The Rawlsian view of equity would lead to: A) equal allocations of goods across all persons. B) maximizing the utility of the least-well-off person. C) maximizing the total utility of all society members. D) none of the above ANSWER B
Date: September 9th, 2020
What is a reference point? A) the value of a good on the black market B) the point from which an individual makes a consumption decision C) a subjective valuation of a good D) the minimum price that an individual would sell a good that she currently owns E) none of the above ANSWER […]
Date: September 9th, 2020
As illustrated in the textbook, the government can further increase the support price of a commodity by purchasing excess supplies and using a: A) production quota. B) consumption tax. C) excess profits tax. D) minimum wage. ANSWER A
Date: September 9th, 2020
Having a refundable deposit for recyclable material A) raises the marginal private cost of disposal. B) raises the marginal social cost of disposal. C) lowers the marginal private cost of disposal. D) lowers the marginal social cost of disposal. E) does not affect disposal costs. ANSWER A
Date: September 9th, 2020
In some markets plumbers have a choice of joining unions or working as nonunion plumbers. The total short-run supply of plumbers is perfectly inelastic at 500 workers per day. The demands for nonunionized and unionized plumbers, respectively, are: WNU = 30 – 0.04L WU = 30 – 0.10L. The wage rate is W in $/hr. […]
Date: September 9th, 2020
Which of the following statements is TRUE when comparing monopsony and competitive labor markets? A) The monopsony hires more workers but pays a lower wage. B) The monopsony hires more workers at a higher wage. C) The monopsonist’s wage is lower and quantity of labor higher than would prevail under competition. D) The monopsonist’s wage […]
Date: September 9th, 2020
A demand curve of the form: Q = a – bP, where a and b are positive real numbers,: A) is an upward sloping straight line. B) has a constant price elasticity of demand. C) is a downward sloping straight line. D) is a parabolic curve. ANSWER C
Date: September 9th, 2020
The utilitarian view of equity would lead to: A) equal allocations of goods across all persons. B) maximizing the utility of the least-well-off person. C) maximizing the total utility of all society members. D) none of the above ANSWER C
Date: September 9th, 2020
Your indifference curves for good X (horizontal axis) and good Y (vertical axis) are vertical lines because you do not gain any satisfaction from consumption of Y. As the price of X declines, the change in consumption of X is entirely composed of the: A) income effect. B) substitution effect. C) Giffen effect. D) independent […]
Date: September 9th, 2020
Consider a linear, upward sloping supply curve. If the supply curve shifts upward, then: A) the price elasticity of supply will increase. B) the price elasticity of supply will increase if the slope of the supply curve is greater than one. C) the price elasticity of supply will increase if the slope of the supply […]
Date: September 9th, 2020
