ECON 202

market power

A firms ability to alter the market price or quantity of a good or service

CO2 emissions are a

Global externality

An emission charge

Increases private marginal cost and reduces output

A completely successful emission charge would

Shift the private MC curve to the same position as the social MC curve.

When external costs are present,

There is market failure

Experts estimate that there were almost 4 million "missing women" globally in 2008. This figure means that...

about 4 million fewer women were living globally in 2008 than statistically predicted due to being neglected, aborted, or abandoned

A natural monopoly is

an industry in which one firm can achieve economies of scale over the entire range of market supply

A World View article, "The Female 'Inequality Trap,'" says that in many poor nations the "... returns on female human capital investment is low." When women are not allowed to work outside the home or to receive an education, this is referred to as

an inequality trap

Women in low-income countries are more likely to experience all of the following except

being expected to attend school longer than men instead of working

Which of the following is a zero-sum game?

chess

Which of the following factors definitely does NOT directly help explain the gender wage gap?

differences in the prevalence of part-time work among men and women because part-time work leads to lower earnings, all else equal

A tax that is placed on the quantity of the item being purchased, such as gallons of it, is called a(n)

excise tax

A mixed strategy is one in which a player chooses different moves in a predetermined sequence

false

An optimal strategy is one that always maximizes one's maximum potential gain.

false

according to the principles of game theory, your opponents can predict your movements

false

Firm A finds it very expensive to reduce its sulfur dioxide emissions, while Firm B finds it very cheap to reduce its sulfur dioxide emissions. If a program of tradable pollution permits was enacted, we would most likely see

firm B sell its permit to pollute to firm A

Who was one of the first economists to apply traditional microeconomic ideas like opportunity cost and specialization to understand decision-making within the household?

gary becker

Local governments provide law enforcement, which benefits society, but if the costs of law enforcement exceed the benefits, the result is a situation of

government failure

Government failure will likely arise if

government officials attempt to maximize their own utility

Producers can be encouraged to internalize external costs by having the government

impose pollution or higher user fees

On average, women in the United States working full-time and year-round earn ______ men working full-time and year-round.

less than

Market power may result from all of the following except

low barriers to entry

Which of the following is a source of market failure?

market power

The reason pollution occurs is because people tend to

maximize their personal welfare, balancing private benefits against private costs.

Which of the following circumstances will result in a Nash equilibrium?

none of the above

A prisoners' dilemma is a game with all of the following characteristics except one. Which one is not present in a prisoners' dilemma?

players cooperate as their strategy

A polluting company may be able to purchase the right to pollute through

pollution permits

Which of the following is a nonzero-sum game?

prisoners dilemma

The development of market power by a firm is considered to be a market failure because firms with market power will

produce less and charge a higher price than what would be socially optimal

All of the following are negative externalities in production except

secondhand smoke in a restaurant

Some employers may choose not to hire or promote women because they believe that women are more likely to leave work to take care of family. This kind of discrimination is called...

statistical discrimination

According to the New Household Economics, which of the following is NOT an opportunity cost that a family with two parents and a child may face when deciding how to divide household and market work?

the conflict that results if the parents cannot agree on any particular division of household and market work

a payoff matrix shows

the risk and rewards of alternative decision options

game theory is

the study of decision making in situations where strategic interaction occurs between rivals

If public goods were marketed like private goods, then

there would be market failure

Suppose that the current gender pay ratio in Colorado is 0.80. This number means that...

women in colorado earn 80% of what men earn on average

In game theory, a situation in which one firm can gain only what another firm loses is called a:

zero sum game