Menell’s study showed that in terms of effectiveness, A) mandatory separation of recyclables was best, followed by curbside charges and finally refundable deposits. B) mandatory separation of recyclables was best, followed by refundable deposits and finally curbside charges. C) curbside charges were best, followed by refundable deposits and finally mandatory separation of recyclables. D) curbside […]
The marginal expenditure curve for labor is based on the assumption that A) the most productive workers are hired first. B) the wage rate is independent of the quantity of labor employed. C) the market supply curve for labor is infinitely elastic. D) all workers are paid the same wage rate. E) none of the […]
A consumer spends his income on food and rent. The government places a $1 tax on food. To restore the pre-tax consumption level of food the rebate paid to consumers will be smallest when A) the own price elasticity of demand for food is 2, and the income elasticity of demand for food is 5. […]
The tendency for individuals to assign higher values to goods when they own the goods than when they do not possess the goods is known as the: A) substitution effect. B) endowment effect. C) income effect. D) anchoring effect. ANSWER B
Refer to Scenario 7.2. Suppose that you receive an order for 60 earthquake detectors. How much labor will you use to minimize the cost of 60 earthquake detectors? A) 1 B) 5 C) 10 D) 45 E) none of the above ANSWER D
Under a production quota policy, the government can maintain a particular support price by reducing the quantity supplied. To maintain a particular support price, how must the quota amount change if the demand curve becomes more elastic? A) Quota amount increases B) Quota amount decreases C) Quota amount does not change D) Quota amount depends […]
Which is NOT a weakness of the policy of mandatory separation of recyclables? A) It actually pays people to use more recyclable material, and thus more material in total. B) It is costly for households in terms of time spent. C) It is costly for the government to monitor. D) Individuals may shift away from […]
Melon Computer Company manufacturers its computer components in Singapore and assembles the computers intended for sale in North America in its plant in Arizona. If the U.S. reduces the corporate income tax rate next year, what is the likely outcome for Melon Computer Company? A) Reduce the transfer price for computer components and increase downstream […]
Refer to Scenario 12.2. What is the profit maximizing level of output? A) 171.43 B) 120 C) 150 D) all of the above E) none of the above ANSWER C
Which of the following is TRUE concerning equilibrium in a monopsonistic factor market? A) The firm uses the efficient level of the input but does not maximize profit. B) The firm maximizes profit but does not use the efficient level of the input. C) The firm maximizes profit and uses the efficient level of the […]
