The “trickle down” theory is based on the notion of multiplier effects. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Joe’s Imports is currently the only dealer for imported Sporto autos on the East Coast, but Fred’s Autos may enter the import market and start selling Sporto cars in the East Coast market during the coming year. Joe’s Imports can pay the Sporto manufacturer for exclusive East Coast marketing rights, which would deter the entry […]
Date: September 9th, 2020
Under “trickle down”, additional economic activity will benefit the poor. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
In Griggs v. Duke Power Company, the Supreme Court allowed intelligence tests by employers to screen potential workers. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Suppose new oil reserves are discovered that were not previously known. What happens to the user cost of oil? A) Decreases B) Increases C) Remains the same D) May increase or decrease, depending on the discount rate ANSWER A
Date: September 9th, 2020
Hiring a white worker may be statistically safer for the employer than hiring a minority. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Under the dual labor market theory, expansion of economic activity in the primary market will benefit workers in the secondary market. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Relative to a perfectly competitive market for an exhaustible resource, the monopolist charges a ________ price and uses the resource more ________. A) lower, slowly B) lower, quickly C) higher, slowly D) higher, quickly ANSWER C
Date: September 9th, 2020
Refer to Scenario 10.9. What is the maximum amount that Maui Macadamia would be willing to spend in order to maintain its monopoly through rent seeking? A) 0 B) 1,800 C) 5,400 D) 10,800 ANSWER C
Date: September 9th, 2020
A situation in which a bidder over-values an auction item and is worse off because their bid is too high is known as the: A) Ellsberg Paradox. B) winner’s curse. C) Arrow Impossibility Theorem. D) curse of the commons. ANSWER B
Date: September 9th, 2020
