Micro Final Exam

Allison and Robert own a upscale salon together, where the two most popular color styles clients request are highlights and balayages. Robert has an absolute advantage in both styles. Allison's comparative advantage is in balayages; Robert's comparative advantage is in highlights. Who should specialize in balayages? a. Allison because she has a comparative advantage in balayages b. Robert because he has a lower opportunity cost for balayages c. Robert because he has an absolute advantage in balayages d. Allison because he has a higher opportunity cost for balayages

a. Allison because she has a comparative advantage in balayages

A small sandwich shop in a perfectly competitive market is hiring the profit-maximizing quantity of labor at a wage of $7 per hour. If the government raises the minimum wage to $8 per hour: a. the marginal revenue product will exceed the wage, and firms will hire more workers b. the marginal revenue product will be less than the wage, and firms will lay off some workers c. firms will increase their prices to keep the marginal revenue product equal to the wage d. firms will have to exit the industry, since the marginal revenue product is always less than the wage

b. the marginal revenue product will be less than the wage, and firms will lay off more workers

A shift of the demand cure for fried chicken would NOT result from a change in: a. income b. the price of fried chicken c. the price of hot dogs d. the probability of fried chicken

b. the price of fried chicken

Which of these illustrates a positive externality? a. ella can buy a shirt at half price because someone else returned it b. the value of maria's house rises when the city builds a park nearby, enhancing her view c. martin's company experiences an increase in profits due to his cost-cutting initiatives d. artem loses sleep when an airport is built near his home, and planes fly overhead

b. the value of maria's house rises when the city builds a park nearby, enhancing her view

The price of coffee at a local coffee shop is $3. Cheryl is willing to pay $6 for her first cup of coffee each day. The marginal benefit to her of each additional cup of coffee fall by $2. How many cups of coffee should Cheryl purchase? a. one b. two c. three d. four

b. two

___ occurs when companies exercise market power, and it is resolved when companies practice price discrimination. a. overproduction b. underproduction c. excess profits d. excess costs

b. underproduction

In a product market, why would a company owner prefer to face competitors than more? a. costs of production will be lower when there are fewer opportunities b. with fewer competitors, companies have more market power c. with fewer competitors, companies have less market power d. per-unit cost of production rise when the number of companies falls

b. with fewer competitors, companies have more market power

Eliana and Olivia are at Barnes and Noble buying new calculators for the semester. They see a graphing calculator for which Eliana is willing to pay $75, and Olivia is willing to pay $100. The price of a calculator at Barnes and Noble is $65. What is their total consumer surplus? a. $60 b. $35 c. $45 d. $10

c. $45

Cornell can type reports faster and mire accurately than Alice, so Cornell has a(n) ___ in typing reports. a. comparative advantage b. specialization c. absolute advantage d. opportunity cost

c. absolute advantage

Which of these is a source of comparative advantage? a. global supply chain b. low trade costs c. abundant inputs d. low tariff rates

c. abundant inputs

When collusion occurs, sellers in a market: a. legally join together to become one seller b. collide by trying to serve the same segment of the market c. act like a monopolist to increase profits d. strive to increase the level of competition in the market

c. act like a monopolist to increase profits

Which factor would NOT cause a supply curve to shift? a. an improvement in the technology used to produce a good b. an increase in the wages of employees c. an increase in the price of a good d. expectations that the price of a good will change

c. an increase in the price of a good

A characteristic of oligopoly that is not present in any other market structure is that there: a. is only one seller, and that seller has a high level of market power b. are many sellers, and each produces its own version of the product c. are a small number of sellers with considerable market power d. are many sellers that produce identical products

c. are a small number of sellers with considerable market power

Sunk costs are costs that: a. are potential costs associated with a particular decision b. are part of the opportunity costs of a decision c. are incurred in the past and cannot be reserved d. should be considered in any decision

c. are incurred in the past and cannot be reversed

The government is considering taxing e-cigarettes to both discourage the use of e-cigarettes and raise revenues for public health and education programs. To maximize revenues from the tax, the government should tax e-cigarettes: a. sellers and manufacturers but not buyers b. buyers c. buyers, sellers, or manufacturers, it does not matter which d. sellers

c. buyers, sellers, or manufacturers, it does not matter which

A market where no single buyer or seller can influence the price is a: a. buyer's market b. seller's market c. competitive market d. factor market

c. competitive market

Your senator believes that the market equilibrium price of childcare services is too high and proposes a price ceiling in the market. What will happen if the government imposes a price ceiling below the equilibrium price? a. consumers will be able to purchase more childcare services at the lower price b. child care providers will respond to the lower price and supply more childcare services in the market c. consumers will want to purchase more childcare services than at the equilibrium price d. the price ceiling will not be binding

c. consumers will not want to purchase more childcare services than at the equilibrium price

