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ashworth college C13V online exam 1 latest 2015 jan. Part 1 of 1 - 85.0/ 100.0 Points Question 1 of 20 5.0/ 5.0 Points Steven lives in a big city where there is a shortage of parking. He has a parking spot in his driveway where he parks his car. Which of the following statements is most correct? A. Steven has a lower opportunity cost of owning a car than his neighbor, who must rent a parking spot. B. The opportunity cost of using the spot is zero, because Steven owns the house. C. The opportunity cost of using the parking spot is the price he could charge someone else for using the spot. D. The opportunity cost depends on how much Steven's mortgage payment is. Question 2 of 20 5.0/ 5.0 Points Which of the following is a question answered with normative economic reasoning? A. If the college offers free textbooks for students, will more students read their textbooks? B. If the college provided less financial aid for out-of-state students, would more in-state students benefit? C. If the college increased its enrollment requirements, would class size decline? D. Should the college increase tuition to fund its athletic programs? Question 3 of 20 0.0/ 5.0 Points Jacinda quit her job as a blackjack dealer where she made $42,000 per year to start her own florist business. Her business expenses are $14,000 per year on rent, $21,000 per year on supplies, and $9,000 per year on part-time help. As for her personal expenses, her apartment costs her $12,000 per year and her personal bills are an extra $6,000 per year. What is Jacinda's opportunity cost of running the business? A. $104,000 B. $86,000 C. $62,000 D. $44,000 Question 4 of 20 5.0/ 5.0 Points Which of the following is an example of a normative question? A. How will an increase in the inheritance tax affect tax revenues? B. What fraction of an income tax cut will be spent on imported goods? C. Should Florida implement a state income tax to reduce its deficit? D. How will an increase in unemployment benefits affect the unemployment rate? Question 5 of 20 5.0/ 5.0 Points Resources are all of the following EXCEPT __________ . A. unlimited and in abundance B. the things we use to produce goods and services C. limited in quantity and can be used in different ways D. scarce and therefore require choices to be made Question 6 of 20 5.0/ 5.0 Points The principle that the cost of something is equal to what is sacrificed to get it is known as the __________ . A. marginal principle B. principle of opportunity cost C. principle of diminishing returns D. reality principle Question 7 of 20 5.0/ 5.0 Points The effort used to coordinate the factors of production is a description of __________ . A. physical capital B. human capital C. labor D. entrepreneurship Question 8 of 20 0.0/ 5.0 Points Angelina, age seven, decides to dress up like Princess Fiona for Halloween. What is the opportunity cost of her decision? A. the cost of the costume B. the fact that she can't dress up like Dora the Explorer, her second choice C. zero, because seven-year-olds don't have opportunity costs D. the cost of the Lady Gaga costume which she did not want Question 9 of 20 5.0/ 5.0 Points Tradeoff is __________ . A. allowing the government and other organizations to choose for us B. sacrificing one thing for another C. deciding who consumes the products produced in an economy D. holding other variables fixed Question 10 of 20 5.0/ 5.0 Points The saying that "There's no such thing as a free lunch" refers to the __________ . A. marginal principle B. spillover principle C. principle of opportunity cost D. reality principle Question 11 of 20 5.0/ 5.0 Points The knowledge and skills acquired by a worker through education and experience is a description of which factor of production? A. physical capital B. human capital C. labor D. entrepreneurship Question 12 of 20 5.0/ 5.0 Points You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a friend about the film and your friend asks to come over and watch the movie with you before it is due back. What is your opportunity cost if you decide to watch the movie a second time instead of going to a football game? A. the entire cost of the movie rental, since you have already watched the movie B. one half the rental cost, because you have already watched the movie one time C. The answer depends on how much you liked the movie in the first place. D. the football game you forego by watching the movie again Question 13 of 20 5.0/ 5.0 Points Which of the following is a question answered with positive economic analysis? A. Should the college reduce tuition for out-of-state residents? B. Should the college charge higher tuition for part-time students? C. If the college increased its eligibility requirements for enrollment, will class sizes decline? D. Should the college eliminate its athletic program to cut its costs? Question 14 of 20 5.0/ 5.0 Points The opportunity cost of going to college __________ . A. is zero if your parents pay your tuition B. is equal to the cost of tuition, room and board, and other expenses C. includes wages you lose by going to school instead of working D. is the same for all students at a particular school who pay full tuition Question 15 of 20 5.0/ 5.0 Points Normative economics __________ . A. is the focus of most modern economic reasoning B. answers the question "What ought to be?" C. predicts the consequences of alternative actions D. answers the question "What is?" Question 16 of 20 5.0/ 5.0 Points An arrangement that allows buyers and sellers to exchange things is called __________ . A. a contract B. a market C. money D. efficient Question 17 of 20 5.0/ 5.0 Points Because resources are limited, __________ . A. only the very wealthy can get everything they want B. firms will be forced out of business C. the availability of goods will be limited but the availability of services will not D. people must make choices Question 18 of 20 5.0/ 5.0 Points All of the following are considered natural resources EXCEPT __________ . A. a coral reef B. gold C. labor D. a redwood forest Question 19 of 20 0.0/ 5.0 Points Suppose that your tuition to attend college is $24,000 per year and you spend $8,000 per year on room and board. If you were working full time, you could earn $30,000 per year. What is your opportunity cost of attending college for one year? A. $32,000 B. $38,000 C. $54,000 D. $62,000 Question 20 of 20 5.0/ 5.0 Points The principle of opportunity cost __________ . A. is more relevant for firms than for individuals B. only refers to monetary payments C. is only relevant in economics D. is applicable to all decision-making ashworth college C13V online exam 2 latest 2015 jan. Part 1 of 1 - 75.0/ 100.0 Points Question 1 of 20 5.0/ 5.0 Points The market demand curve __________ . A. shows the relationship between the price of a good and the quantity that all consumers together are willing to buy B. is drawn assuming that variables such as income and tastes are variable C. is drawn assuming that the number of consumers is variable D. is drawn assuming that the selling price is fixed Question 2 of 20 5.0/ 5.0 Points When demand increases and the demand curve shifts to the right, equilibrium price __________ and equilibrium quantity __________ . A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases Question 3 of 20 5.0/ 5.0 Points The midpoint formula for elasticity of demand solves the problem of __________ . A. whether elasticity of demand is really positive or negative B. whether to use quantity or price in the numerator C. which price or quantity to use as the initial value of the variable D. whether to use quantity demanded or supplied Question 4 of 20 5.0/ 5.0 Points Suppose that in a month the price of oranges increases from $.75 to $1. At the same time, the quantity of oranges demanded decreases from 100 to 80. The price elasticity of demand for oranges (calculated using the initial value formula) is __________ . A. 0.75 B. 0.6 C. 0.25 D. 20 Question 5 of 20 0.0/ 5.0 Points The price of apples increases from $1 to $1.10. At the same time, the quantity of apples demanded decreases from 100 to 90. The price elasticity of demand for apples (calculated using the initial value formula) is __________ . A. 0.02 B. 0.9 C. 1 D. 1.1 Question 6 of 20 5.0/ 5.0 Points The Law of Demand can be explained as __________ . A. a lot of people wanting the same thing B. the higher the price, the smaller the quantity demanded, ceteris paribus C. people willing to make limited sacrifices to acquire products D. legal reasons people make purchases in the marketplace Question 7 of 20 0.0/ 5.0 Points The ratio of the percentage change in quantity demanded to the percentage change in price is known as the __________ . A. demand-side shift factor B. income elasticity of demand C. price elasticity of demand D. cross elasticity of demand Question 8 of 20 5.0/ 5.0 Points When there is a change in the quantity demanded it means that __________ . A. the hours the customer can buy products each day have increased B. the number of products in inventory have increased C. the quantity a consumer is willing to buy changes when the price changes D. the selling price of the products has not changed Question 9 of 20 5.0/ 5.0 Points Suppose that there are only three consumers of a product. At a price of $6 per unit, the first consumer would buy 12 units of the product, the second consumer would buy 8 units, and the third consumer would buy 3 units of the product. If you drew a market demand curve for this product, the quantity demanded at a price of $6 would be __________ . A. 23 units B. 20 units C. 12 units D. 11 units Question 10 of 20 0.0/ 5.0 Points The price elasticity of demand is calculated by __________ . A. the change in price divided by the change in quantity demanded B. the change in quantity demanded divided by the change in price C. the percentage change in price divided by the percentage change in quantity demanded D. the percentage change in quantity demanded divided by the percentage change in price Question 11 of 20 5.0/ 5.0 Points If a competitive market operates perfectly, it relies on __________ . A. the number of people buying goods B. the laws of supply and demand C. how many products can be produced for sale D. how much people are willing to pay for the products Question 12 of 20 0.0/ 5.0 Points The quantity demanded of a product increases as __________ . A. consumer income rises B. the prices of other products fall C. the price of the product rises D. the price of the product falls Question 13 of 20 0.0/ 5.0 Points When supply increases and the supply curve shifts to the right, equilibrium price __________ and equilibrium quantity __________ . A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases Question 14 of 20 5.0/ 5.0 Points The quantity of TVs sold is 100 at the unit price $200. Suppose the price elasticity of demand for TVs by the initial value method is 2.0, and you would like to decrease the unit price for TVs to $150. Then the new quantity sold must be __________ . A. 125 B. 150 C. 200 D. 250 Question 15 of 20 5.0/ 5.0 Points Suppose that in a month the price of a gallon of milk increases from $2 to $2.50. At the same time, the quantity of gallons of milk demanded decreases from 100 to 80. The price elasticity of demand for gallons of milk (calculated using the midpoint formula) is approximately __________ . A. 0.11 B. 0.2 C. 1 D. 1.2 Question 16 of 20 5.0/ 5.0 Points The quantity of pencils sold