Suppose that widgets can be produced using two different production techniques, A and B. The following table provides the total input requirements for each of five different total output levels. a. Assuming that the price of labor (PL) is $2 and the price of capital (PK) is $3, calculate the total cost of production for each of the five levels of output using the optimal […]

A price-discriminating monopoly charges the lowest price to the group that a. has the most elastic demand. b. purchases the largest quantity. c. engages in the most arbitrage. d. is least responsive to price changes.

Suppose the quantity of steak purchased by the Jones family is 110 pounds per year when the price is $2.10 per pound and 90 pounds per year when the price is $3.90 per pound. The price elasticity of demand coefficient for this family is a. 0.33. b. 0.50. c. 1.00. d. 2.00.   Q202: If a 5 percent reduction in the price of a good […]

For the ADD instruction rung shown in Figure 15-41, the value stored in Dest would be a) 1. c) 50. b) 35. d) 15.         For the SUB instruction rung shown in Figure 15-42, the number of shipped parts would be a) 100. c) 600. b) 500. d) 1,700.

As shown in Exhibit 10, total fixed cost for the firm is a. zero. b. $250. c. $500. d. $750. e. $1,000.

Which of the following pairs is the most likely to exhibit an inverse relationship? a. The amount of time you study and your grade point average b. People’s annual income and their expenditure on personal computers c. Baseball players’ salaries and their batting averages d. The price of a concert and the number of tickets people purchase

Consider a simple version of the Ultimatum Game discussed in the text. The first mover proposes a division of €1. Let r be the share received by the other player in this proposal (so the first mover keeps 1 –r), where 0 _r_ 1/2. Then the other player moves, responding by accepting or rejecting the proposal. If the responder accepts the proposal, the players are […]

A CTD counter will cause the accumulated value to ____ when there is a false-to-true transition of the counter rung. a) reset to zero c) decrease by one b) increase by one d) remain the same The ControlLogix CTD instruction is typically used with a CTU instruction that references a) the same counter structure. c) the same data table. b) a different counter structure. d) […]

A tax that is structured so that people with higher incomes pay a larger percentage of their income for the tax than do people with smaller incomes is called a (an) a. income tax. b. regressive tax. c. property tax. d. progressive tax.

We s t End theatre, London, is considered to represent one of the highest levels of commercial theatre in the English-speaking world. The “theatre land” contains approximately fifty venues, attracting more than 14 million attendees in 2014. Box office ticket prices range from less than £10 for a few of the smaller shows to over £200 for some of the major productions with famous cast. […]

The timer tag name for the timer shown in Figure 15-23 is a) Diverter gate solenoid delay timer. c) Solenoid_Delay. b) Timer. d) either a or c The timer’s delay time would be a) 3,000 s. c) 30 s. b) 300 s. d) 3 s.

Predict the direction of change for either supply or demand in the following situations:   a. The price of sugar rises. What is the effect on the coffee market? b. Tobacco lobbyists convince Congress to remove the tax paid by sellers on each carton of cigarettes sold. c. A new type of robot is invented that will pick peaches. d. A computer game company anticipates […]

Briefly explain whether each of the following represents a public good. a. The samba street parade held during the Rio de Janiero Carnival. b. A high tea at the Mount Nelson Hotel in Cape Town South Africa. c. The world famous Eiffel Tower in Paris. d. The formula one motor race held each year on the Circuit de Monaco. e. A hat purchased at the […]

Compare “dollar voting” in private markets with “majority voting” in the political decision-making system. What Does Public Choice Say about a Budget Deficit?

As cities go, Las Vegas is about as “over-the-top” as is imaginable. Where else in the world can you find a 350-foot tall glass pyramid, a half-scale replica of the Eiffel Tower, a fire-spewing volcano, and patrons being serenaded in Italian while riding in authentic Venetian gondolas, and all of this along one street, Las Vegas Blvd? Despite the city’s numerous excesses, the four largest […]

Which of the following is not an automatic stabilizer? a. Defense spending. b. Unemployment compensation benefits. c. Personal income taxes. d. Welfare payments.

In contrast to a perfectly competitive firm, a monopolist operates in the long run at a quantity of output at which a. P =MC. b. MR =MC. c. P =ATC. d. P > MR.

The investment demand curve represents the relationship between business spending for investment goods and a. GDP. b. interest rates. c. disposable income. d. saving.

Which of the following are examples of Pareto-efficient changes? Explain your answers. a. The Hooterville Police Department implements cost-saving programs without having to sacrifice the quality of their services. b. Competition is introduced into the satellite television industry, and monthly rates drop. A study shows that benefits to consumers are larger than the lost monopoly profits. c. James trades his Harley-Davidson motorcycle to Lola for […]

Emerald Island has a climate that is suited to banana production and yields 840 pounds per acre. Tropical Springs has a climate that is not well-suited for bananas and yields only 250 pounds per acre. Emerald Island has a climate that is not well-suited for mango production and yields 325 pounds per acre. Tropical Springs has a climate that is suited for mangoes and yields […]

Which of the following statements best describes the price, output, and profit conditions of monopoly? a. Price will equal marginal cost at the profitmaximizing level of output, and profits will be positive in the long run. b. Price will always equal average variable cost in the short run, and either profits or losses may result in the long run. c. In the long run, positive […]

Which of the following statements is correct? a. A sales tax on food is a regressive tax. b. A flat tax is also a proportional tax. c. Social Security is a regressive tax. d. All the above are true statements.

For a given firm, MRPL = $75 and MRPK = $150 while PL= $50 and PK= $200. a. Is the firm maximizing profits? Why or why not? b. Identify a specific action that would increase this firm’s profits.

T F It’s difficult for a private firm to provide a public good because of free riders. Suppose prices for new homes have risen, yet the number of new homes sold has also risen. We can conclude that a. the demand for new homes has risen. b. the law of demand has been violated. c. new firms have entered the construction industry. d. construction firms […]

The town council’s finance committee has evaluated data and determined that the present discounted value of the benefits from a proposed dog park comes to $3,250,000. The total construction cost of the dog park is $3,500,000. This implies that the dog park should be built. Do you agree with this conclusion? Explain your answer. What impact could a substantial decrease in interest rates have on […]

Which of the following contributed the second largest percentage of total federal government expenditures in recent years? a. Interest on the national debt. b. Education and health. c. National defense. d. Income security.

Find another example of the use of cell phones as a way to improve market functioning in a developing economy. Corruption in a government is often accompanied by in-efficiency in the economy. Why should this be true?

The counter Accum value is reset to zero by a a) RES instruction with a different tag name. b) RES instruction with the same tag name. c) true-to-false transition of the counter rung. d) false-to-true transition of the counter rung.

Under both perfect competition and monopoly, a firm a. is a price taker. b. is a price maker. c. will shut down in the short run if price falls short of average total cost. d. always earns a pure economic profit. e. sets marginal cost equal to marginal revenue.

Fill in the columns in the following table. What quantity should a profit-maximizing firm produce? Verify your answer with marginal reasoning.