At the profit-maximizing level of output, marginal profit A) is also maximized. B) is zero. C) is positive. D) is increasing. E) may be positive, negative or zero. ANSWER B
Date: September 9th, 2020
Refer to Figure 6.1. At point A, the marginal product of labor is A) rising. B) at its minimum. C) at its maximum. D) diminishing. ANSWER A
Date: September 9th, 2020
When the government imposes a specific tax per unit on a product, changes in consumer surplus are ________ and changes in producer surplus are ________. A) negative; positive B) positive; positive C) negative; negative D) positive; negative ANSWER C
Date: September 9th, 2020
Short run expenditure patterns may change very little when income declines. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
In the game in Scenario 13.3, the equilibrium outcome: A) is for Moto to offer a CD changer and Zport to offer low-profile tires. B) is for Moto to offer a CD changer and Zport to offer a sun roof. C) is for Moto to offer free maintenance and Zport to offer low-profile tires. D) […]
Date: September 9th, 2020
Corn flakes are A) a rival good because many firms produce them. B) a rival good because if another person wants some corn flakes society has to use additional resources to produce corn flakes for that person. C) a non-rival good because there are only a few firms in the industry. D) a non-rival good […]
Date: September 9th, 2020
Based on the example provided by the authors, what is the key factor that explains much of the growing inequality in wages paid to different types of workers in the U.S. since 1980? A) Changes in the gender composition of the work force B) Changes in the age distribution of the work force C) Differences […]
Date: September 9th, 2020
In the game in Scenario 13.2, the equilibrium strategies A) are for both firms to offer rebates. B) is for ABC to offer a rebate, and XYZ not to offer a rebate. C) is for XYZ to offer a rebate, and ABC not to offer a rebate. D) are for both firms to offer no […]
Date: September 9th, 2020
Which of the following represent examples of adverse selection? A) Unhealthy people are more likely to want health insurance. B) Careless drivers purchasing extra auto insurance. C) Risk averse individuals choosing to buy extra insurance. D) all of the above E) A and B only ANSWER E
Date: September 9th, 2020
Inefficient outcomes can arise in markets for public goods because: A) too much of an exclusive good is produced. B) too little of an exclusive good is produced. C) too much of a nonexclusive good is produced. D) too little of a nonexclusive good is produced. ANSWER D
Date: September 9th, 2020
