ECON Midterm 2
Public goods are ________ in consumption. A.excludable and rival B.non-excludable and non-rival C.excludable but non-rival D.rival but non-excludable
B.
The exit of a firm ________. A.refers to the temporary decision of the firm not to hire any new employees B.is a long-run decision by the firm to leave a market C.refers to a refusal to work organized by a group of the firm's employees D.is a short-run decision by the firm to not produce anything
B.
What solved the "pickle problem" for the food banks? A. Price Controls B.A Market C.More Donations D.Cheaper Transportation
B.
Which of the following correctly identifies an argument against free trade? A.The sellers of exporting nations suffer heavy losses due to trade. B.Specialization due to trade can hamper national security. C.Trade leads to a minimization of world production. D.Trade leads to an exploitation of developed countries.
B.
In a perfectly competitive market,________. A.bargaining over prices is a common phenomenon B.each seller charges a different price for its product C.sellers produce identical goods D.there are restrictions on the entry of new firms
C.
If prices are held above the equilibrium price, ________. A.all firms will incur losses B.there will be a shortage in the market C.there will be a surplus in the market D.social surplus will be maximized
C.
A firms is seeing a $500 loss in the short run. The fixed cost of operation for this firm is $200 what is the best decision for this firm in the short run? A.This firm should shut down production. B.There is not enough information provided to answer. C.This firm should not shut down production. D.This firm should produce more than what it is currently producing.
A.
According to the interview with Doug Webber, what was closest to the average net amount that a student at a school like UNR spends on tuition these days (after financial aid)? A.$3000 B.$25000 C.$500 D.$1000
A.
Carbon dioxide emissions produce _________________ externalities and a federal carbon tax (according to Brooking's Institution) would involve ________________ harmful net distortions to the US economy than a tax _______________ that generated the same revenue by raising marginal tax rates on labor income across the board. A.negative, fewer, increase B.positive. fewer, increase C.negative, higher, increase D. negative, fewer, decrease
A.
How did Iceland "export electricity"? A.Smelting Aluminum B.Underwater cables that were very dangerous for fish C.Batteries
A.
In the terminology of Chapter 8, we can say that Iceland developed because of what economic principle? A.Comparative Advantage B.Inflation C.Equilibrium D.Supply
A.
In what year was Pigou Born? A.1877 B.1977 C.1927 D.1907
A.
Is the producer surplus same as the profit? A.No, they are different, because the producer surplus does not take into account the fixed cost B.No, they are different, because the profit is always at least the producer surplus. C.Yes, they are the same, because the profit is the revenue minus the sum of marginal costs of each unit sold. D.Yes, they are the same, because the producer surplus is the sum of profits from each unit sold.
A.
Pigou's work was said to be inspired by pollution in which city? A.London B.Paris C.New York D.Bejing
A.
Scenario: Ron plays loud music, which prevents his neighbor from studying. He knows that his neighbor values studying at $5,000, while the cost of soundproofing Ron's room is $3,000.Refer to the scenario above. If Ron has the right to listen to music at night, how much does his neighbor need to pay him to stop playing music? A.Any amount between $3,000 and $5,000 B.Any amount below $3,000 C.Any amount above $5,000 D.Any amount between $5,000 and $8,000
A.
Specialization occurs when each individual, firm, or country ________. A.produces only a few specific goods and relies on trade for the other goods and services it needs B.produces only those goods for which it has a higher opportunity cost of production than that for other nations C.is self-sufficient and produces all goods and services it needs, without relying on imports D.produces only those goods which are in demand in the global market and allow for high rates of profitability
A.
The ability of an individual, firm, or country to produce more of a certain good than other competing producers, given the same amount of resources, is referred to as ________. A.absolute advantage B.perfect advantage C.marginal advantage D.comparative disadvantage
A.
The entry and exit of forms in a perfectly competitive market is mostly dependent on_______. A.the profitability of the existing firms B.the number of consumers in the market C.the number of firms in the market D.government regulations
A.
The equilibrium price and quantity of a good under perfect competition are determined by the intersection of the ________. A.market demand and market supply curves B. market supply and total revenue curves C.total revenue and total cost curves D.market demand and total revenue curves
A.
The invisible hand is mostly guided by ________. A.market prices B.government intervention C.the quantity of goods and services sold D.the costs of production
A.
