Microeconomics 2302 Test 2-Chapters 8, 10, 11, and 13

A manager of an advertising company was just assigned a new project to create a website and produce a video presentation. She must assign these tasks to her team. Alexa can write the content in four hours and edit the video presentation in three hours. Hoshi can write the content in three hours and edit the video presentation in one hour. Who should write the content, and why? Hoshi, because he has an absolute advantage in content writing. Hoshi, because he has the lowest opportunity cost, at 1/3 of a video presentation. Alexa, because she has a comparative advantage in content writing. Alexa, because she has the lowest opportunity cost, at 3/4 of a video presentation.

Alexa, because she has a comparative advantage in content writing.

____ represent(s) the quantity of labor, so it goes on the _____ of the graphs for labor supply and labor demand curves. Hourly wage; vertical axis Hours of work; horizontal axis Hours of work; vertical axis Hourly wage; horizontal axis

Hours of work; horizontal axis

Anki recently bought a junk car and parks it on his front lawn. What is this an example of? an elasticity internalizing the externality a negative externality a positive externality

a negative externality

All of these options are able to solve negative externality problems EXCEPT: corrective subsidies. lawsuits. fines. corrective taxes.

corrective subsidies

In economics, the term "free rider" refers to: one who waits for others to produce a good and then enjoys its benefits without paying for it. one who volunteers her services. a supervisor who delegates menial time-consuming activities to others. a person who evades taxes.

one who waits for others to produce a good and then enjoys its benefits without paying for it.

Any solution to the externality problem involves getting _____ to consider _____ effects. participants; internal participants; external bystanders; internal bystanders; external

participants; external

The labor market is driven by: the demand for workers and the supply of a good or service. the benefit of working and the cost of working. people's demand for the goods and services that workers provide. demand and supply of a good or service.

people's demand for the goods and services that workers provide

You have a baseball bat that you do not want anymore and your friend has a basketball that you want. If you buy the basketball from your friend and your friend buys the baseball bat from you, you both end up with gains from trade. You have: a greater benefit than cost. the ability to do a task at a lower opportunity cost. the ability to do a task using fewer inputs. reallocated the goods to better uses.

reallocated the goods for better uses

As a worker, you are on the _____ side, looking to sell your labor for the _____ you can get. demand; highest wage supply; lowest cost demand; lowest cost supply; highest wage

supply; highest wage

When you are managing a household, you must determine who is going to complete certain tasks. If you are using comparative advantage to determine who is going to do which task, you should ask the question: who in the household has the absolute advantage for each task that needs to be completed? what are the tasks that need to be done in the household? how can I take advantage of lower prices in the market? what is the best way to allocate tasks that need to be done in the household?

what is the best way to allocate tasks that need to be done in the household?