econ

Refer to figure 9-3. What is the area of domestic producer surplus after the imposition of a quota?

B + C

which of the following is an example of the U.S governments use of a "command and control" approach to reducing pollution

In the 1980s the U.S government required the installation of catalytic converters to reduce emissions from all new automobiles

Many economists criticize protectionism because it causes losses to consumers and eliminates jobs in domestic industries that use protected products. Why, then do some people support protectionism

Supporters of protectionism in high-income countries believe that wages will fall as a result of competition with firms from developing countries.

assume that economist has estimated the price elasticity of demand values in the table above. Use the data in the table to select the correct statement.

The difference in elasticity values is explained by the fact that the more narrowly we define a market the more elastic the demand will be

Which of the following describes the difference between the market demand curve for a perfectly competitive industry and the demand curve for a firm in this industry

The market demand curve is downward sloping; the firm's demand curve is a horizontal line.

Calculate the income elasticity if an 8 percent increase in income leads to a 4 percent increase in quantity demanded for organic produce.

0.5

Jaycee Jeans sold 40 pairs of jeans at a price of $40. When it lowered its price to $20, the quantity sold increased to 60 pairs. Calculate the absolute value of the price elasticity of demand. Use the midpoint formula.

0.6

Refer to table 11-7. What is the variable cost production when the firm produces 115 lanterns

1157

Refer to Figure 11-1. The marginal product of the 3rd worker is

15

Refer to figure 11-1. The average product of the 4th worker is

17

what is the value of the price elasticity of supply between g and h

2

When the average total cost is $16 and the total cost is $800, then the number of units the firm is producing is

50

Refer to Table 10-1. If Keegan can drink all the bubble tea he wants for free, how many glasses will he consume?

6 glasses

Which of the following is an example of a long-run adjustment

Wal-Mart builds another Supercenter

Which of the following is likely to occur as the result of the law of diminishing marginal utility?

Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant

Refer to table 9-4 use the table above to select the statement that accurately interprets the data in the table

bill has an absolute advantage in picking berries and rob has an absolute advantage in catching fish

Some colleges now offer massive open online courses (MOOCs), where students do not need to be in the same classroom as their instructors. The fixed cost of an online course is relatively ________, but after the courses are placed online, the marginal cost of providing instruction to an additional student is ________.

high; low

The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S- made goods, effectively acting as a quota of zero imports when stimulus money was being spent. In the market for steel, the "Buy American" provision would ___ the price of steel in the united states and ___ the quantity of steel demanded in the United States.

increase; decrease

a firm has successfully adopted a positive technological change when

it can produce more output using the same inputs

An advantage of imposing a tax on the producer that generates pollution is that

it forces the polluting producer to internalize the external cost of the pollution

which of the following activities creates a negative externality

keeping a junked car parked on your front lawn

private producers have no more incentive to provide public goods because

once produced, it will not be possible to exclude those who do not pay for the good

the demand for gasoline in the short run is

perfectly inelastic because people have no choice but to buy gasoline

From 1950 to 2017 the number of people who lived on farms fell from 23 million to fewer than 3 million. Which of the following factors have contributed to this trend

rapid growth in farm production and low income and price elasticities for food products

economists argue that the level of pollution should be

reduced to the point where the marginal benefit of pollution reduction is equal to the marginal cost of pollution reduction to society

If the demand for a life-saving drug was perfectly inelastic and the price doubled, the quantity demanded would

remain constant

when nabloms bakery raised the price of its breads by 10 percent, the quantity demanded fell by 15 percent. What was the effect on sales revenue

sales revenue decreased

Consider the stock of Ocean Tuna, which is massively overfished. it is rational for an individual to exploit the resource rather than to conserve the stock because

the marginal private cost of harvesting the fish is lower than the marginal social cost

If a consumer always buys goods rationally, then

the marginal utility per dollar spent on all goods will be equal

In order to derive an individual's demand curve for salmon, we would observe what happens to the utility-maximizing bundle when we change

the price of the product and hold everything else constant

refer to table 6-8. What is the most distinctive feature of the supply curve

the supply curve is perfectly inelastic

Economists have used ___ and ____ in experiments designed to determine whether consumers care about fairness when they make decisions

the ultimatum game; the dictator game

NAFTA refers to a 1994 agreement that eliminated most tariffs among which countries?

the united states, Canada, and mexico

A significant downside to network externalities is that

there may be large switching costs to consumers of changing products so that consumers end up using products with inferior technologies

what is the rationale behind a tradeable emission allowance scheme

to provide firms with the incentive to consider less costly alternatives to pollution reduction by making firms pay for the right to pollute beyond their specified allowance

which of the following is a source of market failure

unforeseen circumstances which leads to bankruptcy of many firms

common resources differ from public goods in that

unlike public goods, common resources are rival in consumption

the demand curve for a giffen good is

upward sloping

Average fixed cost of production

fall as long as output is increased

If the market price is $40, the average revenue of selling 5 units id

$40

Linesha, a college student working part-time receives a wage increase. An avid movie buff, she increased her purchases of Blu-ray discs and reduced her purchases of DVDs. Based on this information

Blu-ray discs are normal goods and DVDs are inferior goods

Refer to figure 11-6. In the figure above, which letter represents the average variable cost curve?

C

The average price of gasoline in your neighborhood is $2.15 per gallon. Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.06 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you?

No, if one factors in the non-monetary opportunity costs

Refer to Figure 10-2. Which of the following statements is true

Points a and b are the utility-maximizing quantities of ice cream cones at two different prices of ice cream

economists believe the most persuasive argument for protectionism is to protect infant industries. But the argument has a drawback. What is this drawback?

Protection lessens the need for firms to become productive enough to compete with foreign firms; this often results in infant industries never "growing up"

Suppose a negative externality exists in a market. If transactions costs are low and parties are willing to bargain then, according to the Coase theorem

an efficient solution can be reached regardless of the initial assignment of property rights

Assume that China has a comparative advantage in producing corn and exports corn to Japan. We can conclude that

china has a lower opportunity cost of producing corn relative japan

Trade restrictions are often motivated by a desire to save domestic jobs threatened by competition from imports. Which of the following counter-arguments is made by economists who oppose trade restrictions

consumers pay a high cost for jobs saved through trade restrictions

assume that you own a small boutique hotel. In an attempt to raise revenue, you reduce your rates by 20 percent. However, your revenue falls. What does this indicate about the demand for your boutique hotel rooms.

demand is inelastic

If production displays economies of scale, the long-run average cost curve is

downward sloping

Which of the following statements is true

each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off.

Economic costs of production differ from accounting costs in that

economic costs add the opportunity costs of a firm using its own resources while accounting costs do not

Arnold Kim began blogging about Apple products during his fourth year of medical school. Kim's Website, MacRumors.com, became so successful that he decided to give up his medical career and work full time on his Website, despite the nearly $200,000 he had invested in his education. In making his decision, Kim decided to ignore the money and time he spent on his education. Economists would say that Kim made a

should be ignored since it represents sunk costs

in general a "big ticket item" such as a house or new car will

tend to have a more elastic demand than a lower-priced good

Which of the following countries is not one of the top three exporting countries in the world

the United States

A firm's cost of production is determined by all of the following except

the amount of corporate taxes it must pay on its profit

The substitution effect of an increase in the price of peaches is

the change in the quantity demanded that results from a change in the price of peaches, making peaches more expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.

A very large number of small sellers who sell identical products imply

the inability of one seller to influence price.