intro into micro, CHAPTER 8: MIS, MIT exam 1 Ch 3 Flashcards, Econ 101 - Final Practice Test, Microeconomics chp18, Micro Final, microeconomics 20, microeconomics final, MicroEconomics, MICRO 18, chapter 5 econ pt. 2
looking at a graph: If the poverty rate in Dismal is about 17 percent, what is the poverty line in Dismal?
$10,000
looking at a graph: If the poverty rate in Inequalia is 25 percent, what is the poverty line in Inequalia?
$10,000
What is the poverty line for a 75-year-old individual?
$10,788
Katherine gives piano lessons for $2o/hour. She also grows flowers, which she arranges and sells at the local farmer's market. One day she spends 5 hours planting $50 worth of seeds in her garden. Once the seeds have grown into flowers, she can sell them for $150 at the market. Katherine's accounting profits are
$100, and her economic profits are $0
looking at a graph: If the poverty rate in Abbyville is 12 percent, what is the poverty line in Abbyville?
$15,000
What is the poverty line for a family with one 68-year-old adult and one child?
$15,446
What is the poverty line for a family with one 35-year-old adult and one child?
$15,504
If the U.S. government determines that the cost of feeding an urban family of four is $5,200 per year, then the official poverty line for a family of that type is
$15,600
Assume that Scott decides to consumer $100,000 in the work period. How much money will he have available for consumption in his retirement period?
$165,000
What is the poverty line for a family of three with one child?
$18,106
I'MaPizzaCo. produces and sells specialty pizzas. Last year, it produced 8,000 mushroom, sausage and spinach pizzas and sold each one for $18. To produce these 8,000 specialty pizzas, the company incurred variable costs of $24,000 and a total cost of $40,000. I'MaPizzaCo's average fixed cost to produce 8,000 specialty pizzas was _____.
$2.00
If the poverty rate in Umakastan is 10%, what is the poverty line
$20,000
looking at a graph: If the poverty rate in Danville is 33.3 percent, what is the poverty line in Danville?
$20,000
looking at a graph: If the poverty rate in Dismal is 50 percent, what is the poverty line in Dismal
$20,000
The 2011 U.S. distribution of income shows that the top 5 percent of families earn approximately how much income per year?
$205,000 +
If the U.S. government determines that the cost of feeding an urban family of four is $7,500 per year, then the official poverty line for a family of that type is
$22,500
In 2011, the poverty line for a family of four in the U.S. was
$23,021
Marcus sells 300 candy bars at $0.50 each. His total costs are $125. His profits are
$25
In both 2011 and 2012, approximately 25% of the population earned less than
$25,000
Seventy-five percent of all families have incomes above what level?
$30,000
What is the poverty line for a family of six with three children?
$31,005
The Carolina Christmas Tree cooperation grows and sells 500 christmas trees. The average cost of production per tree is $50. Each tree sells for a price of $65. The Carolina Christmas Tree Corporation's total revenues are
$32,500
Where would the government of Umakastan have to set the poverty line to have a poverty rate of about 28%?
$38,000
Refer to figure 2. The firm's shortrun supply curve is it marginal cost curve above
$4.50
Suppose that 8 workers can manufacture 70 radios/day and that the 9th worker can manufacture 90 radios/day. If radios can be sold for $20 each, the value of marginal product of the 9th worker is
$400
What is the poverty line for a family of eight with two children?
$41,027
Where would the government in Edgerton set the poverty line to have a poverty rate of 40 percent?
$44,000
Median household income in the US is about ________.
$50,000
It takes 1 hour to travel from New York to D.C. by air, but it takes 5 hours by bus. If the air fare is $110 and the bus fare is $70, which is cheaper for someone whose opportunity cost of travel time is $6 per hour? How about for someone whose opportunity cost is $10 per hour? $14 per hour?
$6 per hour, bus is cheaper 6 x 5 hours= 30 plus $70 = $100 versus $110 Air travel is cheaper for $10 ($110 vs $120) and $14 per hour ($110 vs $140)
Fifty percent of all families have incomes below what level?
$60,000
look at the table: Seventy-five percent of all families have incomes below what level?
$90,000
Which of the following statements is correct for a monopolist?
(i) and (iv) only
What are potential trades:
1. Finished goods exchanged through bartering with others 2. Finished goods exchanged for money 3. Business buying resources 4. Consumers buying products
True
1. Productivity tools are software applications that help workers produce more in less time. a. True b. False
What are the two most important aspects of voluntary exchange?
1. Voluntary trade creates value and increases wealth. Value can be created by exchanges that move goods to individuals who value them more. 2. Both parties will benefit
Four factors that could potentially shift the Production Possibilities Curve outward:
1. an increase in the economy's resource base would expand our ability to produce goods and services 2. advancements in technology can expand the economy's production possibilities. 3. an improvement in the rules under which the economy functions can also increase output 4. by working harder and giving up current leisure, we could increase our production of goods and services
Private property rights change behavior in four ways:
1. incentivize people to properly care for their private property. 2. incentivize people to conserve for the future 3. use resources in ways that other people value 4. mitigate possible harm to other people
In addition to specialization and division of labor, how else is economic progress achieved?
1. mass production 2. innovation
What are society's three basic questions?
1. what will be produced? 2. how will it be produced? 3. for whom will it be produced?
true
10. Modern customer relationship management (CRM) systems can help capture the entire customer experience with an organization, from response to an online advertisement to automatic replenishment of products to proactive service. a. True b. False
What is the value for the cell labeled DD
100
true
11. Market researchers collect information on what consumers like and dislike about products through interviews with consumers and retailers. a. True b. False
looking at a graph: The poverty rate in Abbyville is
12%
false
12. Small businesses cannot use targeted marketing due to their low budget. a. True b. False
false
13. Automating the personnel selection process does not require that a current database be maintained. a. True b. False
true
14. Intranets help HR managers post position vacancy announcements for employees to peruse and consider from their own PCs. a. True b. False
In 2011 the poverty rate in the US was
15 percent
Suppose a firm currently produces 325 units of output per day with 15 workers. The firm is able to produce 340 units of output with a 15th worker. What is the marginal product of the 16th worker?
15 units of output
In 2011, the poverty rate in the United States was
15%
false
15. Enterprise resource planning systems cannot be used for managing daily operations. a. True b. False
true
16. Enterprise resource planning applications are expensive. a. True b. False
effectiveness
17. defines the degree to which a goal is achieved. a. Differentiation b. Productivity c. Enhancement d. Effectiveness
efficiency
18. is determined by the relationship between resources expended and the benefits gained in achieving a goal. a. Efficiency b. Displacement c. Productivity d. Enhancement
productivity
19. specifically refers to the efficiency of human resources. a. Competence b. Productivity c. Enhancement d. Compatibility
Since 1959 when the official data on the poverty rate began, the poverty rate was at its highest in
1959
Over the past 50 years, the U.S. poverty rate was at its lowest level in
1973
If Burgers cost $1 each and hot dogs cost 50 cents each, what is the opportunity cost of having one more burger?
2 hot dogs
false
2. Serving customers better and faster, as well as learning more about their experiences and preferences, is facilitated by decision support systems (DSSs). a. True b. False
In 2011, what percentage of U.S. families had income levels above $115,866?
20%
enterprise resource planning (ERP) systems
20. The combination of customer relationship management (CRM) and supply chain management (SCM) systems is referred to as _____. a. decision support systems (DSSs) b. enterprise resource planning (ERP) systems c. business intelligence (BI) systems d. geographic information systems (GISs)
The 2011 U.S. distribution of income shows that the top 5 percent of families have approximately what share of income?
21%
accounting
21. The purpose of is to track every financial transaction within a company, from a few cents to multimillion dollar purchases, from salaries and benefits to the sale of every item. a. human resources management b. marketing c. accounting d. project management
accounting
22. Typically, ISs receive records of routine business transactions—such as the purchase of raw materials or services, or the sale of manufactured goods—from transaction processing systems (TPSs). a. sales b. human resources c. marketing d. accounting
Cost-accounting systems
23. , which are used to accumulate data about expenditures involved in producing specific products, make excellent use of IT to compile pricing data. a. Enterprise resource planning systems b. Cost-accounting systems c. Human resources systems d. Supply chain management systems
Refer to figure 4. The firm's profit-maximizing level of output is
24 units
financial managers
24. The goal of is to manage an organization's money as efficiently as possible. a. financial managers b. auditors c. project managers d. supervisors
Cash management systems (CMSs)
25. are used to execute transactions in which financial institutions transfer huge amounts of money using electronic funds transfer (EFT). a. Decision support systems (DSSs) b. Business intelligence (BI) systems c. Cash management systems (CMSs) d. Expert systems (ESs)
time to market
26. The time between generating an idea for a product and completing a prototype that can be mass-manufactured is known as engineering lead time, or . a. time to sell b. time to distribute c. time to produce d. time to market
brainstorming
27. The process of a group of colleagues meeting and working collaboratively to generate creative solutions and new ideas is known as . a. teleconferencing b. brainstorming c. groupthink d. think tank
looking at a graph (inequalia is $10,000): The poverty rate in Inequalia is
27.8%
procuring raw materials
28. The first phase in the supply chain is . a. procuring raw materials b. delivering goods to customers c. processing of raw materials into goods d. reducing costs of manufacturing processes
Computer-aided manufacturing systems
29. participate in physical activities such as cutting and welding in the manufacturing process. a. Computer-aided design systems b. Expert systems c. Computer-aided manufacturing systems d. Just-in-time manufacturing systems
false
3. The purpose of marketing is to track every financial transaction within a company—from a few cents expenditure to a multimillion-dollar purchase, from salaries and benefits to the sale of every item. a. True b. False
Based on U.S. income data from 2011, the bottom fifth of all families received approximately what percent of all income?
3.8%
long-range forecasts
30. Material requirements planning (MRP) programs use to put long-lead material on order. a. short-range forecasts b. long-range demands c. just-in-time accounting d. long-range forecasts
bill of materials
31. The is an important input to material requirements planning (MRP) applications that includes a list of all raw materials and subcomponent demands. a. targeted market list (TML) b. bill of materials (BOM) c. economic order quantity (EOQ) d. convenient order quantity (COQ)
economic order quantity (EOQ)
32. The of a specific raw material is the optimal quantity that allows a business to minimize overstocking and save cost, without risking understocking and missing production deadlines. a. targeted market list (TML) b. bill of materials (BOM) c. economic order quantity (EOQ) d. convenient order quantity (COQ)
just-in-time
33. In manufacturing, suppliers ship parts directly to assembly lines, saving the cost of warehousing raw materials, parts, and subassemblies. a. targeted b. ahead-of-time c. just-in-time d. total
. Radio frequency identification
34. tags contain circuitry that allows recording of information about a product. a. Digital intermediate b. Open source c. Radio frequency identification d. Reengineering
electronic product code
35. When a radio frequency identification tag is attached to a product, it contains a(n) . a. universal product code b. source code c. electronic product code d. object code
marketing
36. Mostly, customer relationship management (CRM) systems support three areas: , sales, and customer service. a. marketing b. human resources c. manufacturing d. processing
d. radio frequency identification (RFID)
37. When a pattern of defects is discovered in a product, helps pinpoint the plant at which it was produced and the particular lot from which it came. a. universal product code (UPC) b. electronic product code (EPC) c. electronic product code (EPC) d. radio frequency identification (RFID)
Market research systems
38. help to find the populations and regions that are most likely to purchase a new product or service. a. Geographic information systems b. Market research systems c. Database management systems d. Expert systems
input
39. Computer telephony integration (CTI) is a technique enabling a computer to use the digital signal coming through a telephone line as in a computer system. a. output b. input c. identification d. feedback
false
4. Human Resources ISs are used extensively for managerial purposes, assisting in organizing quarterly and annual budgets for departments, divisions, and entire corporations. a. True b. False
According to the table, what percent of families in Edgerton have income levels at or above $76,000?
