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Combined Quizes 09-14-2013

Combined Quizes 09-14-2013

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Eco 405 Quizes
Eco 405 Quizes

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• 4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling?

It will Answer Selected Answer: Decrease Correct Answer: Decrease

• Question 2
0 out of 4 points An increase in the demand for education will Answer Selected Answer: Increase the supply of education Correct Answer: Increase the equilibrium quantity of education

• Question 3
4 out of 4 points I benefit because you become more educated. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

• Question 4
4 out of 4 points

Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 3.9 Correct Answer: 3.9

• Question 5
0 out of 4 points As the number of years of education increases, the spillover benefits will Answer Selected Answer: Increase Correct Answer: Decrease

• Question 6
4 out of 4 points Marginal social benefits equal Answer Selected Answer: MPB + spillover benefits Correct Answer: MPB + spillover benefits

• Question 7
4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer

Selected Answer: Inconsistent Correct Answer: Inconsistent

• Question 8
0 out of 4 points What is the relationship between student achievement and teacher pay? Answer Selected Answer: Mixed Correct Answer: Positive

• Question 9
4 out of 4 points The current K-12 education system can be described as Answer Selected Answer: Centralized Correct Answer: Centralized

• Question 10
4 out of 4 points What is the relationship between school funding and student achievement? Answer

Selected Answer: Positive Correct Answer: Positive

• Question 11
4 out of 4 points In 2003, approximately what percent of school aged children attended public schools? Answer Selected Answer: 90% Correct Answer: 90%

• Question 12
4 out of 4 points Students learn about health and nutrition in school. This provides a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

• Question 13
4 out of 4 points To be socially optimal, education should be provided to the point where Answer

Selected Answer: MSB = MSC Correct Answer: MSB = MSC

• Question 14
4 out of 4 points In the existing public K-12 education system, spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries

• Question 15
4 out of 4 points With positive externalities in consumption, the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal

Question 1
4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 2
4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 3
4 out of 4 points If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control

Question 4
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve

Question 5
4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination For each unit of pollution, the cost of clean-up is less than the benefit from its elimination

Question 6
4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music

Question 7
4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost

Correct Answer: Opportunity cost

Question 8
4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 9
4 out of 4 points When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 10
4 out of 4 points When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 11

4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC

Question 12
4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions

Question 13
4 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 14
0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily

Correct Answer: It seems straightforward and fair

Question 15
4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity

Question 16
4 out of 4 points If you are willing to take a pay cut to live near a ski resort, the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits

Question 17
4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 18
4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 19
4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her

Question 20
4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 21
4 out of 4 points Prostitution is an example of a(n)

Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 22
4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 23
4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 24
4 out of 4 points From an economic point of view, crime prevention activities should be expanded to the point at which Answer Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost

additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds . and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes • Question 27 4 out of 4 points In any city with a given crime prevention budget. remedial education courses.Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost • Question 25 4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it • Question 26 4 out of 4 points Job training programs.

of crime • Question 28 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 29 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 30 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest Sunday. July 28. 2013 8:16:33 PM EDT .

rather than reduce its emissions.• Question 1 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river • Question 2 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. the firm will pay the tax. as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control • Question 4 4 out of 4 points . which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production • Question 3 4 out of 4 points If a pollution tax is placed on a firm emitting pollution.

the cost of clean-up is less than the benefit from its elimination For each unit of pollution. the cost of clean-up is less than the benefit from its elimination • Question 6 4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music • Question 7 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost . the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve • Question 5 4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution.If all benefits from consuming a good go to consumers.

which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality • Question 11 . polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices • Question 10 4 out of 4 points When the cost of an action falls on other than the person (or persons) responsible for the action.Correct Answer: Opportunity cost • Question 8 4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled • Question 9 4 out of 4 points When pollution is not regulated in the market.

4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC • Question 12 4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions • Question 13 4 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production • Question 14 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily .

the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income .Correct Answer: It seems straightforward and fair • Question 15 4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity • Question 16 4 out of 4 points If you are willing to take a pay cut to live near a ski resort. the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits • Question 17 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction.

Question 18
4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 19
4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her

Question 20
4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 21
4 out of 4 points Prostitution is an example of a(n)

Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 22
4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 23
4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 24
4 out of 4 points From an economic point of view, crime prevention activities should be expanded to the point at which Answer Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost

Question 25
4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it

Question 26
4 out of 4 points Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 27
4 out of 4 points In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds

of crime

Question 28
4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 29
4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 30
4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest

Sunday, July 28, 2013 8:16:33 PM EDT

Course Test

Econ Problems & Issues Week 4 Quiz 3 choice questions. The first 15 Chapter 4. The second 15 Chapter 5. Be sure you are in the the quiz.

Instructions This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take

Question 1
4 out of 4 points

Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good

Question 2
4 out of 4 points

The market output level tends to be socially optimal when Answer Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer: All costs and benefits are private and MSB=MSC

Question 3
4 out of 4 points

Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good

Question 4
4 out of 4 points

When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 5
4 out of 4 points

As additional units of pollution control are added, at some point each additional unit adds Answer Selected Answer: Less than the previous unit to total benefits Correct Answer: Less than the previous unit to total benefits

Question 6
4 out of 4 points

When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 7
4 out of 4 points

For a tax on pollution to be effective, it must be Answer Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution

Question 8
4 out of 4 points

Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 9
4 out of 4 points

Which of the following creates a positive externality in consumption? Answer Selected Answer: Vaccinations Correct Answer: Vaccinations

Question 10
4 out of 4 points

The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 11
4 out of 4 points

Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: The environment is collectively consumed

Question 12

4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 13
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 14
4 out of 4 points

Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost

Question 15
0 out of 4 points

If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer:

Below its MPC of pollution control

Question 16
4 out of 4 points

When an individual incurs costs in the form of negative personal satisfaction, the costs are Answer Selected Answer: Psychic costs Correct Answer: Psychic costs

Question 17
4 out of 4 points

Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 18
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 19
4 out of 4 points

Prostitution is an example of a(n) Answer Selected Answer:

Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 20
4 out of 4 points

Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 21
4 out of 4 points

Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her

The benefit of the last officer hired is just equal to what its cost to hire her

Question 22
4 out of 4 points

Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system

Question 23
4 out of 4 points

Arson is an example of a(n)

Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 24
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 25
4 out of 4 points

Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 26
4 out of 4 points

The marginal cost of a good is Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output

Question 27
0 out of 4 points

If you are willing to take a pay cut to live near a ski resort, the ski resort provides you

with Answer Selected Answer: Marginal social benefits Correct Answer: Psychic benefits

Question 28
4 out of 4 points

An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 29
4 out of 4 points

In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds of crime

Question 30
4 out of 4 points

Economic analysis of crime can Answer Selected Answer: Correct Answer: Determine what the economic impact will be of making certain activities illegal Determine what the economic impact will be of making certain activities illegal

Sunday. July 28. 2013 3:45:26 PM EDT OK .

• Question 1 4 out of 4 points If all benefits from consuming a good go to consumers. the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve • Question 2 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river 4 out of 4 points Correct Answer: • Question 3 Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs • Question 4 0 out of 4 points For a tax on pollution to be effective. it must be Answer Selected Answer: Placed on the firm polluting Correct Answer: Greater than the cost of cleaning-up the pollution • Question 5 0 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: MSC of cleanup < MSB of cleanup .

polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices . the cost of clean-up is less than the benefit from its elimination 4 out of 4 points • Question 6 Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good • Question 7 0 out of 4 points When MPC is less than MSC. Answer Selected Answer: The firm will produce less than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal • Question 8 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily Correct Answer: It seems straightforward and fair • Question 9 4 out of 4 points The market output level tends to be socially optimal when Answer Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer: All costs and benefits are private and MSB=MSC • Question 10 4 out of 4 points When pollution is not regulated in the market.Correct Answer: For each unit of pollution.

Correct Answer: Over-utilize resources and charge low prices • Question 11 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production • Question 12 4 out of 4 points Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good • Question 13 4 out of 4 points Costs incurred by the producer for the use of self-owned resources are called Answer Selected Answer: Implicit costs Correct Answer: Implicit costs • Question 14 4 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: Vaccinations Correct Answer: Vaccinations • Question 15 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost .

the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income • Question 19 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 20 4 out of 4 points From an economic point of view. crime prevention activities should be expanded to the point at which Answer .Correct Answer: Opportunity cost • Question 16 0 out of 4 points Economic analysis of crime can Answer Selected Answer: Correct Answer: Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal • Question 17 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 18 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction.

the MSB of crime prevention Answer Selected Answer: Is equal to the MSC of crime prevention Correct Answer: Equals 0 • Question 25 4 out of 4 points .Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost Correct Answer: • Question 21 4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair. which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts • Question 22 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies • Question 23 4 out of 4 points The marginal cost of a good is Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output • Question 24 0 out of 4 points If society receives no additional benefit from increasing crime prevention activities.

rural lives.Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property • Question 26 0 out of 4 points Some people give up high-paying city jobs to live much simpler. Which of the following is a sound economic explanation for this? Answer Selected Answer: The fear of crime in the city Correct Answer: The very high psychic income they receive from the simple way of life • Question 27 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest • Question 28 4 out of 4 points Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost? Answer Selected Answer: Free-riding Correct Answer: Free-riding • Question 29 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire Correct Answer: .

her • Question 30 4 out of 4 points Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services .

the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve • Question 2 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river 4 out of 4 points Correct Answer: • Question 3 Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs • Question 4 0 out of 4 points For a tax on pollution to be effective. it must be Answer Selected Answer: Placed on the firm polluting Correct Answer: Greater than the cost of cleaning-up the pollution • Question 5 0 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: MSC of cleanup < MSB of cleanup .• Question 1 4 out of 4 points If all benefits from consuming a good go to consumers.

Answer Selected Answer: The firm will produce less than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal • Question 8 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily Correct Answer: It seems straightforward and fair • Question 9 4 out of 4 points The market output level tends to be socially optimal when Answer Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer: All costs and benefits are private and MSB=MSC • Question 10 4 out of 4 points When pollution is not regulated in the market. polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices .Correct Answer: For each unit of pollution. the cost of clean-up is less than the benefit from its elimination 4 out of 4 points • Question 6 Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good • Question 7 0 out of 4 points When MPC is less than MSC.

which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production • Question 12 4 out of 4 points Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good • Question 13 4 out of 4 points Costs incurred by the producer for the use of self-owned resources are called Answer Selected Answer: Implicit costs Correct Answer: Implicit costs • Question 14 4 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: Vaccinations Correct Answer: Vaccinations • Question 15 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost .Correct Answer: Over-utilize resources and charge low prices • Question 11 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost.