Actress Mayim Bialik holds a doctorate in neuroscience from UCLA. Bialik, a former main character on the TV show The Big Bang Theory, earned hundreds of thousands of dollars per episode, and later became the host of the TV show Jeopardy. Why does Bialik work in television instead of neuroscience? a. she has absolute advantage in acting b. she does not benefit from specialization in either industry c. her opportunity cost to work as a neuroscientist is high d. neuroscientists do not enjoy gains from trade in their profession

c. her opportunity cost to work as a neuroscientist is high

Price ceilings impose costs on society because they: a. lead to a higher quantity offered in the market b. ensure that everybody who wants the good will get it c. lead to a smaller quantity offered in the market d. may result in black markets. where prices are lower than the market-determined price would be

c. lead to a smaller quantity offered in the market

The options for rideshare transportation in your city are Uber and Lyft. The market structure is: a. perfect competition b. monoploy c. oligopoly d. monopolistic competition

c. oligopoly

A new congressional bill mandates reductions in the prices of most health care services offered by hospitals in the United States. As a result, the ___ will ___. a. quantity of health care services supplied; rise b. supply of health care services; increase c. quantity of health care services supplied; fall d. supply of health care services; decrease

c. quantity of health care services supplied; fall

How does the government regulation affect market efficiency? a. regulations only make markets more inefficient b. some regulations correct market failure; others cause inefficiency c. regulations only increase the efficiency of markets d. regulations are a substitute for market efficiency

c. regulations only increase the efficiency of markets

A market is a: a. place where governments decide what is sold b. set of demand curves for a product c. setting that brings together potential buyers and sellers d. set of supply curves for a product

c. setting that brings together potential buyers and sellers

Which is a TRUE statement about work assignments based on comparative advantage? . a. the person who is fastest at a task should be assigned to perform it b. absolute advantage in the task should be the basis for making task assignments c. the person with the lowest opportunity cost at a task should perform it d. workers should be cross-trained as gerneralists and should not be specialists

c. the person with the lowest opportunity cost at a task should perform it

If the marginal social benefit received from pollution equals its marginal social cost: a. a decrease in the quantity of pollution will improve society's well-being b. the market is producing too much pollution c. the socially optimal level of pollution has been attained d. an increase in the quantity of pollution will improve society's well-being

c. the socially optimal level of pollution has been attained

While buying refreshments for an upcoming party, you notice that a six-pack of Miller Lite Beer costs $8. You buy the six-pack of Miller Lite Beer, although you wonder if maybe two six-packs of Bud Lite Beer would have been a better choice. The opportunity cost of the Miller Lite Beer is: a. $8 b. a six-pack of Bud Lite Beer c. two six-packs of Bud Lite Beer d. $8 and the six-pack of Bud Lite Beer

c. two six-packs of Bud Lite Beer

You manage a ball-bearing factory for a company that successfully lobbies Congress to place a tariff on imported ball-bearings. As a result: a. your company will be better off, but your customers will be unaffected b. both your company and your customers will be better off c. your company will be better off, and your customers will be worse off d. your company will be unaffected, but your customers will be worse off

c. your company will be better off, and your customers will be worse off

Your $10 donation to a charity provides one blanket to an unhoused person. Given that you followed the Rational Rule for Consumers in the transaction, you can conclude that your willingness to pay for this type of generosity is at least: a. $1 b. $5 c. $8 d. $10

d. $10

Tracey is a pastry chef who owns her own bake shop. She is reviewing sales data for her most popular treats, and sees that when the price of a salted caramel cookie increases from $1.55 to $2.00, the quantity demanded decreases from 220 cookies to 180 cookies. If the price is $1.55, total revenue is ___, and if the price is $2.00, total revenue is ____. a. $360; $440 b. $341; $279 c. $440; $279 d. $341; $360