40%
According to the table, what percent of families in Edgerton have income levels below $44,000?
40%
open-ended questions
40. The frequently asked questions (FAQs) pages of many companies have been replaced with options for . a. questionnaires b. open-ended questions c. graphical data d. statistical survey
ANSWER: Productivity tools
41. are software applications that help workers produce more in less time.
ANSWER: Accounting ISs
42. receive records of routine business transactions—such as the purchase of raw materials or services, or the sale of manufactured goods.
ANSWER: electronic funds transfer EFT electronic funds transfer (EFT)
43. One common use for a cash management system is to execute cash transactions in which financial institutions transfer huge amounts of money using .
ANSWER: Rapid prototyping
44. refers to creating one-of-a-kind products to test design in three dimensions.
ANSWER: supply chain
45. In retail, the manufacturing phase does not exist, so the term refers only to purchasing of finished goods and the delivery to customers of those goods.
ANSWER: shipping
47. When the process of manufacturing products is complete, the next link in the supply chain is .
ANSWER: radio frequency identification
48. When a(n) _____ tag is attached to a product, it contains a electronic product code.
Based on data from 2011, the top fifth of all families received approximately what percent of all income in the United States?
49%
ANSWER: Customer relationship managemen
49. systems are designed to support any and all relationships with customers.
Suppose the demand curve is estimated to be: P = 10 - Q. What Price (P) will the firm charge if it wants to maximize REVENUE?
5
true
5. When investing in securities, such as stocks and bonds, it is important to know the prices of securities in real time. a. True b. False
What is the value for the cell labeled CC
50
The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?
50%
looking at a graph: The poverty rate in Dismal is
50%
$60,000
50% of all families have incomes below what level
If income were equally distributed among households,
50% of the households would receive exactly 50% of the income
telemarketing
50. is marketing over the telephone and it makes extensive use of IT.
ANSWER: Salesforce automation
51. equips traveling salespeople with information technology to facilitate their productivity.
ANSWER: Intranets
52. are intraorganizational networks that support web applications and help HR managers post position vacancy announcements for employees to peruse and consider from their own PCs.
ANSWER: Training software
53. emulates situations in which an employee must act and includes tests and modules to evaluate a trainee's performance
expert system
54. To optimize employee benefits, some companies use special software, incorporating a(n) that determines the optimal health and retirement plans for each employee based on factors such as marital status, age, occupation, and other data.
ANSWER: supply chain management
55. Enterprise resource planning systems can also serve as systems.
ANSWER: supply chain management
56. Companies can reduce their inventory by communicating with their suppliers through a shared system and letting them know the exact number of units of each item they need and the exact time they need them.
Suppose a firm has a demand curve P = 12 - Q, where P is price per unit and Q is number of units. What is the REVENUE maximizing Price (P)? I.e., what P should be charged if the firm wants to maximize revenue?
6
true
6. Material requirements planning (MRP) programs use long-range forecasts to put long-lead material on order. a. True b. False
In 2011, what percentage of U.S. families had income levels below $75,000?
60%
look at a table: According to the table, what percent of families in Edgerton have income levels below
60%
in the United States, labor earnings are about what percent of the total income
67%
true
7. Ideally, the ISs of manufacturing organizations and their suppliers would be linked in a way that makes them subsystems of one large system. a. True b. False
$30,000
75% of all families have incomes above what level
$90,000
75% of all families have incomes below what level
Approximately what percentage of families in Umakastan have income levels below $74,000
79%
ANSWER: False
8. Shipping is the next link in the supply chain after the completion of the process of marketing products. a. True b. False
true
9. The most important development in hardware to support supply chain management has been a technology called radio frequency identification (RFID). a. True b. False
Refer to table 1. What is the concentration ratio in Industry A?
92%
70. Organizations make proactive initiatives to keep their products from becoming a ---- , which is any product that is sold for about the same price by a multitude of vendors in a highly competitive market, usually with a thin margin of profit.
: commodity
A profit-seeking decision maker who decides which business projects to undertake and how they should be undertaken is called a. an entrepreneur. b. a stakeholder. c. key man. d. a progressor.
A
Assume that Willis is a competitive profit maximizing firm. If the market price of gold balls decrease from 2.50 to 2 how many workers would the firm then hire A)2 B)3 C)4 D)5 E)6
A
If the relevant labor supply curve is s2 and the current wage is w1 A) there is a surplus of labor B the quantity of labor demanded exceeds that supplies C D firms will need to raise wages to restore equilibrium E there will be pressure on wages to rise to restore equilibrium
A
Internet sites such as eBay make it easier for sellers and buyers to find one another and, by doing so, a. reduce transactions costs. b. reduce the number of exchanges that occur. c. lower the value created by the goods and services available. d. increase transaction costs.
A
Many kinderGarden teachers have... A) more pleasant working conditions B) less pleasant working conditions C) work longer hours D)Must pass certification tests E)are exposed to many illnesses in a regular basic
A
Store clerks are known to have low wages this is likely to reflect the fact that A)easy job attracting low skill B) hard job attracting high school C) many perceive the job to be dangerous D)store clerks are required to have College degrees E)
A
Suppose a firm charges $5 per unit of output and pays workers at a rate equal to $160 per day what is the value of the marginal product of labor for the fourth worker A 200 B 1000 C 6400 D 32000
A
The production possibilities curve illustrates the basic principle that a. if all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced. b. an economy will automatically move toward a point at which all of its resources are being used inefficiently. c. an economy's capacity to produce is unrelated to its population. d. if all the resources of an economy are being used efficiently, more of one good can be produced only if more of another good is produced.
A
Which of the following statements about exchange is false? a. If one trading partner gains, the other must lose. b. If a party to a potential exchange does not believe that it will lead to personal gain, he or she can chose not to engage in the trade. c. The expectation of gain motivates people to engage in trade. d. Voluntary exchange is generally mutually beneficial to the trading partners.
A
why is private ownership important?
A competitive market economy promotes the efficient use of its resources. ... The goods and services produced in the economy are privately owned. This private ownership, combined with the freedom to negotiate legally binding contracts, permits people to obtain and use resources as they choose.
production possibilities curve
A curve showing the different combinations of two goods or services that can be produced in a full-employment, full-production economy where the available supplies of resources and technology are fixed.
Which of the following is not an example of capital used in production?
A landscaper's time
Which of the following would be most likely to have monopoly power?
A local cable TV provider
A perfect competitive firm produces where
A marginal cost equals price, while a monopolist produces where price exceeds marginal cost
You own an ice cream store and are concerned that an employee may be giving generous scoops to friends and relatives and smaller scoops to some other customers. This is an example of
A moral hazard
Which of the following is an example of a firm's derived demand?
A tractor manufacturer's demand for assembly-line workers is inseparably linked to the supply of tractors
Dr. Warren
A woman in 1970 with a 16 year old child was less likely to be in the workforce than a woman in 2003 with a 6 month old child. Twice as many people in America believed (in a 2002 survey) that the landing on the moon was faked than believed one could make it into the middle class without a college degree.
ANSWER: economic order quantity
ANSWER: supply chain 46. The considers several factors such as the item's cost, the discount schedule for large quantities, the cost of warehousing ordered parts, the cost of alternative uses of the money, and other factors affecting the cost of ordering the item.
Refer to figure 2. The firm will earn a positive economic profit in the short run if the market price is
Above $6.30
Adam has less human capital than Bob
Adam and Bob are identical twins who attended grammar school through high school together. Adam got a job after high school and Bob got a job after graduating from college. Adam earns $36,000 a year, and Bob earns $69,000 a year. Select the best explanation for this wage difference
An entrepreneur's motivation to start a business arises from
All of the above
The goals of the consumer is to
All of the above
Which of the following is an example of customer discrimination?
All of the above
The poverty line is
All of the above are correct
Which of the following statements is correct? (table about different countries)
All of the above are correct
Which of the following is true?
All of the above are true.
The Arrow impossibility theorem shows that
All voting systems are flawed as a mechanism for social choice
The negative externality arises when a person engages in an activity that has
An adverse effect on a bystander who is not compensated by the person who causes the effect
Which of the following is not an example of a barrier to entry?
An entrepreneur opens a popular new restaurant
Government vouchers to purchase food, also known as food stamps are an example of
An in-kind transfer
Which of the following does not explain the rise in income inequality in the United States from 1970 to 2011?
An increase in minimum wages
Which of the following explains the rise in income inequality in the United States from 1970 to 2011?
An increase in the demand for skilled labor
Which of the following is true?
Any two countries can benefit from trade even if one country can produce all goods more cheaply
Students of microeconomic principles often say they are going to study "tonight" because the only way to pass the exam is to study some every night. When "tonight" comes, some students choose to do something else. Come exam day, these students do not do well on their exam. This observation is an example of how people
Are inconsistent over time
What is the name of the mathematical result showing that no voting system can simultaneously satisfy the properties of unanimity, transitivity, independence of irrelevant alternatives, and no dictators?
Arrow's impossibility theorem
P=$2.50 and Q=10
Assume that the consumer depicted the figure has an income of $50. Based on the information available in the graph, which of the following price-quantity combinations would be on her demand curve for Chocolate chips if the price of marshmallows is $2.50?
curve C
Assume that the consumer has an income of $40, the price of a bag of marshmallows is $2, and the price of a bag of chocolate chips is $2. The optimizing consumer will choose to purchase which bundle of marshmallows and chocolate chips?
P=$2 and Q=9
Assume that the consumer has an income of $40. Based on the information available in the graph, which of the following price-quantity combinations would be on her demand curve for marshmallows if the price of chocolate chips were $4?
5 marshmallows and 5 chocolate chips
Assume that the consumer has an income of $40. If the price of chocolate chips is $4 and the price of marshmallows is $4, the optimizing consumer would choose to purchase....
Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises? a. There will be no change in the opportunity cost of producing soybeans. b. The opportunity cost of producing soybeans increases. c. The opportunity cost of producing soybeans decreases. d. The opportunity cost of producing corn increases.
B
Refer to figure 3. The demand curve of a monopoly firm is depicted by curve
B
The opportunity cost of an activity: a. is not influenced by time costs b. depends on the individual's subjective values and opinions c. is the same for everyone d. is irrelevant to decision making e. must be calculated and known before undertaking that activity
B
The statement that coal miners are paid more than workers with similar levels of education is likely to reflect on the fact that A)coal mining is a declining industry B) coal mining jobs are potentially dangerous than those with comparable education requirements C) all coal mines use union labor D) coal exports are rising E) coal imports are rising
B
What is the fourth workers marginal product of labor A) 120 B) 140 golfballs C) 160 golf balls D) 180 E) 680 golf balls
B
Which of the following is true of minimum wage laws A they affect skilled workers wages B they create above equilibrium wages for some unskilled workers C they create a shortage of unskilled labor D they negatively affect the employment of skimmed workers E they create a shortage of skilled labor
B
travis is carefully considering all the options that each recruiter presents A) if the job in Africa has a lot of job satisfaction the wage will be higher B) if the job in Africa has a lot of job satisfaction the wage will be lower C) if the job cleaning motel rooms is disagreeable the wage will be lower D)if the job cleaning motel rooms is agreeable the wage will be higher E)
B
If the consumers do not discriminate between bald barbers and barbers with hair, then
Barbershops that hire bald barbers will be more profitable than those that don't
Why do people engage in exchange? Why do you trade for so many goods instead of just producing them yourself?
