Economics Test 3
income equality
"10% of the population makes 10% of the income" is an example of what?
cartel
A _____ is a group of firms that formally agrees to coordinate its production and pricing decisions in a manner that maximizes joint profits.
monopsony
A ______ will hire workers up to the point where MRP=MCL
joint profits
A cartel is a group of firms that formally agrees to coordinate its production and pricing decisions in a manner that maximizes what?
MR > MC
A profit maximizing firm will increase its production when ____.
income
An unequal distribution of ______ in the U.S. is primarily due to an unequal distribution of labor and capital resources.
in kind benefits
Anything the government gives you that is not dollars, but has real value (e.g. subsidized apartment)?
antitrust laws
Laws that prohibit the formation of cartels in most U.S. industries are known as what?
occupational segregation
That there are more male then female nurses is an example of what?
externality
The _____ of a crime is illustrated when the anxiety and decrease in well-being that people feel when crime rates are high.
capacity utilization
The ______ ______ rate is the ratio of actual earnings to earnings capacity.
marginal revenue
The added money that is brought to a company
marginal productivity
The added productivity that is brought to a company
public services
The following are examples of what? crime prevention and smog control
true
The highest level of poverty is in houses headed by a single female. True or false?
poor
The marginal productivity theory of wages explains why some people are ______.
earn profits
The primary reason owners buy sports teams in the U.S. is what?
monopsony
The sole buyer of a factor of production`
wage increase
The supply curve for labor is positively sloped because a ______ ______ increases the cost of leisure.
crime prevention
What activities raise GDP above what it would be without them, can be considered an economic good or service, and use productive goods and services?
income equality
What among families means any given percent of families receives an equal percent of income?
illegal acts
What are ones that society has decided it is better off without?
marginal social benefit
What does MSB stand for?
total social cost
What does TSC stand for?
profit maximization
What is a major objective for firms in any market structure?
Poverty
What is caused greatly in part by the low productivity of people's resources?
market demand for labor
What is dependent on the demand for the product produced, negatively sloped because of the law of diminishing returns, and the summation of each firm's marginal revenue ?
poverty
What is measured by a basket of goods that an individual would need, multiplied by three?
lock out
What is the term for a work stoppage initiated by the management of a firm?
discrimination
What occurs because some people have the power, people aren't ware, and people have the desire to?
Discrimination
What occurs when equal are treated unequally and when unequals are treated equally?
hire more
What should a monopolist do if workers' marginal revenue product (MRP) is greater than the prevailing wage rate?
monopoly power
What the extent of the firm's control over market supply?
free riding
Which of the following exists when an individual consumes benefits for a collectively consumed good but does not pay for its cost?
Poverty
_________ is not easily defined.
corporation
a company owned by many individuals
cartels
Laws that prohibit the formation _____ of in most U.S. industries are known as antitrust laws
price discrimination
Charging a woman and man different prices to dry clean the same shirt is an example of what?
public
Crime prevention activities are _____ services.
economic psychic opportunity
Criminal activities lead to what types of costs for society?
1
Deadweight welfare loss due to monopoly in the economy as a whole is estimated to be about __% of the GDP. c
cartel
Firms in a ____ will produce a level of output such that joint MR equals joint MC.
marginal social benefit < marginal social cost
From an economic point of view, crime prevention activities should be expanded to the point at which (how many police are we supposed to have)...?
discrimination
From the point of an economist, _________
reducing output
If MC > MR, a competitive firm could increase profits by ____ _____?
monopsony profit
If a basketball player contributes more to her team's total revenues that she receives in wages, the team is experiencing what?
increase
If marijuana went from being illegal to being legal, the demand for marijuana would ______.
increase
If marijuana went from being illegal to being legal, the supply of marijuana would _____.
10
If producing 10 costs $100 and producing 11 costs $109 then the actual cost (AC) of the 10th unit is what?
psychic benefits
If you are willing to take a pay cut to live near ski resort, the ski resort provides you with...
true
Most people are poor because they are a resource that is not worth a lot. True or false?
rise fall
Relative to a competitive market, a cartel will cause prices to ____ and outputs to ____.
wage discrimination
equally productive minorities earn lower wages than other workers.
natural monopoly
exists because of government protection (e.g. utility companies)
marginal cost (MC)
how much it cost to make something
cartel
jointly shared monopoly.
deregulation
let the market determine what is happening
marginal revenue (MR)
the revenue you're going to get
relative poverty
you are poor compared to someone else
absolute poverty
you don't have enough to buy the bare essentials
