Econ1A
A tax on buyers causes which of the following? (i) a leftward shift of the demand curve (ii) a decrease in quantity sold (iii) an increase in the price buyers pay a. (i), (ii), and (iii) b. (i) and (iii) c. (ii) and (iii) d. only (i) e. None of the answers
A
According the American Economic Association video, Economics intersects with which of these disciplines? a. Medicine b. Linguistics c. Chemistry d. All of the answers (expect None of the answers) e. None of the answers
a
According to Hal Varian, productivity growth is or results in which of the following? a. All of the answers (expect None of the answers) b. Higher standard of living c. More consumption d. What we leave to the future e. None of the answers
a
According to diminishing marginal utility, which of the following people would gain the lowest marginal benefit from an extra $100 of income? a. Ariana, an actress with an annual household income of $1,500,000 b. Shawna, a single mother of three young children with an annual household income of $19,000 c. Devin, head of a three-person household with an annual household income of $120,000 d. Chin, a single person with an annual household income of $20,000 e. None of the answers
a
An efficiency wage improves efficiency when: a. the increase in worker effort and reduced turnover cover the cost of the higher wage. b. it is structured so that only the most productive workers receive a higher wage. c. capital costs are reduced enough to cover wage costs. d. improved technology accompanies the worker training. e. None of the answers
a
Bae is willing to pay up to $160 for a particular pair of boots. She is able to buy the boots for $120. The marginal cost of producing the boots is $70. Which of the following is TRUE regarding the economic surplus associated with her purchase of the boots? a. Consumer surplus is $40, and producer surplus is $50. b. Consumer surplus is $50, and producer surplus is $40. c. Consumer surplus is $90, and producer surplus is $120. d. Consumer surplus and producer surplus are the same. e. None of these answers
a
If a company incurs expenses to start providing childcare at work so that employees can have lunch with their preschool children, the company's demand curve for labor will shift to the a. left because employees are more expensive to the firm. b. right because employees are more expensive to the firm. c. left because workers will be more loyal. d. right because workers will be more loyal. e. None of the answers
a
As an employer, you can minimize discrimination based on implicit bias when hiring employees if you base your hiring decisions on: a. gut feelings about the likely productivity of individual job applicants. b. carefully structured assessments of individual candidates rather than gut feelings. c. the track records of similar applicants in the past rather than full assessments of individual applicants. d. a conscious effort to hire members of a group that is discriminated against. e. None of the answers
b
Damon's wage rises. The substitution effect would cause him to _____ his work hours, and the income effect would cause him to _____ his work hours. a. increase; decrease b. increase; increase c. decrease; decrease d. decrease; increase e. None of the answers
a
Diminishing marginal product leads to a. Rising marginal costs for a seller b. Decreased profitability for a seller c. Increased supply of the item in the market d. Lower opportunity costs of producing the item e. None of the answers
a
Which of the following lists only factors that would cause an increase in the supply of an item? a. A decrease in input prices; a technological innovation; a fall in the price of a substitutein-production b. A rise in the price of a substitute-in-production; an increase in the price of a complementin-production; an expectation that the price of the item will increase in the future c. A decrease in the number of sellers in the market; a fall in the price of a complement-inproduction; a technological setback d. An increase in input prices; a decrease in the number of sellers in the market; an increase in the price of a substitute-in-production e. None of the answers
a
Your landscaping company uses labor and shovels. The price of shovels falls, and this _____ your demand for labor because labor and shovels are _____. a. raises; complements b. raises; substitutes c. lowers; complements d. lowers; substitutes e. None of the answers
a
All of the following were mentioned by Dr. McGlasson as factors that have an influence on the elasticity of demand for a product EXCEPT: a. whether the product is a luxury or a necessity b. whether the product is a normal or an inferior good c. whether there are substitutes to the product d. how much of the consumer's budget is allocated to the product e. how much time is available to purchase the product
b
As consumers consume more units of an item, the marginal benefit of each additional unit decreases at an increasing rate. This can be seen through: a. demand curves that are flatter at lower quantities and steeper at higher quantities b. demand curves that are steeper at lower quantities and flatter at higher quantities c. demand curves that are vertical d. demand curves that are positively sloped e. None of the answers
b
