The marginal product of an input is A) total product divided by the amount of the input used to produce this amount of output. B) the addition to total output that adds nothing to total revenue. C) the addition to total output that adds nothing to profit. D) the addition to total output due to […]
Date: September 9th, 2020
You share a room in a large apartment complex with three other students, and you want to have an end-of-semester party that may become very noisy. Your lease clearly states that you are not to disturb the other residents, but you believe the Coase Theorem implies that you should be able to bargain with your […]
Date: September 9th, 2020
An association of businesses that are jointly owned and operated by members for mutual benefit is a: A) condominium. B) corporation. C) cooperative. D) joint tenancy. ANSWER C
Date: September 9th, 2020
When comparing the market price of an input in a market characterized by bilateral monopoly to a perfectly competitive price A) the bilateral monopoly price is always higher than the competitive price. B) there is no difference; the bilateral monopoly price equals the competitive price. C) the bilateral monopoly price is always less than the […]
Date: September 9th, 2020
Suppose a government imposes an import tariff that is too large and exceeds the tax required to completely shut down foreign imports. What is the impact of this mistake on the market outcome? A) The impact is the same as intended — there are no imports and the domestic market clears at the domestic equilibrium […]
Date: September 9th, 2020
Denmark has a comparative advantage in cheese production, and Holland has a comparative advantage in beer production. The two countries initially trade cheese and beer based on their comparative advantages, but the government of Denmark later closes the border to trade with Holland. What is the likely impact of this trade restriction? A) Danish cheese […]
Date: September 9th, 2020
Refer to Scenario 13.1. At your negotiated price the producer surplus is: A) $0. B) $50. C) $200. D) $250. E) $300. ANSWER B
Date: September 9th, 2020
The law of diminishing returns refers to diminishing A) total returns. B) marginal returns. C) average returns. D) all of these. ANSWER B
Date: September 9th, 2020
Refer to Figure 14.3. To maximize total wages paid to workers, the labor union will agree to wage rate: A) W0. B) W1. C) W2. D) W3. E) none of the above ANSWER C
Date: September 9th, 2020
As noted in the text, the major Japanese auto manufacturers agreed to “voluntary” import restrictions that reduced the number of cars they could ship to the U.S. market in the 1980s. One of the key outcomes from this policy is that the Japanese manufacturers were able to: A) focus on more profitable auto markets in […]
Date: September 9th, 2020
