If forced to choose, middle class whites would generally prefer as neighbors middle class blacks to poor whites. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The official statistics on working poverty do not distinguish paid workers from individuals who are self-employed. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Jim’s Hardware Supply has theft insurance. Jim also has an alarm system. The alarm system has just recently malfunctioned. If Jim has the alarm system repaired, it will cost him $100. The probability of a theft occurring is p = 0.0001. If a theft occurs and there is no alarm system, the value of stolen […]
Date: September 9th, 2020
When purchasing autos and other durable goods, consumers tend to use discount rates that are inversely proportional to their income, so the discount rates are lower for consumers with higher income. The key reason for this behavior is that: A) lower income consumers face very strict cash constraints, and they expect these problems to get […]
Date: September 9th, 2020
Due to federal funding rules, average per pupil expenditures varied across states by no more than $3,000. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
The Census survey on work experience asks for the actual hours a person worked; as a result their estimate of annual work hours is very accurate. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Refer to Figure 10.1. Suppose that the government decides to limit monopoly power with price regulation. If the government sets the price at the competitive level, it will set the price at ________. A) P1 B) P2 C) P3 D) P4 E) none of the above ANSWER D
Date: September 9th, 2020
If all of the divisions in a vertically integrated firm are owned by the same company, why is it possible that asymmetric information problems can lead to inefficient outcomes in vertically integrated firms? A) Divisions that produce parts for other divisions have effective monopoly power, so the outcome for these division must be inefficient. B) […]
Date: September 9th, 2020
In a constant-cost industry, price always equals A) LRMC and minimum LRAC. B) LRMC and LRAC, but not necessarily minimum LRAC. C) minimum LRAC, but not LRMC. D) LRAC and minimum LRMC. E) minimum LRAC and minimum LRMC. ANSWER A
Date: September 9th, 2020
For an investment in a hybrid auto like the Toyota Prius, the car owner typically pays a higher initial price for the car but enjoys lower fuel costs for the life of the vehicle. The authors note that consumers tend to use discount rates that are too high when computing the net present value of […]
Date: September 9th, 2020
