**** econ

Look at the table Wages and Hours worked. Graphing the relation with wages on the vertical axis and hours worked on the horizontal axis, the slope between point A and point B is

2/5

Look at the figure Gain in consumer surplus. Identify the area or areas that represent the gain in the consumer surplus to those consumers already buying at P1 when the price falls from P1 to P2.

B

Which of the following would cause the demand for chocolate bars to increase while not shifting the demand curve for chocolate bars

Both of the other two answers are correct

Has thelma's love for John waned?

Correct

Assume the following: (1) members of the tea party are not democrats (2) the existence of the tea party makes democrats happy (3) happy people never smile (4) obama belongs to the tea party (5) sarah p is not a republican (6) the tea party exists (7) democrats are people. Which of the following predictions follows from these assumptions?

Democrats are not smiling. Obama is not a democrat.

A consumer's willingness to pay for a surfboard is the minimum price at which he or she would buy the surfboard

False

An economy is efficient if one person can be made better off by reallocating resources without making anyone else worse off

False

You are planning to study eight hours this week for your economics final and are considering studying a ninth hour. You should

make your decision based on the cost of the next best alternative use of your time compared to the benefit of one more hour of study

If a market is currently not in equilibrium

There will be opportunities available to people to make themselves better off.

The study of economics arises because of the necessity of choice, and the necessity of choice arises because of the fundamental problem of scarcity of resources

True

The opportunity cost of something is

What is given up to acquire it

The federal government regulates how much carbon dioxide a factory can emit. This statement best represents this economic concept:

When markets dont achieve efficiency, government intervention can increase efficiency

If new york city eliminates its medallion system for taxicabs, assuming that the supply curve of taxicab rides is upward-sloping and the demand curve for taxicab rides is downward sloping, the price of a taxicab ride would

decrease

A consumer's willingness to pay for each additional unit of a good identifies her ___ for that good.

demand curve

If all of the opportunities to make someone better off without making someone else worse off have been exploited an economy is

efficient

A price ceiling will have no effect if

it is set above the equilibrium price.

Equilibrium exists when

no economic agent has an incentive to change their behavior

When the government removes a binding price floor:

quantity demanded will increase and quantity supplied will decrease.

If goods A and B are substitutes a decrease in the price of good B will

shift the demand curve for good A to the left

market failure refers to a situation in which

something in the nature of the markets causes the market equilibrium to be inefficient

Binding quotas on the amount of a good that can be produced necessarily cause inefficiency

this statement is incorrect

Economic models often

vary greatly in their assumptions

Khalil is offered a free ticket to the opera. His opportunity cost of going to the opera is

whatever Khalil would choose to do if he does not go to the opera including any money he could get from scalping the ticket.

Brian's consumer surplus from his calculator purchase is?

zero, because his WTP for a calculator is $200 and he pays $200

The table economics Textbooks shows how much money four consumers would each be willing to pay for a new economics textbook. If the price of the textbook is $100 what is the total consumer surplus received by these consumers?

$125

The graph Monthly demand for Ice Cream Cones shows one individual's monthly demand for ice cream cones. At $5 per cone, this individual will consume 10 cones in a month. How much consumer surplus does this consumer receive?

$50

The Atlanta symphony wants to make sure that its concerts are affordable for all residents of Atlanta and therefor prices all of its tickets at $25. However outside symphony hall, people can sell the same tickets for $75 or more. The true cost to the concertgoer of a ticket to the symphony is at least

$75

Look at the table Workouts. Suppose that Eli receives an offer from the club for a weekly membership fee of $50 that allows him to use the club as much as he wants per week with no additional charge. Assuming Eli joins the club, how much consumer surplus will he receive per week?

$90

If farmer Sam McDonald can produce 200 pounds of cabbage and no potatoes or no cabbages and 100 pounds of potatoes and if he faces a linear production possibility frontier, the opportunity cost of producing an additional pound of cabbage is ___ lbs of potatoes

0.5

Look at the table Production possibilities schedule 1. The opportunity cost of producing the fourth unit of consumer goods is ___ units of capital goods.

8

Society is made up of only Jane and wolves. Jane likes to run with the wolves and deer, but they don't like to run with her. Note that the deer are not members of society. Currently Jane is not allowed to run with the deer or the wolves. What of the following changes would necessarily increase efficiency?

Jane is allowed to run with the deer

If they spend all night writing computer programs, Laurence can write 10 programs, and Carrie Anne can write 5. If they spend all night making sunglasses, Laurence can make 6 pairs and Carrie anne can make 4. We know that

Laurences opportunity cost of writing programs is less than carrie annes

Which of the following is a quota?

Limits on the number of bushels of clams that can be caught in new jersey

The United States has which type of economic system?

Mixed economy

Rapidly increasing health costs have been a major political concern since at least 1992> suppose the government sets the maximum price for a normal doctor visit at $20 to control rising health costs but the current market price is $40. What will happen?

More people will try to visit the doctor, but there will be fewer doctors willing to see patients at that price.

Look at the figure rent controls. Suppose that rent controls are imposed. If the government wanted a rent control ceiling to be effective immediately, what is on possible price to set?

Rent1

In places like Aspen, if wood burning fireplaces and stoves are unregulated there will be too much smoke from an efficiency point of view: aspen is a box canyon and smoke has nowhere to go. The city government is considering requiring permits for wood burning devices. Which of the following narratives is both correct and most generally informative?

This is an example where a binding quota, achieved by requiring but limiting the number of permits, can increase efficiency (achieves the efficient number of wood burning devices) rather than causing inefficiency

Because of the opportunity cost, if the United States spends $87 billion of its resources in the rebuilding of Iraq, it has to forgo the opportunity to using those resources for other programs.

True

Consider two competing motorcycle manufacturers, harley davidson and honda. If harley davidson raises the prices of its motorcycles, we can expect:

a shift to the right in the demand curve for hondas and higher prices for hondas

Economists may disagree about policies because they:

assume different things in their models

An economy is said to have a comparative advantage in the production of a good if it can produce that good

at a lower opportunity cost than another economy

assume one model uses inflation to explain unemployment and another model uses employment to explain inflation. In the first model, inflation is an ___ variable and in the second model it is an ___ variable

exogenous, endogenous

Market equilibrium will always be efficient even if it is not equitable

false

Given that the supply curve is upward sloping, a shift of a demand curve to the right all other things unchanged will

increase equilibrium price and quantity

Suppose the US government imposes a binding quota on the number of Japanese made cars allowed in the US. Assuming that Japanese made cars and US made cars are substitutes in consumption, we would expect the price of Japanese cars to ___ and the price of US made cars to ___.

increase; increase

Market failure may occur because:

individual actions have side effects that are not properly taken into account by the market

Consumer surplus for an individual buyer is equal to:

the consumer's willingness to pay for the good minus the price of the good

How people choose among the alternatives available to them is

the study of microeconomcis

Your theory makes three assumptions: (1) kids who have divorced parents are unhappy (2) unhappy kids earn failing grades (3) Zack earns failing grades which of the following statements is both correct and most informative

the three assumptions do not imply that zack has divorced parents

Look at the figure tom's production possibilities. The opportunity cost for Tom to move from point C to point A is:

there is no opportunity cost