is 1000 at the unit price $0.5. Suppose the price elasticity of demand for pencils by the initial value method is 2, and you would like to increase the quantity sold to 1200. Then the new price for pencils must be __________ . A. $0.05 B. $0.25 C. $0.30 D. $0.45 Question 17 of 20 5.0/ 5.0 Points Suppose that in a month the price of tulips increases from $1 to $1.50. At the same time, the quantity of tulips demanded decreases from 200 to 190. The price elasticity of demand for tulips (calculated using the initial value formula) is __________ . A. 0.1 B. 0.5 C. 10 D. 20 Question 18 of 20 5.0/ 5.0 Points A change in the quantity demanded of a product is the result of a change in __________ . A. the price of the product B. the price of related goods C. consumer income D. the cost of producing the product Question 19 of 20 5.0/ 5.0 Points The price elasticity of demand reflects the responsiveness of __________ . A. firms to changes in demand B. demand to a change in price of a substitute good C. demand to a change in price D. quantity demanded to a change in price Question 20 of 20 5.0/ 5.0 Points In considering the relationships between price and quantity demanded, ceteris paribus directs the economist to assume that __________ . A. price increases affect quantity B. quantity increases affect prices C. neither price nor quantity affect demand D. all other variables remain unchanged ashworth college C13V online exam 3 latest 2015 jan. Part 1 of 1 - 70.0/ 100.0 Points Question 1 of 20 5.0/ 5.0 Points Jody's bakery makes cakes and would be willing to sell each cake for $12.50. If Jody's bakery sells 10 cakes for $13 each, the total producer surplus for Jody's bakery would be equal to __________ . A. $5.00 B. $12.50 C. $125.00 D. $130.00 Question 2 of 20 5.0/ 5.0 Points Which of the following would result from a quota imposed on the quantity of cars that can be imported into the United States? A. an increase in the total surplus B. an increase in producer surplus C. an increase in prices for consumers D. an increase in consumer surplus Question 3 of 20 0.0/ 5.0 Points If the government sets a minimum price above the equilibrium price for soybeans, which of the following statements will be correct? A. There will be an efficient level of output produced. B. There will be excess supply. C. There will be excess demand. D. all of the above Question 4 of 20 0.0/ 5.0 Points Consumer surplus can be defined as the __________ . A. value a consumer receives from a good minus the price paid for that good B. maximum amount the consumer would pay for a good C. actual amount paid for a good minus the benefit of using that good D. marginal utility of a good divided by its price Question 5 of 20 5.0/ 5.0 Points In the market equilibrium, with a price of $500 there are 2000 apartments. If the government decides to enact a rent control policy, with a maximum price of $400, it reduces the quantity to 1500 apartments. Due to the rent control decreasing the total surplus of the market, the policy generates a(n) __________ . A. excess supply B. equilibrium C. higher price D. deadweight loss Question 6 of 20 5.0/ 5.0 Points You would be willing to pay a maximum of $1,000 for an airplane ticket to London during the summer, and you can buy an airplane ticket for $890. Your consumer surplus is __________ . A. $90 B. $190 C. $110 D. $100 Question 7 of 20 5.0/ 5.0 Points Assume that production costs rise and demand remains constant. The equilibrium price will __________ and the producer surplus will __________ . A. increase; increase B. increase; decrease C. decrease; decrease D. decrease; increase Question 8 of 20 5.0/ 5.0 Points The difference between the maximum amount a person is willing to pay for a good and its current market price is known as __________ . A. the paradox of value B. profits C. revealed preferences D. consumer surplus Question 9 of 20 5.0/ 5.0 Points Taxes may cause deadweight losses because __________ . A. they transfer purchasing power from buyers to the government B. they lower the surplus in the market C. they increase consumer surplus at the expense of producer surplus D. they transfer purchasing power from sellers to the government Question 10 of 20 5.0/ 5.0 Points The conclusion that the level of output is efficient at the market equilibrium rests on all of the following assumptions EXCEPT that __________ . A. buyers and sellers are well-informed B. there are no external costs or benefits C. the government regulates price and output D. the market is perfectly competitive Question 11 of 20 0.0/ 5.0 Points At the market equilibrium, resources are allocated efficiently because __________ . A. the marginal cost of producing another unit is equal to zero B. the price buyers pay accurately reflects the marginal cost of the resources used to produce the good C. the price buyers pay is greater than sellers' willingness to sell D. all of the above Question 12 of 20 5.0/ 5.0 Points Tom would be willing to pay a maximum of $2,500 to attend the Super Bowl this year, and he can buy a ticket for $2,050. His consumer surplus is __________ . A. $25 B. $50 C. $275 D. $450 Question 13 of 20 5.0/ 5.0 Points Assume that linen pants are a normal good and consumer income rises. If the supply of linen pants remains constant, producer surplus __________ . A. will decrease B. will increase C. will remain constant D. may increase or decrease depending on the amount of the price increase Question 14 of 20 5.0/ 5.0 Points If the government imposes a maximum price for milk that is above the equilibrium price __________ . A. this maximum price for milk will have no economic impact B. quantity demanded of milk will be less than quantity supplied C. demand for milk will be greater than supply D. the available milk supply will have to be rationed Question 15 of 20 0.0/ 5.0 Points If the government sets a maximum price for gasoline above the equilibrium price, __________ . A. quantity demanded of gasoline will be equal to quantity supplied of gasoline B. there will be excess demand for gasoline C. there will be excess supply of gasoline D. demand for gasoline will be less than supply of gasoline Question 16 of 20 5.0/ 5.0 Points Producer surplus is equal to __________ . A. the area under the supply curve B. the area above the supply curve below the good's price C. the area under the supply curve below the good's price D. the good's price times the quantity purchased Question 17 of 20 5.0/ 5.0 Points Recall the application about price controls and the candy bars. During World War II, the U.S. government imposed price controls to set maximum prices on all different products, including candy bars. How did the candy bar producers respond to maximum prices? A. Producers increased the supply of candy bars. B. Producers shrank the weight of the candy bars. C. A lot of the producers dropped out of candy bar market. D. none of the above Question 18 of 20 5.0/ 5.0 Points Suppose you receive a consumer surplus of $50. The $50 represents __________ . A. a monetary payment from the store B. a monetary payment from the government C. a reduction in the original price of the good D. the fact that you paid $50 less than you were willing to pay for the good Question 19 of 20 0.0/ 5.0 Points Suppose that you are willing to pay $25 for a new shirt and the market price is $35. In this case __________ . A. you will not buy the good B. you will buy the good and receive a consumer surplus of $5 C. you will buy the good and receive a consumer surplus of –$10 D. you will buy the good and receive a consumer surplus of –$35 Question 20 of 20 0.0/ 5.0 Points At the free market equilibrium, the efficient level of output is produced because __________ . A. government regulates the output level that must be produced B. firms are maximizing profit C. willingness to pay is the same for all consumers D. total surplus is maximized ashworth college C13V online exam 5 attempt 1 latest 2015 jan. Part 1 of 2 - Lesson 4 Questions 37.5/ 50.0 Points Question 1 of 40 2.5/ 2.5 Points Chris buys pizza for his football party and he gets to decide who will have a slice of his pizza. This means his pizza is __________ . A. nonrival and nonexcludable B. a private good C. a public good D. rival, but nonexcludable Question 2 of 40 2.5/ 2.5 Points Based on society's perspective, what are the benefits from pollution abatement? A. better health B. increased enjoyment of the natural environment C. lower production costs D. all of the above Question 3 of 40 2.5/ 2.5 Points Public goods are __________ . A. rival in consumption and their benefits are excludable B. nonrival in consumption and their benefits are excludable C. nonrival in consumption and their benefits are nonexcludable D. rival in consumption and their benefits are nonexcludable Question 4 of 40 2.5/ 2.5 Points Which of the following would NOT be considered a public good? A. national defense B. radio broadcasts C. police protection D. a newspaper Question 5 of 40 2.5/ 2.5 Points Which of the following would be typically classified as a public good? A. postal delivery B. national defense C. toll roads D. college education Question 6 of 40 2.5/ 2.5 Points Which of the following is an example of an external cost? A. a loud, crying baby in a public restaurant B. emissions of methane into the atmosphere C. a homeowner who likes to mow the lawn at 7 a.m. on Saturday morning D. all of the above Question 7 of 40 2.5/ 2.5 Points Private goods are __________ . A. rival in consumption and their benefits are excludable B. nonrival in consumption and their benefits are excludable C. nonrival in consumption and their benefits are nonexcludable D. rival in consumption and their benefits are nonexcludable Question 8 of 40 2.5/ 2.5 Points Reductions in pollution from a specific starting level of existing pollution is called __________ . A. abatement B. the EPA C. command and control D. usage tax Question 9 of 40 0.0/ 2.5 Points The biggest problem with using a tax as a way to solve an externality problem is that __________ . A. the tax sometimes increases the external cost B. damages must be estimated in financial terms to determine the correct level of the tax C. the firm will pass the entire tax onto the consumer D. the commerce clause forbids such taxes Question 10 of 40 0.0/ 2.5 Points Markets that have external costs will produce __________ output than the socially efficient level, whereas markets that have external benefits will produce __________ output than the socially efficient level. A. less; less B. more; more C. more; less D. less; more Question 11 of 40 2.5/ 2.5 Points A harbor lighthouse that guides approaching ships is an example of __________ . A. a public good B. a private good C. a monopoly D. a good that is rival Question 12 of 40 2.5/ 2.5 Points The study of external costs is a major concern of __________ . A. labor economics B. international economics C. environmental economics D. macroeconomists Question 13 of 40 2.5/ 2.5 Points Sirens located around a town to warn citizens of the approach of a tornado are an example of __________ . A. an external cost B. a private good C. a common resource D. a public good Question 14 of 40 2.5/ 2.5 Points When the government imposes a tax on a firm that generates external costs, the tax is __________ . A. always borne entirely by the firm B. always borne entirely by the consumer C. usually borne by both the firm and the consumer D. borne only by the government Question 15 of 40 2.5/ 2.5 Points Jamal and Lauren live