MICRO PRACTICE TEST

(Figure: Change in Market Graphs) You are considering studying Mandarin and hear that the State Department announces it will put greater resources into analyzing documents written in strategically important languages. Which graph BEST illustrates the impact of the State Department's plan on the market for analysts proficient in such languages?

Graph A

In your area, 100 data analysts begin looking for jobs and 75 retire. fI there are no other changes, which is TRUE?

The market labor supply curve shifts to the right, with downward pressure on wages.

Alena manages a small theme park. She hires one more custodian at $450 per week, making her park cleaner and more attractive. As a result of this improvement, ticket sales rise by 40 tickets per week. Tickets sell for $12. Use the Rational Rule for Employers to determine if hiring the extra custodian was a good move.

Yes, it was a good move because it added more to revenue than to cost.

A few years back, the U.S. federal government wanted to encourage people to purchase new electric vehicles. Government economists determined the marginal external benefit of a new electric vehicle was $7,500 but did not determine the socially optimal quantity. Which program would do the most to increase electric vehicle purchases by consumers?

a tax credit-a form of subsidization-of $7,500

Which will give the owners of Jenning's Java, a coffee roasting factory, an incentive to hire more workers?

an increase in the labor supply of workers with the skills Jenning's requires.

corporate social responsibility refers to:

an organization's obligation to maximize its positive impact and minimize its negative impact on society

Both emissions taxes and tradable emissions permits:

are efficient methods of pollution reduction

In a market system, public goods would:

be underproduced.

Which of the following persons is using social media to act as a brand advocate?

bobby, who posts pictures of him and his friends drinking Red Bull at a ski resort

public relations and unsolicited blog posts and brand conversations are what type of media?

earned media

marketers seeking to reduce costs and the environmental impact of their activities typically pursue a strategy of:

eco-efficiency

Trisha works in an upscale deparment store. She has been instructed by the management staff that she can take up to 20% off a product if it appears damaged in some way. In addition, Trisha is encouraged to help customers as she sees fit, including giving customers discount coupons on future purchases if they return a product because they weren't satisfied. The management at Trisha's store is practicing:

empowerment

Which of the following is a retial strategy to hold events in store and attract more consumers to the retailer?

experiential retail

When a good is nonrival and nonexcludable, it suffers from the __________ problem.

free-rider

Which of these changes create an incentive for investment in capital?

higher wages

The change in people's labor supply when they have more income is called the __________ effect.

income

the ultimate goal of good customer service it to:

increase brand loyalty

A higher wage may at some point induce an individual to work __________ . When this happens, the labor supply curve is __________ .

less: backward bending

A corrective tax designed to resolve a negative externality problem is typically set at an amount equal to the ___________ cost.

marginal external

An employer's labor demand curve is equivalent to its:

marginal revenue product curve.

Sunday afternoon NFL footbal games on television are nonrival because:

more than one person can consume the same unit of the good at the same time.

Which of the following is NOT a type of non-store retailer?

off-price

With a system of cap and trade, one of the main problems is determining the __________, while with emissions taxes, the main problem is determining the __________ .

optimal quantity of pollution; optimal tax rate

By contrast with a market that produces the socially optimal output, a market with negative externalities will:

overproduce.

In a perfectly competitive labor market, employers:

pay the market wage.

A measure of price sensitivity that gives the percentage change in quantity demanded in response to a percentage change in price is known as:

price elasticity of demand

Your landscaping company uses labor and shovels. The price of shovels falls, and this _________ your demand for labor because labor and shovels are _________ .

raises; complements

good content can do all of the following for a brand except:

reduced supply chain disruptions

When you and many other new or forthcoming college graduates are looking for jobs as data analysts, you are collectively:

represented by the market labor supply curve.

Patagonia prices a jacket at $245, which is higher than its competitors. This pricing tactic best fits into which two categories?

s most efficient for society as a whole, including for buyers, sellers, and bystanders.

