The provision of an education in public school is A) exclusive and rival. B) exclusive and non-rival. C) nonexclusive and non-rival. D) nonexclusive and rival. E) a public good, regardless of exclusivity and rivalness. ANSWER A
Date: September 9th, 2020
Refer to Figure 6.1. At point C A) the marginal product of labor is greater than the average product of labor. B) the average product of labor is greater than the marginal product of labor. C) the marginal product of labor and the average product of labor are equal. D) the marginal product of labor […]
Date: September 9th, 2020
Marginal profit is negative when: A) marginal revenue is negative. B) total cost exceeds total revenue. C) output exceeds the profit-maximizing level. D) profit is negative. ANSWER C
Date: September 9th, 2020
In the game in Scenario 13.5, A) there is one equilibrium: for both to expand West. B) there is one equilibrium: for both to expand South. C) there are two equilibria: either can expand in the West, and the other expands in the South. D) there is only a mixed strategies equilibrium. E) all four […]
Date: September 9th, 2020
Consider the following game in which two firms decide how much of a homogeneous good to produce. The annual profit payoffs for each firm are stated in the cell of the game matrix, and Firm A’s payoffs appear first in the payoff pairs: Firm B – low output Firm B – high output Firm A […]
Date: September 9th, 2020
If the market price for a competitive firm’s output doubles then A) the profit maximizing output will double B) the marginal revenue doubles C) at the new profit maximizing output, price has increased more than marginal cost D) at the new profit maximizing output, price has risen more than marginal revenue E) competitive firms will […]
Date: September 9th, 2020
When the price of wood (which is an input in the production of furniture) falls, the consumer surplus associated with the consumption of furniture A) increases. B) decreases. C) does not change. D) could be any of the above. ANSWER A
Date: September 9th, 2020
The difference between what a consumer is willing to pay for a unit of a good and what must be paid when actually buying it is called A) producer surplus. B) consumer surplus. C) cost benefit analysis. D) net utility. ANSWER B
Date: September 9th, 2020
If both players in a game have dominant strategies, we say that the game has: A) a constant sum. B) a nonconstant sum. C) independence of irrelevant alternatives. D) an equilibrium in dominant strategies. ANSWER D
Date: September 9th, 2020
What is the welfare impact of a subsidy policy? A) Producer surplus increases, consumer surplus declines, and total welfare declines. B) Producer and consumer surplus increase, and these gains are larger than the government cost. C) Producer and consumer surplus increase, and these gains are smaller than the government cost. D) Producer surplus increases, consumer […]
Date: September 9th, 2020