d. $341; $360

Chin purchases five protein bars at a price of $3 each. The marginal benefit he receives from each bar is $5 for the first bar, $4.50 for the second bar, $4 for the third bar, $3.50 for the fourth bar, and $3 for the fifth bar. The marginal cost of producing each bar is $2.50. What is Chin's total consumer surplus from the five bars that he purchases? a. $0 b. $0.50 c. $2.50 d. $5

d. $5

Liana gives up a salary of $80,000 per year at the Kellogg food manufacturing company to start her health food manufacturing company. She invests $50,000 of her saving in her company, savings that had been earning her $4,000 per year in interest. During Liana's first year in the health food business, total revenue is $300,000, and her explicit financial costs are $225,000. What is Liana's accounting profit from her first year in business? a. -$59,000 b. -$9,000 c. $71,000 d. $75,000

d. $75,000

An externality is defined as: a. the effect of an activity undertaken outside of a building rather than inside a building b. the impact of an activity on buyers and sellers in a market where the activity takes place c. an effect of market activity that impacts the opposite side of the market from the side whose decisions caused the effect d. a side effect of an activity that affects bystanders whose interests are not taken into account

d. a side effect of an activity that affects bystanders whose interests are not taken into account

Mario is willing to sell an extra unit of his product if price is: a. not below the external cost b. higher than the average cost c. at least as high as the marginal private cost d. at least as high as the marginal private cost

d. at least as high as the marginal private cost

A price taker is a seller that: a. keeps taking an increasing share of market sales in its market b. sets its price based on the cost of inputs plus an allowance for profit c. takes all available information into consideration in deciding how much to charge above or below the market price d. charges the current market price for its product

d. charges the current market price for its product

Alana operates a small hair salon in Dallas. If some salons leave the industry, Alana's ___ curve will shift to the ___. a. marginal cost; left b. marginal cost; right c. demand; left d. demand; right

d. demand; right

The two main types of implicit opportunity costs are: a. bills paid and revenue foregone b. bills paid and foregone wages c. earned wages and earned interest d. foregone wages and foregone interest

d. foregone wages and foregone interest

A person as a comparative advantage if they: a. can produce more of all goods than another person with the same amount of resources b. have the highest opportunity cost of producing a particular good compared with another person c. can produce fewer of all goods than another person d. have the lowest opportunity cost of producing a particular good compared with another person

d. have the lowest opportunity cost of producing a particular good compared with another person

Game theory is helpful in analyzing situations in which there is ___ the decision makers. a. dominance by one of b. independence across all c. unequal information across d. interdependence between

d. interdependence between

Which is an example of a company practicing price discrimination? a. a restaurant charges different prices for fountain drinks based on tjeir size b. Johann's bakery charges $2 for a cookie, and Bella's bakery charges $3 for an individual cookie c. the average price of a haircut is $20 in Dayton and $30 in Cincinnati d. most passengers traveling on an airplane pay different prices for their tickets

d. most passengers traveling on an airplane pay different prices for their tickets

Over the years, state and local governments have separated smoking and nonsmoking sections in restaurants or banned smoking in public areas completely. Governments implement rules against smoking because smoking generates a ___ externality, as many smokers do not consider the ___ cost of their habit. a. negative; marginal private b. positive; marginal external c. positive; marginal private d. negative; marginal external

d. negative; marginal external

Alana's Confectionary is located in the East Side Village. When the market price of iced brownies is $5, the profit-maximizing output level is 150 brownies. Alana's average cost is $4, and her variable cost per unit is $3. Alana's marginal cost is ___, and her short-run profits are ___. a. $5; $150 b. $5;$300 c. $1; $150 d. $1; $300

a. $5; $150

The state of Texas recently saw a gasoline price increase of 5%, which brought about a fall in the quantity of gasoline purchased of 1%. The price elasticity of demand is equal to ___, and demand is described as ___. a. 0.2; inelastic b. 5; inelastic c. 0.2; elastic d. 5; elastic

a. 0.2; inelastic

Jonathan's income falls by 15%. He decides to cut down his purchases of restaurant meals by 20%. His income elasticity of demand for restaurant meals is: a. 1.33 b. -0.75 c. 0.75 d. -1.33