Panera, Supercuts, Midas, and H&R Block can all be categorized as what type of retailer?

service retailers

(Table: The Market for Power Tools) Use Table: The Market for Power Tools. In the table, the total product of labor is shown for the hourly production of power tools. Assume that the market for power tools is perfectly competitive. If the price of a power tool is $2, and the market wage rate is $20 per hour, the profit-maximizing quantity of labor is __________ workers.

six

which of the following is NOT one of the four dimensions of corporate social responsibility?

social

meeting the needs of the present without compromising the ability of future generations to meet their own needs is the definition of:

sustainability

The socially optimal quantity of pollution is:

the quantity at which the marginal social cost of pollution equals the marginal social benefit of pollution.

the ability of a company to deliver a good or service by the time the customer expects to have it available for sale or consumption is referred to as:

timeliness

Scotts Fertilizer has a 4-step program for lawn care. Each step features a different product. Scotts sells the fertilizers as a set containing one bag of each of the 4-step products. If Scotts decided to sell each product individually rather than as a set, it would be an example of which pricing strategy?

unbundling

When you earned $8 an hour attending the sign-in desk at the campus field house, you signed up for 10 hours per week. When your wage rose to $12 an hour, you increased your hours to 15 per week. In other words:

you experienced a movement up and to the right along the upward-sloping portion of your individual labor supply curve.

27. (Table: Total Product and Marginal Product for Energy Drinks) Use Table: Total Product and Marginal Product for Energy Drinks. The marginal product of labor for the second worker is __________ units per period.

20

(Figure: Change in Market Graphs) Suppose Congress passes a law denying doctors trained in several Caribbean countries the right to practice in the United States. Which graph illustrates this law's impact on the market for physicians in the Caribbean?

Graph D

What type of good is nonrival and excludable?

club goods

____________ stores are small retailers that aim to capture sales from people who are willing to pay higher prices in exchange for the ease of purchase these retailers offer.

convenience stores

If wages fall for surgeons but not for family practice doctors, there will be a(n) __________ market for surgeons and a(n) __________ in the market for family practice doctors.

decrease in quantity supplied; rightward shift in labor supply

One of the most important strategic decisions a firm faces is ____________ because it reflects the value the product delivers to consumers as well as the value it captures for the firm,

Pricing

Which statement is FALSE regarding public goods?

The fact that something is a public good doesn't mean it is nonrival.

Suppose that the government increases the child tax credit, which increases the after-tax income of families with children. How will this decision affect the amount of labor supplied by parents, assuming that leisure is a normal good?

We don't know what will happen to the quantity of labor supplied, since we don't know whether the income effect or substitution effect will dominate

Which of the following companies is utilizing social media in customer service?

a company encourages customers to use its Facebook page to ask questions or request product samples

Certain activities, such as bee pollination or nature preservation, generate external benefits that will likely be carried out at levels that _________ those that would be efficient.

are less than

The number of distinct product lines that a retailer carries is referred to as:

breadth of assortment

The marginal revenue product is the:

change in total revenue resulting from hiring an additional unit of a factor.

All of the following observations regarding search marketing are true except:

click-through rates are not affected by a link's position on a results page

In the planning phase of website development, the planning team works with stakeholders to:

develop a clear understanding of the site's target audience and its needs

(Figure: A Competitive Market in the Presence of Externalities) Use Figure: A Competitive Market in the Presence of Externalities. Given the figure, if a tax is imposed on sellers, the equilibrium price will __________ , and the equilibrium quantity will __________ .

increase; decrease

Suppose there are diminishing returns to labor. If the quantity of labor hired by a firm increases, holding everything else constant, the __________ labor will __________ .

marginal product of; fall

Which of the following is NOT a fixed cost

materials

With free entry into Cave Rock at Lake Tahoe Nevada State Park, people park in undesignated areas, crowd the lakeshore, and trash the bathroom facilities. When the park charges an entry fee of $10 per vehicle and $20 per boat launch, fewer people visit, so parking is better, crowds get smaller, and there is less trash. Visitation to the park is __________ with free entry and __________ with the entry fees.

nonexcludable and rival; excludable

Better management increases worker productivity in the labor market for factory production line workers. What will happen in the labor market for production line workers?

Labor demandwillincrease, resulting in higher wages and more hours of employment for the workers.