MicroEcon Final Willbanks

The labor __________ curve(s) will shift ____________ if there is an increase in productivity or an increase in the demand for the final product. a.) supply; left b.) demand; right c.) supply; right d.) demand; left

B

Which of the following is an example of a public good? a.) residential housing b.) national defense c.) restaurant meals d.) fish in the ocean

B

In the U.S., comparisons of high and low incomes raise issues of economic _________. a.) moral hazard b.) hazard risk c.) moral risk d.) risk

A

On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be? a.) Both the leftward shift in the labor demand curve and the higher minimum wage will lead to an increase in the unemployment rate. b.) Low income workers will be better able to survive the recession at the new, higher wage rate. c.) More people will be hired at the higher wage rate offsetting the effects of the recession. d.) The higher wage will increase the supply of labor offsetting the effects of the recession.

A

The theory of _____________________ holds that people won't bother incurring the costs of becoming informed and voting, because they know that their vote _____________________. a.) rational ignorance; won't be decisive in the election b.) imperfect competition; has little impact on election outcomes c.) democracy by majority rule; won't impact election outcomes d.) inequality of incomes; won't be decisive in the election

A

Which of the following is an example of a positive externality? a.) Hillary's newly cut lawn makes her neighborhood more attractive. b.) Dev mows Hillary's lawn and is paid $100 for performing the service. c.) Hillary's neighbors pay her if she promises to get her lawn cut on a regular basis. d.) While mowing the lawn, Dev's lawnmower spews out smoke that Hillary's neighbor Kristen has to breathe

A

__________ is a particular type of spending that mainly benefits a single political district. a.) Pork-barrel spending b.) Logrolling c.) Special interest spending d.) An appropriate spending program

A

An externality is best defined as a.) the ability of an individual to own and exercise control over scarce resources. b.) the uncompensated impact of one person's actions on the well-being of a bystander. c.) altering incentives so that people take account of the external effects of their actions. d.) a tax on goods produced abroad and sold domestically

B

An insurance company is likely to believe that having a major accident is a signal of being a _____________, and thus try to _________________. Selected Answer: high-risk driver; raise this driver's insurance premiums a.) moral hazard; deny this driver further coverage b.) high-risk driver; raise this driver's insurance premiums c.) medium-risk driver; reduce the amount of this driver's coverage d.) high-risk driver; compel the driver to take defensive driving courses

B

Improvements in the productivity of labor will tend to a.) increase the supply of labor. b.) increase wages. c.) decrease the supply of labor. d.) decrease wages.

B

In England during the Middle​ Ages, each village had an area of​ pasture, known as a​ commons, on which any family in the village was allowed to graze its cows or sheep without charge. Was the common land used​ optimally? a.) The commons was underused due to free riding. b.) Grazing created a negative​ externality, resulting in the commons being overused. c.) Grazing created no​ externality, resulting in the commons being used optimally. d.) The commons was overused because the commons was a nonrival good. e.) The commons was used optimally because the commons was a nonexcludable good.

B

When _____________________ occurs, the result will be determined by the order in which choices are presented and voted on, not by _____________________, because every choice is both preferred to some alternative and also not preferred to another alternative. a.) a voting cycle; a reduction in candidates b.) a voting cycle; majority rule c.) vote splitting; a runoff round d.) vote splitting; special interests

B

A _____________________ is an organization of workers that negotiates with employers as a group over wages and working conditions. a.) affirmative union b.) cooperative union c.) labor union d.) collective union

C

The government auctions off 500 units of pollution rights. They sell for $50 per unit, raising total revenue of $25,000. This policy is equivalent to a corrective tax of per unit of pollution. a.) $450 b.) $500 c.) $50 d.) $10

C

The problem of _________________ arises when an antique dealer knows more about the quality of an item than the potential buyer, and as a result the buyer with less knowledge must worry about ending up at a ______________. a.) imperfect selection; lemon b.) adverse information; lemon c.) imperfect information; disadvantage d.) adverse selection; disadvantage

C

___________________ are numerically small, but well-organized groups that are able to exert a disproportionate effect on political outcomes. a.) Bipartisan reform organizations b.) Bipartisan campaign reformers c.) Special interest groups d.) Social scientists organizations

C

All but one of the following is a mechanism intended to provide reassurance against imperfect information. Which is it? a.) reputation b.) collateral c.) certification of labor d.) financial capital markets

D

Antipoverty programs that are set up so that the amount of government benefits will decline substantially as poor people earn more income typically create _________________________. a.) an income inequity b.) a poverty line c.) a safety net d.) a poverty trap

D

If buyers become reluctant to purchase high-quality goods because they can't be confident of purchasing a high-quality product, then a.) a large number of buyers and sellers will be willing to barter to agree on price. b.) a large number of buyers will communicate the need for lower prices. c.) a large number of sellers will communicate their intention to raise prices. d.) the equilibrium price and quantity will be adversely affected by a thin market.

D

Other things being equal, a _____________ supply of workers tends to _________ real wages. a.) larger; increase b.) smaller; not change c.) smaller; decrease d.) larger; decrease

D

Which of the following will not result in a leftward shift of the market demand curve for labor? a.) a decrease in labor productivity b.) a decrease in demand for the firm's product c.) a decrease in the firm's product price d.) an increase in the wage rate

D

Which of the following will not result in a rightward shift of the market supply curve for labor? a.) an increase in the working-age population b.) a decrease in non-wage income c.) an increase in immigration d.) an increase in labor productivity

D

_____________________ occurs when a group of legislators all agree to vote for a package of otherwise unrelated laws that they individually favor. a.) Competitive spending b.) Pork-barrel spending c.) Politically conservative spending d.) Logrolling

D

allows the government to collect wealth for redistribution based on the amount of stored wealth that is being passed on in the form of an inheritance. a.) An inheritance tax b.) A death tax c.) A redistribution tax d.) An estate tax

D