Using higher tolls during peak travel times in cities and peak fees for airplane takeoff and landing slots is an example of____________________ A.Congestion pricing B.Carbon tax C.Social welfare D.Positive externality
A.
What did Iceland Start Trading in the 19th century? A.Fish B.Potatoes C.Turnups D.Oil
A.
What was the initial amount of the carbon tax discussed in the podcast (per ton)? A.20 B.50 C.40 D.30
A.
What will be the maximum amount of the carbon tax discussed in the podcast (per ton)? A.50 B.100 C.25 D.40
A.
When was the volcanic eruption that killed a quarter of the population of Iceland? A.1783 B.1738 C.1387 D.1837
A.
Which best describes what Ashley Langer said about gas versus miles taxes? A.Both have exactly the same effect on externalities but miles taxes affect rural drivers less B.Both have exactly the same effect on externalities but gas taxes affect rural drivers less C.Rural drivers were not affected by these taxes D.Urban drivers were not affected by these taxes
A.
Which country did the podcast discuss recently implementing a Pigouvian Tax on carbon? A.Canada B.UK C.China D.U.S.
A.
Which of the following best describes the long run for a firm? A.The period of time which all factors of production are variable B. The period of time over which the amount of labor is variable C.The period of time over which all factors of production are fixed D.The period of time over which the amount of labor and raw materials are variable
A.
Which of the following statements best captures the poll results that I posted in the chapter eight review sheet: A.New US Steel Tariffs will decrease welfare (total surplus) in the US B.New US Steel Tariffs will increase welfare (total surplus) in the US C.New US Steel Tariffs will have no effect on welfare (total surplus) in the US
A.
Which of the following statements best captures the poll results that I posted in the chapter eight review sheet: A.Tariffs on China will primarily be paid by American households B.Tariffs on China will primarily be paid by Chinese companies C.Tariffs on China will primarily be paid by the US government D.Tariffs on China will primarily be paid by the chinese government
A.
Which of the following statements best captures the poll results that I posted in the chapter eight review sheet: A.Trade between Europe and China will make most Europeans better off, but some worse off B.Trade between Europe and China will make most Europeans worse off, but some better off C.Trade between Europe and China will make all Europeans worse off D.Trade between Europe and China will make all Europeans better off
A.
Which of the following statements best captures the poll results that I posted in the chapter seven review sheet: A.Many economists worry that companies that try to maximize shareholder value have negative effects on workers and communities, but fewer agree that moving to a model where companies were managed with keeping impacts on workers and communities more in mind would have no negative effects on profits. B. A vast majority of economists believe that companies that try to maximize shareholder value have NO negative effects on workers and communities C.Many economists worry that companies that try to maximize shareholder value have negative effects on workers and communities, and a majority agree that moving to a model where companies were managed with keeping impacts on workers and communities more in mind would have NO negative effects on profits.
A.
Which of the following statements is true? A.The number of firms in the industry is fixed in the short run, but the number can change in the long run B.A firm can vary all its factors of production in both the short run and the long run. C.The short-run average cost curves lies below the long-run average cost curves in both the short run and the long run. D.Free entry and exit of firms is possible in the short run, but the entry and exit of firms is restricted in the long run.
A.
Which of the following statements is true? A.Trade between nations allows each nation to specialize in the production of goods for which it has comparative advantage. B.Trade between two nations is possible only when the opportunity costs of producing goods and services in both nations are identical. C.When two nations specialize and trade, there is a loss of efficiency and both the nations are made worse off. D.Trade between two nations is most beneficial when neither has a comparative advantage in the production of any goods and services.
A.
________ are highly excludable but non-rival in consumption. A.Club goods B.Private goods C.Common pool resource goods D.Public goods
A.
An externality occurs when ________. A.the quantity supplied of a good exceeds the quantity demanded B.an economic activity affects third parties not engaged in the activity C.the quantity demanded of a good exceeds the quantity supplied D.the government regulates production and consumption decisions
B.
Approximately how long did it take for new firms to enter? A.A day B.A month C.A year D.A week
B.
If prices are held below the equilibrium price, ________. A.all firms will earn positive economic profits B.there will be a shortage in the market C.social surplus will be maximized D.there will be a surplus in the market
B.
Pawn broking increase as A.payday lenders changed their business model B.new firms entered the market
B.
Points on a production possibilities curve are ________ and ________. A.inefficient; attainable B.efficient; attainable C.inefficient; unattainable D.efficient; unattainable
B.