Correct Answer: Opportunity cost • Question 16 0 out of 4 points Economic analysis of crime can Answer Selected Answer: Correct Answer: Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal • Question 17 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 18 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction. crime prevention activities should be expanded to the point at which Answer . the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income • Question 19 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 20 4 out of 4 points From an economic point of view.

the MSB of crime prevention Answer Selected Answer: Is equal to the MSC of crime prevention Correct Answer: Equals 0 • Question 25 4 out of 4 points .Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost Correct Answer: • Question 21 4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair. which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts • Question 22 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies • Question 23 4 out of 4 points The marginal cost of a good is Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output • Question 24 0 out of 4 points If society receives no additional benefit from increasing crime prevention activities.

rural lives. Which of the following is a sound economic explanation for this? Answer Selected Answer: The fear of crime in the city Correct Answer: The very high psychic income they receive from the simple way of life • Question 27 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest • Question 28 4 out of 4 points Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost? Answer Selected Answer: Free-riding Correct Answer: Free-riding • Question 29 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire Correct Answer: .Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property • Question 26 0 out of 4 points Some people give up high-paying city jobs to live much simpler.

her • Question 30 4 out of 4 points Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services .

The first 15 Chapter 4. Be sure you are in the the quiz. which of the following exists? Answer Selected Answer: Externality in production Correct Answer: .Instructions This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take • choice questions. at some point each additional unit adds Answer Selected Answer: Less than the previous unit to total costs Correct Answer: Less than the previous unit to total benefits • Question 3 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. Question 1 4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled • Question 2 0 out of 4 points As additional units of pollution control are added. The second 15 Chapter 5.

Externality in production • Question 4 0 out of 4 points Costs incurred by the producer for the use of self-owned resources are called Answer Selected Answer: Explicit costs Correct Answer: Implicit costs • Question 5 0 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Vaccinations • Question 6 4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions • Question 7 4 out of 4 points .

Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good • Question 8 4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution. Answer Selected Answer: . the cost of clean-up is less than the benefit from its elimination • Question 9 4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity • Question 10 4 out of 4 points When MPC is less than MSC. the cost of clean-up is less than the benefit from its elimination For each unit of pollution.

rather than pay the tax. such as chemical wastes Correct Answer: Technological advances in production • Question 12 4 out of 4 points Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: The environment is collectively consumed • Question 13 4 out of 4 points If a pollution tax is placed on a firm emitting pollution.Firms will tend to produce more than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal • Question 11 0 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Recycling of waste materials. as long as the tax is Answer Selected Answer: Above its MPC of pollution control Correct Answer: Above its MPC of pollution control • Question 14 . the firm will treat pollution.

it must be Answer Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution • Question 16 4 out of 4 points Job training programs. remedial education courses.4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river • Question 15 4 out of 4 points For a tax on pollution to be effective. and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes • Question 17 4 out of 4 points Police officers should be hired up to the point where .

Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her • The benefit of the last officer hired is just equal to what its cost to hire her Question 18 4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense • Question 19 4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair. which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts • Question 20 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income .

Correct Answer: Psychic income • Question 21 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 22 4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances • Question 23 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 24 .

the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits • Question 26 4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property • Question 27 4 out of 4 points In any city with a given crime prevention budget. additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds .4 out of 4 points Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system • Question 25 4 out of 4 points If you are willing to take a pay cut to live near a ski resort.

the MSB of crime prevention Answer Selected Answer: Equals 0 Correct Answer: Equals 0 • Question 30 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest .of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime • Question 28 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies • Question 29 4 out of 4 points If society receives no additional benefit from increasing crime prevention activities.

July 28. 2013 6:19:25 PM EDT .Sunday.

• 4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling? It will Answer Selected Answer: Decrease Correct Answer: Decrease • Question 2 0 out of 4 points An increase in the demand for education will Answer Selected Answer: Increase the supply of education Correct Answer: Increase the equilibrium quantity of education • Question 3 4 out of 4 points I benefit because you become more educated. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption • Question 4 4 out of 4 points .

Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 3. the spillover benefits will Answer Selected Answer: Increase Correct Answer: Decrease • Question 6 4 out of 4 points Marginal social benefits equal Answer Selected Answer: MPB + spillover benefits Correct Answer: MPB + spillover benefits • Question 7 4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer .9 • Question 5 0 out of 4 points As the number of years of education increases.9 Correct Answer: 3.

Selected Answer: Inconsistent Correct Answer: Inconsistent • Question 8 0 out of 4 points What is the relationship between student achievement and teacher pay? Answer Selected Answer: Mixed Correct Answer: Positive • Question 9 4 out of 4 points The current K-12 education system can be described as Answer Selected Answer: Centralized Correct Answer: Centralized • Question 10 4 out of 4 points What is the relationship between school funding and student achievement? Answer .

Selected Answer: Positive Correct Answer: Positive • Question 11 4 out of 4 points In 2003. This provides a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption • Question 13 4 out of 4 points To be socially optimal. approximately what percent of school aged children attended public schools? Answer Selected Answer: 90% Correct Answer: 90% • Question 12 4 out of 4 points Students learn about health and nutrition in school. education should be provided to the point where Answer .

the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal . spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries • Question 15 4 out of 4 points With positive externalities in consumption.Selected Answer: MSB = MSC Correct Answer: MSB = MSC • Question 14 4 out of 4 points In the existing public K-12 education system.

This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption . 4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling? It will Answer Selected Answer: Decrease Correct Answer: Decrease  Question 2 0 out of 4 points An increase in the demand for education will Answer Selected Answer: Increase the supply of education Correct Answer: Increase the equilibrium quantity of education  Question 3 4 out of 4 points I benefit because you become more educated.

the spillover benefits will Answer Selected Answer: Increase Correct Answer: Decrease  Question 6 4 out of 4 points Marginal social benefits equal Answer Selected Answer: MPB + spillover benefits Correct Answer: MPB + spillover benefits .9 Correct Answer: 3. Question 4 4 out of 4 points Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 3.9  Question 5 0 out of 4 points As the number of years of education increases.

 Question 7 4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Inconsistent Correct Answer: Inconsistent  Question 8 0 out of 4 points What is the relationship between student achievement and teacher pay? Answer Selected Answer: Mixed Correct Answer: Positive  Question 9 4 out of 4 points The current K-12 education system can be described as Answer Selected Answer: Centralized Correct Answer: Centralized .

approximately what percent of school aged children attended public schools? Answer Selected Answer: 90% Correct Answer: 90%  Question 12 4 out of 4 points Students learn about health and nutrition in school. Question 10 4 out of 4 points What is the relationship between school funding and student achievement? Answer Selected Answer: Positive Correct Answer: Positive  Question 11 4 out of 4 points In 2003. This provides a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption .

education should be provided to the point where Answer Selected Answer: MSB = MSC Correct Answer: MSB = MSC  Question 14 4 out of 4 points In the existing public K-12 education system. Question 13 4 out of 4 points To be socially optimal. spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries  Question 15 4 out of 4 points With positive externalities in consumption. the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal .

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Question 1 4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions  Question 2 4 out of 4 points For a tax on pollution to be effective. Be sure you are in the correct Chapter when you take the quiz. rather than reduce its emissions. as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control . The second 15 questions cover the material in Chapter 5. it must be Answer Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution  Question 3 4 out of 4 points The level of pollution increases when Answer Selected Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled 4 out of 4 points Correct Answer:  Question 4 If a pollution tax is placed on a firm emitting pollution. This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 4. the firm will pay the tax.

the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve  Question 7 4 out of 4 points When the marginal private benefit of an activity does not equal the marginal social benefit. Question 5 4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC  Question 6 4 out of 4 points If all benefits from consuming a good go to consumers. which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Externality in consumption  Question 8 4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music  Question 9 4 out of 4 points When pollution is not regulated in the market. polluting firms will Answer .

Answer Selected Answer: Firms will tend to produce more than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal  Question 12 4 out of 4 points Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs  Question 13 4 out of 4 points Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good  Question 14 4 out of 4 points .Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices  Question 10 4 out of 4 points Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: The environment is collectively consumed  Question 11 4 out of 4 points When MPC is less than MSC.

Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good  Question 15 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost  Question 16 4 out of 4 points If society receives no additional benefit from increasing crime prevention activities. the MSB of crime prevention Answer Selected Answer: Equals 0 Correct Answer: Equals 0  Question 17 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income  Question 18 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment .

rural lives.Correct Answer: Unemployment  Question 19 4 out of 4 points Some people give up high-paying city jobs to live much simpler. Which of the following is a sound economic explanation for this? Answer Selected Answer: The very high psychic income they receive from the simple way of life Correct Answer: The very high psychic income they receive from the simple way of life  Question 20 4 out of 4 points Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system  Question 21 4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it 4 out of 4 points Correct Answer:  Question 22 Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense  Question 23 4 out of 4 points .

the costs are Answer Selected Answer: Psychic costs .An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest  Question 24 4 out of 4 points Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services  Question 25 4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair. which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts  Question 26 4 out of 4 points The marginal cost of a good is Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output  Question 27 4 out of 4 points When an individual incurs costs in the form of negative personal satisfaction.

This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem .Correct Answer: Psychic costs  Question 28 4 out of 4 points Economic analysis of crime can Answer Selected Answer: Determine what the economic impact will be of making certain activities illegal Determine what the economic impact will be of making certain activities illegal Correct Answer:  Question 29 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her Correct Answer:  Question 30 4 out of 4 points A group project has been assigned and most of the work ends up being produced by only one or two of the group's members.

rather than reduce its emissions. the firm will pay the tax. which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production • Question 3 4 out of 4 points If a pollution tax is placed on a firm emitting pollution.• Question 1 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river • Question 2 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control • Question 4 4 out of 4 points .

the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve • Question 5 4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution.If all benefits from consuming a good go to consumers. the cost of clean-up is less than the benefit from its elimination • Question 6 4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music • Question 7 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost . the cost of clean-up is less than the benefit from its elimination For each unit of pollution.

which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality • Question 11 . polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices • Question 10 4 out of 4 points When the cost of an action falls on other than the person (or persons) responsible for the action.Correct Answer: Opportunity cost • Question 8 4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled • Question 9 4 out of 4 points When pollution is not regulated in the market.