in the countryside 30 minutes from a city in Virginia. They moved there because they wanted to enjoy the fresh air. After a year of living in their house, the 200 acres that surround their neighborhood were zoned for an industrial property. A paper mill was built on the land and now emits strong gases that can be smelled from miles away. The paper mill's emission of gases is an example of a(n. __________ . A. public good B. good that imposes an external cost C. good that provides an external benefit D. efficient good Question 16 of 40 0.0/ 2.5 Points If, while producing goods and services, a factory is producing pollution and not incurring the cost of this pollution, then a(n) __________ exists. A. government failure B. market failure C. acceptable outcome D. none of the above Question 17 of 40 2.5/ 2.5 Points If a producer is imposing an external cost on society, the best response would be to __________ . A. lower the producer's taxes to offset pollution B. increase the production C. internalize the externality D. subsidize the producer Question 18 of 40 0.0/ 2.5 Points When the government taxes a firm that generates an external cost, the profit maximizing firm will produce __________ . A. more units of output than before the tax was imposed B. the same number of units of output as before the tax was imposed C. fewer units of output than before the tax was imposed D. either more or fewer units of output than before the tax was imposed Question 19 of 40 2.5/ 2.5 Points Recall the application about the marginal cost and marginal benefit of reducing methane emissions. What does the optimal level of methane abatement depend on? A. the level at which the polluting firms are able to maximize their profits B. the total cost of abatement C. the marginal benefit of abatement D. It is not possible to determine an optimal level of methane. Question 20 of 40 0.0/ 2.5 Points In the absence of government, an under-allocation of resources generally exists for __________ . A. goods with external costs B. imported goods and services C. public goods D. all of the above Part 2 of 2 - Lesson 5 Questions 50.0/ 50.0 Points Question 21 of 40 2.5/ 2.5 Points You are the owner and only employee of a company that repairs computers. Last year, you earned total revenues of $75,000. Your costs for equipment, rent, and supplies were $10,000. To start this business you quit a job at another computer software firm that paid $40,000 a year. During the year, your economic costs were __________ . A. $10,000 B. $40,000 C. $50,000 D. $75,000 Question 22 of 40 2.5/ 2.5 Points Utility can be thought of as the same as __________ . A. opportunity cost B. satisfaction C. choice D. none of the above Question 23 of 40 2.5/ 2.5 Points Consumers should allocate their scarce income so that __________ . A. the marginal utility for all goods consumed is zero B. the marginal utility for all goods consumed is equal C. the marginal utility divided by price is equal for all goods consumed D. the marginal utility divided by price is maximized for all goods consumed Question 24 of 40 2.5/ 2.5 Points Marginal utility is the __________ . A. total amount of satisfaction gained by the consumption of a good or service B. additional satisfaction gained by the consumption or use of one more unit of something C. price of a good relative to the prices of other goods and services D. comparison of utility between two different people Question 25 of 40 2.5/ 2.5 Points A firm's objective is to maximize its economic profit, which is __________ . A. total revenue minus economic cost B. total profit minus total cost C. economic cost minus profit D. economic cost minus total revenue Question 26 of 40 2.5/ 2.5 Points Which of the following statements about fixed costs is correct? A. Fixed costs are not opportunity costs. B. Fixed costs must be paid even if the firm's output is zero. C. Fixed costs are always the largest portion of total costs. D. none of the above Question 27 of 40 2.5/ 2.5 Points Mario has a company that produces plastic freezer bags. His company objective is to maximize __________ . A. his company's revenues B. his company's total out-of-pocket costs C. his company's opportunity costs of each factor of production D. his company's economic profits, the difference between total revenue and total cost Question 28 of 40 2.5/ 2.5 Points Suppose that MUx / Px < MUy / Py . This implies that __________ . A. spending a dollar less on Y and spending a dollar more on X increases utility B. spending a dollar less on X and spending a dollar more on Y increases utility C. X is more expensive than Y D. Y is more expensive than X Question 29 of 40 2.5/ 2.5 Points Dan owns a factory that manufactures smartphones. He has many costs every month to keep his factory running. Which of the following is one of Dan's fixed costs? A. plastic used to make the smartphones B. his electricity bill for the factory C. his mortgage on the factory D. memory devices used to store music and video on the smartphones Question 30 of 40 2.5/ 2.5 Points Total economic costs include __________ . A. a normal rate of return B. out-of-pocket costs C. opportunity costs of all inputs D. all of the above Question 31 of 40 2.5/ 2.5 Points The period of time when a firm is unable to change all inputs, or factors of production, is called the __________ . A. economic term B. short run C. accounting term D. long run Question 32 of 40 2.5/ 2.5 Points Juan is consuming three sandwiches and six sodas. If a sandwich costs twice as much as a soda, then __________ . A. Juan should buy more sodas B. Juan should buy more sandwiches C. Juan is maximizing his utility if he derives twice as much utility from the last soda as from the last sandwich D. Juan is maximizing his utility if he derives twice as much utility from the last sandwich as from the last soda Question 33 of 40 2.5/ 2.5 Points The principle of opportunity cost is __________ . A. what someone sacrifices to get something B. the satisfaction of obtaining the best next alternative C. the choice someone has to make between two different goods D. the cost of paying for something someone needs Question 34 of 40 2.5/ 2.5 Points You are the owner and only employee of a company that repairs computers. Last year, you earned total revenues of $75,000. Your costs for equipment, rent, and supplies were $10,000. To start this business you quit a job at another computer software firm that paid $40,000 a year. Last year, your economic profits were __________ . A. $100,000 B. $75,000 C. $50,000 D. $25,000 Question 35 of 40 2.5/ 2.5 Points From 1998 to 2010, the cost of electricity produced with nuclear power has __________ and the cost of electricity produced with solar power has __________ . A. increased; increased B. increased; decreased C. decreased; increased D. decreased; decreased Question 36 of 40 2.5/ 2.5 Points The short run can be defined as any period of time __________ . A. less than one year B. in which some inputs are fixed C. in which all inputs are variable D. in which price is fixed Question 37 of 40 2.5/ 2.5 Points If marginal product is negative, then __________ . A. total product will decrease if more of the input is hired B. total product is equal to zero C. marginal product will increase if more of the input is hired D. average product will increase if more of the input is hired Question 38 of 40 2.5/ 2.5 Points The satisfaction experienced from consuming a good or service is referred to as __________ . A. utility B. marginal utility C. the law of diminishing marginal utility D. all of the above Question 39 of 40 2.5/ 2.5 Points As more of any one good is consumed in a given period, its __________ . A. total utility decreases, then remains constant B. marginal utility decreases C. total utility decreases, then increases D. marginal utility increases Question 40 of 40 2.5/ 2.5 Points The budget line shows __________ . A. the different combinations of two goods that a consumer can buy B. the quantity of a single good that a consumer is willing to buy at different prices C. the maximized utility from a good D. none of the above ashworth college C13V online exam 5 attempt 2 latest 2015 jan. Part 1 of 2 - Lesson 4 Questions 27.5/ 50.0 Points Question 1 of 40 2.5/ 2.5 Points Reductions in pollution from a specific starting level of existing pollution is called __________ . A. abatement B. the EPA C. command and control D. usage tax Question 2 of 40 0.0/ 2.5 Points Markets that have external costs will produce __________ output than the socially efficient level, whereas markets that have external benefits will produce __________ output than the socially efficient level. A. less; less B. more; more C. more; less D. less; more Question 3 of 40 0.0/ 2.5 Points When the government taxes a firm that generates an external cost, the profit maximizing firm will produce __________ . A. more units of output than before the tax was imposed B. the same number of units of output as before the tax was imposed C. fewer units of output than before the tax was imposed D. either more or fewer units of output than before the tax was imposed Question 4 of 40 2.5/ 2.5 Points Public goods are __________ . A. rival in consumption and their benefits are excludable B. nonrival in consumption and their benefits are excludable C. nonrival in consumption and their benefits are nonexcludable D. rival in consumption and their benefits are nonexcludable Question 5 of 40 0.0/ 2.5 Points If, while producing goods and services, a factory is producing pollution and not incurring the cost of this pollution, then a(n) __________ exists. A. government failure B. market failure C. acceptable outcome D. none of the above Question 6 of 40 0.0/ 2.5 Points The biggest problem with using a tax as a way to solve an externality problem is that __________ . A. the tax sometimes increases the external cost B. damages must be estimated in financial terms to determine the correct level of the tax C. the firm will pass the entire tax onto the consumer D. the commerce clause forbids such taxes Question 7 of 40 2.5/ 2.5 Points An external cost of production is __________ . A. a cost incurred by someone other than the producer B. the production cost borne by a producer C. the result of the sum of private and social cost D. another word for a tax Question 8 of 40 0.0/ 2.5 Points Chris buys pizza for his football party and he gets to decide who will have a slice of his pizza. This means his pizza is __________ . A. nonrival and nonexcludable B. a private good C. a public good D. rival, but nonexcludable Question 9 of 40 2.5/ 2.5 Points A harbor lighthouse that guides approaching ships is an example of __________ . A. a public good B. a private good C. a monopoly D. a good that is rival Question 10 of 40 2.5/ 2.5 Points Which of the following would NOT be considered a public good? A. national defense B. radio broadcasts C. police protection D. a newspaper Question 11 of 40 2.5/ 2.5 Points Private goods are __________ . A. rival in consumption and their benefits are excludable B. nonrival in consumption and their benefits are excludable C. nonrival in consumption and their benefits are nonexcludable D. rival in consumption and their benefits are nonexcludable Question 12 of 40 2.5/ 2.5 Points Recall the application about the marginal cost and marginal benefit of reducing methane emissions. What does the optimal level of methane abatement depend on? A. the level at which the polluting firms are able to maximize their profits B. the