Because both people benefit. You value something more than what you are exchanging it for.
How is the law of comparative advantage related to specialization and division of labor?
Because it makes most sense for people who can produce one good cheaper than they can produce another and to trade with someone who can produce a good they want in exchange for what they produce at a lower cost.
Which of the following is not correct?
Because many of the poorest families receive in-kind transfers, more families have lower standards of living when compared to poverty rates based on income
Microsoft faces very little competition from other firms for its Windows software. Why isn't the price of the software $1000/copy
Because the company would sell so few copies that they would earn higher profits by selling at a lower price
Some professional athletes would have incurred a large opportunity cost from going to college. Why?
Because their alternative to college was a high paying professional sports job.
Bill would like to buy a gift for Ann to convey his love for her. Which of the following areas of economics would most likely study this type of decision?
Behavioral economics
A monopolistically competitive market has characteristics that are similar to
Both a monopoly and a competitive firm
When a tax is levied on sellers of tea,
Both sellers and buyers of tea are made worse off
Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a ten-ear period because
Buyers tend to be more sensitive to a change in price when given more time to react
The price elasticity of demand measures
Buyers' responsiveness to a change in the price of a good
For maximizing profit a firm hires labor up to the point at which labor equals •the value of the marginal product of labor •the marginal cost of an additional unit of output •output price multiplied by the marginal product of labor A) 2 B) 1 & 2 C) 1&3 D) 2&3 E)1,2,3
C
If Terrell can produce more bagels in one day than Zori can produce in one day, then a. Zori has a comparative advantage in the production of bagels. b. Terrell has a comparative advantage in the production of bagels. c. Terrell has an absolute advantage in the production of bagels. d. Terrell should produce bagels and Zori should spend her time on a different activity.
C
If the marginal product of labor falls and the price of apples remains unchanged • the value of the marginal product of labor will fall •the quantity of labor demanded will increase above l •the labor supply curve will remain unchanged A) 1 B) 1 and 2 C) 1 and 3 D) 2 and 3 E) 1 2 and 3
C
Labor augmenting technology caused which of the following •the marginal productivity of labor increases •the marginal productivity of labor decreases •labor demand shifts to the right • labor demand shifts to the left A) 1 B) 2 C) 1&3 D)2 3 E)2&4
C
The shift of the labor demand curve from d1 to d2 could possibly be explained by A) a change in workers attitudes toward the work leisure trade off B)decrease in wages in other labor markets C)an increase in the price of firms outputs D)an increase in the wages of workers E) all of the above
C
What is the third workers marginal product of labor A) 120 golf balls B) 140 golf balls C) 160 golf balls 4) 180 5) 540
C
When the relevant labor demand curve is d1 and the labor market is in equilibrium A) the value of the marginal product of labor less than w1 B) the opportunity cost of leisure to workers is less than w1 C) the wage is w1 D) all of the above are correct E) none of the above are correct
C
When collective decision making is utilized to resolve economic questions regarding the allocation of resources, a. centralized decision making in all areas is inevitable. b. economic efficiency will be assured. c. the role of markets will be replaced by political decision making. d. the preferences of individuals are of no importance.
C we don't want collective decision making. Individuals should decide what to do with their private property and let the market dictate the use of resources.
48. By using cookies and recording shoppers' movements, software can create electronic consumer profiles for each shopper and buyer. a. SQL b. CRM c. XML d. CGI
CRM
A monopoly can earn positive profits because it
Can maintain a price such that total revenues will exceed total costs
Economic mobility in the US is
Common. Fewer than 3 percent of poor families remain poor 8 years of more
Workers who work the night shift are often paid more than those who do identical work on the day shift. This is referred to as a
Compensating differential
27. often help ensure that a user does not receive the same unsolicited information multiple times. a. Phishing b. Cookies c. Hosting d. Podcasts
Cookies
Why is the African rhino an endangered species while cattle are not,
Cows are in worldwide demand so the world produces enough to meet the demand. Rhinos are being poached so Landowners not prepared to pay high prices for game for fear of it being poached or caught by predators
"Signaling" refers to actions by an informed party for the sole purpose of
Credibly revealing private information
37. is a process for outsourcing a variety of tasks to a distributed group of people, both online or offline. a. Crowdsourcing b. Debugging c. Consumer profiling d. Load balancing
Crowdsourcing
A plumber who specializes in cleaning plugged sewers is typically paid higher than a plumber who works on installing water systems in residential housinf this can be explained by A) plumbers who work in water systems require years of specialized training B) C) plumbers who work in sewer lines are more likely to work a standard shift D) plumbers who work w sewer lines are perceived as having a dirty job E) bakshajavwj
D
A point beyond the boundary of an economy's production possibilities curve is A. efficient. B. inefficient. C. attainable. D. unattainable. E. both attainable and efficient.
D
Park rangers at Yellowstone National Park are known to have low wages that's probably because A) Park rangers are required to be college grads B) Park rangers not need much money to live C) Park rangers have a. Dangerous job D) Park ranger jobs are perceived to be fun E) Park rangers are required to undergo extensive training
D
Refer to figure 3. The marginal cost curve for a monopoly firm is depicted by curve
D
he number of cattle slaughtered every year for meat far exceeds the number of elephants slaughtered every year for their ivory. Despite this, cows can be found everywhere while elephants are on the verge of extinction in some countries. Which of the following best explains this difference? a. People tend to protest more every year to prevent cow extinction than they do for elephant extinction. b. The demand for ivory far exceeds the demand for beef. c. Animals slaughtered for their meat are generally better conserved by humans than animals slaughtered for nonfood uses. d. Cows can be privately owned while in many countries elephants can not.
D
When a monopolist increases the amount of output that it produces and sells average revenue
Decreases, and marginal revenue decreases
Typically, as a firm hires additional workers, the marginal
Decreases, and the value of the marginal product of labor decreases
has fewer restrictions on storage space and transactions, and since only one site resides on the disks, no other site can affect its functionality. a. Dedicated hosting b. Shared hosting c. Virtual private server hosting d. Co-location
Dedicated hosting
A $5 tax levied on the buyers of pants will cause the
Demand curve for pants to shift up by $5
When adding another unit of labor leads to an increase in output that is smaller than the increases in output that resulted from adding previous inits of labor, the firm is experiencing
Diminishing marginal product
When studying how some event or policy affects a market, elasticity provides information on the
Direction and magnitude of the effect
The market demand curve for a monopolist is typically
Downward sloping
69. ---- webpages can be built with several programming tools: CGI, Java servlets, PHP, and ASP (Active Server Pages).
Dynamite
The invisible hand of the marketplace acts to allocate resources
Efficiently but does not necessarily ensure that resources are allocated fairly
Which of the following is not a characteristic of a competitive market?
Entry is limited
Of the four countries below, the country that has the most income equality is
Ethiopia
How do middlemen reduce transaction costs?
Example: Your local grocer reduces your transaction costs of acquiring vegetables from farmers, milk from diaries, and other products from food producers.
Suppose a profit-maximizing firm in a competitive market produces rubber bands. When the market price for rubber bands falls below the minimum of its average total cost, but stills lies about the minimum of average variable cost, in the short run the firm will
Experience losses but will continue to produce rubber bands
66. The usage of----- in web technologies ensures that data exchanged between the SCM systems of two organizations are interpreted correctly.
Extensible Markup Language (XML)
The consumption of water by local residents that may include pesticide runoff from local farmers fields is an example of
Externalities
23. Every time you download a file from a Web site or attach files to e-mail, you are using a(n) application. a. TCP b. NNTP c. FTP d. POP
FTP
1. Domain names always start with www. a. True b. False T /F
False
11. An important element of online retailing is the absence of a selection facility similar to a brick-and-mortar store. a. True b. False
False
5. Cookies are always temporary; they are installed only for one session, and are removed when the user leaves the site. a. True b. False T/F
False
7. Consumers of the final goods and services are involved in B2B trading. a. True b. False T/F
False
In order to study labor markets more easily, we make which of the following assumptions about firms?
Firms sell their products in competitive markets, firms buy their inputs in competitive markets
Economists in the field of industrial organization study how
Firms' decisions about prices and quantities depend on market conditions
Fax machines, office space, and computers, because they are required regardless of the exact level of production (output) would best categorized as ______.
Fixed inputs
Which of the following is a characteristic of monopolistic competition
Free entry
Which of the following statements best describes the trends in the table?
From 1980 to 2010, the distribution of income has become less equal
if George has better performance reviews than Susan, the company might be rewarding George for his high productivity
George and Susan work at the same brewery. George works in advertising. Susan works as a forewoman in the bottling plant. George is paid more than Susan.
Which of the following is correct
Governments can sometimes improve market outcomes
Which two of the Ten Principles of Economics are illustrated in this chapter?
Governments can sometimes improve market outcomes & People face tradeoffs
A benefit of a monopoly is
Greater creativity by authors who can copyright their novels
21. is a secured protocol used for confidential transactions. a. HTTPS b. HTTP c. FTP d. VOIP
HTTPS
If your local gasoline station raised its price by 20 percent, its sales of gasoline would decrease substantially because your local gas station
Has little or no market power, is small relative to the size of the gas market, is a competitive firm (all of the above)
Most of the total income earned in the US economy is ultimately paid to
Households in the form of wages and fringe benefits
Economists study poverty and income inequality to answer which of the following questions
How much inequality is there in society?
Which of the following is not a question that economists try to answer when measuring the distribution of income?
How often do people receive a raise at work?
52. ----- is the most common programming language for creating Web pages and other information viewable in a Web browser.
Hypertext Markup Language (HTML)
determines the look and location of text, pictures, animations, and other elements on a Web page. a. Uniform Resource Locator (URL) b. Hypertext Markup Language (HTML) c. Extensible Markup Language (XML) d. Hypertext Transfer Protocol (HTTP)
Hypertext Markup Language (HTML)
51. The protocol used to transfer and download Web information is -----.
Hypertext Transfer Protocol (HTTP)
Which of the following statements best reflects a price-taking firm
If the firm were to charge more than the going price, it would sell none of its goods
Under majority rule, the order in which items are voted on is
Important, and this is a lesson of the Condorcet paradox
Which of the following is false?
In adverse selection situations, it is rational for a seller with more information about a product to pro-vide a truthful and complete disclosure and make that fact known to a potential buyer.
Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic
In the short run but not in the long run
Increases in international trade and technological change have been offered as explanations for the
Increase in demand for skilled workers and decrease in demand for unskilled workers in the United States
If the value of the marginal product of labor is less than the wage, then the firm could
Increase profit by reducing the amount of labor hired
if government regulations make a certain job less dangerous, then we'd expect that the supply of labor for that job would
Increase, which by itself would reduce the wage for that job
In "For the life of the world" video, God's oikonomia was compared to
Individual instruments playing a song together
Refer to table 1. Which industry is the most competitive?
Industry D
A person who takes a prescription drug to control high cholesterol most likely has a demand for that drug that is
Inelastic
Evidence from studies of workers choices on whether to participate in 401(k) plans suggest that the workers' behavior appears to exhibit:
Inertia
In the long run
Inputs that were fixed in the short run become variable
26. might be thought of as "realtime email," because, unlike email, it is synchronous in exchanging information. a. RSS feeds b. Podcasting c. Instant messaging d. E-Tailing
Instant messaging
Which of the following is true?
It is extremely difficult to limit the benefits of a public good to the people who pay for it.
When comparing the percentage of income (or expenditure) of the lowest and highest 10 percent of the population
Japan has a more equal income distribution than the United States
Which of the following lists correctly ranks countries from most equal to least equal distribution of income?
Japan, India, United States, Brazil
Difference in wages can be explained by differences in
Job characteristics and workers characteristics
Which country has the most unequal income distribution?