a. 1.33

Netflix cancelled its original series Ozark after season 4, indicating that Netflix determined producing season: a. 5 was not worth the marginal cost b. 2 was not worth the marginal cost c. 6 was a sunk cost d. 5 was a sunk cost

a. 5 was not worth the marginal cost

The coffee harvest in many countries is unusually good this year. This entails: a. a shift to the right of the entire supply curve for coffee beans b. a movement up the supply curve as the price of coffee beans c. that fewer pounds of coffee beans will be demanded at every price d. that fewer pounds of coffee beans will be supplied at every price

a. a shift to the right of the entire supply curve for coffee beans

A tariff is a: a. tax on imported goods b. tax on exported goods c. limit on the quantity of a good that can be exported d. limit on the quantity of a good that can be produced

a. a tax on imported goods

___ allow a profitable company to maintain profits overtime. a. barriers to entry b. cost-saving initiatives c. free entry and exit conditions d. reverse profit margins

a. barriers to entry

The cost-benefit principle states that a decision should be pursued only if the: a. benefits are greater than the costs b. costs are greater than the benefits c. benefits are positive d. costs are negative

a. benefits are greater than the costs

You are an economist for the state public education system and are forecasting how much a future tuition increase would impact university enrollment. The proposed tuition increase is 5%. The price elasticity of demand for college education is -0.45. Use the formulas for price elasticity of demand to calculate how the price increase for tuition would change the quantity of students enrolled. The tuition increase would ____ overall enrollment by ___%. a. decrease; 2.25 b. decrease; 11.11 c. increase; 4.55 d. increase; 5.45

a. decrease; 2.25

The demand for factors of production is known as derived because it is: a. derived from demand for the outputs produced by factors of production b. derived from available supply of factors, such as land, that can be overexploited c. not easy to determine and must be derived by a technical, and often complicated, process d. derived on the basis of questions posed to residents during the census

a. derived from the demand for the outputs produced by factors of production

Advocates of music education in public schools and community spaces cite research that music has a positive impact on brain development and mental health. However, because producers of musical instruments , such as Yahama, Stenway, Selmer, Fender, Roland, and others, are in an imperfectly competitive market, ___ musical instruments are produced than are in society's best interest, and the companies charge ___ their marginal cost of production. a. fewer; above b. fewer; equal to c. more; below d. more; above

a. fewer; above

You just got a big raise in pay. On your next trip to the store, you walk right past the canned tuna and go to the fresh seafood section. Which statement is probably TRUE? a. for you, canned tuna is an inferior good, and fresh seafood is a normal good b. for you, fresh seafood is an inferior good, and canned tuna is a normal good c. the fresh seafood must have been on sale d. your preferences for canned tuna and fresh seafood have changed

a. for you, canned tuna is an inferior good, and fresh seafood is a normal good

Over the past few years, the technology associated with producing flat-screen televisions has improved. This has led to a(n) ___ in the ____ flat-screen televisions. a. increase; supply of b. decrease; demand for c. decrease; supply of d. decrease; quantity supplied for

a. increase; supply of

When you assign tasks of employees based on comparative advantage, the tasks goto those with the: a. lowest opportunity cost b. highest wage c. highest opportunity wage d. lowest wage

a. lowest opportunity cost

The socially optimal quantity of pollution emissions occurs where the: a. marginal social benefit of pollution is equal to the marginal social cost of pollution b. damage to the environment can be reduced through corrective taxes c. marginal social benefits of pollution exceed the marginal social costs of pollution d. government legislates a no-tolerance zero pollution policy

a. marginal social benefit of pollution is equal to the marginal social cost of pollution

