Refer to Scenario 15.1. If the interest rate falls, A) the present value of this contract will fall. B) the present value of this contract will be unaffected. C) the present value of this contract will rise. D) Jacob will be paid less than $10 million each year. E) Jacob will be paid more than […]
Date: September 9th, 2020
A Gini coefficient of 0 represents perfect equality in the distribution of income. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The monopoly supply curve is the A) same as the competitive market supply curve. B) portion of marginal costs curve where marginal costs exceed the minimum value of average variable costs. C) result of market power and production costs. D) none of the above ANSWER D
Date: September 9th, 2020
Refer to Scenario 17.1. The lowest level of y* that can be set and still have only the high-productivity people meet it is A) 16. B) 13 1/3. C) 13. D) 8. E) 0. ANSWER D
Date: September 9th, 2020
Class stratification refers to a situation in which people are trapped in a particular income rank. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The bandwagon effect corresponds best to which of the following? A) Snob effect B) External economy C) Negative network externality D) Positive network externality ANSWER D
Date: September 9th, 2020
In the game in Scenario 13.6, what is the Nash equilibrium? A) The strategy pair associated with -$100, -$1. B) The strategy pair associated with $2, -$0.5. C) The strategy pair associated with $1, -$1. D) The strategy pair associated with -$0.5, -$0.5. E) There is no Nash equilibrium in pure strategies. ANSWER B […]
Date: September 9th, 2020
The concerns about world food production raised by Malthus have not materialized because: A) input prices have fallen over time. B) crop prices have risen over time. C) Malthus was wrong about the diminishing returns to labor in agriculture. D) technological improvements have increased our ability to produce food over time. ANSWER D
Date: September 9th, 2020
The monopolist has no supply curve because A) the quantity supplied at any particular price depends on the monopolist’s demand curve. B) the monopolist’s marginal cost curve changes considerably over time. C) the relationship between price and quantity depends on both marginal cost and average cost. D) there is a single seller in the market. […]
Date: September 9th, 2020
Refer to Scenario 17.1. The highest level of y* that can be set and still have the high-productivity people choose to meet it is A) 16. B) 13 1/3. C) 13. D) 8. E) 0. ANSWER B
Date: September 9th, 2020