4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC • Question 12 4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions • Question 13 4 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production • Question 14 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily .

the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits • Question 17 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income .Correct Answer: It seems straightforward and fair • Question 15 4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity • Question 16 4 out of 4 points If you are willing to take a pay cut to live near a ski resort.

• Question 18 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies • Question 19 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her • Question 20 4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense • Question 21 4 out of 4 points Prostitution is an example of a(n) .

Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services • Question 22 4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property • Question 23 4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances • Question 24 4 out of 4 points From an economic point of view. crime prevention activities should be expanded to the point at which Answer Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost .

additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds . remedial education courses. and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes • Question 27 4 out of 4 points In any city with a given crime prevention budget.Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost • Question 25 4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it • Question 26 4 out of 4 points Job training programs.

July 28.of crime • Question 28 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 29 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 30 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest Sunday. 2013 8:16:33 PM EDT .

rather than reduce its emissions. Question 1 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river  Question 2 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control . which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production  Question 3 4 out of 4 points If a pollution tax is placed on a firm emitting pollution. the firm will pay the tax.

the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve  Question 5 4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution. the cost of clean-up is less than the benefit from its elimination For each unit of pollution. the cost of clean-up is less than the benefit from its elimination  Question 6 4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music  Question 7 . Question 4 4 out of 4 points If all benefits from consuming a good go to consumers.

4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost  Question 8 4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled  Question 9 4 out of 4 points When pollution is not regulated in the market. polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices  Question 10 4 out of 4 points .

which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality  Question 11 4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC  Question 12 4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions  Question 13 4 out of 4 points Human production processes do not include which of the following services? Answer .When the cost of an action falls on other than the person (or persons) responsible for the action.

the ski resort provides you with Answer Selected Answer: .Selected Answer: Technological advances in production Correct Answer: Technological advances in production  Question 14 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily Correct Answer: It seems straightforward and fair  Question 15 4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity  Question 16 4 out of 4 points If you are willing to take a pay cut to live near a ski resort.

Psychic benefits Correct Answer: Psychic benefits  Question 17 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income  Question 18 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies  Question 19 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her .

Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her  Question 20 4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense  Question 21 4 out of 4 points Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services  Question 22 4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property .

 Question 23 4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances  Question 24 4 out of 4 points From an economic point of view. crime prevention activities should be expanded to the point at which Answer Selected Answer: Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost  Their marginal social benefit no longer exceeds their marginal social cost Question 25 4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it .

and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes  Question 27 4 out of 4 points In any city with a given crime prevention budget. Question 26 4 out of 4 points Job training programs. remedial education courses. additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds of crime  Question 28 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment  Question 29 .

July 28.4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime  Question 30 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest Sunday. 2013 8:16:33 PM EDT .

• Question 1 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river • Question 2 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control • Question 4 4 out of 4 points . the firm will pay the tax. rather than reduce its emissions. which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production • Question 3 4 out of 4 points If a pollution tax is placed on a firm emitting pollution.

If all benefits from consuming a good go to consumers. the cost of clean-up is less than the benefit from its elimination For each unit of pollution. the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve • Question 5 4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution. the cost of clean-up is less than the benefit from its elimination • Question 6 4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music • Question 7 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost .

which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality • Question 11 . polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices • Question 10 4 out of 4 points When the cost of an action falls on other than the person (or persons) responsible for the action.Correct Answer: Opportunity cost • Question 8 4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled • Question 9 4 out of 4 points When pollution is not regulated in the market.

4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC • Question 12 4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions • Question 13 4 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production • Question 14 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily .

Correct Answer: It seems straightforward and fair • Question 15 4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity • Question 16 4 out of 4 points If you are willing to take a pay cut to live near a ski resort. the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits • Question 17 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income .

• Question 18 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies • Question 19 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her • Question 20 4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense • Question 21 4 out of 4 points Prostitution is an example of a(n) .

Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services • Question 22 4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property • Question 23 4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances • Question 24 4 out of 4 points From an economic point of view. crime prevention activities should be expanded to the point at which Answer Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost .

and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes • Question 27 4 out of 4 points In any city with a given crime prevention budget. remedial education courses. additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds .Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost • Question 25 4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it • Question 26 4 out of 4 points Job training programs.

2013 8:16:33 PM EDT . July 28.of crime • Question 28 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 29 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 30 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest Sunday.

as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control . which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production  Question 3 4 out of 4 points If a pollution tax is placed on a firm emitting pollution. Question 1 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river  Question 2 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. the firm will pay the tax. rather than reduce its emissions.

 Question 4 4 out of 4 points If all benefits from consuming a good go to consumers. the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve  Question 5 4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution. the cost of clean-up is less than the benefit from its elimination For each unit of pollution. the cost of clean-up is less than the benefit from its elimination  Question 6 4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music  Question 7 .

polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices  Question 10 4 out of 4 points .4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost  Question 8 4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled  Question 9 4 out of 4 points When pollution is not regulated in the market.

When the cost of an action falls on other than the person (or persons) responsible for the action. which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality  Question 11 4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC  Question 12 4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions  Question 13 4 out of 4 points Human production processes do not include which of the following services? Answer .

the ski resort provides you with Answer Selected Answer: .Selected Answer: Technological advances in production Correct Answer: Technological advances in production  Question 14 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily Correct Answer: It seems straightforward and fair  Question 15 4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity  Question 16 4 out of 4 points If you are willing to take a pay cut to live near a ski resort.

the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income  Question 18 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies  Question 19 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her .Psychic benefits Correct Answer: Psychic benefits  Question 17 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction.

Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her  Question 20 4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense  Question 21 4 out of 4 points Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services  Question 22 4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property .

crime prevention activities should be expanded to the point at which Answer Selected Answer: Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost  Their marginal social benefit no longer exceeds their marginal social cost Question 25 4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it . Question 23 4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances  Question 24 4 out of 4 points From an economic point of view.

and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes  Question 27 4 out of 4 points In any city with a given crime prevention budget. additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds of crime  Question 28 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment  Question 29 . remedial education courses. Question 26 4 out of 4 points Job training programs.

2013 8:16:33 PM EDT .4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime  Question 30 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest Sunday. July 28.

Course Test Econ Problems & Issues Week 4 Quiz 3 choice questions. The second 15 Chapter 5. The first 15 Chapter 4. Be sure you are in the the quiz. Instructions This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take • Question 1 4 out of 4 points Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good • Question 2 4 out of 4 points The market output level tends to be socially optimal when Answer Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer: All costs and benefits are private and MSB=MSC • Question 3 4 out of 4 points Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good • Question 4 4 out of 4 points .

polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices • Question 5 4 out of 4 points As additional units of pollution control are added. it must be Answer Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution • Question 8 4 out of 4 points . which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality • Question 7 4 out of 4 points For a tax on pollution to be effective. at some point each additional unit adds Answer Selected Answer: Less than the previous unit to total benefits Correct Answer: Less than the previous unit to total benefits • Question 6 4 out of 4 points When the cost of an action falls on other than the person (or persons) responsible for the action.When pollution is not regulated in the market.

Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production • Question 9 4 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: Vaccinations Correct Answer: Vaccinations • Question 10 4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled • Question 11 4 out of 4 points Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: The environment is collectively consumed • Question 12 .

4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river • Question 13 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production • Question 14 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost • Question 15 0 out of 4 points If a pollution tax is placed on a firm emitting pollution. the firm will pay the tax. as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: . rather than reduce its emissions.

the costs are Answer Selected Answer: Psychic costs Correct Answer: Psychic costs • Question 17 4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances • Question 18 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 19 4 out of 4 points Prostitution is an example of a(n) Answer Selected Answer: .Below its MPC of pollution control • Question 16 4 out of 4 points When an individual incurs costs in the form of negative personal satisfaction.

remedial education courses. and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes • Question 21 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her • The benefit of the last officer hired is just equal to what its cost to hire her Question 22 4 out of 4 points Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system • Question 23 4 out of 4 points Arson is an example of a(n) .Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services • Question 20 4 out of 4 points Job training programs.

the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income • Question 25 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 26 4 out of 4 points The marginal cost of a good is Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output • Question 27 0 out of 4 points If you are willing to take a pay cut to live near a ski resort. the ski resort provides you .Answer Selected Answer: Crime against property Correct Answer: Crime against property • Question 24 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction.

additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds of crime • Question 30 4 out of 4 points Economic analysis of crime can Answer Selected Answer: Correct Answer: Determine what the economic impact will be of making certain activities illegal Determine what the economic impact will be of making certain activities illegal .with Answer Selected Answer: Marginal social benefits Correct Answer: Psychic benefits • Question 28 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies • Question 29 4 out of 4 points In any city with a given crime prevention budget.

Sunday. 2013 3:45:26 PM EDT OK . July 28.

 4 out of 4 points Income support programs have Answer Selected Answer: Provided a minimum level of income to millions of people Correct Answer: Provided a minimum level of income to millions of people  Question 2 4 out of 4 points In 1996. One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector . the Personal Responsibility and Work Opportunity Act established which of the following programs? Answer Selected Answer: Temporary Assistance for Needy Families (TANF) Correct Answer: Temporary Assistance for Needy Families (TANF)  Question 3 4 out of 4 points A number of reasons have been given to explain increasing income inequality in the US over the last few decades.

 Question 4 4 out of 4 points The Supplemental Social Insurance (SSI) program is not available to Answer Selected Answer: Households comprised of illegal residents Correct Answer: Households comprised of illegal residents  Question 5 4 out of 4 points Most federal assistance to the poor is in the form of Answer Selected Answer: Cash payments Correct Answer: Cash payments  Question 6 4 out of 4 points Discrimination is indicated when Answer Selected Answer: People having equal productivity receive unequal pay Correct Answer: People having equal productivity receive unequal pay .