If you live in a ___ economy, you would expect prices to move ___, whereas if you live in a ___ economy, that is not likely. a. market; toward equilibrium; planned b. planned; toward equilibrium; market c. planned; only along the market demand curve; market d. planned; only along the market supply curve; barter

a. market; toward equilibrium; planned

What is the role of the markets? a. markets facilitate gains from trade b. markets create demand to earn profits c. markets produce output to cover the costs d. markets sell goods to make use of inputs

a. markets facilitate gains from trade

Daisy is a milk farmer in a perfectly competitive market. The market price of milk is $0.15 per gallon, which is also the marginal cost. If Daisy charges $0.25 per gallon, she will: a. not sell any milk b. sell more milk than the other farmers c. sell the same amount of milk as she did when she charged $0.15 per gallon d. increase her probability by $0.10 per gallon

a. not sell any milk

Pfizer is a large pharmaceutical company that employs many scientists in its research facilities. Pfizer can afford to conduct research and develop drugs because the company is confident it will recoup the time and money spent when it receives a ___ to protect its inventions. a. patent b. price ceiling c. competition law d. discount

a. patent

Suppose that supply decreases and demand increases. What is the MOST likely effect on price and quantity? a. price will increase, but quantity may increase, decrease, or stay the same b. price will decrease, but quantity may increase, decrease, or stay the same c. price will decrease, and quantity will decrease d. price will increase, and quantity will increase

a. price will increase, but quantity may increase, decrease, or stay the same

You're a seller of lawn mowers. When the price of lawn mowers increases, the: a. quantity of lawn mowers supplied increases b. supply of lawn mowers increases c. quantity of lawn mowers supplied decreases d. supply of lawn mowers decreases

a. quantity of lawn mowers supplied increases

For consumers, hot dogs and hamburgers are substitutes. A rise in the price of hot dogs causes a ___ in the equilibrium price of hamburgers and a ___ in the equilibrium quantity of hamburgers. a. rise; rise b. rise; fall c. fall; rise d. fall; fall

a. rise; rise

In Douglas County, Washington, apple production is limited by the number of acres available for agricultural production. Which concept does this statement BEST represent? a. scarcity b. marginal analysis c. equilibrium d. opportunity cost

a. scarcity

An economists for Starbucks has determined that the cross-price elasticity between Dunkin' cold brew coffee and Starbucks cold brew coffee is 2. Which statement is TRUE? a. some customers consider Dunkin' cold brew to be subsitutes b. the economist has determined that Dunkin' and Starbucks cold brew are complements c. if the price of Dunkin' cold brew rises 10%, people will buy 20% less Starbucks cold brew d. the cross-price elasticity indicates that Starbucks cold brew is an inferior good compared to Dunkin' cold brew

a. some customers consider Dunkin' cold brew and Starbucks cold brew to be substitute

At Walt Disney World in Orlando, Florida, there are both Disney-owned hotels and resorts and, in the surrounding area, independent hotels, motels, resorts, and private home rentals. The independent accommodations are: a. substitutes for Disney-owned accommodations but complements to Disney's parks b. substitutes for both Disney-owned accommodations and Disney's parks c. complements to the Disney-owned accommodations d. independent of the Disney-owned accommodations, and their location near the parks is just coincidental

a. substitutes for Disney-owned accommodations but complements to Disney's parks

What impact does price discrimination have on the quantity a company sells? a. the quantity increases b. the quantity decreases c. the quantity remains the same d. the quantity increases and then decreases

a. the quantity increases

Alena manages a small theme park. She hires one more custodian at $450 per week, making her park cleaner and more attractive. As a result of this improvement, ticket sales rise by 40 tickets per week. Tickets sell for $12. Use the Rational Rule for Employers to determine if hiring the extra custodian was a good move. a. yes, it was a good move because it added more revenue than the cost b. yes, it was a good move because ticket sales rose more than the price c. no, it was a bad move because it added more to cost than to revenue d. no, it was a bad move because price did not rise as much as ticket sales

a. yes, it was a good move because it added more revenue than the cost

Kevin goes to a local coffee shop and orders a medium-sized latte. He is willing to pay $6 for it. The price of the latte is $2. The cost to the coffee shop to produce the latte is $1. How much economic surplus does Kevin gain when he purchases the latte? a. $6 b. $4 c. $2 d. $1

b. $4

Companies have often used rough categories to price discriminate, as when airlines charge higher fares to buisiness passengers. Increasingly, however, algorithmic price discrimination, based on big data, has enabled sellers to divide customers into more granular groups, where each group pays a different price. Some sellers can even charge personalized prices, that is, a unique price for each consumer along the demand curve. As a result of these trends, consumers are: a. unambiguously better off b. better off in that output has expanded but worse off in that consumer surplus has declined c. better off that consumer surplus has risen but worse off that output has declined d. unambiguously worse off

b. better off in that output has expanded but worse off in that consumer surplus has declined