total cost of abatement C. the marginal benefit of abatement D. It is not possible to determine an optimal level of methane. Question 13 of 40 0.0/ 2.5 Points Goods that are nonrival in consumption and that have benefits that are nonexcludable are __________ . A. private goods B. neighbor effects C. public goods D. none of the above Question 14 of 40 0.0/ 2.5 Points Which of the following would be an example of an external benefit? A. More people start to ride the bus and as a result air pollution is reduced. B. Firms are able to reduce their costs of production by using a more efficient technology. C. The government requires polluting firms to pay a special tax. D. A firm has just gotten permission to open a landfill on property that is adjacent to your home. Question 15 of 40 2.5/ 2.5 Points Sirens located around a town to warn citizens of the approach of a tornado are an example of __________ . A. an external cost B. a private good C. a common resource D. a public good Question 16 of 40 0.0/ 2.5 Points Which of the following is an example of an external cost? A. a loud, crying baby in a public restaurant B. emissions of methane into the atmosphere C. a homeowner who likes to mow the lawn at 7 a.m. on Saturday morning D. all of the above Question 17 of 40 2.5/ 2.5 Points Based on society's perspective, what are the benefits from pollution abatement? A. better health B. increased enjoyment of the natural environment C. lower production costs D. all of the above Question 18 of 40 2.5/ 2.5 Points Taxes on a firm's external costs __________ . A. are designed to encourage more production B. are meant to force some firms out of business C. are simply meant to force decision makers to consider the full costs of their actions D. are designed primarily as a way to raise money so that the government can compensate the victims of the spillover Question 19 of 40 0.0/ 2.5 Points The study of external costs is a major concern of __________ . A. labor economics B. international economics C. environmental economics D. macroeconomists Question 20 of 40 2.5/ 2.5 Points Which of the following would be typically classified as a public good? A. postal delivery B. national defense C. toll roads D. college education Part 2 of 2 - Lesson 5 Questions 30.0/ 50.0 Points Question 21 of 40 2.5/ 2.5 Points You are the owner and only employee of a company that repairs computers. Last year, you earned total revenues of $75,000. Your costs for equipment, rent, and supplies were $10,000. To start this business you quit a job at another computer software firm that paid $40,000 a year. During the year, your economic costs were __________ . A. $10,000 B. $40,000 C. $50,000 D. $75,000 Question 22 of 40 0.0/ 2.5 Points Sarah has a savings account with a $1,000 balance that earns 3% APY. She decides to withdraw the entire balance to buy a laptop computer. What will be her opportunity cost in buying the laptop? A. the cost of the laptop B. the foregone interest C. the foregone interest and the cost of the laptop D. the cost of the laptop minus the foregone interest Question 23 of 40 0.0/ 2.5 Points Suppose that a consumer is currently spending all of her income on 10 units of good A and 5 units of good B. The price of good A is $4 per unit, the price of good B is $10 per unit, the marginal utility of the last unit of good A consumed is 20, and the marginal utility of the last unit of good B consumed is 60. If the consumer wants to maximize her utility from consuming the two goods, she should __________ . A. consume more of good B and less of good A B. consume more of good A and less of good B C. continue to consume 10 units of good A and 5 units of good B D. consume more of both goods Question 24 of 40 2.5/ 2.5 Points Juan is consuming three sandwiches and six sodas. If a sandwich costs twice as much as a soda, then __________ . A. Juan should buy more sodas B. Juan should buy more sandwiches C. Juan is maximizing his utility if he derives twice as much utility from the last soda as from the last sandwich D. Juan is maximizing his utility if he derives twice as much utility from the last sandwich as from the last soda Question 25 of 40 2.5/ 2.5 Points Mario has a company that produces plastic freezer bags. His company objective is to maximize __________ . A. his company's revenues B. his company's total out-of-pocket costs C. his company's opportunity costs of each factor of production D. his company's economic profits, the difference between total revenue and total cost Question 26 of 40 0.0/ 2.5 Points Utility can be thought of as the same as __________ . A. opportunity cost B. satisfaction C. choice D. none of the above Question 27 of 40 2.5/ 2.5 Points The period of time when a firm is unable to change all inputs, or factors of production, is called the __________ . A. economic term B. short run C. accounting term D. long run Question 28 of 40 2.5/ 2.5 Points You own a building that has four possible uses: an Internet cafe, a coffee shop, an ice cream store, and a bookstore. The value of the building in each use is $2,000; $3,000; $4,000; and $5,000, respectively. You decide to open an ice cream store. The opportunity cost of using this building for an ice cream store is __________ . A. $2,000, the value if the building is used as an Internet cafe B. $3,000, the value if the building is used as a coffee shop C. $3,333, the average of the values if the building is used for either an Internet cafe, a coffee shop, or a bookstore D. $5,000, the value if the building is used for a bookstore Question 29 of 40 0.0/ 2.5 Points Dan is an entrepreneur who invests in commercial and residential real estate. He has a savings account with $100,000 that earns 1% APY. Dan wants to buy a house that will give him a monthly cash inflow of $200. What will be the opportunity cost of investing in the house? A. $1,000 B. $1,200 C. $800 D. $200 Question 30 of 40 2.5/ 2.5 Points Suppose that MUx / Px < MUy / Py . This implies that __________ . A. spending a dollar less on Y and spending a dollar more on X increases utility B. spending a dollar less on X and spending a dollar more on Y increases utility C. X is more expensive than Y D. Y is more expensive than X Question 31 of 40 2.5/ 2.5 Points The short run can be defined as any period of time __________ . A. less than one year B. in which some inputs are fixed C. in which all inputs are variable D. in which price is fixed Question 32 of 40 0.0/ 2.5 Points Consumers should allocate their scarce income so that __________ . A. the marginal utility for all goods consumed is zero B. the marginal utility for all goods consumed is equal C. the marginal utility divided by price is equal for all goods consumed D. the marginal utility divided by price is maximized for all goods consumed Question 33 of 40 2.5/ 2.5 Points Suppose that Erin spends all of her income on two goods: pizza and fiction novels. If the price of pizza rises, then __________ . A. the current marginal utility per dollar spent on pizza will rise B. the current marginal utility per dollar spent on pizza will fall C. the current marginal utility per dollar spent on fiction novels will rise D. the current marginal utility per dollar spent on fiction novels will fall Question 34 of 40 2.5/ 2.5 Points From 1998 to 2010, the cost of electricity produced with nuclear power has __________ and the cost of electricity produced with solar power has __________ . A. increased; increased B. increased; decreased C. decreased; increased D. decreased; decreased Question 35 of 40 2.5/ 2.5 Points According to the law of diminishing marginal utility __________ . A. as the consumption of a particular good increases, marginal utility increases B. as the consumption of a particular good increases, marginal utility decreases C. total utility is negative D. Both B and C are correct. Question 36 of 40 0.0/ 2.5 Points Which of the following is a reason why the marginal product increases as output increases? A. decreasing repetition B. increasing continuity C. both A and B D. neither A nor B Question 37 of 40 0.0/ 2.5 Points The satisfaction experienced from consuming a good or service is referred to as __________ . A. utility B. marginal utility C. the law of diminishing marginal utility D. all of the above Question 38 of 40 0.0/ 2.5 Points Marginal utility is the __________ . A. total amount of satisfaction gained by the consumption of a good or service B. additional satisfaction gained by the consumption or use of one more unit of something C. price of a good relative to the prices of other goods and services D. comparison of utility between two different people Question 39 of 40 2.5/ 2.5 Points The budget line shows __________ . A. the different combinations of two goods that a consumer can buy B. the quantity of a single good that a consumer is willing to buy at different prices C. the maximized utility from a good D. none of the above Question 40 of 40 2.5/ 2.5 Points Which of the following statements about fixed costs is correct? A. Fixed costs are not opportunity costs. B. Fixed costs must be paid even if the firm's output is zero. C. Fixed costs are always the largest portion of total costs. D. none of the above ashworth college C13V online exam 5 attempt 3 latest 2015 jan. Part 1 of 2 - Lesson 4 Questions 32.5/ 50.0 Points Question 1 of 40 2.5/ 2.5 Points Private goods are __________ . A. rival in consumption and their benefits are excludable B. nonrival in consumption and their benefits are excludable C. nonrival in consumption and their benefits are nonexcludable D. rival in consumption and their benefits are nonexcludable Question 2 of 40 2.5/ 2.5 Points Which of the following would NOT be considered a public good? A. national defense B. radio broadcasts C. police protection D. a newspaper Question 3 of 40 0.0/ 2.5 Points Markets that have external costs will produce __________ output than the socially efficient level, whereas markets that have external benefits will produce __________ output than the socially efficient level. A. less; less B. more; more C. more; less D. less; more Question 4 of 40 0.0/ 2.5 Points Chris buys pizza for his football party and he gets to decide who will have a slice of his pizza. This means his pizza is __________ . A. nonrival and nonexcludable B. a private good C. a public good D. rival, but nonexcludable Question 5 of 40 2.5/ 2.5 Points Recall the application about the marginal cost and marginal benefit of reducing methane emissions. What does the optimal level of methane abatement depend on? A. the level at which the polluting firms are able to maximize their profits B. the total cost of abatement C. the marginal benefit of abatement D. It is not possible to determine an optimal level of methane. Question 6 of 40 2.5/ 2.5 Points Which of the following is an example of an external cost? A. a loud, crying baby in a public restaurant B. emissions of methane into the atmosphere C. a homeowner who likes to mow the lawn at 7 a.m. on Saturday morning D. all of the above Question 7 of 40 2.5/ 2.5 Points An external cost of production is __________ . A. a cost incurred by someone other than the producer B. the production cost borne by a producer C. the result of the sum of private and social cost D. another word for a tax Question 8 of 40 2.5/ 2.5 Points Taxes on a firm's external costs __________ . A. are designed to encourage more production B. are meant to force some firms out of business C. are simply meant to force decision makers to consider the full costs