Latvia
"Equality of opportunities is more important than equality of incomes" This statement would be most likely attributed to which political philosophy?
Libertarianism
41. transfers visitor inquiries from a busy server to a less busy server for identical information and services. a. Load balancing b. Shared hosting c. Pure playing d. Co-location
Load balancing
The graph describing the income distribution is called ___________.
Lorenz curve
A safe driver would likely choose an auto insurance policy with a
Low premium and a high deductible
When the supply of workers in plentiful, one would predict that market wages would be
Low, other things equal
The consumers optimism is where
MUx/MUy=Px/Py
law of comparative advantage
Make the good for which you have a low opportunity cost and trade for the good which you have the high opportunity cost Translation: Make something you are good at and trade for something you are not good at. Do what you do best, and trade for the rest.
A "satisficer" is a person who
Makes decisions that are merely good enough
Based on the studies of human decision making, which of the following statements is correct?
Many people's preferences are inconsistent over time
Liberalism suggests that public policies should aim to
Maximize the well-being of the worst-off person in society
The particular price that results in quantity supplied being equal to quantity demanded is the best price because it
Maximizes the combined welfare of buyers and sellers
Consumer surplus
Measures the benefit buyers receive from participating in a market
A concentration ratio
Measures the percentage of total output supplied by the four largest firms in the industry
The United States has less income inequality than
Mexico
The market structure with many firms selling a differentiated product is ________.
Monopolistic competition
The higher the concentration ratio, the
More control an individual firm has to set prices and the less competitive the industry (both a and c are correct)
Goods with many close substitutes tend to have
More elastic demands
Evidence suggests that business owners are generally
More interested in making a profit than in discriminating against a particular group
Which of the following statements represents the idea behind signaling in education?
More productive people are more inclined to educate themselves
When a natural monopoly exists, it is
Never cost effective for two or more private firms to produce the product
When existing firms in a competitive market are profitable, an incentive exists for
New firms to enter the market, even without government subsidies
The beer industry in the US is best characterized as ________________.
Oligopoly, because while there are many brands there are only a few suppliers
Which of the following is not a characteristic of a monopoly?
One buyer
The marginal product of labor is defined as the change in
Output per additional unit of labor
Comparing data from 2000 and 2011, which of the following statements is correct?
Overall income inequality has worsened slightly, as shown by the simultaneous increase in the share of income held by the top fifth and the decrease in the share of income held by the bottom fifth
Some studies show that even students who earned high grades in science classes provide disproven explanations for scientific phenomena. These disproven explanations had been acquired pirate to the science classes. These studies provide some support for which of the following systematic mistakes that people make?
People are reluctant to change their minds
Which of the Ten Principles of Economics do governments run into when they redistribute income to achieve greater equality
People face trade-offs
What is the relationship between private property and the market?
Permission of the owner is required for use of a private property. You must either buy or lease it from the owner. Market prices provide a strong incentive for private owners to consider the desires of others and to use and develop resources that are highly valued by others.
-----is a cyberattack tactic used to trick Internet users into giving up personal information such as PINs and account numbers.
Phishing
Simple explanation of a production possibilities curve
Points on the curve are efficient- Points inside of the curve are inefficient Points outside of the curve are unattainable. Imagine an economy that can produce only two things: wine and cotton. According to the PPF, points A, B and C - all appearing on the PPF curve - represent the most efficient use of resources by the economy. For instance, producing 5 units of wine and 5 units of cotton (point B) is just as desirable as producing 3 units of wine and 7 units of cotton. Point X represents an inefficient use of resources, while point Y represents the goals that the economy simply cannot attain with its present levels of resources. economics1.gif As we can see, in order for this economy to produce more wine, it must give up some of the resources it is currently using to produce cotton (point A). If the economy starts producing more cotton (represented by points B and C), it would need to divert resources from making wine and, consequently, it will produce less wine than it is producing at point A. As the figure shows, by moving production from point A to B, the economy must decrease wine production by a small amount in comparison to the increase in cotton output. However, if the economy moves from point B to C, wine output will be significantly reduced while the increase in cotton will be quite small. Keep in mind that A, B, and C all represent the most efficient allocation of resources for the economy; the nation must decide how to achieve the PPF and which combination to use. If more wine is in demand, the cost of increasing its output is proportional to the cost of decreasing cotton production. Markets play an important role in telling the economy what the PPF ought to look like. Consider point X on the figure above. Being at point X means that the country's resources are not being used efficiently or, more specifically, that the country is not producing enough cotton or wine given the potential of its resources. On the other hand, point Y, as we mentioned above, represents an output level that is currently unattainable by this economy. But, if there were a change in technology while the level of land, labor and capital remained the same, the time required to pick cotton and grapes would be reduced. Output would increase, and the PPF would be pushed outwards. A new curve, represented in the figure below on which Y would fall, would then represent the new efficient allocation of resources.
looking at a graph: Which of the following is consistent with the data reported in the figure?
Policies to reduce elderly (65 years and older) poverty rates since 1959 seem to have been effective.
The presence of a price control in a market for a good or service usually is an indication that
Policy makers believed that the price that prevailed in that market in the absence of price controls was unfair to buyers or sellers
The median-voter theorem explains why
Politicians tend to take middle-of-the-road positions
Research into new technologies provides a
Positive eternality and too few resources are devoted to research as a result
Self sufficiency, or trying to produce everything for yourself is the path to:
Poverty
no change in the short run, down in the long run
Pretzel stands in New York City are a perfectly competitive industry in long-run equilibrium. One day, the city starts imposing a $100 per month tax on each stand. How does this policy affect the number of pretzels consumed in the short run and in the long run?
Imperfectly competitive firms are characterized by
Price making ability
The value of the marginal product of labor is calculated by multiplying the
Price of output by the marginal product of labor
When a corporation decides to include its own corporate stock as part of the compensation for its employees, it is trying to solve the
Principle-agent problem
Which of the following equations is valid?
Producer surplus= total surplus-consumer surplus
Refer to Figure 1. Suppose the production function shifts from TP1 to TP2. Such a shift in the total product curve is most likely due to an increase in the firm's
Productivity
When deciding whether to hire an additional worker, firms need only consider ow the additional worker would affect
Profit
The field of behavioral economics builds a more subtle and complex model of economic behavior using insights from
Psychology
Which of the following is a valid reason for the government rather than the market to finance the provi-sion of certain economic goods and services?
Public goods tend to be undersupplied through the market since it is difficult for potential suppliers to withhold such goods from nonpaying consumers; the government can use taxes to overcome this problem of nonpayment.
Refer to figure 3. If the monopoly firms wants to maximize its profit, it should operate at a level of output equal to ____ and profit will be maximized by charging a price equal to
Q3, P5
A binding minimum wage
Raises the cost of labor to firms
A consumer chooses an optimal consumption point where the
Ratio of the marginal utilities equals the ratio of the prices
The term shutdown
Refers to a short run decision that a firm might make, whereas the term exit refers to a long run decision that a firm might make
The term shutdown
Refers to a short run decision that a firm might make, whereas the term exit refers to a long-run decision that a firm might make
In many states, the resale of tickets to sporting events at prices above the original purchase price ("ticket scalping") is prohibited. Is this a good idea? Who is hurt and who is helped by this prohibition?
Scalping allows Tickets go to those that value them most so prohibiting scalping means that the people that want the tickets most, can't get them. They would pay more, because they really value the tickets.
A life insurance company requires new applicants to have a medical exam prior to writing the insurance policy. This requirement is an example of
Screening
A brand of wine is priced at only $5/bottle, far below the market price of most high quality wines. Before any reputation exists for the wine, consumers buy very little of this inexpensive wine because they interpret the low price to mean that the wine is of poor quality. This label change is an example of
Signaling
According to behavioral economics, if people taking an exam were asking to guess the score they would receive, it would be most likely that
Significantly more people would score below what they guessed than above what they guessed
________ include both the private costs incurred by firms and also costs incurred by third parties outside the production process.
Social costs
Studies of wages by labor economists indicate that measurable variables such as age, job characteristics, years of education, and years of experiences account for
Some, but less than 50 percent of the variation in wages in out economy
Of the four countries below, which has the highest degree of income inequality?
South Africa
28. includes cookies and other, more sophisticated applications that are installed on your computer unbeknownst to you and transmit information about you while you are online. a. Spyware b. Honeypot c. Groupware d. Honeytoken
Spyware
A utilitarian government has to balance the gains from greater income equality agains the losses from distorted work incentives. To maximize total utility, therefore, the government
Stops short of a fully egalitarian society
If the cross-price elasticity of two goods is positive, then the two goods are
Substitutes
When economists refer to a production cost that has already been committee and cannot be recovered, they use the term
Sunk cost
Which of the following should typically be ignored because spending has already been made and cannot be changed?
Sunk costs
$6,180 and its profit amounts to $25,750
Suppose AVC = $113 when the firm produces 515 units of output. Then the firm's fixed cost amounts to
look at a table: Which country has the most equal income distribution?
Sweden
Which of the following goods are not likely to be sold in monopolistically competitive markets?
Tap water
A key determinant of the price elasticity of supply is
The ability of sellers to change the amount of the goods they produce
Welfare economics is the study of how
The allocation of resources affects economics well-being
Which of the following relations involves asymmetric information?
The batter in a baseball game must guess whether the pitcher is going to throw a fastball, curveball, or change-up
How do transaction costs decrease the benefits of voluntary exchange?
The cost of information, transportation, and other elements of transaction costs will some times be so great that potential gains from trade will go unrealized.
A government created monopoly arises when
The government gives a firm the exclusive right to sell some good or service
opportunity cost
The highest valued alternative that must be given up as a result of making a choice. • Opportunity costs are incurred when a choice is made. • They are subjective and vary across persons. • If an option becomes more costly, an individual will be less likely to choose it.
Which of the following is the best overall conclusion to draw from the data?
The income distribution has been relatively unchanged from 2001 to 2011
Economic studies of lottery winners and people who have inherited large amounts of money show that
The income effect of winning the lottery or inheriting large amounts of money likely outweighs the substitution effect for most people
For a profit-mazimizing competitive firm, the value of marginal product curve is
The labor demand curve
For a typical worker, her income will be lower when she is younger, peak around age 50, and decrease drastically when she retires. This pattern of changes in income for a typical worker is called
The life cycle
Suppose the government has imposed a price ceiling on laptops. Which of the following could transform the price ceiling from one that is not binding into one that is binding
The number of firms selling laptop computers decreases
To say that a firm is commutative in the labor market is to say that the firm can choose
The number of workers it hires, but it cannot choose the wage it pays its workers
What is the opportunity cost of college?
The opportunity cost of going to college includes: • Monetary cost: tuition, books. • Non‐monetary cost: forgone earnings. • If the opportunity cost of college rises (e.g. tuition rises or you get a fantastic job offer then one will be less likely to attend college. example: If you choose not to attend college, one likely scenario would be you picking up a job. Say you get a job out of high school for $35k per year. After four years you've earned about $140k (without any increases in wage or bonuses). What happens if you go to school? Let's assume your yearly tuition and expenses is $30k and you choose to put your head down and graduate within four years. Let's say you choose to stay completely focused on school and do not work while in college. After four years you are out $120k right? Well... yes, but this is where opportunity cost comes in. Because you chose to go to college instead of working, your opportunity cost is actually the sum of your college expenses plus the money you could have earned had you chosen not to work. Your opportunity cost to attend college is $260k.
Which of the following best describes the poverty rates by age from 1965 to 2011?