Bae is willing to pay up to $160 for a particular pair of boots. She can buy the boots for $120. the marginal cost of producing the boots is $70. Which of these is TRUE regarding the economic surplus associated with her purchase of the boots? a. consumer surplus and producer surplus are the same b. consumer surplus is $40, and producer surplus is $50 c. consumer surplus is $90, and producer surplus is $120 d. consumer surplus is $50, and producer surplus is $40

b. consumer surplus is $40, and producer surplus is $50

When setting prices for different groups of customers, a manager should charge lower prices to groups that: a. voice the product more b. have a more elastic demand c. have a higher demand d. have a more inelastic demand

b. have a more elastic demand

If the price of peanut butter were to decrease, the demand for jam, a complementary good, would probably ____ a. decrease b. increase c. not change d. randomly fluctuate

b. increase

Producer surplus will ___ when a monopolist goes from single-price monopoly to perfect price discrimination. a. remain the same b. increase c. decrease d. initially increase and then return to its original level

b. increase

If a good is a necessity with a few substitutes, demand will tend to be: a. elastic b. inelastic c. perfectly inelastic d. the same as that of an inferior good

b. inelastic

If demand is ___, and a higher price yields ___ total revenue. a. inelastic; lower b. inelastic; higher c. elastic; higher d. elastic; no change in

b. inelastic; higher

In 2018, the unemployment rate in the United States went as low as 3.7%, as measured by the Bureau of Labor Statistics. This historically low level of unemployment occurred simultaneously with a large trade deficit. This provides evidence against which of these arguments against international trade? a. international trade may hurt national security b. international trade may lead to job loss c. international trade may promote unfair competition d. international trade may hurt infant industries

b. international trade may lead to job loss

The marginal revenue product is the: a. change in revenue from selling an extra item b. marginal revenue from hiring an additional worker c. extra product produced from spending marginal revenue on inputs d. change in revenue from total production

b. marginal revenue from hiring an additional worker

In a perfectly competitive labor market, employers: a. pay varying wages b. pay the market wage c. who pay less than the market wage will attract workers d. have an incentive to pay more than the other employees

b. pay the market wage

If the price in the market is such that the quantity supplied exceeds the quantity demanded, then the: a. price is below the equilibrium price b. price is above the equilibrium price c. market is in equilibrium d. market will not adjust to equilibrium

b. price is above the equilibrium price

In a perfectly competitive market, if the quantity demanded exceeds the quantity supplied, we expect prices to: a. stay the same b. rise c. fall d. rise first, then fall when demand decreases

b. rise

The price of microchips used to produce iPads rises. As a result, the equilibrium price of iPads ____, and the equilibrium quantity ____. a. rises; increases b. rises; decreases c. falls; decreases d. falls; increases

b. rises; decreases

Who gains and who loses when robots replace workers? a. displaced workers gain, and robot owners lose b. robot owners gain, and displaced workers lose c. low-wage workers gain, and robot manufacturers lose d. workers gain, and robots lose

b. robot owners gain, and displaced workers lose

In the market for barley, if the price of ethanol (which is made from corn, a crop that competes with barley for farmland) increases dramatically, the ___ barley would ___. a. supply of; increase b. supply of; decrease c. demand for; increase d. demand for; decrease

b. supply of; decrease

Consider these claims concerning the Affordable Care Act (a.k.a. Obamacare) in 2009-10: (i) In the late 2000s, the number of uninsured Americans hit a record high of 60 million. (ii) Health care reform pf some kind was needed to address the widespread lack of access of medical care. (iii) Among the options available, the Affordable Care Act provided the best fit to the mix of public and private institutions that make up the American health care system. (i) reflects ___ analysis, (ii) reflects ___ analysis (iii) reflects ___ analysis a. positive; normative; positive b. postitive; positive; normative c. normative; positive; normative d. positive; normative; normative

d. postive; normative; normative

A company's profit margin equals: a. total cost minus total revenue b. total revenue minus total cost c. average cost minus price d. price minus average cost

d. price minus average cost

A price-discriminating company can attract additional customers by ___, this will add to its profits if the _____. a. shifting the company's demand curve to the left; price is above the customer's marginal benefit b. shifting the company's demand curve to the left; price is below the company's marginal cost c. reducing price; is above the company's marginal benefit d. reducing price; is above the company's marginal cost

