There is anecdotal evidence to suggest that global inequalities are often rooted in inequities. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The situation pictured in Figure 6.3 A) is one of increasing marginal returns to labor. B) is one of increasing marginal returns to capital. C) is not consistent with diminishing marginal product of labor or capital. D) shows constant returns to scale. E) shows diminishing marginal products of labor and capital. ANSWER E
Date: September 9th, 2020
Refer to Scenario 10.7. Suppose that the firm chooses to produce 200 ink pads. At this level of output the demand for ink pads is A) inelastic. B) unit elastic. C) elastic. D) unit elastic. ANSWER C
Date: September 9th, 2020
Even if, on average, better-educated individuals can earn more money, all persons with more schooling will not necessarily have higher incomes. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Which kind of risk affects the opportunity cost of capital? A) Nondiversifiable risk B) Diversifiable risk C) Both nondiversifiable and diversifiable risk D) The risk inherent in “riskless” assets such as U.S. Treasury bills E) The risk inherent in “riskless” portfolios such as broad stock market holdings ANSWER A
Date: September 9th, 2020
The United Nations set a “Millennium Goal” to cut the incidence of global poverty in half between 2000 and 2015. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Traditionally, the federal government provides disaster relief funds to flood victims so that they can rebuild their homes after a major flood. However, the government has recently denied requests to rebuild some homes that were situated in flood-prone areas. This action represents an attempt to ________ the moral hazard problem associated with building private homes […]
Date: September 9th, 2020
A farmer uses M units of machinery and L hours of labor to produce C tons of corn, with the following production function C = L0.5M0.75. This production function exhibits A) decreasing returns to scale for all output levels B) constant returns to scale for all output levels C) increasing returns to scale for all […]
Date: September 9th, 2020
Imposition of an output tax on all firms in a competitive industry will result in A) a downward shift in each firm’s marginal cost curve. B) a downward shift in each firm’s average cost curve. C) a leftward shift in the market supply curve. D) the entry of new firms into the industry. E) higher […]
Date: September 9th, 2020
The income distribution of college graduates overlaps that of high school dropouts. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