The percentage of children under age 18 and the percentage of adults aged 18 to 64 have maintained a similar trend while the percentage of elderly aged 65 and over has decreased significantly
A person who is concerned that income inequality has worsened between 2011 and 2012 would cite which of the following statistics to support her position?
The percentage of people earning more than $100,000 increased from 2011 to 2012
Which of the following statements is not correct?
The poverty line is adjusted semiannually to reflect changes in fuel prices
private property rights
The right to use, control, and obtain benefits from a resource, good, or service. Private property rights involve: • the right to exclusive use. • legal protection against invaders. • the right to transfer to another.
A firm operating in a monopolistically competitive market can earn economic profits in
The short run but not in the long run
Which of the following statements is correct?
The statement "a rising tide lifts all boats" illustrates how economic growth reduces the number of people with income levels below the poverty line
Comparing data from 2000 and 2011, which of the following statements is correct?
The top 40% of the population had a greater share of the income in 2011 than it did in 2001
An example of an opportunity cost that is also an implicit cost is
The value of the business owner's time
An oligopoly is a market in which
There are only a few sellers, each offering a product similar or identical to the products offered by other firms
The amount of money that a firm receives from the sale of its output is called
Total revenue
Normally, We expect voters' references to exhibit a property called
Transitivity
Susan won $2000 at the blackjack tables on her birthday. Her winnings are an example of
Transitory income
10. Companies in the same industry competitors often collaborate in establishing a website for one or several purposes. a. True b. False
True
2. File Transfer Protocol (FTP) is a common way of transmitting files from one computer to another. a. True b. False T/F
True
3. RSS software called an aggregator or feed reader automatically checks for new content and downloads files from a designated site in the same way as is done for text files from online newspapers. a. True b. False T/F
True
6. Third-party cookies can collect users' browsing and shopping habits across many websites. a. True b. False T/F
True
9. An exchange is an extranet for organizations that offer for sale and bid on products and services of a particular type. a. True b. False T.F
True
An optimizing consumer will selet a consumption bundle in which
Utility is maximized, subject to budget constraints
To maximize profit, a competitive firm hires workers up to the point of intersection of the
Value of marginal product curve and the wage line
-----enables one server to be virtually split into many addressable servers, each for a different client and with its own domain name.
Virtual private server
60. ------ technology enables one server to be virtually split into many addressable servers, each for a different client and with its own domain name.
Virtual private server
all of the above are compensating differentials
Wages of doctors tend to be higher than wages of bankers. which of the following is a compensating differential explaining the difference in wages?
What is an opportunity cost?
What we give up when you make a choice "real costs that should influence our decisions"
When John F. Kennedy said "A rising tide lifts all boats" to what was he referring?
With economic growth, more families are pushed above the poverty line
When John F. Kennedy said, "A rising tide lifts all boats," to what was he referring?
With economic growth, more families are pushed above the poverty line
A compensation scheme that pays salespeople a percentage of the sales they make is attempting to reward
Work effort
The substitution effect of a wage decrease in the work-leisure model results in the worker choosing to
Work less than before
40. enables business partners to set standards for data formats in Web pages. a. Perl b. CGI c. XML d. SQL
XML
Can private owners do anything they want with their property?
Yes as long as you don't infringe on other people's property rights with them. Private ownership encourages wise stewardship, encourages people to use their property productively, gives people a strong incentive to develop their property in ways that are useful to others, and promotes wise deveopment and conservation resources for the future
Do the owners of land and buildings near your campus have an incentive to use those assets to provide things that students value highly? Why or why not?
Yes, because they can provide goods and services that students value highly relative to their cost.
Does a 60 year old tree farmer have an incentive to plant and care for Douglas fir trees that will not reach optimal cutting size for 50 years? Explain.
Yes, the market value of the land will increase in anticipation of the future harvest.
Refer to figure 2. If the market price is $6.30, the firm will earn
Zero economic profits in the short run
The fact that the marginal product falls as the number of workers increases illustrates a property called A) Diminishing marginal product B) utility maximization C) supply and demand D) labor theory E) Diminishing marginal utility
a
Why would a wage differential due to discrimination be unlikely to persist in a competitive labor market? A) There is a cost advantage for firms that do not discriminate. B) workers who are victims of discrimination will eventually drop out of the market C) D) discrimination can not exist in markets E) there is a cost advantage for firms that do discriminate
a
a family that earns an income of 30,000 A) neither pay taxes or achieve an income subsidy B) receive an income subsidy of 1,000 C) pay 1,000 D) pay 6,000 E) pay6,666
a
if consumers do not discriminate between bald barbers and barbers with hair A) competitive pressures in the markets for haircuts will eventually cause the equilibrium wage in both markets to be identical B) the equilibrium wage in the bald market will eventually fall C)the equilibrium wage in the hairy market will eventually rise D) wages in the markets for barbers can never be in equilibrium E) the wage differential is likely to persist
a
in 2001 the percentage of children under 18 in poverty is A)higher than both the percentage of adults and elderly in poverty B) higher than adults but Lower than elderly in poverty C) D)lower than adults but higher than elderly E)
a
measuring poverty using an absolute incomes scale like the poverty line can be misleading because A) income measures do not include the values of in kind transfer B) money is more highly valued by the poor than the rich C) the poor are not likely to participate in the labor market D)income measures are not adjusted for the affects of labor discrimination E) money is less highly valued by the poor than the rich
a
suppose that a college student receives an offer for a summer internship with a stock brokerage firm. unfortunately the internship is unpaid. is it economical to accept the unpaid job A) yes, the experience gained will increase their human capital B) no the opportunity cost is too high C) no signaling he or she is willing to accept low wages D) yes unpaid job says she's financially stable E) no they will not make up for opportunity cost of that time
a
the poverty line in the country of abbyville is 15,000 the distribution of income is as follows the poverty rate in abbeyville is A) 12% B) 32% C) 50% D) 68% E)75%
a
travis is carefully considering all the options that each recruiter presents A) if the motel job also requires an ability to do general plumbing repairs, the wage offer will be higher than otherwise b) if the food job requires specific training the wage will be lower c)if the food distribution exposes him to Ebola virus the wage will be low D) if the motel job involves substantial driving the wage offer will be lower than otherwise E)if the motel job offers being able to eat meals for free the wage offer will be higher than other wise
a
when the government redistributes income to achieve greater equality it A) distorts incentives B) improves efficiency C) focuses on middle income brackets D) relies on foreign aid to help balance the budget E)
a
which of the following statement is correct A) differences in human capital may explain differences in wages between blacks and whites B) racial discrimination is the strongest explanation C) gender discrimination is the strongest explanation D) all of the above are correct E) none of the above are correct
a
UNOS is an example of _______________.
a 'command' solution to an economic problem
When we compare the income distribution of the United States to those of other countries, we find that the U.S. has
a bit more inequality than the typical country
Of the following, the best example of a private good is:
a can of soda.
do not allow poor families to make purchases based on their preferences
a disadvantage associated with in-kind transfers to reduce poverty is that they
Which of the following is most likely to occur when the government enacts policies to make the distribution of income more equal?
a distortion of incentives
Leanne, a local taxpayer, and Crystal, a visitor from out of town, both attend a city-sponsored Fourth of July fireworks display at Prospect Park. Crystal is:
a free rider.
Which of the following goods is least likely to be provided by the private sector?
a good characterized by nonrivalry in consumption from which paying customers cannot be excluded
market organization
a method of organization in which private parties make their own plans and decisions with the guidance of unregulated market prices. the basic economic questions of consumption, production, and distribution are answered through these decentralized decisions.
Which of the following would be an example of a nongovernmental solution to a problem associated with externalities?
a moral code against using sprinklers during a drought
Entrepreneur
a person who introduces new products or improved technologies and decides which projects to undertake. a successful entrepreneur's actions will increase the value of resources and expand the size of the economic pie
Socialism
a system of economic organization in which 1) the ownership and control of the basic means of production rest with the state and 2) resource allocation is determined by centralized planning rather than market forces
Consider the choices of women aged 30 to 50 years old with (a) a college education or (b) less than a high school education. In which case will the share of women in the work force be highest? Which will have the higher average number of children? Why?
a) college educated will have more women in the workforce because the opportunity cost of staying home is so great. They have to give up higher wages.
22. Rosie's Flower Shop sells bouquets of roses for $15 each. If Rosie hires 10 workers, she can sell 500 bouquets per week. If she hires 11 workers, she can sell 560 bouquets per week. Rosie pays each of her workers $400 per week. Which of the following is correct? a. For the 11th worker, the marginal profit is $500. b. For the 11th worker, the marginal revenue product is $500. c. The firm is maximizing its profit. d. If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.
a. For the 11th worker, the marginal profit is $500.
24. Diminishing marginal product affects the shape of the production function in what way? a. The slope of the production function decreases as the quantity of input increases. b. The production function becomes steeper as the quantity of input increases. c. The production function slopes downward. d. The production function is horizontal beyond a certain quantity of input.
a. The slope of the production function decreases as the quantity of input increases.
Typically, as a firm hires additional workers, the marginal product of labor: a. decreases and the value of the marginal product of labor decreases b. stays constant and the value of the marginal product of labor decreases c. decreases and the value of the marginal product of labor stays constant d. decreases and the value of the marginal product of labor increases
a. decreases and the value of the marginal product of labor decreases
14. As the number of firms in an oligopoly increases, the a. price approaches marginal cost, and the quantity approaches the socially efficient level. b. price and quantity approach the monopoly levels. c. price effect exceeds the output effect. d. individual firms' profits increase.
a. price approaches marginal cost, and the quantity approaches the socially efficient level.
18. As the number of firms in an oligopoly increases, the a. price approaches marginal cost, and the quantity approaches the socially efficient level. b. price and quantity approach the monopoly levels. c. price effect exceeds the output effect. d. individual firms' profits increase.
a. price approaches marginal cost, and the quantity approaches the socially efficient level.
If the demand curve for beef shifts to the right, then the value of the marginal product of labor for butchers will: a. rise b. fall c. remain unchanged d. rise or fall; either is possible
a. rise
19. In markets characterized by oligopoly, a. the oligopolists earn the highest profit when they cooperate and behave like a monopolist. b. collusive agreements will always prevail. c. collective profits are always lower with cartel arrangements than they are without cartel arrangements. d. pursuit of self-interest by profit-maximizing firms always maximizes collective profits in the market.
a. the oligopolists earn the highest profit when they cooperate and behave like a monopolist.
look at a table: In 2011, the bottom 40% of families has
about 13% of total income in the U.S.
In 2010, the top fifth of the US population had
about 15 times as much income as the bottom fifth
In 2011, the bottom 60% of families have
about 28% of total income in the U.S.
produce the outcome most preferred by the median voter
according to the median voter theorem, majority rule will
"Economies of Scale" refers to ____________.
achieving lower cost per unit of production as production becomes greater
look at a table: In 2011, the top fifth of families have
almost 13 times as much income as the bottom fifth of families
The poverty rate is a measure of the percentage of people whose incomes fall below
an absolute level of income
Capitalism
an economic system in which productive resources are owned privately and goods and resources are allocated through market prices
If consumers were able to receive the full social benefits associated with the consumption of goods in-volving positive externalities, other things being equal, there would probably be:
an increase in consumption.
The Wireless industry, consisting mainly of three large companies, Verizon, AT&T, and Sprint, is an example of ____.
an oligopoly
The Principle of Diminishing Marginal Benefit/Utility
as you consume (buy it and use it for its purpose) more units of a good or service, the additional value you receive from each unit tends to decrease. There is an assumption wrapped up in this principle: to make this principle applicable, we must assume that all units are of the same quality.
curve B
assume that the consumer has an income of $100 and currently optimizes at bundle A. When the price of marshmallows decreases to $5, which bundle will the optimizing consumer choose?