 Question 7 4 out of 4 points An advantage of replacing all income-support programs with a negative income tax is that Answer Selected Answer: Households with income above the poverty threshold pay positive taxes Correct Answer: Households with income above the poverty threshold pay positive taxes  Question 8 4 out of 4 points An advantage of the negative income tax proposal is that Answer Selected Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor Correct Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor  Question 9 4 out of 4 points The major piece of legislation that makes it illegal to discriminate in the labor market on the basis of race. gender. or religion is the Answer .

which of the following programs is most likely to pull the average poor family above the official poverty threshold? Answer Selected Answer: Earned Income Tax Credit (EITC) Correct Answer: Earned Income Tax Credit (EITC)  Question 12 4 out of 4 points .Selected Answer: Civil Rights Act of 1964 Correct Answer: Civil Rights Act of 1964  Question 10 4 out of 4 points Critics have claimed that the EITC Answer Selected Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility Correct Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility  Question 11 4 out of 4 points According to recent studies.

Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training  Question 13 4 out of 4 points Which of the following is charged with enforcing the federal government's antidiscrimination laws? Answer Selected Answer: The EEOC Correct Answer: The EEOC  Question 14 4 out of 4 points Ending discrimination against minority groups in educational processes and in employment situations would cause GDP to Answer Selected Answer: Rise because of an increase in the quality and productivity of the labor force Correct Answer: Rise because of an increase in the quality and productivity of the labor force .

 Question 15 4 out of 4 points A government transfer payment is a payment Answer Selected Answer: To a person NOT in return for goods or services Correct Answer: To a person NOT in return for goods or services Monday. 2013 3:10:59 PM EDT . August 12.

the federal government gave money to states for programs that provided Answer Selected Answer: Employment training for disadvantaged workers Correct Answer: Employment training for disadvantaged workers  Question 3 4 out of 4 points Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training  Question 4 4 out of 4 points . Question 1 4 out of 4 points Which of the following is charged with enforcing the federal government's antidiscrimination laws? Answer Selected Answer: The EEOC Correct Answer: The EEOC  Question 2 4 out of 4 points Under the JTPA.

A number of reasons have been given to explain increasing income inequality in the US over the last few decades. TANF requires recipients to Answer Selected Answer: Work Correct Answer: . One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector  Question 5 4 out of 4 points Income support programs have Answer Selected Answer: Provided a minimum level of income to millions of people Correct Answer: Provided a minimum level of income to millions of people  Question 6 4 out of 4 points The incidence of poverty is highest among Answer Selected Answer: Families headed by a female Correct Answer: Families headed by a female  Question 7 4 out of 4 points Unlike the old AFDC program of income support.

and Food Stamps are examples of programs that provide Answer Selected Answer: "in-kind" assistance to the poor Correct Answer: "in-kind" assistance to the poor  Question 10 4 out of 4 points An advantage of the negative income tax proposal is that Answer Selected Answer: Correct Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor  Question 11 . which of the following programs is most likely to pull the average poor family above the official poverty threshold? Answer Selected Answer: Earned Income Tax Credit (EITC) Correct Answer: Earned Income Tax Credit (EITC)  Question 9 4 out of 4 points Medicare.Work  Question 8 4 out of 4 points According to recent studies. Medicaid.

4 out of 4 points Spending on education. training. poverty definition is an income sufficient to provide Answer Selected Answer: Three times the cost of an economy food budget Correct Answer: Three times the cost of an economy food budget  Question 14 0 out of 4 points An advantage of replacing all income-support programs with a negative income tax is that Answer . and health are examples of Answer Selected Answer: Investments in human capital Correct Answer: Investments in human capital  Question 12 4 out of 4 points Critics have claimed that the EITC Answer Selected Answer: Correct Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility  Question 13 4 out of 4 points The official U.S.

Selected Answer: Correct Answer: It discourages low-income workers from working more Households with income above the poverty threshold pay positive taxes  Question 15 4 out of 4 points Poverty in the US occurs as a result of Answer Selected Answer: Unequal distribution of income Correct Answer: Unequal distribution of income .

Be sure you are in Chapter 7 when you take the quiz. women were usually taught early in life to believe their economic role was unimportant.Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 7. The effect of this was to Answer Selected Answer: Segregate women to certain occupations Correct Answer: Segregate women to certain occupations  Question 2 0 out of 4 points Under the JTPA. discrimination Answer Selected Answer: Provides incentives for minority groups to work harder at their jobs Correct Answer: Results in an actual GDP that is below potential GDP  Question 5 4 out of 4 points A government transfer payment is a payment . 4 out of 4 points  Question 1 In the past. One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector  Question 4 0 out of 4 points From the point of view of economics. the federal government gave money to states for programs that provided Answer Selected Answer: Guaranteed child care facilities for poor working mothers Correct Answer: Employment training for disadvantaged workers  Question 3 4 out of 4 points A number of reasons have been given to explain increasing income inequality in the US over the last few decades.

welfare allowance Correct Answer: Three times the cost of an economy food budget  Question 9 4 out of 4 points The Civil Rights Act of 1964 protects workers from discrimination based on all the following characteristics except one? Which one? Answer Selected Answer: Age Correct Answer: Age  Question 10 4 out of 4 points .S.S. poverty definition is an income sufficient to provide Answer Selected Answer: The average U.Answer Selected Answer: To a person NOT in return for goods or services Correct Answer: To a person NOT in return for goods or services  Question 6 4 out of 4 points Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training  Question 7 0 out of 4 points An advantage of the negative income tax proposal is that Answer Selected Answer: Correct Answer: A family's size would be the fundamental criterion of eligibility Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor 0 out of 4 points  Question 8 The official U.

and Food Stamps are examples of programs that provide . Medicaid.The Supplemental Social Insurance (SSI) program is not available to Answer Selected Answer: Households comprised of illegal residents Correct Answer: Households comprised of illegal residents  Question 11 0 out of 4 points The incidence of poverty is highest among Answer Selected Answer: Black families Correct Answer: Families headed by a female  Question 12 0 out of 4 points Poverty in the US occurs as a result of Answer Selected Answer: Inadequate GDP Correct Answer: Unequal distribution of income  Question 13 0 out of 4 points Most federal assistance to the poor is in the form of Answer Selected Answer: Housing programs Correct Answer: Cash payments  Question 14 0 out of 4 points The record-breaking economic expansion in the 1990s Answer Selected Answer: Reduced significantly the incidence of poverty Correct Answer: Did not alter significantly the incidence of poverty  Question 15 4 out of 4 points Medicare.

Answer Selected Answer: "in-kind" assistance to the poor Correct Answer: "in-kind" assistance to the poor .

the federal government gave money to states for programs that provided Answer Selected Answer: Guaranteed child care facilities for poor working mothers Correct Answer: Employment training for disadvantaged workers  Question 3 4 out of 4 points A number of reasons have been given to explain increasing income inequality in the US over the last few decades. 4 out of 4 points  Question 1 In the past. discrimination Answer Selected Answer: Provides incentives for minority groups to work harder at their jobs Correct Answer: Results in an actual GDP that is below potential GDP  Question 5 4 out of 4 points A government transfer payment is a payment . The effect of this was to Answer Selected Answer: Segregate women to certain occupations Correct Answer: Segregate women to certain occupations  Question 2 0 out of 4 points Under the JTPA. Be sure you are in Chapter 7 when you take the quiz. women were usually taught early in life to believe their economic role was unimportant. One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector  Question 4 0 out of 4 points From the point of view of economics.Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 7.

poverty definition is an income sufficient to provide Answer Selected Answer: The average U. welfare allowance Correct Answer: Three times the cost of an economy food budget  Question 9 4 out of 4 points The Civil Rights Act of 1964 protects workers from discrimination based on all the following characteristics except one? Which one? Answer Selected Answer: Age Correct Answer: Age  Question 10 4 out of 4 points .S.Answer Selected Answer: To a person NOT in return for goods or services Correct Answer: To a person NOT in return for goods or services  Question 6 4 out of 4 points Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training  Question 7 0 out of 4 points An advantage of the negative income tax proposal is that Answer Selected Answer: Correct Answer: A family's size would be the fundamental criterion of eligibility Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor 0 out of 4 points  Question 8 The official U.S.

and Food Stamps are examples of programs that provide . Medicaid.The Supplemental Social Insurance (SSI) program is not available to Answer Selected Answer: Households comprised of illegal residents Correct Answer: Households comprised of illegal residents  Question 11 0 out of 4 points The incidence of poverty is highest among Answer Selected Answer: Black families Correct Answer: Families headed by a female  Question 12 0 out of 4 points Poverty in the US occurs as a result of Answer Selected Answer: Inadequate GDP Correct Answer: Unequal distribution of income  Question 13 0 out of 4 points Most federal assistance to the poor is in the form of Answer Selected Answer: Housing programs Correct Answer: Cash payments  Question 14 0 out of 4 points The record-breaking economic expansion in the 1990s Answer Selected Answer: Reduced significantly the incidence of poverty Correct Answer: Did not alter significantly the incidence of poverty  Question 15 4 out of 4 points Medicare.

