The amount of output that a firm decides to sell has no effect on the market price in a competitive industry because A) the market price is determined (through regulation) by the government B) the firm supplies a different good than its rivals C) the firm’s output is a small fraction of the entire industry’s […]
Date: September 9th, 2020
When firms participate in group health insurance for all employees, it A) raises rates for everyone, because it brings unhealthy people into the pool. B) raises rates for unhealthy people. C) may lower rates for all people to the extent that it keeps healthy people in the pool. D) prevents unhealthy people from “selecting out,” […]
Date: September 9th, 2020
Access to the movie “Casablanca,” showing in a half-empty theater, is A) a public good because individuals watch movies together. B) a public good only if the theater is run by the government. C) not a public good because it is a rival good. D) not a public good because it is an exclusive good. […]
Date: September 9th, 2020
The marginal revenue product of capital inputs does not provide complete information about optimal use because capital is: A) money. B) not an input. C) an output as well as an input. D) durable. E) all of the above ANSWER D
Date: September 9th, 2020
Life cycle patterns create substantial inequality across age groups. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The perfectly competitive firm’s marginal revenue curve is A) exactly the same as the marginal cost curve. B) downward-sloping, at twice the (negative) slope of the market demand curve. C) vertical. D) horizontal. E) upward-sloping. ANSWER D
Date: September 9th, 2020
The deadweight loss of a specific tax will be a small share of the tax revenue collected if: A) supply is more inelastic than demand. B) demand is more inelastic than supply. C) supply and demand are both elastic. D) supply and demand are both inelastic. ANSWER D
Date: September 9th, 2020
Which of the following is TRUE for the game in Scenario 13.4? A) NRG’s dominant strategy is to sponsor the marathon. B) NRG’s dominant strategy is to sponsor the TV show. C) Vita’s dominant strategy is to sponsor the marathon. D) Vita’s dominant strategy is to sponsor the TV show. E) Neither company has a […]
Date: September 9th, 2020
Which of the following is NOT a factor that has contributed to declining private-sector differential between union and nonunion wages in the U.S. since 1980? A) Globalization of the production process B) Improved ability of firms to substitute capital for labor in production C) Adoption of two-tiered wage and benefit structures by unionized firms D) […]
Date: September 9th, 2020
The demand curves for gold in New York and Zurich can both be represented by a line with negative slope, -b. When the price is zero the demand for gold is x ounces higher in New York than in Zurich. At the current price of gold the price elasticity of demand for gold in New […]
Date: September 9th, 2020
