If a firm is able to set price, A) it is a monopoly. B) its marginal revenue is constant. C) it sells its output at a constant price. D) it faces a downward-sloping demand curve. ANSWER D
Date: September 9th, 2020
The above figure shows Bob’s utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. To reduce the chance of theft to zero, Bob is willing to pay A) $20. B) $50. C) $70. D) $80. ANSWER C
Date: September 9th, 2020
For each of the following statements, define all of the underlined terms. Then, explain why the statement is true or false. a. If a consumer views two goods as perfect substitutes then their optimal choice will be a corner solution. b. The substitution effect from a price increase states that the consumer will always choose […]
Date: September 9th, 2020
Which of the following acts as a hostage for employees to behave well? A) on-site childcare where employees take their children while working B) performance bonuses C) training D) bonding ANSWER D
Date: September 9th, 2020
The cross-price elasticity of demand for coffee and tea is likely to be A) greater than zero. B) less than zero. C) zero. D) infinity. ANSWER A
Date: September 9th, 2020
The TANF program was the result of _____. a. the New Deal b. the Great Society programs of President Johnson c. President Reagan’s second term in office d. President Clinton’s desire to end welfare as conventionally understood ANSWER d
Date: September 9th, 2020
For a linear demand curve that is downward sloping, the marginal revenue curve A) will be to the left of the demand curve and twice as steep. B) will be to the right of the demand curve and twice as steep. C) will be to the left of the demand curve and half as steep. […]
Date: September 9th, 2020
Suppose the market for grass seed can be expressed as: Demand: QD = 100 – 2p Supply: QS = 3p If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers? ANSWER At equilibrium […]
Date: September 9th, 2020
While price discrimination is possible between two markets it is not possible in more than two. Indicate whether the statement is true or false ANSWER False . The number of markets does not matter. All that is required is that markets differ in their respective price elasticity of demand.
Date: September 9th, 2020
If a taxpayer who qualifies for the EITC receives a credit larger than the amount of taxes due, then ____. a. they loose that portion of the credit b. they are allowed to apply it towards future tax liabilities c. it is refunded at a 50 percent rate d. it is refunded at a 100 […]
Date: September 9th, 2020