10 marshmallows and 10 chocolate chips
assume that the consumer has an income of $80. If the price of Chocolate chips is $4 and the price of marshmallows is $4, the optimizing consumer would choose to purchase
Profit is maximized _________________.
at a lower quantity than the quantity where revenue is maximized
Suppose that an employer hires workers with brown hair and workers with blond hair. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by offering blonde workers lower wages than brunette workers? a. The employer will be just as efficient as a nondiscriminating employer. b. The employer will face higher costs than firms that focus only on maximizing profits. c. The employer will immediately go out of business because discrimination is illegal. d.The employer will face lower costs than firms that focus only on maximizing profits. e. The employer will face union strikes.
b
an affective minimum wage would be set at a level A) above Wo, and employment would rise below Qo B) above Wo, and employment would fall below Qo C) below Wo, and employment would rise below Qo D) below Wo, and employment would fall below Qo E) at Wo, and employment would remain constant
b
assume men, on balance, have lower amounts of human capital than women have then we would expect A) the demand for female labor to be lower than Male labor B) the demand for female labor to be higher than Male labor C) the demand for female labor to be the same as Male labor D)the supply of female labor to be lower than male labor E) the supply of female labor to be higher than male labor
b
government programs that take money from high income people and give it to low income people typically A) improve economic efficiency by reducing poverty B) reduce economic efficiency because they distort incentives C) have no effect on economic efficiency because they both reduce poverty and distort incentives D)sometimes improve sometimes reduce and sometimes have no effect on the economic efficiency E) improve economic efficiency because they reinforce incentives
b
human capital is... A) an important determinant of wages but it does not affect the production of goods and services B) an important determinant of wages and it affects the productions of goods and services C) a specific type of capital made by humans rather than machines D) E) an important determinant of the productions of goods and services but it does not affect wages
b
suppose that consumers suddenly prefer to do business left handed workers instead of right handed workers we would expect the marginal product of revenue A) left handed workers would rise which would increase the demand for left handed workers this will increase the number of left handed workers employed which will in turn increase the marginal product of left handed workers B) left handed workers would rise which would increase the demand for left handed workers this will increase the number of left handed workers employed which will in turn reduce the marginal product of left handed workers C) right handed workers would rise which would increase the demand for right handed workers this will increase the number of right handed workers employed which will in turn increase the marginal product of right handed workers D) right handed workers would rise which would increase the demand for right handed workers this will increase the number of left handed workers employed which will in turn reduce the marginal product of left handed workers E) left handed workers would rise which would decrease the demand for left handed workers this will increase the number of left handed workers employed which will in turn reduce the marginal product of left handed workers
b
the poverty rate is A) a measure of income inequality across families B) the percentage of the populations whose income falls below a specified level C)an absolute level of income set by the federal government for each family size D) measured by the number of in kind transfers a family receives E) a comparison of poverty levels over time
b
where would the government in abbeyville set the poverty line to generate a poverty rate of 12% A) under 15,000 B) 15,000 C)20,000 D) 25,000 E)30,000
b
which of the following explains the rise in income inequality from 1970 to 2007 A) an increase in minimum wages B) An increase in the demand for skilled labor C) an increase in the demand for unskilled labor D) reduced in international trade with low wage countries E) an increase in welfare programs
b
which of the following is most likely to occur when the government enacts policy to make the distribution of income more equal A) a more efficient allocation of resources B) a distortion of incentives C) unchanged behavior D) all of the above are correct E)none of the above are correct
b
which of the following statements is correct A) the poverty Line is a relative standard B) economic growth the raises all incomes will decrease the number of families in poverty C) increasing income inequality reduces poverty D) economic growth by definition affects all families equally E)
b
why might an economist be skeptical of bills discrimination complaint A) through anti trust laws discriminating firms can be penalized with large fees B)in a competitive market employers pay employees based on their value to the firm C) discrimination leads to profit maximization D) only cost maximizers practice discrimination E) in a competitive market employers pay employees based on their union membership which eliminates discrimination
b
7. A competitive firm sells its output for $30 per unit. The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day. The firm pays its workers a wage of $150 per day. For the 11th worker, the value of the marginal product of labor is a. $120. b. $480. c. $600. d. $2,400.
b. $480.
11. Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards? a. Both the equilibrium wage and quantity increase. b. Both the equilibrium wage and quantity decrease. c. The equilibrium wage increases, and the equilibrium quantity decreases. d. The equilibrium wage decreases, and the equilibrium quantity increases.
b. Both the equilibrium wage and quantity decrease.
If the demand curve for computer games shifts to the left, then the value of the marginal product of labor for computer game authors will: a. rise b. fall c. remain unchanged d. rise or fall; either is possible
b. fall
21. The equilibrium quantity in markets characterized by oligopoly is a. higher than in monopoly markets and higher than in perfectly competitive markets. b. higher than in monopoly markets and lower than in perfectly competitive markets. c. lower than in monopoly markets and higher than in perfectly competitive markets. d. lower than in monopoly markets and lower than in perfectly competitive markets.
b. higher than in monopoly markets and lower than in perfectly competitive markets.
The value of the marginal product of labor a. increases when the price of output decreases b. is the firm's demand for labor c. equals the marginal product of labor divided by the wage rate d. All of the above are correct
b. is the firm's demand for labor
When a production function exhibits a diminishing, but positive, marginal product of labor, a. output increases, but at an increasing rate, as more workers are employed b. output increases, but at a decreasing rate, as more workers are employed c. output declines as more workers are employed d. the effects on marginal product are ambiguous
b. output increases, but at a decreasing rate, as more workers are employed
3. When a production function exhibits a diminishing, but positive, marginal product of labor, a. output increases, but at an increasing rate, as more workers are employed. b. output increases, but at a decreasing rate, as more workers are employed. c. output declines as more workers are employed. d. the effects on marginal product are ambiguous.
b. output increases, but at a decreasing rate, as more workers are employed.
. In a game, a dominant strategy is a. the best strategy for a player to follow only if other players are cooperative. b. the best strategy for a player to follow, regardless of the strategies followed by other players. c. a strategy that must appear in every game. d. a strategy that leads to one player's interests dominating the interests of the other players.
b. the best strategy for a player to follow, regardless of the strategies followed by other players.
A profit-maximizing, competitive firm will always hire an additional worker when the additional worker makes a positive contribution to: a. total revenue b. total profit c. the value of the marginal product of labor d. marginal revenue
b. total profit
10. The equilibrium rental income paid to the owners of capital at any point in time equals the a. marginal product of capital. b. value of the marginal product of capital. c. percentage of profits paid out to stockholders in the form of dividends. d. equilibrium purchase price of capital.
b. value of the marginal product of capital.
58. ---- are images placed on a Web site that link to the site of the company selling the product or service.
bannerst
if the poverty rate is 26%, where is the poverty line in Edgerton?
between $28,000 and $43,999
looking at a graph (inequalia is $7,800)The poverty rate in Inequalia is
between 10% and 25%
If the poverty line was $31,852, what would be the poverty rate?
between 25% and 50%
53. A(n)----- is a Web page that invites surfers to post opinions and artistic work, as well as links to sites of interest.
blog
The United States has greater income disparity than
both Japan and India
Which of the following is consistent with the data reported in the figure?
both a and b are correct
When city beautification programs are funded privately:
both a. and d. will likely occur
Public goods are characterized by:
both b. and d.
All possible choices for the individual are shown by the ____.
budget constraint
57. Web-enabled business is often classified by the parties involved in the interaction: business-to-business (B2B), business-to-consumer (B2C), and----- .
business-to-government (B2G)
Public goods are those that are consumed:
by the paying and nonpaying public alike.
Economists are skeptical that discrimination is employer driven because a. holding productivity constant, a profit-maximizing employer will hire the cheapest labor available. b. discrimination cannot exist in markets. c. There is a cost advantage for firms that do discriminate. d. employers are not really interested in maximizing profit. e. There is a cost advantage for firms that do not discriminate.
c
The value of the marginal product is a) marginal revenue plus marginal cost B)equal to the marginal physical product C)the marginal physical product of an input times the price of an output D)the marginal physical product of an input times the price of the input E)total output divided by quantity
c
To maximize the profit how many workers will the firm hire A) 1 B) 2 C) 3 D) 4 E) 5
c
Which of the following is an example of discrimination in the labor market? a. Women in some fields earn less than men in the same field because women have, on average, less physical strength to perform the required duties of the job than men. b.Women earn less than men because women have, on average, fewer years of experience in the labor force because women, on average, periodically leave the labor force to raise children. c. A pharmaceutical sales company pays women less than men because the company's customers, physicians and pharmacists, say that they prefer to deal with men rather than women. d.Women earn less than men because women are more likely to be employed in occupations that pay less, such as elementary school teachers rather than electrical engineers. e. All of the above are examples of discrimination.
c
assume that the government proposes a negative income tax that calculates the taxes as follows if a family doesn't earn any income how will the ax affect them A)pay 1,000 B)pay 3,000 C) they will receive an income subsidy of 10,000 D) E)they will still pay 10,000
c
economist study poverty and income inequality in order to answer which of the following questions A) what are peoples wages B) how does labor force experience affect wages C) how much inequality is there in society D) how do people adjust their behavior due to taxation E) what is the correct level for minimum wage
c
the distribution of income for inequalia is as follows what the poverty line need to be to have a poverty rate of 27.8% A) under 5,000 B) 5,000 C) 10,000 D) 15,000 E) 20,000
c
the poverty line in the country Inequalia is $10,000. the distribution of income for inequalia is as follows the poverty rate in inequalia is as follows A) 11.1% B)16.7% C) 27.8% D) 55.5% E) 65.5%
c
the poverty line in the country of grim is 10,000 the distribution of income for grim is as follows the poverty rate in grim is as follows A) 5% B) 16.7% C) 50% D) 75% E) 83.3%
c
which of the following description would weaken the discrimination complaint at eddy hardware A) cowboys are more productive than farm boys B) cowboys work longer hours than farm boys and their efforts are greater C) cowboys are generally less educated than farm boys in the field of hardware D) all of the above would weaken E) all of the above would strengthen
c
which of the following statements about the minimum wage is correct A) an increase in the minimum wage enhances the well being of all unskilled workers b) an increase in the minimum wage has no affect on the well being of middle class families C) advocates of the minimum wage argue that the demand for labor is relatively inelastic D) critics of the minimum wage argue that it is an undesirable way of helping the poor because it is costly to the government E) critics of the minimum wage argue that the demand for labor is relatively inelastic
c
Diane's Auto World installs tires on automobiles, light trucks, and sport utility vehicles. She is a profit-maximizing business owner whose firm operates in a competitive market. The marginal cost of installing a tire is $10. The marginal productivity of the last worker that Diane hired was 2 tires per hour. What is the maximum hourly wage that Diane was willing to pay the last worker hired? a. $5 b. $10 c. $20 d. There is insufficient information to answer this question
c. $20
What causes the labor demand curve to shift? (i) changes in productivity (ii) changes in wages (iii) changes in output prices a. (i) and (ii) b. (ii) and (iii) c. (i) and (iii) d. All of the above are correct
c. (i) and (iii)
Which of the following events could decrease the demand for labor? a. An increase in the number of migrant workers b. An increase in the marginal productivity of workers c. A decrease in demand for the final product produced by labor d. A decrease in the supply of labor
c. A decrease in demand for the final product produced by labor
8. Which of the following events could increase the demand for labor? a. A decrease in output price b. A decrease in the amount of capital available for workers to use c. An increase in the marginal productivity of workers d. A decrease in the wage paid to workers
c. An increase in the marginal productivity of workers
17. If a certain market were a monopoly, then the monopolist would maximize its profit by producing 1,000 units of output. If, instead, that market were a duopoly, then which of the following outcomes would be most likely if the duopolists successfully collude? a. Each duopolist produces 1,000 units of output. b. Each duopolist produces 600 units of output. c. One duopolist produces 400 units of output and the other produces 600 units of output. d. One duopolist produces 800 units of output and the other produces 400 units of output.
c. One duopolist produces 400 units of output and the other produces 600 units of output.
