Exam 1 - Micro NEMCC

Property rights encourage investment in property because owners will benefit from their investment and their property cannot be taken from them. only mutually agreeable transactions regarding the property can take place. owners can work to maintain or improve their property in order to preserve or increase its value. All of these choices are correct.

All of these answers are correct

If the price rises to $60, consumer surplus will be $0 for consumer

C

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Less rental housing is available, as prospective landlords find it unprofitable to rent at restricted prices. The quality of rental housing declines as landlords lack the funds and incentive to maintain properties. Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled. --- All of these choices are correct.

Which of the following statements is true? Multiple Choice Microeconomics focuses on specific decision making units of the economy; macroeconomics examines the economy as a whole. Macroeconomics focuses on specific decision making units of the economy; microeconomics examines the economy as a whole. Every topic in economics is either a microeconomic or a macroeconomic issue; a topic cannot be both. Topics in microeconomics have public policy implications; topics in macroeconomics do not

Microeconomics focuses on specific decision making units of the economy; macroeconomics examines the economy as a whole.

With current technology, suppose a firm is producing 240 smoothies daily. Also assume that the least-cost combination of resources for producing those smoothies is 2 units of labor, 1 unit of land, 2 units of capital, and 3 units of entrepreneurial ability, selling at prices of $120, $30, $50, and $20, respectively. If the firm can sell these 240 smoothies at $4 per unit, what is its total revenue?

Total revenue: $960

Which of the following is a labor resource? a computer programmer a computer silicon (sand) used to make computer chips software used by a firm

a computer programmer

Refer to the table. Suppose that demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5). If the price were artificially set at $6,

a shortage of 40 units would occur

Interest groups are made up of people who share strong preferences for a particular public good. use advertisements, mailings, and direct persuasion to convince others of the merits of a particular public good. are common in democratic politics all the above.

all of the above

Which of the following is a distinguishing feature of a command system?

central planning

The study of economics is primarily concerned with:

choices that are made in seeking the best use of resources.

Command systems are also known as

communism

Kara was out jogging and, despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Kara

decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile.

A price ceiling means that

government is imposing a legal price that is typically below the equilibrium price.

Which of the following is not a typical characteristic of a market system?

government ownership of most property resources

you should decide to go to a movie if the marginal cost of the movie exceeds its marginal benefit. if the marginal benefit of the movie exceeds its marginal cost. if your income will allow you to buy a ticket. because movies are enjoyable.

if the marginal benefit of the movie exceeds its marginal cost.

If the price of the product increases, total producer surplus will

increase

Refer to the provided table. If the price of the product increases by $2 to $52, total producer surplus will

increase by $8.

Purposeful behavior suggests that

individuals may make different choices because of different desired outcomes.

A normative statement is one that

is based on value judgments.

The French term "laissez-faire" means

let it be

The assertion that Facebook is "free"

may be true for its users, but only because someone else is covering the costs.

"Free" products offered by firms

may or may not be free to individuals receiving them but are never free to society.

Which of the following is not considered by economists to be an economic resource?

money

Which of the following would not be classified as an economic resource by economists?

money in a business checking account

Given the information, and assuming trade occurs between the three states, we can expect

money to flow counter clockwise from Michigan to Texas to Washington.

According to the Coase theorem,

private individuals can often negotiate their own resolution of externality problems, without the need for government intervention.

An effective price floor on wheat will force otherwise profitable farmers out of business. result in a shortage of wheat. result in a surplus of wheat. clear the market for wheat.

result in a surplus of wheat.

Supply curves represent sellers' minimum-acceptable-price curves. buyers' maximum willingness to accept curves. marginal benefit curves. All of these choices are correct.

sellers' minimum-acceptable-price curves

Which of the following is a capital resource? a computer programmer a corporate bond issued by a computer manufacturer silicon (sand) used to make computer chips software used by a firm

software used by a firm

Mechanism design is a field of study that

studies how to set up the best procedures, or mechanisms, to coordinate any given situation, including voting.

If government set a minimum price of $50 in the market, a

surplus of 21 units would occur.

Opportunity costs exist because the decision to engage in one activity means forgoing some other activity. wants are scarce relative to resources. households and businesses make rational decisions. most decisions do not involve sacrifices or trade-offs.

the decision to engage in one activity means forgoing some other activity.

Which of the following would be determined in the product market? - the price of 100 acres of commercial property - the price of a new screen printing machine used in t-shirt production - the price of an energy drink that you just put in your shopping basket - the price of a new self-driving tractor-trailer

the price of an energy drink that you just put in your shopping basket

One of the reasons that public companies violate more health and safety laws is because

the regulators are stricter on public companies than the private companies

Which of the following characteristics is least unique to a market system?

the widespread use of money

Consumers might leave a fast-food restaurant without being served because

they conclude that the marginal cost (monetary plus time costs) exceeds the marginal benefit.

Refer to the provided table. If the price falls to $50, total consumer surplus

will increase

Which one of the following expressions best states the idea of opportunity cost

"there is not such thing as free lunch"

In 2021, U.S. federal government legislation authorized

285 earmarks, totaling $16.8 billion