Answer Selected Answer: "in-kind" assistance to the poor Correct Answer: "in-kind" assistance to the poor .

the economy is in which phase of the business cycle? Answer Selected Answer: Trough Correct Answer: Trough  Question 4 4 out of 4 points Human capital refers to Answer Selected Answer: Skills and training that increase a worker's productivity Correct Answer: Skills and training that increase a worker's productivity  Question 5 4 out of 4 points Which of the following is a "pro-growth" economic policy? Answer . Question 1 4 out of 4 points Which of the following is responsible for officially tracking the Index of Leading Economic Indicators? Answer Selected Answer: The Conference Board Correct Answer: The Conference Board  Question 2 4 out of 4 points Which of the following terms is used to describe the purchase of capital? Answer Selected Answer: Investment Correct Answer: Investment  Question 3 4 out of 4 points When economic output hits a short-run economic low.

it must Answer Selected Answer: Forego some production of consumer goods and services Correct Answer: Forego some production of consumer goods and services  Question 9 4 out of 4 points When the economy ends an expansion.Selected Answer: Investing in human capital Correct Answer: Investing in human capital  Question 6 4 out of 4 points In response to an economic recession. monetary theories of the business cycle predict that the Federal Reserve would Answer Selected Answer: Increase the supply of money to create an expansion Correct Answer: Increase the supply of money to create an expansion  Question 7 4 out of 4 points What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend? Answer Selected Answer: Business cycle Correct Answer: Business cycle  Question 8 4 out of 4 points For an economy to expand its investment in the production of capital goods. it enters which phase of the business cycle? Answer Selected Answer: Peak Correct Answer: Peak .

business cycle? Answer Selected Answer: The National Bureau of Economic Research Correct Answer: The National Bureau of Economic Research  Question 11 4 out of 4 points Why does spending on capital tend to increase economic growth more than spending of consumption goods? Because Answer Selected Answer: Capital can be used to produce future goods and services Correct Answer: Capital can be used to produce future goods and services  Question 12 4 out of 4 points What was the first theory put forth by an economist to explain the phenomena of business cycles? Answer Selected Answer: Jevons' sunspot theory Correct Answer: Jevons' sunspot theory  Question 13 4 out of 4 points According to Real Business Cycle Theory. the primary factor that increases aggregate supply is Answer Selected Answer: Technological improvements Correct Answer: Technological improvements  Question 14 4 out of 4 points . Question 10 4 out of 4 points Which group is responsible for announcing the dates for each phase of a U.S.

contraction. trough  Question 16 4 out of 4 points The money multiplier is Answer Selected Answer: 1/r Correct Answer: 1/r  Question 17 4 out of 4 points Corporations raise funds in Answer Selected Answer: The primary financial market Correct Answer: The primary financial market  Question 18 4 out of 4 points A stock is Answer Selected Answer: A financial instrument that provides ownership rights to shareholders Correct Answer: . trough Correct Answer: Expansion. peak. contraction.What are the two primary determinants of economic growth? Answer Selected Answer: The availability of resources and productivity factors Correct Answer: The availability of resources and productivity factors  Question 15 4 out of 4 points Which of the following lists the four phases of the business cycle in the correct sequence? Answer Selected Answer: Expansion. peak.

money is serving which function? Answer Selected Answer: A measure of value Correct Answer: A measure of value  Question 22 4 out of 4 points The basic money supply is Answer Selected Answer: Composed of assets that are completely liquid and easily accessible Correct Answer: Composed of assets that are completely liquid and easily accessible  Question 23 . plus savings and time deposits of small denomination.A financial instrument that provides ownership rights to shareholders  Question 19 4 out of 4 points M2 includes Answer Selected Answer: M1. and money market mutual funds 4 out of 4 points Correct Answer:  Question 20 The quantity theory of money emphasizes Answer Selected Answer: Changes in the money supply Correct Answer: Changes in the money supply  Question 21 4 out of 4 points When you compare a dollar's worth of apples to a dollar's worth of oranges. and money market mutual funds M1. plus savings and time deposits of small denomination.

and other checkable deposits Currency and coins in circulation. demand deposits at commercial banks. traveler's checks.4 out of 4 points M1 includes Answer Selected Answer: Currency and coins in circulation. demand deposits at commercial banks. traveler's checks. and other checkable deposits 4 out of 4 points Correct Answer:  Question 24 A capital gain exists Answer Selected Answer: When the price of an asset exceeds the price paid for it Correct Answer: When the price of an asset exceeds the price paid for it  Question 25 4 out of 4 points Money is "liquid" because Answer Selected Answer: It does not have to be sold to buy goods and services Correct Answer: It does not have to be sold to buy goods and services  Question 26 4 out of 4 points Investment banks Answer Selected Answer: Work with corporations to finance their operations through primary financial markets Work with corporations to finance their operations through primary financial markets 4 out of 4 points Correct Answer:  Question 27 A dividend Answer .

Selected Answer: Is a distribution of a corporation’s profits to stockholders Correct Answer: Is a distribution of a corporation’s profits to stockholders  Question 28 4 out of 4 points The equation of exchange is Answer Selected Answer: MV = PQ Correct Answer: MV = PQ  Question 29 4 out of 4 points The interest rate on an adjustable rate mortgage (ARM) is Answer Selected Answer: Adjusted periodically based upon current market conditions Correct Answer: Adjusted periodically based upon current market conditions  Question 30 4 out of 4 points The Federal Open Market Committee (FOMC) is highly concerned with Answer Selected Answer: Interest rates Correct Answer: Interest rates .

Question 1 0 out of 4 points A decrease in the cost of education will Answer Selected Answer: Decrease the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education  Question 2 0 out of 4 points In the existing public K-12 education system. spaces are allocated based on Answer Selected Answer: Income Correct Answer: Geographic boundaries  Question 3 4 out of 4 points The creation of new learning technologies will cause which of the following to decrease? Answer Selected Answer: The cost of education Correct Answer: The cost of education  Question 4 4 out of 4 points I benefit because you become more educated. Be sure you are in Chapter 6 when you take the quiz. This quiz consist of 15 multiple choice questions and covers the material in Chapter 6. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption  Question 5 0 out of 4 points Which of the following happens as tuition increases? Answer Selected Answer: The demand for education decreases Correct Answer: .

education should be provided to the point where Answer Selected Answer: MSB = MSC Correct Answer: MSB = MSC  Question 8 4 out of 4 points Schools in which parents or other groups were permitted to create a new school with state funding and were given control over operations are known as Answer Selected Answer: Charter schools Correct Answer: Charter schools  Question 9 4 out of 4 points An increase in the marginal benefit of education will cause which of the following? Answer Selected Answer: The demand curve for education shifts right Correct Answer: The demand curve for education shifts right  Question 10 0 out of 4 points About how much does the United States spend on education.The years of education demanded fall  Question 6 4 out of 4 points In a purely private K-12 education system. spaces would be allocated based on Answer Selected Answer: Income Correct Answer: Income  Question 7 4 out of 4 points To be socially optimal. per pupil? Answer Selected Answer: $8.000 Correct Answer: .

$9. This is an example of a Answer Selected Answer: Positive externality in production Correct Answer: Positive externality in consumption  Question 13 0 out of 4 points With positive externalities in consumption. it will lead to an increase in Answer Selected Answer: The teacher salaries Correct Answer: The demand for K-12 education .000  Question 11 0 out of 4 points Education is said to be which of the following? Answer Selected Answer: Individually consumed Correct Answer: A semi-private good  Question 12 0 out of 4 points Educated citizens are more likely to be informed voters. the market equilibrium quantity will be Answer Selected Answer: Greater than socially optimal Correct Answer: Less than socially optimal  Question 14 0 out of 4 points A purely private K-12 system will lead to Answer Selected Answer: Decreased racial segregation Correct Answer: Increased inequality  Question 15 0 out of 4 points If the earnings expected from a college education increase.

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• Question 1 4 out of 4 points If all benefits from consuming a good go to consumers. it must be Answer Selected Answer: Placed on the firm polluting Correct Answer: Greater than the cost of cleaning-up the pollution • Question 5 0 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: MSC of cleanup < MSB of cleanup . the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve • Question 2 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river 4 out of 4 points Correct Answer: • Question 3 Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs • Question 4 0 out of 4 points For a tax on pollution to be effective.

polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices .Correct Answer: For each unit of pollution. Answer Selected Answer: The firm will produce less than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal • Question 8 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily Correct Answer: It seems straightforward and fair • Question 9 4 out of 4 points The market output level tends to be socially optimal when Answer Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer: All costs and benefits are private and MSB=MSC • Question 10 4 out of 4 points When pollution is not regulated in the market. the cost of clean-up is less than the benefit from its elimination 4 out of 4 points • Question 6 Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good • Question 7 0 out of 4 points When MPC is less than MSC.

Correct Answer: Over-utilize resources and charge low prices • Question 11 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production • Question 12 4 out of 4 points Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good • Question 13 4 out of 4 points Costs incurred by the producer for the use of self-owned resources are called Answer Selected Answer: Implicit costs Correct Answer: Implicit costs • Question 14 4 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: Vaccinations Correct Answer: Vaccinations • Question 15 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost .

Correct Answer: Opportunity cost • Question 16 0 out of 4 points Economic analysis of crime can Answer Selected Answer: Correct Answer: Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal • Question 17 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 18 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income • Question 19 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 20 4 out of 4 points From an economic point of view. crime prevention activities should be expanded to the point at which Answer .

Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost Correct Answer: • Question 21 4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair. the MSB of crime prevention Answer Selected Answer: Is equal to the MSC of crime prevention Correct Answer: Equals 0 • Question 25 4 out of 4 points . which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts • Question 22 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies • Question 23 4 out of 4 points The marginal cost of a good is Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output • Question 24 0 out of 4 points If society receives no additional benefit from increasing crime prevention activities.

rural lives. Which of the following is a sound economic explanation for this? Answer Selected Answer: The fear of crime in the city Correct Answer: The very high psychic income they receive from the simple way of life • Question 27 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest • Question 28 4 out of 4 points Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost? Answer Selected Answer: Free-riding Correct Answer: Free-riding • Question 29 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire Correct Answer: .Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property • Question 26 0 out of 4 points Some people give up high-paying city jobs to live much simpler.

her • Question 30 4 out of 4 points Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services .

Answer Selected Answer: Supply.Attempt 60 out of 60 points Score Time 18 minutes out of 3 hours. resulting in ______ prices and __________ imports. higher. higher. Be sure you are in Chapter 10 when you take the quiz. lower Correct Answer: Supply. 4 out of 4 points  Question 1 In a free market. lower  Question 5 4 out of 4 points . Elapsed Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 10. who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers  Question 2 4 out of 4 points What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs  Question 3 4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro  Question 4 4 out of 4 points A tariff leads to a leftward shift of the _______curve.

the supply curve for that good Answer Selected Answer: Becomes vertical at the quota limit Correct Answer: Becomes vertical at the quota limit  Question 8 4 out of 4 points Economists generally agree that international trade restrictions Answer Selected Answer: Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods 4 out of 4 points Correct Answer:  Question 9 A nation that enjoys a lower opportunity cost in the production of goods. is said to have a(n) Answer Selected Answer: Comparative advantage .Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve  Question 6 4 out of 4 points An exchange rate is Answer Selected Answer: The price of one country's currency in terms of the monetary units of another country The price of one country's currency in terms of the monetary units of another country 4 out of 4 points Correct Answer:  Question 7 When a quota is enforced on an imported good. relative to another nation.

