A mathematical technique used to solve constrained optimization problems (finding the consumer optimum, for example) is: A) the method of Lagrange multipliers. B) the Cobb-Douglas method. C) the Slutsky method. D) the Hicks substitution method. ANSWER A
Date: September 9th, 2020
You have been hired by an attorney to perform an economic analysis of lost wages in a wrongful death suit. The case involves an insurance agent, John Doe, who was killed in an auto accident a few days after his 59th birthday. Mr. Doe could have expected to earn $75,000 this year. Data suggest that […]
Date: September 9th, 2020
A person who is not working, but actively seeking employment, is considered to be out of the labor force. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
People over age 65 have higher poverty rates than those under age 18. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
For Figure 6.9 in the book, MRTS = K/(4L) with capital (K) on the vertical axis of the isoquant map. Suppose L=100 hours and K=400 machine hours at the current level of output. How much additional labor is required to maintain output if we reduce capital by one machine hour? A) One hour B) Two […]
Date: September 9th, 2020
The demand for hamburgers is estimated from this theoretical model: Q = kPaIbAce, where Q = units per day, P = price per unit, A = advertising budget per month by sellers, I = per capita income of consumers, and e = a random error. In a recent study, one researcher estimated the log-linear form […]
Date: September 9th, 2020
There seems to be some basis for concluding that genetic differences in intelligence exist between blacks and whites. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Which of the following examples represents a fixed-proportion production system with capital and labor inputs? A) Clerical staff and computers B) Airplanes and pilots C) Horse-drawn carriages and carriage drivers D) all of the above ANSWER D
Date: September 9th, 2020
Higher input prices result in A) upward shifts of MC and reductions in output. B) upward shifts of MC and increases in output. C) downward shifts of MC and reductions in output. D) downward shifts of MC and increases in output. E) increased demand for the good the input is used for. ANSWER A […]
Date: September 9th, 2020
The strategy that worked best in Axelrod’s experiments using the Prisoners’ Dilemma game was to A) play the “cooperate” (“don’t confess”) strategy. B) play the “defect” (“confess”) strategy. C) alternate between “cooperate” and “defect” strategies. D) play the “cooperate” strategy at first, and from then on do whatever the other player did in the previous […]
Date: September 9th, 2020