If Bella uses the Rational Rule for Workers, she will keep choosing more work and less leisure until the a. value of her production equals her wage. b. marginal benefit of one more hour of leisure is equal to the wage. c. marginal cost of her work equals the value of her production. d. marginal benefit of one more hour of leisure is equal to the value of her production. e. None of the answers
b
If you look at income tax (only the tax on income) which of the following is true in the United States? a. The poorest 10% of the population pay a lot more than the wealthiest 10% b. The poorest 10% of the population pay a lot less than the wealthiest 10% c. The poorest 10% of the population pay about the same amount as the wealthiest 10% d. None of the answers e. All of the answers
b
The highest price that Dara would be willing to pay for a particular vase is: a. Her consumer surplus on the vase. b. The marginal benefit she would receive from the vase. c. The most economically efficient price for the vase. d. The most equitable price for the vase. e. None of these answers
b
Thomas Piketty thinks that economists sometimes spend too much time developing sophisticated mathematical theories without: (SKIP this question; I removed the video) a. without thinking about interconnections b. without knowing the facts they are trying to explain c. without reading history first d. All of the answers e. None of the answers
b
When a minimum wage is imposed in a monopsony labor market, the _____ may not reduce the _____. a. minimum wage; number of employers b. minimum wage; number of jobs c. number of employers; minimum wage d. number of employers; product price e. None of the answers
b
You are thinking of starting a tutoring service. You already have a part-time job on campus that pays $10 per hour. You think you can tutor fellow students for five hours each Saturday at $25 per hour. If you were not tutoring, you could work another five hours at your campus job. How much economic surplus will you generate each week if you start tutoring? a. $125 b. $75 c. None of the answers d. $65 e. $50
b
. In 2012, Marco Rubio argued that he would be in favor of getting rid of quotas on sugar imports (a trade barrier) only if the United States got something in return from Brazil. Rubio's argument is not economically sound (consistent with economic theory) for which of the following reasons? a. Consumers in the United States would be hurt by the higher price of sugar if the quota was removed. b. U.S. producers that use sugar as an input (for example, Lifesavers) would benefit from a higher price of sugar. c. A proportion of the gains to trade received by Brazil would be used to import U.S. goods and services. d. The United States cannot benefit from trade with a country that is less productive. e. None of these answers
c
According to Edward Lazear, which of the following best describes the impact of increased immigration on the wages of the host country according to economic research? a. Large b. Moderate c. Negligible d. None of the answers e. All of the answers (except none of the answers)
c
Barlow and Rusia own a nail salon. A manicure takes Barlow 60 minutes to complete and takes Rusia 45 minutes to complete. Completing a pedicure takes Barlow 45 minutes and takes Rusia 30 minutes. Who has a comparative advantage in manicures? a. Barlow because he is faster. b. Russia because she is faster. c. Barlow because he has a lower opportunity cost. d. Russia because she has a lower opportunity cost. e. None of these answers
c
Consider your decision to attend class each day or skip it. Which of the four core principles of economics applies to the notion that by attending class you are not doing the next best activity you would prefer to do, such as napping or going to the gym? a. None of the answers b. Cost-benefit principle c. Opportunity cost principle d. Marginal principle e. Interdependence principle
c
Countries benefit from trade by exporting goods in which their opportunity costs are relatively _____ and importing goods in which their opportunity costs are relatively _____. a. low; low b. high; high c. low; high d. high; low e. Not enough information to answer this question
c
In Equality and Efficiency: The Big Trade Off, Okun argues that redistributing income from the rich to the poor does what? a. Improves efficiency b. Combats discrimination c. Takes its toll of economic growth d. None of the answers e. All of these answers (except none of these answers)
c
Suppose the percent change in the quantity demanded for water for any price change is zero. The demand curve for water is _____, and the price elasticity of demand is perfectly _____. a. vertical; perfectly elastic b. none of the answers c. vertical; perfectly inelastic d. horizontal; perfectly elastic e. horizontal; perfectly inelastic
c
What happens to the equilibrium price and quantity when demand decreases and at the same time supply increases, and the demand shift is relatively smaller than the supply shift? a. The equilibrium price rises, and the equilibrium quantity falls. b. Both the equilibrium price and quantity will rise. c. The equilibrium price falls, and the equilibrium quantity rises. d. Both the equilibrium price and quantity will fall. e. None of the answers.