23. When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market, we have a. a cartel. b. a group of oligopolists behaving as a monopoly. c. a Nash equilibrium. d. the perfectly competitive outcome.
c. a Nash equilibrium.
20. When an oligopoly market reaches a Nash equilibrium, a. the market price will be different for each firm. b. the firms will not have behaved as profit maximizers. c. a firm will have chosen its best strategy, given the strategies chosen by other firms in the market. d. a firm will not take into account the strategies of competing firms.
c. a firm will have chosen its best strategy, given the strategies chosen by other firms in the market.
2.. Economists refer to the inputs that firms use to produce goods and services as a. derived factors. b. derived resources. c. factors of production. d. instruments of revenue.
c. factors of production.
15. The prisoners' dilemma game a. is a situation in which two players both have dominant strategies which lead to the highest total payoff for the two players. b. has no Nash equilibrium since players, after agreeing to play their dominant strategy, will have an incentive to switch to another strategy. c. has a Nash equilibrium, but the Nash equilibrium outcome is not the outcome the players would agree to if they could cooperate with each other. d. Both a and c are correct.
c. has a Nash equilibrium, but the Nash equilibrium outcome is not the outcome the players would agree to if they could cooperate with each other.
13. From society's standpoint, cooperation among oligopolists is a. desirable, because it leads to less conflict among firms and a wider variety of products for consumers. b. desirable, because it leads to an outcome closer to the competitive outcome than what would be observed in the absence of cooperation. c. undesirable, because it leads to output levels that are too low and prices that are too high. d. undesirable, because it leads to output levels that are too high and prices that are too high.
c. undesirable, because it leads to output levels that are too low and prices that are too high.
4. A competitive firm will hire workers up to the point at which the value of the marginal product of labor equals the a. average total cost. b. average variable cost. c. wage. d. price per unit of output.
c. wage.
9. When a labor market experiences a surplus of labor, there is downward pressure on a. the supply of labor. b. the final product price. c. wages. d. the demand for labor.
c. wages.
The reason why national defense is commonly provided by the government, while food is not, is that food:
can easily be withheld from those who refuse to pay for it.
Which of the following is the best example of a public good?
city street lights
44. A service is usually the most expensive of hosting options. a. Co-location b. Virtual private server hosting c. Shared Hosting d. Dedicated hosting
co-location
Which of the following is a rival good that is nonexcludable?
common resource
35. While might sound benign, many privacy advocates claim that it violates privacy rights. a. cookie profiling b. reverse auctioning c. load balancing d. consumer profiling
consumer profiling
62. The purpose of---- is to know the consumers better so the business can serve them better, while streamlining its marketing and sales operations.
consumer profiling
55. A(n)----- is a small file that a Web site places on a visitor's hard disk so that the Web site can remember something about the surfer later.
cookie
For a competitive firm experiencing diminishing marginal productivity, the value of the market product a) 1 b) 1 & 2 c) 1&3 d) 2 and 3 e) 1, 2, & 3
d
REFER TO GIGURE 20-2 in 2001 the percentage of adults between ages 18-64 in poverty is A) higher than both the percentage of children and elderly B) higher than children but Lower than elderly C) equal to both D) Lowe than the children but equal to the elderly E) higher than children but equal to elderly
d
To maximize its profit a firm will hire workers as log as the value of the marginal product of labor equals or exceeds A) 100 B) 200 C) 400 D) 500 E) 600
d
When a form hires labor up to the point where wage is equal to the value of the marginal product of labor it is A) minimizing labor costs B) C) D)maximizing profits E) maximizing marginal product of labor
d
if consumers do not discriminate between bald barbers and barbers with hair A) all barbershops now earn a normal economic profit B)the difference in wages is able to be maintained since a haircut is not a homogenous good C) barbershops that hire barbers with hair will be more profitable than those that don't D) barbershops that hire bald barbers will be more profitable than those that don't E)wages in the markets for haircuts can never be in equilibrium
d
in a competitive market for piano movers why might billy's wage differential persist A) billy world harder than other employees B) billy joins a labor union C) billy amiable personality allows him to work well with other coworkers D) customers do not like billy bc he has a bad attitude E) billy has advanced specialized training
d
Which of the following events would shift the labor supply curve? a. Changes in the number of women willing to work b. Immigration of workers c. Changing attitudes towards work d. All of the above are correct
d. All of the above are correct
16. A special kind of imperfectly competitive market that has only two firms is called a. a two-tier competitive structure. b. an incidental monopoly. c. a doublet. d. a duopoly.
d. a duopoly.
12. Predatory pricing occurs when a firm a. exercises its oligopoly power by raising its price through the formation of a cartel. b. exercises its monopoly power by raising its price. c. cuts its prices in order make itself more competitive. d. cuts its prices temporarily in order to drive out any competition.
d. cuts its prices temporarily in order to drive out any competition.
1. Diminishing marginal product is closely related to a. diminishing total cost. b. diminishing marginal cost. c. increasing price. d. increasing marginal cost.
d. increasing marginal cost.
6. The value of the marginal product of any input is equal to the marginal product of that input multiplied by the a. wage. b. marginal cost of the output. c. change in total profit. d. market price of the output.
d. market price of the output.
25. Value of marginal product is defined as the additional a. output a firm would receive after hiring one more factor of production. b. cost of hiring one more factor of production. c. revenue earned from selling one more unit of product. d. revenue earned from hiring one more factor of production.
d. revenue earned from hiring one more factor of production.
5. For a profit-maximizing competitive firm, the value of marginal product curve is a. always rising. b. falling only when marginal product is rising. c. the labor supply curve. d. the labor demand curve.
d. the labor demand curve.
29. When a competitive firm maximizes profit, it will hire workers up to the point where the a. marginal product of labor is equal to the product price. b. marginal product of labor is equal to the wage. c. value of the marginal product of labor is equal to the product price. d. value of the marginal product of labor is equal to the wage.
d. value of the marginal product of labor is equal to the wage.
looking at a graph: Between 1959 and 2011 the poverty rate has
decreased overall
Since about 1970 in the U.S.
decreases in the wages of unskilled workers, relative to skilled workers, have led to increased inequality in family incomes
43. Some companies might want to use entire physical servers all for themselves and therefore can opt for . a. shared hosting b. progressive hosting c. dedicated hosting d. virtual private server hosting
dedicated hosting
Richard Wilkinson TED talk ____________.
discusses the social problems associated with inequality
When the government redistributes income to achieve greater equality, it
distorts incentives
As an additional consumer obtains the benefits of a public good such as national defense, the benefits to existing consumers:
do not change.
It is apparent from this table that increasing marginal product A) occurs only after the first worker is hired B) occurs only after the second worker is hired C) occurs only after the third worker is hired D) occurs for all E) never occurs
e
61. Online retailing, called -----, continues to grow throughout the world for several reasons: greater availability of faster communication lines to households, growing confidence in online purchases, and the increasing ability to find the item one searches and rich information about it.
e-tailing
all of the above are correct
economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to
The marketplace allocates resources
efficiently
The invisible hand of the marketplace acts to allocate resources
efficiently but does not necessarily ensure that resources are allocated fairly
59. A(n) ----- limits site access to the employees of particular organizations, usually business partners.
extranet
16. Mirror servers run unique applications that are unavailable on any other server. a. True b. False
false
20. Few hosting firms provide subscribers with e-mail addresses. a. True b. False
false
An individual who wants others to pay for public goods, but plans to use those goods for their own purposes, is often referred to as a ______________ .
free rider
34. Companies that sell online maintain large warehouses and pay for picking, packing, and shipping, three activities known as _____. a. auctioning b. pure play c. profiling d. fulfillment
fulfillment
The free-rider problem arises when:
goods can't be provided exclusively to paying customers.
A free-rider problem arises whenever:
goods cannot be provided exclusively to those who pay for them
A free-rider problem arises whenever:
goods cannot be provided exclusively to those who pay for them.
U.S. income data over the last 75 years suggests that the distribution of income
gradually became more equal until about 1970, then became less equal from 1970 to 2011
In 1968, the percent of elderly aged 65 and over in poverty is
higher than both the percentage of adults aged 18 to 64 and the percentage of children under age 18 in poverty
In 2011, the percent of children under age 18 in poverty is
higher than both the percentage of adults aged 18 to 64 and the percentage of elderly aged 65 years and over in poverty
In 1968, the percent of children under age 18 in poverty is
higher than the percentage of adults aged 18 to 64 but is lower than the percentage of elderly aged 65 and over in poverty
46. Some hosting companies charge extra fees for shared hosting if the site experiences activity above a predetermined amount of data that is transferred, or number of visits from Web surfers, known as . a. spots b. deals c. hits d. stops
hits
The 'poverty trap' describes ____________.
how government programs for the poor can (under certain conditions) provide little work incentive
competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical
if consumers do not discriminate between bald barbers and barbers with hair, then
the value of the marginal product of labor
if firms are competitive and profit maximizing, the demand curve for labor is determined by
increase the effective marginal tax rate that the poor face
if the benefits from an antipoverty program are phased out as an individual's income increases, then the program will
between 25% and 50%
if the poverty line was $31,852, what would be the poverty rate
less than 25%
if the poverty line were $23,021, what would be the poverty rate
If the production of a particular good involves significant external costs, to force the externality to be internalized the government might:
impose a tax on production of the good in order to decrease production.
31. The most basic metric that can be measured at a site is the number of . a. impressions b. podcasts c. servers d. cookies
impressions
technological progress
in order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. one hypothesis emphasizes
The poverty rate is based on a family's
income
Between 1965 and 2011, during recessions (the shaded bars) the number of individuals in poverty has
increased
Over the past several ears, the earnings gap between high-skilled and low-skilled workers has
increased
Since the early 1970s, average incomes have
increased, while the poverty rate increased slightly
The lack of progress in reducing the poverty rate since the early 1970s is most closely related with which of the following factors?
increasing income inequality
An economist would be most likely to argue that U.S. national defense should be funded through tax revenues because:
individuals who refuse to contribute to a national defense fund cannot be excluded from benefiting from national defense.
(n) is a network used only by the employees of an organization. a. extranet b. intranet c. internet d. supranet
intranet
33. An extranet might be viewed as connecting of business partners. a. usenets b. internets c. intranets d. supernets
intranet
Inequality _______ as the GINI coefficient (ratio) increases.
is higher
The absolute number of people in poverty
is higher in 2011 than in 1959
The demand curve for an individual firm's product in a perfectly competitive industry __.
is horizontal
The percentage of families with incomes below the poverty line
is known as the poverty rate
In 2011, the percent of adults between ages 18 and 64 in poverty is
is lower than the percentage of children under age 18 but is higher than the percentage of elderly aged 65 and over in poverty
If a firm has 'Market Power' it means ________.
it is a 'price setter' (that is, it can raise its price without losing all its customers)
Public goods, like national defense, are usually funded through government because:
it is prohibitively difficult to withhold national defense from someone unwilling to pay for it.
