Econ questions

You own a barber shop. Hiring a worker will increase the number ofhaircuts your shop can give from 30 per day to 35. Haircuts cost $20each. What is the marginal revenue product of that worker?

$100

WHICH OF THE FOLLOWING IS AN EXAMPLE OF A NEGATIVE externality

Tom drives home drunk instead of taking an uber

Which of the following is an external marginal benefit

You get a flu shot, which keeps you from infecting people with the flu

When labor demand is __________________, a big increase in wages will cause a small decrease in employment

inelastic

If Coca-Cola buys an ad and Pepsidoesn't, Coca-Cola will get $200 inprofit and Pepsi will get $50 in profitIf Pepsi buys an ad and Coca-Coladoesn't, Pepsi will get $150 in profitand Coca-Cola will get $50 in profitWhat should go in the box?

(150, 50)

Which of the following goods is most likely to be exported from the United States

plane engines

What is the marginal revenue of the fourth car?

18000 (Quantity x price --> the difference in total revenue from car 3 to 4)

You own a barber shop. Hiring a worker will increase the number of haircuts your shop can give from 30 per day to 35. What is the marginal product of labor of that worker?

5 haircuts

Suppose Pepsi plays "No Ad"What is Coke's best response

Ad

Jerome and Gary are roommates trying to divide chores. Jason has a comparative advantage at achore if he can complete the chore

At a lower opportunity cost than Gary

If Coca-Cola buys an ad and Pepsi doesn't, Coca-Cola will get $200 inprofit and Pepsi will get $50 in profitIf Pepsi buys an ad and Coca-Coladoesn't, Pepsi will get $150 in profit and Coca-Cola will get $50 in profitWhich box should we fill in?

B

Which of the following is NOT a nonexcludable good?

Cable television

Which of the following statements is true: A) labor unions shift the labor demand curve to the right B) a monopsont will likely lead to higher wages C) All wage differences between men and women are due to disriminatio D) People who are currrently barbers are likely to suppoty licensing requirement that make it more difficult to become a barber

D

If the world price is 𝐴 and there is free trade, what is producersurplus?

D) E+F+G+H+J+K ( everything above the supply curve and belo9w the price A)

The marginal revenue Product curve represents

DEmand fro Labor

Francine owns a bar. The property next door is available, andFrancine is considering using that space to expand her bar. If she does this, she will have to hire more workers. She also will need to offer daily happy hour specials in order to get extra customers to come. This is an example of:

Declining output prices

WHICH OF THE FOLLOWING IS AN EXTERNAL MARGINAL COST?

Everyone in the office gets mad when someone reheats fish in the microwave

How do you find what price monopolist will charge

Find where MR=MC, "look up" to find price

Fred and Hannah live in houses that border a forest. Fred wants to chopdown the trees so that he can have a better view of a nearby lake. Hannahlikes to hike in the forest and doesn't want the trees chopped down.Fred values chopping down the trees at $100, and Hannah values hiking at$80What happens if Hannah has the rights to do what she likes with theforest?

Fred pays Hannah to chop down the trees

How do we increase in demand to affect the labor market for people who work at Christmas Tree farms?

It will increase Christmas Tree prices which increases MRP which increases demand for labor (labor demand= MP)

Restaurants servers do not enjoy working in the cold weather. How do we expect this to affect the wages fro restaurant workers?

It will increase wages due to compensating differential

Use the data in the table to answer the question. The table provides data on how long it takesMaia and Juanita to mow the lawn and weed the flower beds

Juanita because she has the lower opportunity cost

Where would you be most likely to see different groups chargeddifferent prices?

Kids getting a discount at Disney World

Relative to the monopolist modeldiscussed earlier, under first-degreeprice discrimination, consumersurplus is ______ and the DWL is_____

Less; Less

Based on what weve learned in class you should keep doing something until:

Marginal Benefit equals Marginal Cost

Micah really wants to buy a new Corvette. So, he spends very little money on anything other than essentials. He saves the rest of his income in his"Corvette Fund". He doesn't really have any hobbies. If Micah gets a raise at work, we expect him to choose to work _______ hours because the income effect is ______ important for his decision making

More; not very

Which of the following is a negative externality?

People who live near an airport have to hear noisy planes all day

Currently, Coca-Cola sells one million cans of Coke per year. Coca-Cola raises its price by one cent. If the market for cola is perfectly competitive, what happens to the number of Cokes sold?

Quantity goes to zero

The main role of markets is

Reallocating resources to better uses

The private supply curve for gasoline is 𝑺𝟏. Gasoline has negative externalities due to pollution. What is the social supply curve of gasoline

S3 (S3 is above S1)

Micah eventually saves enough money to buy his Corvette. Hefinally has a hobby: driving his Corvette around town so thateveryone can see his car and be impressed. How will buyingthe corvette affect Micah's labor supply curve?

Shift to the left

Most of the largest tech companies in the world are based in Silicon Valley, even though it is expensive to live and work there. That is best explained by:

Specialized skills

In 2021, researchers found that legalizing marijuana led to a 4% increase in auto fatalities. If this is true, the social ____ will be to the __ of the private __ curve

Supply; left; supply

In 2021, researchers found that legalizing marijuana led to a 4% increase in auto fatalities. If this is true, the social ________ will be to the _______ of the private ________ curve

Supply; left; supply

Very few lighthouses were privately owned. Which of the following best explains this

There is not an effective way of ensuring only playing customers are able to use the lighthouse

Which of the following is NOT a nonrival good?

Tickets to the Super Bowl

The mcdonalds app is targeted at young ppl. The ap often contains coupons and discounts that are not avaiable anywhere else. This suggest that McDoanlds believes that the demand curve of young people Is more ____ than the demand curve of older people

elastic

The market for video game consoles would best be described as

oligopoly