c
When did the labor share of national income start falling? Which year is the most correct answer? a. 2009 b. 2012 c. 2002 d. None of the answers e. All of the answers (except none of the answers)
c
Which of the following illustrates a positive externality? a. Martin's company experiences an increase in profits due to his cost-cutting initiatives. b. Artem loses sleep when an airport is built near his home, and planes fly overhead. c. The value of Maria's house rises when the city builds a park nearby, enhancing her view. d. Ella can buy a shirt at half price because someone else returned it. e. None of these answers
c
Which of the following is NOT a correct rationale about why income redistribution programs do not always reduce efficiency? a. Fewer resources may need to be devoted to dealing with crime when incomes are more equal. b. Less concentrated political power may exist when incomes are more equal. c. When incomes are more equal, work incentive grows. d. Worker productivity grows when educational opportunities are widespread. e. None of the answers
c
Which of the following is NOT an example of a corrective tax or subsidy used to address an externality problem? a. The government charges Ku's company a tax equal to the difference between the marginal social cost and the marginal private cost of emissions. b. The government discourages the production of paper products in a suburban community by imposing a unit tax on the production of such products, limiting paper companies' emissions of carcinogenic toxins. c. Marlo's customers have been bothered by the noisy, midday deliveries at the business next door. She arranges to cover part of the delivery costs in order to have the neighbor's deliveries arrive early in the morning rather than at midday. d. The government covers part of the cost of a particular immunization. e. None of these answers
c
Which of the following pieces of advice is consistent with the principle of comparative advantage? a. If someone else is faster than you at a task, trade with them, so they do it for you. b. Focus on what you do best. c. Focus on what you are relatively good at doing, even if you are not the best at it. d. Relative preferences are key to understanding who should do what. e. None of these answers
c
According to Colin Camerer, which of the following best describes neuroeconomics? a. None of the answers b. Uses psychology to study economic decisions c. All of these (except None of these) d. Studying brain function when people are making decisions e. Studying brain development important for economic reasoning
d
Focusing on young workers, according to Marianne Bertrand, the wage gap between men and women is largely explained by which of the following? a. Employment differences b. Educational differences c. Differences in physical strength d. None of the answers e. All of the answers (except none of the answers)
d
If Canadian consumers expect the value of the Canadian dollar to rise against the US dollar, what impact would we expect this to have on Canadians' demand for American made products? a. The demand for American-made items would fall b. None of the answers c. The demand for American-made items would not change d. The demand for American-made items would rise e. The demand for American-made items would double
d
If demand is _____, a higher price yields _____ total revenue. a. inelastic; lower b. inelastic; no change in c. elastic; higher d. elastic; lower e. none of the answers
d
Marie Johnston is a manager at an electronics store and has to decide how many workers to hire. If she hires one worker, her revenue is $800 per day. If she hires another worker, she can make another $600 per day. The marginal benefit of hiring another worker decreases by $200 with each additional hire. Assuming that workers are paid $20 per hour and work eight hours, how many employees should Marie hire, and what will be the total revenue of her store? a. She will hire two workers and the revenue of the store will be $1,400 b. None of the answers c. She will hire three workers and the revenue of the store will be $1,800 d. She will hire four workers and the revenue of the store will be $2,000 e. She will hire five workers and the revenue of the store will be $2,000
d
Rose Riley's parents have booked and paid for a family trip to Aspen, Colorado, during her spring break. Rose's friends recently decided to drive to Destin, Florida, for spring break. Rose needs to decide whether to join her parents in Aspen or drive to the beach with her friends. The opportunity costs of joining her friends on the trip to Destin include each of the following EXCEPT a. Her parents' anger if she skips the family trip to Aspen b. Her contribution to gas money for the drive to Destin c. The hotel costs she will split with her friends in Destin d. The ski lift ticket her parents have already purchased for her e. None of the answers
d
Shifts in supply a. always lead to increases in equilibrium price. b. lead to price and quantity to move in the same direction. c. always lead to increases in equilibrium quantity. d. lead to price and quantity to move in opposite directions. e. none of the answers
d
When there is a high level of intergenerational mobility among the poor in a nation: a. most of the individuals who are poor remain poor. b. most of the poor have incomes that are barely below the poverty line. c. the age distribution among the poor is the same as the age distribution in the total population. d. children of poor parents do not remain in poverty when they are adults. e. None of the answers
d
Which of the following individuals is LEAST likely to lose their job if the economy is doing poorly? a. Francesca, who works as a computer repair technician b. Mercy, who works as a server in a high-end restaurant c. Kamau, who works at a designer handbag store d. Maruichi, who works as a manager at a fast-food restaurant e. None of the answers
d
According to Dani Rodrik what which of the following occupations is advantaged by increased trade? a. Engineer b. Accountant c. Manager d. None of the answers e. All of these answers (except none of these answers)
e
In a monopsony labor market: a. employees bargain with market power through a union. b. employees have an advantage, due to their human capital. c. the employer is forced to pay a high wage. d. the employer uses an attractive benefit package to attract good employees. e. None of the answers
e
Michael Greenstone describes the global energy crisis as a stool with three legs. Which of the following are legs on his stool? a. Access to cheap and reliable energy necessary for rapid economic growth b. Avoiding health consequences of reliance on fossil fuels c. Avoiding disruptive climate change caused by fossil fuels d. None of the answers e. All of the answers
e