of their actions D. are designed primarily as a way to raise money so that the government can compensate the victims of the spillover Question 9 of 40 2.5/ 2.5 Points A harbor lighthouse that guides approaching ships is an example of __________ . A. a public good B. a private good C. a monopoly D. a good that is rival Question 10 of 40 2.5/ 2.5 Points Which of the following would be typically classified as a public good? A. postal delivery B. national defense C. toll roads D. college education Question 11 of 40 2.5/ 2.5 Points Sirens located around a town to warn citizens of the approach of a tornado are an example of __________ . A. an external cost B. a private good C. a common resource D. a public good Question 12 of 40 2.5/ 2.5 Points Goods that are nonrival in consumption and that have benefits that are nonexcludable are __________ . A. private goods B. neighbor effects C. public goods D. none of the above Question 13 of 40 0.0/ 2.5 Points Which of the following would be classified as an external cost? A. As more firms began hiring computer programmers, the salaries of computer programmers increased and therefore the firm's cost of production increased. B. You eat too much pizza and end up with a stomach ache. C. You are not able to study at night because there is so much noise coming from the dorm room next to yours. D. When you purchase a prescription drug you are not made fully aware of all the possible side effects that may result from taking the drug. Question 14 of 40 0.0/ 2.5 Points Which of the following would be an example of an external benefit? A. More people start to ride the bus and as a result air pollution is reduced. B. Firms are able to reduce their costs of production by using a more efficient technology. C. The government requires polluting firms to pay a special tax. D. A firm has just gotten permission to open a landfill on property that is adjacent to your home. Question 15 of 40 2.5/ 2.5 Points Public goods are __________ . A. rival in consumption and their benefits are excludable B. nonrival in consumption and their benefits are excludable C. nonrival in consumption and their benefits are nonexcludable D. rival in consumption and their benefits are nonexcludable Question 16 of 40 0.0/ 2.5 Points Once a firm is forced to consider an external cost, the price of its product will __________ . A. increase and output will decrease B. increase and output will increase C. decrease and output will decrease D. decrease and output will increase Question 17 of 40 0.0/ 2.5 Points In the absence of government, an under-allocation of resources generally exists for __________ . A. goods with external costs B. imported goods and services C. public goods D. all of the above Question 18 of 40 2.5/ 2.5 Points When the government imposes a tax on a firm that generates external costs, the tax is __________ . A. always borne entirely by the firm B. always borne entirely by the consumer C. usually borne by both the firm and the consumer D. borne only by the government Question 19 of 40 0.0/ 2.5 Points By imposing tolls on people who drive during the busiest times, a government would be attempting to __________ . A. internalize an externality B. institute a progressive tax C. externalize an internality D. encourage driving to generate revenue Question 20 of 40 2.5/ 2.5 Points Reductions in pollution from a specific starting level of existing pollution is called __________ . A. abatement B. the EPA C. command and control D. usage tax Part 2 of 2 - Lesson 5 Questions 22.5/ 50.0 Points Question 21 of 40 2.5/ 2.5 Points Juan is consuming three sandwiches and six sodas. If a sandwich costs twice as much as a soda, then __________ . A. Juan should buy more sodas B. Juan should buy more sandwiches C. Juan is maximizing his utility if he derives twice as much utility from the last soda as from the last sandwich D. Juan is maximizing his utility if he derives twice as much utility from the last sandwich as from the last soda Question 22 of 40 2.5/ 2.5 Points Suppose that MUx / Px < MUy / Py . This implies that __________ . A. spending a dollar less on Y and spending a dollar more on X increases utility B. spending a dollar less on X and spending a dollar more on Y increases utility C. X is more expensive than Y D. Y is more expensive than X Question 23 of 40 2.5/ 2.5 Points The period of time when a firm is unable to change all inputs, or factors of production, is called the __________ . A. economic term B. short run C. accounting term D. long run Question 24 of 40 0.0/ 2.5 Points Brandon eats four slices of pizza on a Sunday night but admits each slice of pizza doesn't taste as delicious as the previous one. This suggests that for Brandon __________ . A. the marginal utility of a slice of pizza is positive but decreasing B. the marginal utility of a slice of pizza is negative but increasing C. the total utility of slice of pizza is declining by larger and larger increments D. the total utility of slice of pizza is increasing by larger and larger increments Question 25 of 40 0.0/ 2.5 Points The satisfaction experienced from consuming a good or service is referred to as __________ . A. utility B. marginal utility C. the law of diminishing marginal utility D. all of the above Question 26 of 40 0.0/ 2.5 Points Consumers should allocate their scarce income so that __________ . A. the marginal utility for all goods consumed is zero B. the marginal utility for all goods consumed is equal C. the marginal utility divided by price is equal for all goods consumed D. the marginal utility divided by price is maximized for all goods consumed Question 27 of 40 2.5/ 2.5 Points The principle of opportunity cost is __________ . A. what someone sacrifices to get something B. the satisfaction of obtaining the best next alternative C. the choice someone has to make between two different goods D. the cost of paying for something someone needs Question 28 of 40 0.0/ 2.5 Points Mario has a company that produces plastic freezer bags. His company objective is to maximize __________ . A. his company's revenues B. his company's total out-of-pocket costs C. his company's opportunity costs of each factor of production D. his company's economic profits, the difference between total revenue and total cost Question 29 of 40 0.0/ 2.5 Points Suppose that a consumer is currently spending all of her income on 10 units of good A and 5 units of good B. The price of good A is $4 per unit, the price of good B is $10 per unit, the marginal utility of the last unit of good A consumed is 20, and the marginal utility of the last unit of good B consumed is 60. If the consumer wants to maximize her utility from consuming the two goods, she should __________ . A. consume more of good B and less of good A B. consume more of good A and less of good B C. continue to consume 10 units of good A and 5 units of good B D. consume more of both goods Question 30 of 40 2.5/ 2.5 Points If marginal product is negative, then __________ . A. total product will decrease if more of the input is hired B. total product is equal to zero C. marginal product will increase if more of the input is hired D. average product will increase if more of the input is hired Question 31 of 40 0.0/ 2.5 Points You are the owner and only employee of a company that repairs computers. Last year, you earned total revenues of $75,000. Your costs for equipment, rent, and supplies were $10,000. To start this business you quit a job at another computer software firm that paid $40,000 a year. During the year, your economic costs were __________ . A. $10,000 B. $40,000 C. $50,000 D. $75,000 Question 32 of 40 0.0/ 2.5 Points Dan owns a factory that manufactures smartphones. He has many costs every month to keep his factory running. Which of the following is one of Dan's fixed costs? A. plastic used to make the smartphones B. his electricity bill for the factory C. his mortgage on the factory D. memory devices used to store music and video on the smartphones Question 33 of 40 2.5/ 2.5 Points Utility can be thought of as the same as __________ . A. opportunity cost B. satisfaction C. choice D. none of the above Question 34 of 40 0.0/ 2.5 Points Dan is an entrepreneur who invests in commercial and residential real estate. He has a savings account with $100,000 that earns 1% APY. Dan wants to buy a house that will give him a monthly cash inflow of $200. What will be the opportunity cost of investing in the house? A. $1,000 B. $1,200 C. $800 D. $200 Question 35 of 40 0.0/ 2.5 Points As more of any one good is consumed in a given period, its __________ . A. total utility decreases, then remains constant B. marginal utility decreases C. total utility decreases, then increases D. marginal utility increases Question 36 of 40 2.5/ 2.5 Points Suppose that Erin spends all of her income on two goods: pizza and fiction novels. If the price of pizza rises, then __________ . A. the current marginal utility per dollar spent on pizza will rise B. the current marginal utility per dollar spent on pizza will fall C. the current marginal utility per dollar spent on fiction novels will rise D. the current marginal utility per dollar spent on fiction novels will fall Question 37 of 40 0.0/ 2.5 Points Maxine has a fixed income per month to spend on goods and services, so in allocating her limited income over a set of goods, she should purchase the goods that __________ . A. have the highest utility regardless of price B. have the highest marginal utility C. provide the most utility per dollar spent D. have equal marginal utilities Question 38 of 40 2.5/ 2.5 Points You are the owner and only employee of a company that repairs computers. Last year, you earned total revenues of $75,000. Your costs for equipment, rent, and supplies were $10,000. To start this business you quit a job at another computer software firm that paid $40,000 a year. Last year, your economic profits were __________ . A. $100,000 B. $75,000 C. $50,000 D. $25,000 Question 39 of 40 2.5/ 2.5 Points The budget line shows __________ . A. the different combinations of two goods that a consumer can buy B. the quantity of a single good that a consumer is willing to buy at different prices C. the maximized utility from a good D. none of the above Question 40 of 40 0.0/ 2.5 Points Which of the following is a reason why the marginal product increases as output increases? A. decreasing repetition B. increasing continuity C. both A and B D. neither A nor B ashworth college C13V online exam 7 attempt 1 latest 2015 jan. Part 1 of ashworth college C13V online exam 7 attempt 2 latest 2015 jan.2 - Lesson 6 Questions 37.5/ 50.0 Points Question 1 of 40 2.5/ 2.5 Points When a second firm enters a monopolist's market, the initial demand curve facing the monopolist will __________ . A. shift to the left B. shift to the right C. remain the same D. none of the above Question 2 of 40 2.5/ 2.5 Points Which of the following is a characteristic of a perfectly competitive market? A. a large number of firms in a market B. selling a standardized product C. no barriers to entry D. all of the above Question 3 of 40 2.5/ 2.5 Points What is the characteristic of a perfectly competitive firm that causes it to be a price taker? A. many buyers and sellers B. homogeneous product C. free entry and exit D. A and B are correct. Question 4 of 40 0.0/ 2.5 Points Which of the following would NOT be considered price discrimination? A. charging more money for long-distance calls during business hours than on weekends