Refer to Scenario 17.1. If the threshold educational level y* is set at 14, A) only individuals in Group A will attain it. B) only individuals in Group B will attain it. C) individuals in both groups will attain it. D) no individuals will attain it. E) some fraction of individuals in each group will […]
Date: September 9th, 2020
The game in Scenario 13.8 is A) variable-sum. B) constant-sum. C) cooperative. D) a Prisoner’s Dilemma. E) a Conjoint Crux. ANSWER A
Date: September 9th, 2020
Refer to Scenario 15.1. If the interest rate is expected to fall to 5% in years 4 and 5, in terms of current dollars the value of the Muckrakers payments will A) rise. B) stay the same. C) fall. D) change, but we cannot answer this question without further information. ANSWER A
Date: September 9th, 2020
When the bandwagon effect exists, a change in price is likely to A) change total revenue less than if there were no network externalities. B) change total revenue more than if there were no network externalities. C) change total revenue the same amount as if there were no network externalities. D) not change total revenue […]
Date: September 9th, 2020
In the game in Scenario 13.7, the strategy pair that pays A) $69,000 to each player is the only equilibrium. B) ($0, -$1000 ) is the only equilibrium. C) (-$1000, $0 ) is the only equilibrium. D) $0 to each player is the only equilibrium. E) $69,000 to each player and the strategy pair that […]
Date: September 9th, 2020
An isoquant A) must be linear. B) cannot have a negative slope. C) is a curve that shows all the combinations of inputs that yield the same total output. D) is a curve that shows the maximum total output as a function of the level of labor input. E) is a curve that shows all […]
Date: September 9th, 2020
Earnings mobility is pervasive. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Bette’s Breakfast, a perfectly competitive eatery, sells its “Breakfast Special” (the only item on the menu) for $5.00. The costs of waiters, cooks, power, food etc. average out to $3. 95 per meal; the costs of the lease, insurance and other such expenses average out to $1.25 per meal. Bette should A) close her doors […]
Date: September 9th, 2020
Which of the following statements does not explain why US health care expenditures are higher than in other countries? A) Government policies have shifted the health care production function downward over time. B) Consumer incomes have increased, which allows consumers to purchase more health care. C) The US health care system is relatively inefficient compared […]
Date: September 9th, 2020
Which of the following is NOT true for monopoly? A) The profit maximizing output is the one at which marginal revenue and marginal cost are equal. B) Average revenue equals price. C) The profit maximizing output is the one at which the difference between total revenue and total cost is largest. D) The monopolist’s demand […]
Date: September 9th, 2020