Correct Answer: Comparative advantage  Question 10 4 out of 4 points Protecting an industry that is vital to national security from international competition is Answer Selected Answer: The key industry argument Correct Answer: The key industry argument  Question 11 4 out of 4 points Which of the following is a likely result of a country engaging in free trade? Answer Selected Answer: The price of imports falls Correct Answer: The price of imports falls  Question 12 4 out of 4 points A new industry producing cutting-edge products should Answer Selected Answer: Be protected from international competition. according to the infant industry argument 4 out of 4 points Correct Answer:  Question 13 The European Union is an example of a(n) Answer Selected Answer: Customs union Correct Answer: Customs union  Question 14 4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: . according to the infant industry argument Be protected from international competition.

A balance of payments deficit Correct Answer: A balance of payments deficit  Question 15 4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation .

demand for foreign currencies arises from Answer Selected Answer: . Question 1 0 out of 4 points Free trade can result in what impact on an economy? Answer Selected Answer: Free trade always harms an economy Correct Answer: A net increase or decrease in overall employment  Question 2 4 out of 4 points With international trade. which of the following curves for an economy will shift outward? Answer Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities  Question 3 0 out of 4 points Outsourcing is the practice of Answer Selected Answer: Manufacturing product in another country by opening a factory in that nation Purchasing customer services from suppliers in another country where the costs of these services are lower than domestic suppliers 4 out of 4 points Correct Answer:  Question 4 Economists generally agree that international trade restrictions Answer Selected Answer: Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods 0 out of 4 points Correct Answer:  Question 5 The largest part of U.S.

lower Correct Answer: Supply. Answer Selected Answer: Supply. who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers  Question 7 4 out of 4 points Most __________ have been banned under the World Trade Organization. higher. resulting in ______ prices and __________ imports.S. Answer Selected Answer: Quotas Correct Answer: Quotas  Question 8 4 out of 4 points A tariff leads to a leftward shift of the _______curve. lower  Question 9 4 out of 4 points Which of the following best describes NAFTA? It is a(n) Answer Selected Answer: Free trade area Correct Answer: Free trade area  Question 10 4 out of 4 points Which of the following is a likely result of a country engaging in free trade? Answer .Gifts that persons in the U. sent abroad Correct Answer: Imports of merchandise  Question 6 4 out of 4 points In a free market. higher.

according to the infant industry argument 4 out of 4 points Correct Answer:  Question 15 A nation that enjoys a lower opportunity cost in the production of goods.Selected Answer: The price of imports falls Correct Answer: The price of imports falls  Question 11 4 out of 4 points What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs  Question 12 4 out of 4 points The price of one nation's currency in terms of another is called Answer Selected Answer: The exchange rate Correct Answer: The exchange rate  Question 13 4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation  Question 14 4 out of 4 points A new industry producing cutting-edge products should Answer Selected Answer: Be protected from international competition. relative to . according to the infant industry argument Be protected from international competition.

is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage .another nation.

it is an example of which effect? Answer Selected Answer: Output Correct Answer: Equity  Question 5 0 out of 4 points The psychological law of consumption tells us the marginal propensity to consume will be Answer Selected Answer: Equal to 1 . the number of individuals who are willing and able to work. is Answer Selected Answer: The unemployment rate Correct Answer: The labor force participation rate  Question 4 0 out of 4 points When inflation redistributes income from one group in the economy to another. Question 1 4 out of 4 points Aggregate supply can be increased by Answer Selected Answer: Policies to induce more saving Correct Answer: Policies to induce more saving  Question 2 4 out of 4 points The effect that inflation has on the allocation of resources is known as Answer Selected Answer: The efficiency effects of inflation Correct Answer: The efficiency effects of inflation  Question 3 0 out of 4 points A useful measure of the size of the workforce. that is.

willing to work. but unable to find work for over 30 days Correct Answer:  Question 10 4 out of 4 points . but unable to find work for over 30 days Qualified for a job. the economy has experienced which effect of inflation? Answer Selected Answer: Efficiency Correct Answer: Efficiency  Question 9 4 out of 4 points A person is considered unemployed if the person is Answer Selected Answer: Qualified for a job. willing to work.Correct Answer: Greater than 0 but less than 1  Question 6 0 out of 4 points The effect of inflation on production and employment is known as Answer Selected Answer: The equity effects of inflation Correct Answer: The output effects of inflation  Question 7 4 out of 4 points Aggregate demand Answer Selected Answer: Represents the sum of the demands by all purchasers of goods and services in an economy Represents the sum of the demands by all purchasers of goods and services in an economy 4 out of 4 points Correct Answer:  Question 8 If inflation causes the demand for houses to increase more rapidly than the demand for other goods.

Which price index is also known as the cost-of-living index? Answer Selected Answer: Consumer price index Correct Answer: Consumer price index  Question 11 4 out of 4 points Technological change in an industry that historically required specific labor skills will lead to Answer Selected Answer: Structural unemployment Correct Answer: Structural unemployment  Question 12 4 out of 4 points A trade deficit will occur in an economy Answer Selected Answer: When the value of exports is less than the value of imports Correct Answer: When the value of exports is less than the value of imports  Question 13 4 out of 4 points Unemployment rates tend to rise when Answer Selected Answer: There is a recession Correct Answer: There is a recession  Question 14 4 out of 4 points Injections in the circular flow consist of Answer Selected Answer: Government spending. investment. and exports . investment. and exports Correct Answer: Government spending.

the economy experiences which of the following effects of inflation? Answer Selected Answer: Output Correct Answer: Output . Question 15 4 out of 4 points If inflation stimulates production and employment.

since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits. the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 3 4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Those who pay the tax receive benefits. Question 1 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 2 4 out of 4 points According to the equimarginal principle. since the revenues are used for road and highway construction and maintenance 4 out of 4 points Correct Answer:  Question 4 Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 5 0 out of 4 points The ability to pay principle of taxation suggests that people with more income should pay more taxes. This means that Answer Selected .

based on need.Answer: Regressive income rates may or may not be consistent with the ability to pay principle depending on the rate of regression Progressive income rates are consistent with the ability to pay principle 4 out of 4 points Correct Answer:  Question 6 Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises  Question 7 4 out of 4 points A cash payment from the government to an individual. is an example of a Answer Selected Answer: Transfer payment Correct Answer: Transfer payment  Question 8 4 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax  Question 9 4 out of 4 points A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Public good Correct Answer: Public good  Question 10 4 out of 4 points An efficient level of government expenditures is that level where Answer .

major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level Correct Answer:  Question 14 4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes  Question 15 4 out of 4 points .Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 11 4 out of 4 points Assuming positive externalities in consumption. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed equal to marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 12 4 out of 4 points Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service  Question 13 4 out of 4 points In the US.

At the federal level. it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system  Question 17 4 out of 4 points If people choose to work fewer hours because the Social Security tax reduces their real wage. their behavior is dominated by the Answer Selected Answer: Income effect Correct Answer: Income effect . the largest revenue generating tax is the Answer Selected Answer: Personal income tax Correct Answer: Personal income tax  Question 16 4 out of 4 points If a program's benefits are funded out of current payments. their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Substitution effect  Question 18 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 19 4 out of 4 points If people choose to work more hours because the Social Security tax reduces their real wage.

$5. during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation  Question 23 4 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs  Question 24 4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example.S. Question 20 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 21 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 22 4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U. the company is using which of the following? Answer .000 for an appendectomy).

Selected Answer: A prospective payment system Correct Answer: A prospective payment system  Question 25 4 out of 4 points The most significant argument against privatizing Social Security is that Answer Selected Answer: Future benefits levels cannot be guaranteed Correct Answer: Future benefits levels cannot be guaranteed  Question 26 4 out of 4 points In a fee-for-service health care system. I am exhibiting which of the following effects? . Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program  Question 28 4 out of 4 points Part C of the Medicare program (Medicare + Choice) Answer Selected Answer: Provides health care plan choices to the beneficiaries of Medicare Correct Answer: Provides health care plan choices to the beneficiaries of Medicare  Question 29 4 out of 4 points If I put extra into a savings account so that I can leave assets to my children to compensate them for their payments into the Social Security system. consumers pay the Answer Selected Answer: Full cost of the services they receive Correct Answer: Full cost of the services they receive  Question 27 4 out of 4 points As originally designed.

This is known as Answer Selected Answer: Co-insurance Correct Answer: Co-insurance .Answer Selected Answer: Bequest Correct Answer: Bequest  Question 30 4 out of 4 points A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay.

major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and payroll taxes at the state level . Question 1 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized  Question 2 4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998  Question 3 0 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units 4 out of 4 points Correct Answer:  Question 4 A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 5 0 out of 4 points In the US.

the largest revenue generating tax is the Answer .Income taxes at the federal level and income and sales taxes at the state level  Question 6 4 out of 4 points An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 7 4 out of 4 points Vertical equity implies that Answer Selected Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts Correct Answer:  Question 8 0 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Personal income tax Correct Answer: Real property tax  Question 9 0 out of 4 points According to the equimarginal principle. the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Greater than the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points At the federal level.

Selected Answer: Personal income tax Correct Answer: Personal income tax  Question 11 0 out of 4 points A tax system that will not alter the distribution of income is Answer Selected Answer: Regressive Correct Answer: Proportional  Question 12 0 out of 4 points Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Falls as income rises Correct Answer: Remains the same as income rises  Question 13 0 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Remains the same as income rises Correct Answer: Falls as income rises  Question 14 0 out of 4 points Assuming positive externalities in consumption. is an example of a Answer . based on need. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced greater than marginal external costs Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 15 4 out of 4 points A cash payment from the government to an individual.

Selected Answer: Transfer payment Correct Answer: Transfer payment  Question 16 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance  Question 17 4 out of 4 points If people choose to work fewer hours because the Social Security tax reduces their real wage. consumers pay the Answer Selected Answer: Prearranged. their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Substitution effect  Question 18 0 out of 4 points A person with health insurance will tend to Answer Selected Answer: Have a lower demand for health care services Correct Answer: Demand more health care services than a person without insurance  Question 19 0 out of 4 points In a fee-for-service health care system. fixed fee for services they receive Correct Answer: Full cost of the services they receive  Question 20 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans .

Social Security was to be financed as a Answer Selected Answer: Pure income transfer program Correct Answer: Fully-funded insurance program  Question 25 0 out of 4 points . I am exhibiting which of the following effects? Answer Selected Answer: Retirement Correct Answer: Wealth substitution  Question 23 0 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Producer Price Index Correct Answer: Consumer Price Index  Question 24 0 out of 4 points As originally designed.Answer Selected Answer: Require less paper work Correct Answer: Typically require less cost sharing  Question 21 4 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Raise Social Security taxes and/or lower benefits Correct Answer: Raise Social Security taxes and/or lower benefits  Question 22 0 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire.

S. due to NAFTA Correct Answer: Population bulge created by the "baby boom" generation  Question 28 0 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A fee-for-service market principle Correct Answer: A prearranged schedule of fixed prices  Question 29 0 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 70 . during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation  Question 26 0 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Provider and the consumer Correct Answer: Insurance company and the provider  Question 27 0 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Threat of foreign workers entering the U.Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S.

Correct Answer: 67  Question 30 4 out of 4 points The most significant argument against privatizing Social Security is that Answer Selected Answer: Future benefits levels cannot be guaranteed Correct Answer: Future benefits levels cannot be guaranteed .

0  Question 5 4 out of 4 points Monopolization of a previously competitive market leads to Answer Selected Answer: Reduced production and product quality and increased costs and prices Correct Answer: Reduced production and product quality and increased costs and prices .0 Correct Answer: 1. its total cost equals Answer Selected Answer: $500 Correct Answer: $300  Question 4 4 out of 4 points A pure monopoly industry has a 4-firm concentration ratio equal to Answer Selected Answer: 1. Question 1 4 out of 4 points A monopoly is not efficient because Answer Selected Answer: Price exceeds marginal cost Correct Answer: Price exceeds marginal cost  Question 2 4 out of 4 points A guarantee that allows the purchase of shares of stock at a fixed price is a(n) Answer Selected Answer: Stock option Correct Answer: Stock option  Question 3 0 out of 4 points If a firm sells 100 units at a price of $5 and each unit costs $3 to produce.

 Question 6 4 out of 4 points The dead-weight welfare loss due to monopoly is Answer Selected Answer: About 1% of GDP per year Correct Answer: About 1% of GDP per year  Question 7 4 out of 4 points The "agency problem" is caused by Answer Selected Answer: Corporate managers pursuing goals different from stockholder's goals Correct Answer: Corporate managers pursuing goals different from stockholder's goals  Question 8 4 out of 4 points With a natural monopoly. Answer Selected Answer: The long-run average cost curve of the firm declines over the range of production The long-run average cost curve of the firm declines over the range of production 0 out of 4 points Correct Answer:  Question 9 Which of the following is a negative consequence of allowing competition in an industry that is a natural monopoly? Answer Selected Answer: Deadweight welfare loss Correct Answer: Higher average costs  Question 10 4 out of 4 points Which of the following is a private barrier to entry? Answer Selected Answer: Ownership of raw materials .

the firm is earning a Answer Selected Answer: Profit of $200 Correct Answer: Profit of $200  Question 14 0 out of 4 points To maximize profits. a monopolist produces the output level at which Answer Selected Answer: Its total costs are minimum Correct Answer: Its marginal cost equals its marginal revenue  Question 15 4 out of 4 points Imperfect competition can best be described as a situation in which Answer Selected Answer: .Correct Answer: Ownership of raw materials  Question 11 4 out of 4 points Patents and copyright laws Answer Selected Answer: Are governmental barriers to market entry Correct Answer: Are governmental barriers to market entry  Question 12 4 out of 4 points If a firm sells 100 units of output at a price of $5 and each unit costs $3 to produce. the firm's total revenue equals Answer Selected Answer: $500 Correct Answer: $500  Question 13 4 out of 4 points If a firm sells 100 units of output at a price of $5 and each unit costs $3 to produce.

a monopsony will hire workers up to the point where Answer Selected Answer: MC = MR Correct Answer: MCL = MRP  Question 20 4 out of 4 points Which of the following conditions can give rise to a monopsony employer? Answer Selected Answer: . free agency in professional sports has Answer Selected Answer: Reduced the monopsonistic power of leagues and caused salaries to rise Correct Answer: Reduced the monopsonistic power of leagues and caused salaries to rise  Question 17 4 out of 4 points Professional baseball enjoys an exemption from ________ laws that make cartels illegal in most other industries.Firms exercise some monopoly power Correct Answer: Firms exercise some monopoly power  Question 16 4 out of 4 points Over the past twenty years. Answer Selected Answer: Antitrust Correct Answer: Antitrust  Question 18 4 out of 4 points Which of the following best characterizes a cartel arrangement? Answer Selected Answer: Shared monopoly Correct Answer: Shared monopoly  Question 19 0 out of 4 points To maximize profit.

a cartel will set the market price and output such that Answer Selected Answer: Each firm's marginal revenue equals its marginal cost Correct Answer: The market's marginal revenue equals the market's marginal cost  Question 23 4 out of 4 points The difference between a worker's contribution to the firm's receipts and the wage is Answer Selected Answer: Monopsony profit Correct Answer: Monopsony profit  Question 24 4 out of 4 points Professional sports clubs differ from most other business firms in their Answer Selected Answer: Organizational structure and relationship with employees Correct Answer: Organizational structure and relationship with employees  Question 25 4 out of 4 points Which of the following is a work stoppage initiated by workers? Answer Selected Answer: Strike . they are seeking Answer Selected Answer: Competitive balance Correct Answer: Competitive balance  Question 22 0 out of 4 points To maximize joint profits.Immobile workers with highly specialized skills Correct Answer: Immobile workers with highly specialized skills  Question 21 4 out of 4 points When professional sports leagues seek to achieve parity.

the primary source of revenue for most major league clubs is Answer Selected Answer: Broadcast rights Correct Answer: Broadcast rights  Question 27 4 out of 4 points Firms that coordinate their actions to maximize joint profits are said to have formed a(n) Answer Selected Answer: Cartel Correct Answer: Cartel  Question 28 4 out of 4 points To maximize joint profits.Correct Answer: Strike  Question 26 4 out of 4 points Today. a cartel will produce output up to the point where Answer Selected Answer: MR = MC Correct Answer: MR = MC  Question 29 4 out of 4 points The additional cost incurred as a result of hiring an additional worker is the firm's Answer Selected Answer: Marginal cost of labor Correct Answer: Marginal cost of labor  Question 30 4 out of 4 points A monopsony exists whenever there Answer Selected Answer: Is only one buyer in a market Correct Answer: .

Is only one buyer in a market .

monetary theories of the business cycle predict that the Federal Reserve would Answer Selected Answer: Increase the supply of money to create an expansion Correct Answer: Increase the supply of money to create an expansion  Question 3 4 out of 4 points What are the two primary determinants of economic growth? Answer Selected Answer: The availability of resources and productivity factors Correct Answer: The availability of resources and productivity factors  Question 4 4 out of 4 points When the economy ends an expansion. Question 1 0 out of 4 points The quantity of capital in the U. it must Answer Selected Answer: Expand its geographic territory Correct Answer: .S. economy has grown at a rate ________ the growth in the labor force. Answer Selected Answer: Slower than Correct Answer: Faster than  Question 2 4 out of 4 points In response to an economic recession. it enters which phase of the business cycle? Answer Selected Answer: Peak Correct Answer: Peak  Question 5 0 out of 4 points For an economy to expand its investment in the production of capital goods.

the primary factor that increases aggregate supply is Answer Selected Answer: Increases in the size of the labor force Correct Answer: Technological improvements  Question 10 4 out of 4 points What is technology? Answer . the economy is in which phase of the business cycle? Answer Selected Answer: Expansion Correct Answer: Trough  Question 7 0 out of 4 points Which of the following is responsible for officially tracking the Index of Leading Economic Indicators? Answer Selected Answer: The Bureau of Labor Statistics Correct Answer: The Conference Board  Question 8 4 out of 4 points Which of the following is the most commonly used measurement of economic growth? Changes in Answer Selected Answer: Real GDP Correct Answer: Real GDP  Question 9 0 out of 4 points According to Real Business Cycle Theory.Forego some production of consumer goods and services  Question 6 0 out of 4 points When economic output hits a short-run economic low.

trough Correct Answer: Expansion. peak. contraction.Selected Answer: The means and methods of production Correct Answer: The means and methods of production  Question 11 4 out of 4 points What was the first theory put forth by an economist to explain the phenomena of business cycles? Answer Selected Answer: Jevons' sunspot theory Correct Answer: Jevons' sunspot theory  Question 12 4 out of 4 points What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend? Answer Selected Answer: Business cycle Correct Answer: Business cycle  Question 13 4 out of 4 points Which of the following lists the four phases of the business cycle in the correct sequence? Answer Selected Answer: Expansion.S. peak. trough  Question 14 4 out of 4 points How has the increasing importance of the U. contraction. service sector contributed to the slowdown in economic growth? Answer Selected Answer: The productivity of the service sector is hard to accurately measure Correct Answer: The productivity of the service sector is hard to accurately measure  Question 15 .

4 out of 4 points Human capital refers to Answer Selected Answer: Skills and training that increase a worker's productivity Correct Answer: Skills and training that increase a worker's productivity  Question 16 4 out of 4 points A capital gain exists Answer Selected Answer: When the price of an asset exceeds the price paid for it Correct Answer: When the price of an asset exceeds the price paid for it  Question 17 4 out of 4 points A stock is Answer Selected Answer: A financial instrument that provides ownership rights to shareholders Correct Answer: A financial instrument that provides ownership rights to shareholders  Question 18 4 out of 4 points The basic money supply is Answer Selected Answer: Composed of assets that are completely liquid and easily accessible Correct Answer: Composed of assets that are completely liquid and easily accessible  Question 19 4 out of 4 points The interest rate on an adjustable rate mortgage (ARM) is Answer Selected Answer: Adjusted periodically based upon current market conditions Correct Answer: Adjusted periodically based upon current market conditions  Question 20 4 out of 4 points .

