smokers bei…

1. A portfolio consists of two assets A and B. Their respective mean returns are

1. A portfolio consists of two assets A and B. Their respective mean returns are E(RA) = 15% and E(RB) = 10%. Their variances are 2 A = 81 and 2 B = 49. Sixty per cent of the port…

1. A price-discriminating monopoly sells a larger quantity than it would if it w

1. A price-discriminating monopoly sells a larger quantity than it would if it were a single-price monopoly. is illegal. cannot offer discounts. cannot control the price of its pr…

1. A principal-agent problems occur when managerial decisions are not consistent

1. A principal-agent problems occur when managerial decisions are not consistent with the firm's shareholders' interests. A) True B) False 2. A firm making more than a normal prof…

1. A prisoner\'s dilemma occurs when: A. each player has a dominant strategy, an

1. A prisoner's dilemma occurs when: A. each player has a dominant strategy, and the payo to each player is larger than what it would be if each had chosen a dominated strategy B.…

1. A product that is a luxury will have a demand curve that tends to be very A.

1. A product that is a luxury will have a demand curve that tends to be very A. unpredictable in nature B. Vertical C. shallow in nature D. steep in nature 2.If government decides…

1. A production function a. tells you how inputs are affected by output b. tells

   1. A production function        a. tells you how inputs are affected by output        b. tells you how output varies as inputs vary        c. assumues that the sate of technolo…

1. A production possibilities table for two products, corn and paper, is found b

1. A production possibilities table for two products, corn and paper, is found below. Usual assumptions regarding production possibilities are implied. Corn is measured in tons, a…

1. A profit maximizing monopolist faces a demand function given by Q(p)=70-p. Th

1. A profit maximizing monopolist faces a demand function given by Q(p)=70-p. The cost function is C(q)=5q. Suppose that the government introduces a tax of $10 per unit of output.…

1. A profit-maximizing firm hires labor up to the point where A. Price of the pr

1. A profit-maximizing firm hires labor up to the point where    A.   Price of the product equals the value of marginal product.    B.   Price of the product equals the wage rate.…

1. A public project has the folowing possible outcomes and their probabilities:

1. A public project has the folowing possible outcomes and their probabilities: Probabilities                       Possible Outcomes 0.04                                         …

1. A publisher faces the following demand schedule for the next novel of one of

1. A publisher faces the following demand schedule for the next novel of one of its popular authors: Price Quantity demanded 100 0 novels 90 100,000 80 200,000 70 300,000 60 400,0…