A ________ is the price at which a trading partner is indifferent between making the trade and not doing so. A.discounted value B.reservation value C.market value D.shadow value
B.
A corrective subsidy induces the ________ toward the socially optimal level. A.producers creating a negative externality to increase the quantity produced B.consumers benefiting from a positive externality to increase the quantity consumed C.producers generating a positive externality to reduce the quantity produced D.consumers affected by a negative externality to increase the quantity consumed
B.
According to our discussion about EXIT in the interview, how long was the long run? A.1 month B.1 year C.1 day D.1 week
B.
Efficiency is achieved in competitive markets because ________. A.consumer surplus is maximized B.producer surplus is maximized C.social surplus is maximized (the economic pie is made as large as possible) D.deadweight loss is maximized
C.
Equity refers to _______. A.Ensuring that all producer surplus is transferred to consumers B.making the economic pie as large as possible C.Distributing resources across society (how the economic pie is divided) D.Minimizing deadweight loss
C.
Scenario: Suppose a competitive market has ten buyers and ten sellers. The product exchanged in this market is beach hats, which are indivisible. The following table shows the reservation values for both buyers and sellers. Image Refer to the scenario above. Suppose the equilibrium price in this market is $10. What is the amount of social surplus in this market? A.$30 B.$15 C.$44 D.$39
C.
When a Pigouvian tax is imposed, ________. A.the demand curve shifts rightward B.the marginal social benefit curve shifts downward C.the marginal private cost curve shifts upward D.the marginal social cost curve shifts downward
C.
Which side of the overall market for short term load was changed by the regulation? A.The Demand Side B.Neither C.The Supply Side
C.
A street light is a ________. A.common pool resource good B.club good C.private good D.public good
D.
Deadweight loss refers to the loss in ________. A.producer surplus due to a fall in the market price of a good B.total surplus due to a change in consumers' preferences C.consumer surplus due to an increase in the market price of a good D.total surplus due to a market distortion, such as an externality
D.
Entry is the signal that incurring costs is going to A.free B.costly C.not be profitable D.be profitable
D.
Government invention is required to solve externality problems if ________. A.transaction costs associated with private negotiations are low B.the number of people affected by the externality is small C.property rights are clearly defined D.the number of people affected by the externality is large
D.
How was the "fake money" distributed? Foodbanks that feed the least hungry people A.All places had the same amount of money B.A lottery C.They bought the fake money with donations D.Food banks that feed the most hungry people got the most money
D.
Scenario: Suppose a competitive market has ten buyers and ten sellers. The product exchanged in this market is beach hats, which are indivisible. The following table shows the reservation values for both buyers and sellers. Image Refer to the scenario above. If the market is perfectly competitive, the equilibrium price of a hat is ________. A.$6 B.$2 C.$12 D.$10
D.
Scenario: Suppose a competitive market has ten buyers and ten sellers. The product exchanged in this market is beach hats, which are indivisible. The following table shows the reservation values for both buyers and sellers. Image Refer to the scenario above. If the market is perfectly competitive, the equilibrium quantity of hats is ________. A.4 B.10 C.5 D.6
D.
The long-run supply curve of a firm is ________. A.the portion of its marginal cost curve that lies below its average total cost curve B.its marginal cost curve C.its average total cost curve D.the portion of it's marginal cost curve that lies above its average total cost curve
D.
The primary goal of a seller is to ________. A.minimize consumer surplus B.minimize deadweight loss C.maximize opportunity cost D.maximize profits
D.
Trade between two nations ________. A.reduces global production B.is inefficient compared to a situation where both nations do not engage in international trade C.leads to a maximization of production in one nation and a minimization of production in the other D.results in the maximization of total production
D.
What best describes what happened when the government started selling the stockpile helium at a fixed price? A.The price was lower than ATC for firms, drawing new firms into the market B.No answer text provided. C.The price was too high and consumers could no longer afford helium. D.The price was lower than ATC, causing private helium producing firms to exit the market
D.
What describes what happened to payday lenders (in terms of chapter six vocabulary) A.shutdown B.Entry C.Nothing D.Exit
D.
Why was one of the food bank workers interested in bidding on syrup? A.He was anticipating the price of syrup going up B.No answer text provided. C.His food bank had a large increase in clients because of the recession D.He had a lot of pancake mix
D.
With auctions, the price of helium increase from A.1 to 3 B.2600 to 23000 C.115 to 254 D.65 to 119
D.
