econ 103 final

You are the manager at Pure Sweat Studio, a membership based sauna club, assigning closing duties to your team members. In 12 mins, Sadiquah can fold all the clean towels needed for a sauna room for the next days use. She can clean a sauna room in 9 mins. Landon can fold the towels in 10 mins or clean a room in 15 mins. Sadiquah's opportunity cost of folding towels is -- sauna rooms. A- 1.33 B- 0.75 C- 0.67 D- 1.50

1.33

during the midst of the coronavirus pandemic, your uncle was part of a group of employees that his company laid off. his familys household income declined dramatically, and they struggled to provide for his 2 kids. which would NOT have been a US gov program potentially available to him ? A- Social Security B- SNAP C- Medicaid D- TANF

A- Social Security

much of the rise in income inequality in recent years in the US comes from: A- a rising gap between the incomes of highly educated and less educated workers B- the use of median income levels instead of mean income levels to assess income inequality C- an increase in the federal minimum wage D- declining gov controls on wage supports

A- a rising gap between the incomes of highly educated and less educated workers

collectively, people in nations that engage in international trade are likely to: A- consumer more than they could consume in the abscence of trade B- lower their standards of living C- lose from lower OC of production D- be made worse off

A- consumer more than they could consume in the abscence of trade

your familys business, a manufacturer of plastic containers, depends on imports of recycled plastic pellets from Asia. your supplier offers substantial volume discounts, so the larger your order of plastic pellets, the lower are your production costs. Your family benefits from: A- economies of scale B- tariffs and quotas C- lower trade barriers D- cultural interactions

A- economies of scale

in a single year, Germany can raise 100 tons of wheat or produce, 1000 boxes of daisies. In the same growing season, France can raise 50 tons of wheat or produce 750 boxes of daisies. When the 2 countries begin trading wheat for daisies, consumer surplus from wheat consumption will: A- fall in Germany B- rise in Germany C- stay the same in Germany D- either rise or fall in Germany

A- fall in Germany

if a countrys domestic price of a good is below the world price of the good, then with trade, the domestic quantity supplied of the good will be -- the domestic quantity demanded A- greater than B- less than C- equal to D- not comparable to

A- greater than

price is functioning as a message when it: A- is a line of communication between buyers and sellers in a market B- creates incentives for changes in production and consumption C- broadcasts useful information D- summarizes all that is happening in the market

A- is a line of communication between buyers and sellers in a market

Myrda works as an audio tech on Broadway, and frequently experiences short term unemployment. when she is working, she saves a good portion of her income, upon which she relies when she is unemployed. Myrdas approach is consistent with the: A- permanent income hypothesis B- leaky bucket C- social safety net D- relative poverty rate

A- permanent income hypothesis

which is NOT a rationale for the creation of the social safety net? A- providing universal health care B- alleviating income inequality C- alleviating economic insecurity D- reducing poverty and providing access to health care

A- providing universal health care

the tech startup where you worked went out of business. you were worried about depleting your wealth entirely but avoided that outcome thanks to: A- social insurance B- means testing C- the leaky bucket D- workers compensation

A- social insurance

which income redistribution would increase total well being the most? A- someone in the 95th percentile to someone in the 10th percentile B- someone in the 5th quintile to someone in the 4th quintile C- someone below the poverty line to someone in the middle class D- someone who earns $200k a year to someone who earns $150k a year

A- someone in the 95th percentile to someone in the 10th percentile

actual poverty is less than the official poverty rate primarily because: A- tax credits and noncash benefits are not included when calculating incomes B- most ppl with incomes below the poverty threshold have substantial assets C- most ppl report incomes below the poverty threshold to evade taxes D- gov stats are notoriously unreliable

A- tax credits and noncash benefits are not included when calculating incomes

the job creation argument for protection against free trade is: A- that restricting imports allows for greater domestic production B- an aspect of the pauper labor fallacy C- that full employment without trade yields greater national security D- that restricting imports will stabilize the exchange rate and bring the economy to full employment

A- that restricting imports allows for greater domestic production

your artisan candle stick manufqacturing business is doing well domestically, so you decide to expand it to other countries. as you would like to make many international sales, you hope: A- the dollar will depreciate against other currencies B- the dollar will appreciates against currencies C- foreign customers will bypass their domestic currencies and pay in dollars D- exchange rates will not change, to avoid uncertainty

A- the dollar will depreciate against other currencies

on camping trips, Katie is much faster than her husband, Brett, at putting up a tent and starting a fire. who should do each task if they want to maximize their time sitting around the campfire? A- they should first each focus on that task in which they have a comparative advantage. when one finishes the assigned task, they can help each other B- they should complete both tasks together, sharing all the work C- Katie should complete both tasks because she is a more efficient worker. Brett could watch and learn from her D- Katie should be in charge, directing the work while Brett does it

A- they should first each focus on the task in which they have a comparative advantage. when one finishes the assigned task, they can help each other

you hope to find a job, which enables you to earn a high income, but you recognize that others making less may have a higher living standard because they have more: A- wealth B- utility C- needs D- income distribution