B. giving students a discount on ski lift tickets C. charging higher rates for oil delivery to people who live farther from your business D. charging less money to wash a large luxury car than a small economy car Question 5 of 40 2.5/ 2.5 Points Compare two markets. In one market, the HHI is 500, in the other market the HHI is 1,500. What must be true of these two markets? A. The firms in the market in which the HHI is 1,500 have greater market power than do the firms in the market in which the HHI is 500. B. There are more firms in the market in which the HHI is 1,500 than in the market in which the HHI is 500. C. The firms in the market in which the HHI is 1,500 have less market power than do the firms in the market in which the HHI is 500. D. The market in which the HHI is 500 is, by definition, an oligopoly but the market in which the HHI is 1,500 is not an oligopoly. Question 6 of 40 2.5/ 2.5 Points In which of the following market structures do you find many sellers? A. monopoly B. perfect competition C. monopolistic competition D. monopolistic competition and perfect competition Question 7 of 40 0.0/ 2.5 Points Long-run equilibrium for a perfectly competitive industry occurs when __________ . A. P = MC = ATC B. P = MC = AVC C. P = MC = AFC D. P > MC = ATC Question 8 of 40 0.0/ 2.5 Points Suppose that there are five firms in a market, each controlling 20% of the market. The HHI would equal __________ . A. 10 B. 100 C. 1,000 D. 2,000 Question 9 of 40 2.5/ 2.5 Points Which of the following is NOT a characteristic of a perfectly competitive market? A. a small number of firms in a market B. selling a standardized product C. no barriers to entry D. an individual firm having no control over price Question 10 of 40 0.0/ 2.5 Points Oligopoly differs from monopoly and perfect competition in that __________ . A. firms consider other firms’ actions when choosing price and quantity B. there are a few firms in the industry C. firms act strategically D. all of the above Question 11 of 40 2.5/ 2.5 Points In which of the following market structures can you find differentiated products? A. monopoly B. perfect competition C. oligopoly D. monopolistic competition and oligopoly Question 12 of 40 2.5/ 2.5 Points A market served by only one firm is called a(n. __________ . A. perfectly competitive market B. monopoly C. oligopoly D. Any of the above could be correct. Question 13 of 40 0.0/ 2.5 Points When a second firm enters a monopolist's market __________ . A. the former monopolist's average cost decreases as its output level decreases B. the demand curve the former monopolist faces shifts to the left C. the market price rises as the average cost increases D. none of the above Question 14 of 40 2.5/ 2.5 Points The four-firm concentration ratio measures the __________ . A. percentage of total output in a market produced by the four largest firms B. elasticity of demand of the four largest firms in an industry C. average cost of the four largest firms in an industry D. number of firms in an industry Question 15 of 40 2.5/ 2.5 Points When a second firm enters a monopolist's market, the monopolist's marginal revenue curve will __________ . A. shift to the left as its initial demand curve shifts to the left B. shift to the right as its initial demand curve shifts to the right C. remain the same D. none of the above Question 16 of 40 2.5/ 2.5 Points Which of the following would NOT be considered price discrimination? A. charging business travelers more money than leisure travelers for plane tickets B. charging houses in expensive neighborhoods more money for mowing the same size lawn than in a less expensive neighborhood C. charging a lower price for dry cleaning men's shirts than women's shirts D. charging more money for a large luxury car than a small economy car Question 17 of 40 2.5/ 2.5 Points When a second firm enters a market, the original firm's profits decline because __________ . A. the original firm's price decreases B. the original firm's ATC increases C. the original firm's quantity decreases D. All of the above are correct. Question 18 of 40 2.5/ 2.5 Points In which of the following market structures do you find no barriers to entry? A. monopoly B. perfect competition C. monopolistic competition D. monopolistic competition and perfect competition Question 19 of 40 2.5/ 2.5 Points Which of the following is NOT a characteristic of a perfectly competitive market? A. a large number of firms in a market B. selling a standardized product C. substantial barriers to entry D. an individual firm having no control over price Question 20 of 40 2.5/ 2.5 Points The four-firm concentration ratio for the cigarette market is 93%. This means that __________ . A. the four largest firms in the market produce 93% of the total market output B. the market is an oligopoly C. there is a high degree of concentration in the cigarette market D. all of the above Part 2 of 2 - Lesson 7 Questions 37.5/ 50.0 Points Question 21 of 40 2.5/ 2.5 Points The price of an hour of leisure time is __________ . A. the income that could have been earned in that hour B. zero C. the minimum wage rate D. determined by the value of the activity the person engages in during that hour of leisure Question 22 of 40 0.0/ 2.5 Points People who complete college provide a signal to employers about their skills and thus face better employment opportunities than equally skilled high school graduates. This is called __________ . A. the learning effect of a college education B. the signaling effect of a college education C. the discriminatory effect of a college education D. none of the above Question 23 of 40 2.5/ 2.5 Points One reason that professional baseball players earn higher incomes than college professors is that __________ . A. the training costs to enter the baseball profession are low B. there no barriers to entry in the baseball profession C. few people have the skill to play professional baseball D. being a college professor requires less education Question 24 of 40 2.5/ 2.5 Points The change in the quantity of labor demanded resulting from a change in the relative cost of labor is known as the __________ effect. A. input-substitution B. price elasticity C. output D. derived demand Question 25 of 40 2.5/ 2.5 Points The marginal revenue product of labor is the __________ . A. change in labor necessary to produce an additional unit of output B. cost of additional labor necessary to produce an additional unit of output C. change in output resulting from adding an additional unit of labor D. change in revenue resulting from adding an additional unit of labor Question 26 of 40 2.5/ 2.5 Points Given their skills and education, steelworkers earn higher incomes than they would in other occupations. This is partly because __________ . A. steel workers face the higher risk of getting injured or killed B. it is costly to acquire skills necessary for jobs at steel mills C. few people have skills and knowledge required for jobs at steel mills D. all of the above Question 27 of 40 2.5/ 2.5 Points Compared to the typical high-school graduate, the typical college graduate has greater human capital and thus more options for both low-skill and high-skill jobs. This is called __________ . A. the signaling effect of a college education B. the learning effect of a college education C. the discriminatory effect of a college education D. all of the above Question 28 of 40 2.5/ 2.5 Points The poverty rate in the United States is highest for __________ . A. married couples B. childless households C. female headed households D. single people Question 29 of 40 2.5/ 2.5 Points Poverty rates among the elderly are __________ . A. much lower than poverty rates among children B. higher than the poverty rates among children C. approximately the same as the poverty rates among children D. rising more rapidly than the poverty rates among children Question 30 of 40 2.5/ 2.5 Points The change in the quantity of labor demanded resulting from a change in the quantity produced of the product is known as the __________ effect. A. input-substitution B. price elasticity C. output D. derived demand Question 31 of 40 2.5/ 2.5 Points A curve that shows the relationship between the wage and the quantity of labor demanded in the short run is __________ . A. the marginal revenue product of labor curve B. the marginal revenue curve C. the marginal product of labor curve D. none of the above Question 32 of 40 0.0/ 2.5 Points Other things being equal, as diminishing marginal returns begin to occur, the marginal revenue product of labor __________ . A. decreases as more workers are used B. increases as more workers are used C. remains unchanged as more workers are used D. none of the above Question 33 of 40 2.5/ 2.5 Points Suppose that a minimum wage is set that is higher than wages for retail workers. This is __________ news for shoppers and __________ retail workers. A. bad; good news for some, but not all B. bad; good news for all C. good; good news for some but not all D. good; good news for all Question 34 of 40 2.5/ 2.5 Points In order to practice price discrimination, a firm must be in a market such that the consumers in its market __________. A. have identical tastes B. have identical elasticity of demand C. have different elasticity of demand D. have the same demand for its product Question 35 of 40 2.5/ 2.5 Points One reason that college graduates earn higher wages than non-graduates is because college graduates __________ . A. acquire additional skills to allow them to work in more industries than non-graduates B. always work in more dangerous jobs than non-graduates C. are always more intelligent than non-graduates D. are less equipped to deal with technological change, as their skills are technology-specific Question 36 of 40 2.5/ 2.5 Points Which of the following is a main factor that explains the differences in the incomes of U.S. households? A. inheritances B. luck and misfortune C. discrimination D. all of the above Question 37 of 40 0.0/ 2.5 Points When a firm hires a worker for one hour, the marginal benefit to that firm equals the __________ . A. dollar value of the goods produced by that worker in one hour B. hourly wage of that worker C. number of items the worker produces in that hour D. price of each item that the worker produces in that hour Question 38 of 40 0.0/ 2.5 Points Without the government's redistribution programs, the income share of the lowest quintile would __________ and the income share of the highest quintile would __________ . A. decrease; remain the same B. decrease; increase C. remain the same; increase D. increase; decrease Question 39 of 40 2.5/ 2.5 Points Which of the following explains the impact of technological advances on the wage gap between less skilled workers and highly skilled workers? A. Advances in technology have increased the demand for higher education degrees and widened the wage gap between the two groups. B. Advances in technology have increased the productivity of less skilled workers and thus narrowed the wage gap between the two groups. C. Advances in technology have increased the demand for less skilled workers and highly skilled workers alike, and thus the wage gap between the two groups remains unchanged. D. none of the above Question 40 of 40 0.0/ 2.5 Points When a firm hires a worker for one hour, the marginal cost to that firm equals the __________ . A. hourly wage of that worker B. diminishing marginal productivity of that worker C. price of each item that