We study perfect competition mostly because ________.
it serves as a good base for comparison (ie a reference point when examining other types)
look at a table: According to the table, from 1950 to 2000, the Hapland income distribution became
less equal
If the poverty line were $23,021, what would be the poverty rate?
less than 25%
The poverty line is adjusted each year to reflect changes in the
level of prices
marginal analysis
looking at, identifying, measuring, and comparing incremental or additional costs and benefits associated with another unit of something. Assumption that each thing is always the same.
In 2011, the percent of elderly aged 65 and over in poverty is
lower than both the percentage of adults aged 18 to 64 and the percentage of children under age 18 in poverty
In 1968, the percent of adults aged 18 to 64 years in poverty is
lower than both the percentage of children under age 18 and the percentage of elderly aged 65 and over in poverty
65. Wireless technologies enable what some people call mobile commerce, or---- .
m-commerce
Governments enact policies to
make the distribution of income more equal
The optimal or efficient quantity is where marginal benefit is exactly equal to
marginal cost
________ describes the additional satisfaction provided by one additional unit of consumption.
marginal utility
The Utilitarian approach to income inequality involves redistribution, with the goal of ______.
maximizing social well being
A "meet the competition" promise ____________.
may lead to higher prices industry-wide
Consumer Surplus ____________.
measures the difference between the equilibrium price and the price consumers are willing and able to pay
"Utility" ____________.
measures the level of satisfaction or pleasure that people receive from their choices
examples of scarcity
money, time, income
When we examine historical data on income inequality in the U.S., we see that the distribution of income gradually became
more equal between 1935 and 1973, but that trend reversed itself between 1973 and 2011
A government's policy of redistributing income makes the income distribution
more equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient
Based on U.S. income data from 2011, the top fifth of all families received
more than 12 times more income than the bottom fifth
The income distribution in the United States shows that the income share of the top fifth of all families is
more than 12 times the income of the bottom fifth
The 2011 U.S. distribution of income shows that the top 20 percent of all families have
more than twelve times the income of the bottom 20 percent
the United States has greater income disparity than
most other economically advanced countries, but a more equal income distribution than some developing countries
'Economic mobility' refers to ____________.
movements up or down the income distribution
Which of the following is an example of a public good?
national defense
An example of a public good is:
national defense.
_________ describes a situation where a third party, outside the transaction, suffers from a market transaction by others.
negative externality
can opportunity cost be objectively measured?
no, because there is no way to say for sure what the next best choice is going to be for anyone.
The consumption of public goods is
non-excludable and non-rivalrous
When there is an negative externality the market price is _______ and the market quantity is ____ relative to the socially optimal levels (select from the pairs from below to fill in the respective blanks).
nonexcludable and nonrivalrous
Inelastic demand ___________.
occurs when buyer demand is not very sensitive to price changes
Comparative advantage _______________
occurs when one producer (country) can produce something at a lower opportunity cost than another producer (country) is the same thing as Absolute Advantage
In 2011, the poverty rate in the United States was 15 percent. This means that 15 percent
of the population had a total family income that fell below the poverty line
If the production of a particular good involves significant external benefits, to force the externality to be internalized the government might:
offer a subsidy for production of the good in order to increase production.
The commercial jetliner industry consisting of Boeing and Airbus would be best described as an
oligopoly
The market type characterized by high barriers to entry is ___________.
oligopoly
Measures of poverty that fail to account for the value of in-kind transfers
overstate the actual poverty rate
The Federal Insurance Contribution Act (FICA) tax is an example of a
payroll tax
54. To---- is to make a digital audio recording, usually of voice, and post the file on the Web so that people can download it and listen to it.
podcast
25. While blogging is publishing text and other visual material, is publishing sound and video. a. hosting b. posting c. crowdsourcing d. podcasting
podcasting
The income level below which families are said to be poor is known as the
poverty line
The poverty rate is the percentage of the population that have a family income level below the
poverty line
A commonly-used gauge of poverty is the
poverty rate
Factors that might shift demand include __________.
price, income, consumer tastes, population
Comparing the United States household income distribution to other countries is
problematic, because countries collect data in different ways
The free rider problem suggests that an individual will tend to:
produce less than the optimal quantity of a public good.
A monopolist is able to maximize its profits by ___________.
producing output where MR = MC and charging a price along the demand curve
Other 'solutions' to income inequality (in particular, those aimed at the poverty end), discussed in the text, include the Earned Income Tax Credit (EITC). This program _________.
provides a tax refund of 40 cents for every dollar earned, over a range of incomes
36. Businesses such as Amazon.com and Buy.com that transact business only through an online environment are called retailers. a. big data b. pure play c. brick-and-mortar d. structured
pure play
Rawls' argument relies on ___________.
recognition that we each bring our own 'position' (prejudice) to questions about the fairness of income inequality, making agreement difficult
A key feature of oligopoly is ______________.
recognized interdependence
Government programs that take money from high-income people and give it to low-income people typically
reduce economic efficiency because they distort incentives
Objectification _______________.
refers to the fear that putting a price on certain things and buying or selling them might move them into a class of impersonal objects
The production possibilities frontier (PPF) ________________.
reflects output assuming the full use of society's resources
63. The ability of websites to serve as prompt exchanges of information has supported another popular business model, the or name-your-own-price auction.
reverse auction
30. , which is any form of advertising through an online search site, is regarded by businesses as highly effective. a. Search advertising b. Location-based advertising c. Near-field advertising d. Reach advertising
search advertising
29. In the context of B2B trading, online advertising is done mainly in two ways: through and through banners. a. e-mail b. search engines c. spam d. newsgroups
search engines
45. The customer's ability to determine the timing and services of their needs from a business organization through a website is referred to as . a. customer profiling b. fulfillment c. customer impression d. self-service
self service
'Dumping' refers to _________.
selling a product at a price below (marginal) cost
42. In , the hosting company owns the server and the server management software. a. virtual private server hosting b. shared hosting c. dedicated hosting d. co-location
shared hosting
67. In---- , the client's website is stored on the host's same physical server along with the sites of other clients.
shared hosting
The demand curve ____________.
shows the maximum price that consumers are willing and able to pay for each quantity
49. Organizations can leverage to communicate with consumers immediately. a. newspapers b. radio c. social media d. television
social media
38. is the term for any unsolicited commercial email. a. Spam b. Phishing c. Adware d. Spyware
spam
56. Software designed to trace and report your online behavior without your knowledge is called -----.
spyware
47. On the Web, includes identifying the sites your audience frequently visits. a. hosting b. phishing c. spamming d. targeting
targeting
The changes in consumers' preferences based on the addition of a clearly inferior substitute (as shown in the "Rome with no coffee" example in class) illustrates ______.
that 'framing' is important
Comparing the US to other countries ranked by inequality
the US has a less equal distribution of income than some countries, but a more equal distribution of income than others
care about fairness, even to their own detriment.
the experiment called the ultimatum game illustrates that people
The calculation of the poverty line includes adjustments for
the level of prices
What is the key difference between market organization and collective decision making?
the market system relies on voluntary exchange, price signals, and freedom of entry. this results in wider variety of products, a more competitive environment, and more dynamic change
When the government enacts policies to redistribute income
the objective is to enhance equality and a side effect is that the allocation of resources becomes less efficient
Supporting Rawls' principle of justice is ___________. (See Sandel lecture, part 1, in particular)
the observation that the fate of birth (ie, one's family) plays an unfair role in determining one's place in the income distribution as an adult
the poverty rate is
the percentage of the population whose family income falls below a specified level
investment
the purchase, construction, or development of resources, including physical assets, such as plants and machinery, and human assets, such as better education. investment expands an economy's resources. the process of investment is sometimes called capital information.
creative destruction
the replacement of old products and production methods by innovative new ones that consumers judge to be superior. the process generates economic growth and higher living standards.
What is economics?
the study of choices (due to scarcity of resources) study of the pursuit and acquisition and happiness; studies scarcity at all levels and how people make choices
What are transaction costs?
the time, effort, and other resources needed to search out, negotiate, and complete an exchange. It is a barrier and lowers the benefits of trade.
Positive Analysis
the use of facts, data, statistics, math, models, theory, professional opinion and judgment, etc. to make inference about the way the world is or might be if something changes.
risen; economists argue that this may be due in part to technological progress
the wage gap between skilled and unskilled worker has
Los Angeles Mayor James Hahn believes strongly that education provides great benefits to the commu-nity and urges the state government to provide the district with more money. An economist would say that this reflects Mayor Hahn's belief that:
there are positive external benefits associated with education.
In a competitive economy with no government sector:
there will be too few public goods produced.
How does the internet reduce transaction costs and enhance trade?
there's no added cost for selling to buyers at all times of the day and night. Even better, the cost of doing business via ecommerce means reduced transaction fees since you incur fewer expenses that you need to pass on to the buyer.
The US government sets the poverty line equal to approximately
three times the cost of providing an adequate diet
The federal government sets the poverty line at roughly
three times the cost of providing an adequate diet
Assume that production of a good generates external benefits for others. The equilibrium price of the good will be ____ and the equilibrium quantity ____ for efficient resource allocation.
too high; too low.
24. software notifies bloggers when their posts have been mentioned elsewhere on the Web, so they and their readers can extend the discussion beyond the original blog. a. RSS b. Spyware c. Clickstream d. Trackback
trackpad
What are the implications/consequences of choosing to keep a particular item on your list?
tradeoffs - other things on the list must go
12. Affiliates are compensated in many ways such as pay per sale, pay per click, and pay per lead. a. True b. False
true
13. Similar to auctions among companies, some Web sites serve as auction hubs for individuals. a. True b. False
true
14. The electronic bill presentment and payment allows bills to be presented automatically, directly from the companies' information systems to payers' email addresses, and therefore save labor, paper, and postage. a. True b. False
true
15. Mobile commerce allows people to use their mobile devices to experience an event and react immediately. a. True b. False
true
17. In dedicated hosting the host dedicates a server to the client, and the client can fully control the content on the server's disks. a. True b. False
true
18. Renters of dedicated servers usually have root access, which means they act as unrestricted administrators of that computer. a. True b. False
true
19. Technical support involves the quality of the equipment that the hosting company provides, security measures it maintains the sophistication of server and load management, and the technical skills of its personnel. a. True b. False
true
4. Instant messaging (IM) offers users real-time online interactivity. a. True b. False T/F
true
8. Traditional retailers, often called brickandmortar businesses, have extended their "storefront" by launching an e tailing arm. a. True b. False T/F
true
in the U.S. economy, labor earnings make up about
two - thirds of total income
Where a free-rider problem exists, goods tend to be:
underproduced.
Is the "economic pie" fixed or variable?
variable because it is thought of as the total dollar value of all goods and services produced during some period of time. it is the grand total of the wealth or value created by each member in society. the size of the economic pie reflects the physical effort and ingenuity of human beings.
39. The purpose of a(n) is to create the impression that the client maintains its own server. a. proxy server b. virtual private server c. dynamic server d. mirror server
virtual private server
Tradeoff
we gain something, but we lose something else; in economics we use this idea to talk about opportunity costs.
why do we chose the items that we chose?
we make decisions based on what was more satisfying and affordable; and personal preference
$120
what is the average revenue when 4 units are sold
$120
what is the marginal revenue from selling the 3rd unit
$480
what is the total revenue from selling 4 units
$840
what is the total revenue from selling 7 units
$25,750
when the price of the good is $175, the firm's maximum profit is
The determination of which goods are public goods depends on
whether it is possible to exclude additional users from consuming the good if they do not pay for it.
The determination of which goods are public goods depends on:
whether it is possible to exclude additional users from consuming the good if they do not pay for it.
you continue studying for your economics exam until you believe you'll get a score that's good enough
which of the following is an example of satisfying behavior?
As Barry Schwartz describes in the reading on Blackboard, more choice _________.
will lead to less happiness for some individuals