A- wealth

if you and your group partners assign various tasks for a project in the most efficient way possible, then it is likely that: A- you got a task in which you have a comparative advantage B- the allocation of tasks is random, but each person has about the same amount of work C- each person in the group has an absolute advantage in their assigned task D- the OC for you of performing your task is higher than for the others in the group

A- you got a task in which you have a comparative advantage

France must give up the production of 75 ties to produce 25 additional dress shirts. the OC of producing 4 dress shirts is -- ties A- 4 B- 12 C- 71 D- 79

B- 12

may gov programs associated with the welfare state are believed to cause deadweight loss, since they: A- affect the amount of disposable income that households have to spend B- affect incentives to work and save C- are supported by tax revenues D- are based on the ability to pay principle

B- affect incentives to work and save

Cornell can type reports faster and more accurately than Alice, so Cornell has a -- in typing reports. A- comparative advantage B- absolute advantage C- opportunity cost D- specialization

B- comparative advantage

focusing on differences in the amount people actually spend on goods and services as a measure of their material well being rather than comparing their current incomes leads to a focus on -- in discussions of the level of economic inequality across households A- permanent income B- consumption C- wealth D- intergenerational mobility

B- consumption

Social Security is a(n) -- that is -- A- monetary transfer, means tested B- monetary transfer, not means tested C- in kind benefit, means tested D- in kind benefit, not means tested

B- monetary transfer, not means tested

a tariff or quota will -- prices and -- the consumption of the protected goods in the importing country A- raise; increase B- raise; decrease C- lower; increase D- lower; decrease

B- raise; decrease

the official poverty line depends on -- and is adjusted every year to reflect changes in the cost of living A- only the major wage earners annual income B- the size and composition of a family C- only the size of the family D- only the composition of the family

B- the size and composition of a family

the figure shows the market for AirPods. assume the S(d) represents the domestic supply curve and that D(d) represents the domestic demand curve. if the world price equals $120, and there is free trade, what is the gain in producer surplus? A- $5 million B- $2.5 million C- $2.25 million D- $750k

C- $2.25 million

which statement describes a source of comparative advantage? A- in general, France has an absolute advantage over Italy in the production of goods and services B- The US airplane design tech is equivalent to India C- Hawaii has a more favorable climate for the cultivation of tropical fruit than England has D- Canada has as many trees that can be used to produce lumber as the US

C- Hawaii has a more favorable climate for the cultivation of tropical fruit than England has

a trade cost is: A- the price of a good that is bought or sold abroad B- the cost associated with producing a good that is bought or sold abroad C- an extra cost incurred as a result of buying or selling a good abroad rather than domestically D- the difference in price between a good that is bought or sold abroad rather than domestically

C- an extra cost incurred as a result of buying or selling a good abroad rather than domestically

permanent income is a persons: A- avg income over the past 10 years B- fixed income in retirement C- average income over their lifetime D- estimate of future income based on education and skills

C- average income over their lifetime

which statement describes a poverty line based on absolute poverty? A- it is the income level that separates the bottom and second quintiles in the distribution of income B- household assets are worth less than a third of the average household assets in the nation C- income is below $5 per day per person in the household D- it is an income that provides less than the average household is able to buy

C- income is below $5 per day per person in the household

during covid, global supply chain issues caused the supply of new cars to shift left. Which role did price play in the new car market? A- incentive for a potential buyer to purchase a new car B- incentive for the quantity of new cars demanded to rise C- message to potential buyers that the marginal cost of manufacturing new cars is rising D- message to potential buyers that producing new cars is becoming less expensive

C- message to potential buyers that the marginal cost of manufacturing new cars is rising

South Korea's comparative advantage in cellular tech can be attributed to: A- climate B- factor endowments C- specialized skills D- exchange rates

C- specialized skills

which of these is a source of comparative advantage? A- small scale production B- scarce inputs C- specialized skills D- high tariff rates

C- specialized skills

The figure shows the global market for televisions. According to the figure, at a world price of $600. A- the quantity demanded exceeds the quantity supplied, and there is downward pressure on the world price B- the quantity demanded exceeds the quantity supplied, and there is upward pressure on the world price C- the quantity supplied exceeds the quantity demanded, and there is downward pressure on the world price D- the quantity supplied exceeds the quantity demanded, and there is upward pressure on the world price

C- the quantity supplied exceeds the quantity demanded, and there is downward pressure on the world price

the figure shows the domestic market for pants. according to the figure, if there is international trade in this market, and the world price of a pair of pants id $30, the value of the domestic producer surplus is: A-$1.6 million B- $800k C- $400k D- $200k

D- $200k

which gift is most like an income transfer rather than an in kind transfer? A- membership in a gym for a year B- an antique book C- a custom tailored suit with the recipient choosing fabric and style D- a gift card branded thru one of the main credit card companies