d. reducing price; is above the company's marginal cost

If a government increases subsidies for childcare, there will be a ___ in the country's labor market. a. move to a different point on the labor supply curve with a smaller quantity b. move to a different point on the labor supply curve with a larger quantity c. leftward shift of the labor supply curve d. rightward shift of the labor supply curve

d. rightward shift of the labor supply curve

In which situation would Max's Doughnut Shop have the GREATEST market power? a. within three miles, five other doughnut shops and three bakeries sell breakfast pastries b. two rival doughnut shops are within three miles, but not other bakeries are in the area c. the closest doughnut shop is 10 miles away, but a bakery with breakfast pastries is 2 miles away d. the closest doughnut shop or bakery is 25 miles away from Max's shop

d. the closest doughnut shop or bakery is 25 miles away from Max's shop

The full sticker price of attending Dartmouth College was $60,117, the cost students actually pay was $24,525. Why does Darthmouth's generous financial aid program show not just civic-mindedness but buisiness savviness? a. the college earns additional profit by enrolling a student as long as the college's marginal cost of enrolling a student exceeds the tuition the student pays b. the profit the college earns is not monetary in nature by psychological---- that is, it is the profit of doing good c. the college's time frame is long term-----it is incurring losses now by allowing students to pay less than cost but earning goodwill that will benefit the college when it raises its prices later d. the college earns additional profit by enrolling a student as long as the tuition the student pays----even if below the sticker price-----exceeds the college's marginal cost of enrolling the student

d. the college earns additional profit by enrolling a student as long as the tuition the student pays----even if below the sticker price----exceeds the college's marginal cost of enrolling the student

A reservation price is: a. the price you pay a producer to guarantee that a unit of a product will be available when you need it b. a lower than normal price that a seller "reserves" for (or makes available to) his best customers c. the lowest price at which a seller is willing to make a sale d. the highest price that a customers if willing to pay for a product

d. the highest price that a customer is willing to pay for a product

To maximize profits when hiring employees, continue to hire workers until: a. revenue is maximized and costs are minimized b. the marginal product equals marginal revenue c. the wage equals the marginal product d. the wage equals the marginal revenue product

d. the wage equals the marginal revenue product

Tp prevent people from pretending to qualify for the market segment with the lowest price, a company manager that engages in group pricing must ensure that: a. segmentation is based on a detailed set of qualifications b. each consumer does not know the range of prices paid by other consumers c. equivalent prices are paid by consumers in each segment d. there is a simple way to verfiy the segment in which a consumer qualifies

d. there is a simple way to verify the segment in which a consumer qualifies

To treat a sore back, Kyoko undertakes a course of physical therapy. Kyoko's marginal benefits from her first physical therapy session is $250. from her second its $225, fro, her third its $175, and from her fourth its $100. Physical therapy session cost $175 each. Assuming Kyoko's final physical therapy session will earn her zero consumer surplus, Kyoko will have ___ physical therapy sessions, and her total consumer surplus will be ___. a. four; b. four;$124 c. three; $100 d. three; $125

d. three; $125

You are considering a beach trip for spring break. Which event would shift your individual demand curve for a room near the beach to the right? a. more people make condos available through services like Airbnb and VRBO b. ski resorts offer large discounts over spring break c. you read about a jellyfish infestation at the beach you were planning to visit d. to reward you for a successful semester, your family gives you money for spring break

d. to reward you for a successful semester, your family gives you money for spring break

When economic efficiency increases, the ___, and the benefits ___ be spread across all people. a. total gains exceed the costs; will b. total gains may or may not exceed costs, may or may not c. total gains may or may not exceed costs; will d. total gains exceed the costs; may or may not

d. total gains exceed the costs; may or may not

You are an economist for Meta-Facebook, which hired an intern to help you with analytics. To answer an economic question, you can collect and clean a dataset in eight hours, and you can analyze the data in four hours. The intern needs thirteen hours to collect and clean data and eight hours to analyze data. How should you divide the tasks? a. the intern should analyze data b. the intern should do both tasks c. you should do both tasks d. you should analyze data

d. you should analyze data