the worker produces in that hour D. average total cost of production at the quantity produced ashworth college C13V online exam 7 attempt 2 latest 2015 jan. Part 1 of 2 - Lesson 6 Questions 27.5/ 50.0 Points Question 1 of 40 0.0/ 2.5 Points When a second firm enters a monopolist's market __________ . A. the former monopolist's average cost decreases as its output level decreases B. the demand curve the former monopolist faces shifts to the left C. the market price rises as the average cost increases D. none of the above Question 2 of 40 2.5/ 2.5 Points Compare two markets. In one market, the HHI is 500, in the other market the HHI is 1,500. What must be true of these two markets? A. The firms in the market in which the HHI is 1,500 have greater market power than do the firms in the market in which the HHI is 500. B. There are more firms in the market in which the HHI is 1,500 than in the market in which the HHI is 500. C. The firms in the market in which the HHI is 1,500 have less market power than do the firms in the market in which the HHI is 500. D. The market in which the HHI is 500 is, by definition, an oligopoly but the market in which the HHI is 1,500 is not an oligopoly. Question 3 of 40 2.5/ 2.5 Points The four-firm concentration ratio measures the __________ . A. percentage of total output in a market produced by the four largest firms B. elasticity of demand of the four largest firms in an industry C. average cost of the four largest firms in an industry D. number of firms in an industry Question 4 of 40 2.5/ 2.5 Points Which of the following is NOT a barrier to entry for monopoly? A. a patent B. government licensing C. large economies of scale D. a large number of existing firms in a market Question 5 of 40 0.0/ 2.5 Points In which of the following market structures do you find many sellers? A. monopoly B. perfect competition C. monopolistic competition D. monopolistic competition and perfect competition Question 6 of 40 2.5/ 2.5 Points When a second firm enters a market, the original firm's profits decline because __________ . A. the original firm's price decreases B. the original firm's ATC increases C. the original firm's quantity decreases D. All of the above are correct. Question 7 of 40 2.5/ 2.5 Points Which of the following is NOT a characteristic of a perfectly competitive market? A. a small number of firms in a market B. selling a standardized product C. no barriers to entry D. an individual firm having no control over price Question 8 of 40 2.5/ 2.5 Points Price discrimination always benefits __________ . A. the firm and may benefit or harm the consumer B. the consumer and may benefit or harm the firm C. consumers and firms D. consumers only Question 9 of 40 0.0/ 2.5 Points When a second firm enters a monopolist's market __________ . A. market price will rise B. the quantity produced by the first firm will decrease C. the first firm's profits increase D. All of the above will occur. Question 10 of 40 2.5/ 2.5 Points When a second firm enters a monopolist's market __________ . A. market price will rise B. the quantity produced by the first firm will increase C. the first firm's profits will decrease D. All of the above will occur. Question 11 of 40 2.5/ 2.5 Points The four-firm concentration ratio for the cigarette market is 93%. This means that __________ . A. the four largest firms in the market produce 93% of the total market output B. the market is an oligopoly C. there is a high degree of concentration in the cigarette market D. all of the above Question 12 of 40 0.0/ 2.5 Points When there are just a few firms in an industry, the industry structure is most likely to be __________ . A. a perfectly competitive industry B. an oligopoly market C. a monopoly market D. a natural monopoly market Question 13 of 40 0.0/ 2.5 Points When a few firms sell similar products in a market, the market structure is most likely to be __________ . A. a perfectly competitive market B. a monopoly C. a monopolistically competitive market D. an oligopoly Question 14 of 40 2.5/ 2.5 Points Which of the following would NOT be considered price discrimination? A. charging business travelers more money than leisure travelers for plane tickets B. charging houses in expensive neighborhoods more money for mowing the same size lawn than in a less expensive neighborhood C. charging a lower price for dry cleaning men's shirts than women's shirts D. charging more money for a large luxury car than a small economy car Question 15 of 40 0.0/ 2.5 Points When a second firm enters a monopolist's market, the initial demand curve facing the monopolist will __________ . A. shift to the left B. shift to the right C. remain the same D. none of the above Question 16 of 40 0.0/ 2.5 Points What is the characteristic of a perfectly competitive firm that causes it to be a price taker? A. many buyers and sellers B. homogeneous product C. free entry and exit D. A and B are correct. Question 17 of 40 2.5/ 2.5 Points When a second firm enters a monopolist's market __________ . A. market price will drop B. sales for the first firm will rise C. the first firm's profits will increase D. All of the above will occur. Question 18 of 40 0.0/ 2.5 Points Which of the following is a characteristic of a perfectly competitive market? A. a large number of firms in a market B. selling a standardized product C. no barriers to entry D. all of the above Question 19 of 40 0.0/ 2.5 Points You notice that the price of butter rises and then falls. The best explanation for this is that __________ . A. demand for butter increased causing price to rise, which attracted other firms to enter the market causing supply to increase, which caused the price to go back down B. demand for butter decreased causing price to rise, which attracted other firms to enter the market causing supply to increase, which caused the price to go back down C. demand for butter increased causing price to rise, which induced other firms to exit the market causing supply to decrease, which caused the price to go back down D. demand for butter increased causing price to rise, which attracted other firms to enter the market causing supply to decrease, which caused the price to go back down Question 20 of 40 2.5/ 2.5 Points Market power is the power to __________ . A. control prices B. gain another firm's customers C. reduce price below cost to deter entry D. control output Part 2 of 2 - Lesson 7 Questions 22.5/ 50.0 Points Question 21 of 40 2.5/ 2.5 Points Given their skills and education, steelworkers earn higher incomes than they would in other occupations. This is partly because __________ . A. steel workers face the higher risk of getting injured or killed B. it is costly to acquire skills necessary for jobs at steel mills C. few people have skills and knowledge required for jobs at steel mills D. all of the above Question 22 of 40 0.0/ 2.5 Points The poverty rate in the United States is lowest for __________ . A. whites B. blacks C. Hispanics D. Asians Question 23 of 40 2.5/ 2.5 Points In order to practice price discrimination, a firm must be in a market such that the consumers in its market __________. A. have identical tastes B. have identical elasticity of demand C. have different elasticity of demand D. have the same demand for its product Question 24 of 40 0.0/ 2.5 Points The poverty rate in the United States is highest for __________ . A. married couples B. childless households C. female headed households D. single people Question 25 of 40 2.5/ 2.5 Points Poverty rates among the elderly are __________ . A. much lower than poverty rates among children B. higher than the poverty rates among children C. approximately the same as the poverty rates among children D. rising more rapidly than the poverty rates among children Question 26 of 40 2.5/ 2.5 Points The price of an hour of leisure time is __________ . A. the income that could have been earned in that hour B. zero C. the minimum wage rate D. determined by the value of the activity the person engages in during that hour of leisure Question 27 of 40 0.0/ 2.5 Points Other things being equal, as diminishing marginal returns begin to occur, the marginal revenue product of labor __________ . A. decreases as more workers are used B. increases as more workers are used C. remains unchanged as more workers are used D. none of the above Question 28 of 40 2.5/ 2.5 Points Suppose that differences in skills explain part of the difference in wages by race. Wage differences arising from skill differences __________ . A. may result from past discrimination in access to education B. are not attributable to present or past discrimination C. will disappear when labor markets are in equilibrium D. are always classified as racial discrimination Question 29 of 40 0.0/ 2.5 Points A minimum wage that is less than the prevailing market wage will __________ . A. have no effect on the market B. increase unemployment C. increase wages D. reduce wages Question 30 of 40 0.0/ 2.5 Points A curve that shows the relationship between the wage and the quantity of labor demanded in the short run is __________ . A. the marginal revenue product of labor curve B. the marginal revenue curve C. the marginal product of labor curve D. none of the above Question 31 of 40 2.5/ 2.5 Points Compared to the typical high-school graduate, the typical college graduate has greater human capital and thus more options for both low-skill and high-skill jobs. This is called __________ . A. the signaling effect of a college education B. the learning effect of a college education C. the discriminatory effect of a college education D. all of the above Question 32 of 40 0.0/ 2.5 Points Government taxes and transfers __________ . A. increase the wealth of the poorest Americans and reduce the wealth of the richest Americans B. reduce the wealth of all Americans C. increase the wealth of all Americans D. reduce the wealth of the poorest Americans and increase the wealth of the richest Americans Question 33 of 40 0.0/ 2.5 Points The marginal revenue product of labor is the __________ . A. change in labor necessary to produce an additional unit of output B. cost of additional labor necessary to produce an additional unit of output C. change in output resulting from adding an additional unit of labor D. change in revenue resulting from adding an additional unit of labor Question 34 of 40 0.0/ 2.5 Points Which of the following explains the impact of technological advances on the wage gap between less skilled workers and highly skilled workers? A. Advances in technology have increased the demand for higher education degrees and widened the wage gap between the two groups. B. Advances in technology have increased the productivity of less skilled workers and thus narrowed the wage gap between the two groups. C. Advances in technology have increased the demand for less skilled workers and highly skilled workers alike, and thus the wage gap between the two groups remains unchanged. D. none of the above Question 35 of 40 0.0/ 2.5 Points Which of the following explains the impact of the expansion of international trade on the demand for less skilled workers in the United States? A. An increase in international trade has increased the demand for less skilled workers. B. An increase in international trade has decreased the demand for less skilled workers. C. An increase in international trade has had little impact on the demand for less skilled workers. D. The impact of the expansion of international trade on the demand