D- a gift card branded thru one of the main credit card companies

what relationship exists between income and well being in the well being curve found in the figure? A- a negative relationship with increasing marginal gains in well being as income rises B- a negative relationship with decreasing marginal gains in well being as income rises C- a positive relationship with increasing marginal gains in well being as income rises D- a positive relationship with decreasing marginal gains in well being as income rises

D- a positive relationship with decreasing marginal gains in well being as income rises

Medicaid is funded by: A- employee contributions to an HMO B- the federal gov only C- state govs only D- federal and state govs

D- federal and state govs

This figure shows the relationship between countries unemployment rates and the share of national income spent on imports. from this figure, we can determine that the US -- relative to other countries. A- spends less on imports B- spends more on exports C- employs a small number of workers D- has a small import to GDP ratio

D- has a small import to GDP ratio

you pay a plumber to install a new dishwasher in your home. Which statement is FALSE? A- you experience gains from trade because you received a service B- the plumber experiences gains from trade bc they earned income C- markets orchestrated the gains from trade in this transaction D- only the plumber experiences gains from trade because they received money

D- only the plumber experiences gains from trade because they received money

the figure lists welfare programs available to individuals. the second row includes Social Security and Medicare and thus specific programs --. A- whose benefits are in kind B- that are means tested C- whose benefits take the form of monetary transfers D- that are non means tested

D- that are non means tested

economists generally believe that a person should specialize in the production of a good or service if: A- their PPF is further from the origin than that of any other person B- their PPF is closer to the origin than that of any other person C- they can produce the product using more resources than any other person D- they can produce the product while forgoing fewer alternative products than any other person

D- they can produce the product while forgoing fewer alternative products than any other person

social insurance programs do NOT: A- set individual benefits based on past income B- obtain revenue thru program specific taxes and fees C- cover both rich and poor D- uses a means test to qualify ppl for benefits

D- uses a means test to qualify ppl for benefits

which benefit could a company gain from using internal markets? A- reduced profits and competition B- access to more input markets and greater levels of competition C- decreased market power and reduced costs of production D- better allocation of its resources and more accurate prediction

better allocation of its resources and more accurate predictions

when trade is based on comparative advantage: A- producers lose if they become more specialized B- any gains from trade are equally shared across the trading partners C- one trading partner may gain at the expense of the other D- both trading partners end up better off than when there is no trade

both trading partners end up better off than when there is no trade

You recently renovated a large historic building in the heart of your city to convert it into a boutique hotel, of which youre now the owner and operator. After a few months, youve noticed that the quantity of hotel bookings vary. Sometimes more rooms are booked on weekends, but sometimes certain events through the week result in greater quantity of rooms booked. You now want to forecast wehn to expect the most bookings, but you dont know which events will bring the most people to the hotel. The MOST accurate forecast would result if you: A- create an internal market for employees to bid for their preferred work schedules B- determine that you have a knowledge problem when predicting bookings C- use your centralized power as the owner to predict the most popular dates D- design an internal prediction market for employees to indicate their expectations

design an internal prediction market for employees to indicate their expectations

Chantelle grows tomatoes and sells them at the farmers market. Because the price of tomatoes rises, she is encouraged to grow and sell more. This is an example of price functioning as a: A- bundle. of information B- currency C- incentive D- message

incentive

Youre performing a competitive analysis for Dove, a leading personal care brand in the US. Your findings indicate a trend toward consumer preference for deodorants made with more naturally derived ingredients. Becuase of the high price competitors are recieving for the natural deodorants, Dove follows your recommendation and enters the natural deodorant market by launching the Dove Care by Plants line. For Dove, the high prices acted as a: A- incentive B- message C- bundle of information D- comparative advantage

incentive

as long as people have different --, everyone has a comparative advantage in something. A- direct costs B- benefits C- levels of utility D- opportunity costs

opportunity costs

a prediction market is a market where: A- messages lead to future actions B- information is disaggregated C- payoffs are linked to whether an uncertain event occurs D- info is missing to make a good decision

payoffs are linked to whether an uncertain event occurs

when a countrys production mix becomes more specialized due to increased international trade based on comparative advantage: A- some industries in the country will shrink and possibly disappear B- all industries in the country will grow as the economy grows from the trade C- the losses in industries without comparative advantage will offset the gains from trade D- the country will find it has less need for trade in the future

some industries in the country will shrink and possibly dissappear

when a manager uses comparative advantage to assign tasks in a workplace, then each: A- task is assigned to the worker who is best at doing the task B- worker is assigned to the tasks for which he or she has the highest aptitude and efficiency C- worker learns how to do all tasks to increase flexibility in assignments D- task is assigned to the worker with the lowest opportunity cost for performing that task

task is assigned to the worker with the lowest OC for performing that task

why does Apple design the iPhone in California but assemble the iPhone in China? A- the US has a CA in iPhone design B- China has a lower OC in iPhone design C- the US has a lower OC in iPhone assembly D- China has a CA in iPhone design

the US has a CA in iPhone design