for less skilled workers in the United States varies from year to year. Question 36 of 40 2.5/ 2.5 Points One reason that college graduates earn higher wages than non-graduates is because college graduates __________ . A. acquire additional skills to allow them to work in more industries than non-graduates B. always work in more dangerous jobs than non-graduates C. are always more intelligent than non-graduates D. are less equipped to deal with technological change, as their skills are technology-specific Question 37 of 40 0.0/ 2.5 Points The relationship between the wage and the quantity of labor that a given worker is willing to provide is called __________ . A. individual labor demand B. market labor demand C. individual labor supply D. market labor supply Question 38 of 40 0.0/ 2.5 Points When a firm hires a worker for one hour, the marginal benefit to that firm equals the __________ . A. dollar value of the goods produced by that worker in one hour B. hourly wage of that worker C. number of items the worker produces in that hour D. price of each item that the worker produces in that hour Question 39 of 40 2.5/ 2.5 Points When a firm hires a worker for one hour, the marginal cost to that firm equals the __________ . A. hourly wage of that worker B. diminishing marginal productivity of that worker C. price of each item that the worker produces in that hour D. average total cost of production at the quantity produced Question 40 of 40 2.5/ 2.5 Points Medical doctors earn higher incomes than people who have a Ph.D. in economics. This is partly because __________ . A. medical doctors are more likely to face malpractice lawsuits B. the costs of receiving necessary medical education are higher C. a relatively small number of students are admitted to medical schools D. all of the above ashworth college C13V online exam 8 latest 2015 jan. Part 1 of 1 - 75.0/ 100.0 Points Question 1 of 20 5.0/ 5.0 Points Import bans, import quotas, voluntary export restraints, and tariffs on goods all __________ . A. increase equilibrium quantity and prices B. decrease equilibrium quantity and prices C. increase equilibrium quantities, but decrease prices D. decrease equilibrium quantities, but increase prices Question 2 of 20 5.0/ 5.0 Points A(n. __________ is a trade policy by which a nation agrees to limit its exports of a good in order to avoid more restrictive trade policies. A. tariff B. voluntary export restraint C. import quota D. import ban Question 3 of 20 5.0/ 5.0 Points Which of the following benefits from a quota or voluntary export restraint (VER.? A. consumers B. domestic producers C. the government D. all of the above Question 4 of 20 5.0/ 5.0 Points A(n. __________ is a tax on an imported good. A. tariff B. import quota C. voluntary export restraint D. export quota Question 5 of 20 5.0/ 5.0 Points The relative amounts of the goods that will be exchanged for each other in trade refers to the nations' __________ . A. absolute advantages B. terms of trade C. production possibilities D. autarky status Question 6 of 20 5.0/ 5.0 Points The consumption possibilities curve shows the combinations of goods that can be __________ . A. consumed by a nation before trade begins B. consumed by a nation after trading begins C. produced by a nation before trading begins D. produced by a nation after trade begins Question 7 of 20 5.0/ 5.0 Points Exporting nations often agree to voluntary export restraints in an attempt to __________ . A. employ more workers in the importing nation B. avoid more restrictive trade policies C. increase global welfare D. decrease inflation Question 8 of 20 5.0/ 5.0 Points Suppose there are only two nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 27 per day. If Atlantis produces only kayaks, it can make 18 per day. If Pacifica produces only surfboards, it can make 32 per day. If Pacifica produces only kayaks, it can make 24 per day. After trade begins, __________ will specialize in the production of surfboards and __________ will specialize in the production of kayaks. A. Atlantis; Atlantis B. Pacifica; Atlantis C. Atlantis; Pacifica D. No trade will occur. Question 9 of 20 5.0/ 5.0 Points Which of the following situations will arise in the domestic market following the removal of an import quota? A. imports increase, domestic production increases, prices increase B. imports increase, domestic production decreases, prices decrease C. imports decrease, domestic production increases, prices decrease D. imports decrease, domestic production decreases, prices increase Question 10 of 20 0.0/ 5.0 Points Which of the following situations will arise in the domestic market following the imposition of a tariff? A. imports decrease, domestic production increases, prices increase B. imports increase, domestic production increases, prices increase C. imports increase, domestic production decreases, prices decrease D. imports decrease, domestic production increases, prices decrease Question 11 of 20 5.0/ 5.0 Points An import quota __________ . A. limits the amount of a good that can be imported, thus decreasing prices B. limits the amount of a good that can be imported, thus increasing prices C. increases the amount of a good imported, thus decreasing prices D. increases the amount of a good imported, thus increasing prices Question 12 of 20 5.0/ 5.0 Points Which of the following situations will arise in the domestic market following the imposition of an import quota? A. imports increase, domestic production decreases, prices decrease B. imports decrease, domestic production increases, prices decrease C. imports decrease, domestic production decreases, prices increase D. imports decrease, domestic production increases, prices increase Question 13 of 20 5.0/ 5.0 Points Which of the following statements is true? A. Free trade will benefit all workers in a nation equally. B. As a result of specialization some workers will be displaced and harmed in the short run by free trade. C. Free trade leads to lower wages for all workers in both nations. D. Specialization will result in a decline in an industry, and none of those workers will be able to find other jobs. Question 14 of 20 0.0/ 5.0 Points Import bans, import quotas, voluntary export restraints, and tariffs on goods all __________ . A. increase imports and raise prices for consumers B. reduce imports and prices for consumers C. reduce imports and raise prices for consumers D. increase imports and reduce prices for consumers Question 15 of 20 5.0/ 5.0 Points According to the infant industry argument for trade protectionism, __________ . A. trade barriers must be used to protect domestic workers B. new industries need to be shielded from competition in the early stages of learning by doing C. tariffs imposed to aid new industries should never be removed D. new industries are capable of competing with established rivals Question 16 of 20 5.0/ 5.0 Points A possible reason a nation might impose a protectionist policy such as a tariff is to __________ . A. increase the level of imports B. protect an infant industry from foreign competitors C. encourage specialization in the good in which the nation has a comparative advantage D. slow domestic production Question 17 of 20 0.0/ 5.0 Points Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only teapots, it can make 80 per day. If Arcadia produces only surfboards, it can make 30 per day. What is the opportunity cost of 1 teapot in Arcadia? A. 3/8 of a surfboard B. 8/3 surfboards C. 30 surfboards D. 80 surfboards Question 18 of 20 0.0/ 5.0 Points Suppose there are only two nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day. If Pacifica produces only surfboards, it can make 75 per day. If Pacifica produces only kayaks, it can make 75 per day. After trade begins, __________ will specialize in the production of surfboards and __________ will specialize in the production of kayaks. A. Atlantis; Atlantis B. Pacifica; Pacifica C. Atlantis; Pacifica D. Pacifica; Atlantis Question 19 of 20 0.0/ 5.0 Points As a whole, nations are better off after trade and specialization because __________ . A. nations can consume along their consumption possibilities curve, which is outside of their production possibilities curve B. nations can consume along their consumption possibilities curve, which is inside of their production possibilities curve C. nations can consume along their production possibilities curve, which is outside of their consumption possibilities curve D. nations experience an inward shift of their production possibilities curve Question 20 of 20 5.0/ 5.0 Points An import ban results in __________ . A. a decrease in the supply of the product B. an increase in the product's price C. a decrease in the quantity of the product bought and sold D. all of the above ashworth college C13V assignment 4 latest 2015 jan. ASSIGNMENT 04 C13 Microeconomics Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements. Part A Politicians are often heard saying that tuition at state universities should be kept low "to make education equally accessible to all residents of the state, regardless of income." 1. Assuming that state funding for the universities is held constant,describe the conditionsthat will prevail if tuition is held below equilibrium price. Provide one (1) example to support your response. 2. Will education really be "equally accessible" under these conditions? Provide one (1) example to support your response. Part B Using the Internet, research the influenza vaccine, or "flu shot." Use the following to guide your research: a. Think about the flu shot in the context of a public good. b. What are the economic benefits of the flu shot? c. In what ways has the government become involved in the distribution of flu shots? For what reasons? 1. Describe one (1) reason why the private market for flu vaccinations would produce an inefficient outcome. 2. Describe one (1) way that government involvement could achieve an efficient quantity of vaccinations. 3. Provide one (1) original example for each of the following: a. a private good apublic good ashworth college C13V assignment 8 latest 2015 jan. ASSIGNMENT 08 C13 Microeconomics Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements. Part A Imagine that it is the year 2199. Technology has progressed at an incredible pace. The latest discovery is the plutonium engine, which is capable of converting plutonium, a by-product of nuclear fission, into fuel to power the nuclear reactors in our new form of transportation, the rocket-car. However, because the firm that invented the engine, the Futures Unlimited Corporation, already has a government license to control and distribute the quantity of this certain isotope of plutonium on the market, it is now conceivably in charge of a monopoly on plutonium-fueled transportation. 1. Describe the economic outcome of this single-price monopoly in terms of profit. Provide one (1) supporting fact to support your response. 2. Describe one (1) way that the Futures Unlimited Corporation makes output and price decisions. Part B 1. Would consumers benefit more from a tariff or a quota on imports? Provide one (1) supporting fact to support your response. 2. Consider the following weekly production possibilities of gloves and hats in Panama and Russia: Russia Panama Gloves 20 180 Hats 80 90 a. What is each country's opportunity cost of producing gloves and hats? b. If the countries could, should they trade? Provide one (1) supporting fact to support your position.