The equation of exchange is Answer Selected Answer: MV = PQ Correct Answer: MV = PQ  Question 21 4 out of 4 points The Federal Open Market Committee (FOMC) is highly concerned with Answer Selected Answer: Interest rates Correct Answer: Interest rates  Question 22 4 out of 4 points The money multiplier is Answer Selected Answer: 1/r Correct Answer: 1/r  Question 23 4 out of 4 points When the Fed increases the money supply. it generally has the effect of Answer Selected Answer: Lowering interest rates Correct Answer: Lowering interest rates  Question 24 4 out of 4 points The quantity theory of money emphasizes Answer Selected Answer: Changes in the money supply Correct Answer: Changes in the money supply  Question 25 4 out of 4 points .

and money market mutual funds M1. and money market mutual funds 4 out of 4 points Correct Answer:  Question 27 Home equity loans Answer Selected Answer: Allow a home owner to recapture some of the increase in the value of their home without selling the home Allow a home owner to recapture some of the increase in the value of their home without selling the home 0 out of 4 points Correct Answer:  Question 28 Banks make loans from their Answer Selected Answer: Required reserves Correct Answer: Excess reserves  Question 29 4 out of 4 points Commercial banks Answer Selected Answer: . plus savings and time deposits of small denomination.A collateralized debt obligation (or CDO) Answer Selected Answer: Is a financial instrument that obscures the underlying risks of the mortgages that comprise them Is a financial instrument that obscures the underlying risks of the mortgages that comprise them 4 out of 4 points Correct Answer:  Question 26 M2 includes Answer Selected Answer: M1. plus savings and time deposits of small denomination.

Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith Correct Answer: Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith 0 out of 4 points  Question 30 Corporations raise funds in Answer Selected Answer: Both the primary and secondary financial markets Correct Answer: The primary financial market .

Answer Selected Answer: Slower than Correct Answer: Faster than  Question 2 4 out of 4 points In response to an economic recession. economy has grown at a rate ________ the growth in the labor force.S. monetary theories of the business cycle predict that the Federal Reserve would Answer Selected Answer: Increase the supply of money to create an expansion Correct Answer: Increase the supply of money to create an expansion  Question 3 4 out of 4 points What are the two primary determinants of economic growth? Answer Selected Answer: The availability of resources and productivity factors Correct Answer: The availability of resources and productivity factors  Question 4 4 out of 4 points When the economy ends an expansion. it enters which phase of the business cycle? Answer Selected Answer: Peak Correct Answer: Peak  Question 5 0 out of 4 points For an economy to expand its investment in the production of capital goods. Question 1 0 out of 4 points The quantity of capital in the U. it must Answer Selected Answer: Expand its geographic territory Correct Answer: .

the primary factor that increases aggregate supply is Answer Selected Answer: Increases in the size of the labor force Correct Answer: Technological improvements  Question 10 4 out of 4 points What is technology? Answer . the economy is in which phase of the business cycle? Answer Selected Answer: Expansion Correct Answer: Trough  Question 7 0 out of 4 points Which of the following is responsible for officially tracking the Index of Leading Economic Indicators? Answer Selected Answer: The Bureau of Labor Statistics Correct Answer: The Conference Board  Question 8 4 out of 4 points Which of the following is the most commonly used measurement of economic growth? Changes in Answer Selected Answer: Real GDP Correct Answer: Real GDP  Question 9 0 out of 4 points According to Real Business Cycle Theory.Forego some production of consumer goods and services  Question 6 0 out of 4 points When economic output hits a short-run economic low.

peak. service sector contributed to the slowdown in economic growth? Answer Selected Answer: The productivity of the service sector is hard to accurately measure Correct Answer: The productivity of the service sector is hard to accurately measure  Question 15 .Selected Answer: The means and methods of production Correct Answer: The means and methods of production  Question 11 4 out of 4 points What was the first theory put forth by an economist to explain the phenomena of business cycles? Answer Selected Answer: Jevons' sunspot theory Correct Answer: Jevons' sunspot theory  Question 12 4 out of 4 points What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend? Answer Selected Answer: Business cycle Correct Answer: Business cycle  Question 13 4 out of 4 points Which of the following lists the four phases of the business cycle in the correct sequence? Answer Selected Answer: Expansion. trough Correct Answer: Expansion. peak. contraction. trough  Question 14 4 out of 4 points How has the increasing importance of the U. contraction.S.

4 out of 4 points Human capital refers to Answer Selected Answer: Skills and training that increase a worker's productivity Correct Answer: Skills and training that increase a worker's productivity  Question 16 4 out of 4 points A capital gain exists Answer Selected Answer: When the price of an asset exceeds the price paid for it Correct Answer: When the price of an asset exceeds the price paid for it  Question 17 4 out of 4 points A stock is Answer Selected Answer: A financial instrument that provides ownership rights to shareholders Correct Answer: A financial instrument that provides ownership rights to shareholders  Question 18 4 out of 4 points The basic money supply is Answer Selected Answer: Composed of assets that are completely liquid and easily accessible Correct Answer: Composed of assets that are completely liquid and easily accessible  Question 19 4 out of 4 points The interest rate on an adjustable rate mortgage (ARM) is Answer Selected Answer: Adjusted periodically based upon current market conditions Correct Answer: Adjusted periodically based upon current market conditions  Question 20 4 out of 4 points .

it generally has the effect of Answer Selected Answer: Lowering interest rates Correct Answer: Lowering interest rates  Question 24 4 out of 4 points The quantity theory of money emphasizes Answer Selected Answer: Changes in the money supply Correct Answer: Changes in the money supply  Question 25 4 out of 4 points .The equation of exchange is Answer Selected Answer: MV = PQ Correct Answer: MV = PQ  Question 21 4 out of 4 points The Federal Open Market Committee (FOMC) is highly concerned with Answer Selected Answer: Interest rates Correct Answer: Interest rates  Question 22 4 out of 4 points The money multiplier is Answer Selected Answer: 1/r Correct Answer: 1/r  Question 23 4 out of 4 points When the Fed increases the money supply.

plus savings and time deposits of small denomination. plus savings and time deposits of small denomination. and money market mutual funds M1.A collateralized debt obligation (or CDO) Answer Selected Answer: Is a financial instrument that obscures the underlying risks of the mortgages that comprise them Is a financial instrument that obscures the underlying risks of the mortgages that comprise them 4 out of 4 points Correct Answer:  Question 26 M2 includes Answer Selected Answer: M1. and money market mutual funds 4 out of 4 points Correct Answer:  Question 27 Home equity loans Answer Selected Answer: Allow a home owner to recapture some of the increase in the value of their home without selling the home Allow a home owner to recapture some of the increase in the value of their home without selling the home 0 out of 4 points Correct Answer:  Question 28 Banks make loans from their Answer Selected Answer: Required reserves Correct Answer: Excess reserves  Question 29 4 out of 4 points Commercial banks Answer Selected Answer: .

Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith Correct Answer: Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith 0 out of 4 points  Question 30 Corporations raise funds in Answer Selected Answer: Both the primary and secondary financial markets Correct Answer: The primary financial market .

it enters which phase of the business cycle? Answer Selected Answer: Peak Correct Answer: Peak  Question 5 0 out of 4 points For an economy to expand its investment in the production of capital goods. economy has grown at a rate ________ the growth in the labor force. Answer Selected Answer: Slower than Correct Answer: Faster than  Question 2 4 out of 4 points In response to an economic recession. Question 1 0 out of 4 points The quantity of capital in the U.S. it must Answer Selected Answer: Expand its geographic territory Correct Answer: . monetary theories of the business cycle predict that the Federal Reserve would Answer Selected Answer: Increase the supply of money to create an expansion Correct Answer: Increase the supply of money to create an expansion  Question 3 4 out of 4 points What are the two primary determinants of economic growth? Answer Selected Answer: The availability of resources and productivity factors Correct Answer: The availability of resources and productivity factors  Question 4 4 out of 4 points When the economy ends an expansion.

the primary factor that increases aggregate supply is Answer Selected Answer: Increases in the size of the labor force Correct Answer: Technological improvements  Question 10 4 out of 4 points What is technology? Answer .Forego some production of consumer goods and services  Question 6 0 out of 4 points When economic output hits a short-run economic low. the economy is in which phase of the business cycle? Answer Selected Answer: Expansion Correct Answer: Trough  Question 7 0 out of 4 points Which of the following is responsible for officially tracking the Index of Leading Economic Indicators? Answer Selected Answer: The Bureau of Labor Statistics Correct Answer: The Conference Board  Question 8 4 out of 4 points Which of the following is the most commonly used measurement of economic growth? Changes in Answer Selected Answer: Real GDP Correct Answer: Real GDP  Question 9 0 out of 4 points According to Real Business Cycle Theory.

peak. contraction. trough Correct Answer: Expansion. contraction. service sector contributed to the slowdown in economic growth? Answer Selected Answer: The productivity of the service sector is hard to accurately measure Correct Answer: The productivity of the service sector is hard to accurately measure  Question 15 .Selected Answer: The means and methods of production Correct Answer: The means and methods of production  Question 11 4 out of 4 points What was the first theory put forth by an economist to explain the phenomena of business cycles? Answer Selected Answer: Jevons' sunspot theory Correct Answer: Jevons' sunspot theory  Question 12 4 out of 4 points What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend? Answer Selected Answer: Business cycle Correct Answer: Business cycle  Question 13 4 out of 4 points Which of the following lists the four phases of the business cycle in the correct sequence? Answer Selected Answer: Expansion.S. peak. trough  Question 14 4 out of 4 points How has the increasing importance of the U.

4 out of 4 points Human capital refers to Answer Selected Answer: Skills and training that increase a worker's productivity Correct Answer: Skills and training that increase a worker's productivity  Question 16 4 out of 4 points A capital gain exists Answer Selected Answer: When the price of an asset exceeds the price paid for it Correct Answer: When the price of an asset exceeds the price paid for it  Question 17 4 out of 4 points A stock is Answer Selected Answer: A financial instrument that provides ownership rights to shareholders Correct Answer: A financial instrument that provides ownership rights to shareholders  Question 18 4 out of 4 points The basic money supply is Answer Selected Answer: Composed of assets that are completely liquid and easily accessible Correct Answer: Composed of assets that are completely liquid and easily accessible  Question 19 4 out of 4 points The interest rate on an adjustable rate mortgage (ARM) is Answer Selected Answer: Adjusted periodically based upon current market conditions Correct Answer: Adjusted periodically based upon current market conditions  Question 20 4 out of 4 points .

it generally has the effect of Answer Selected Answer: Lowering interest rates Correct Answer: Lowering interest rates  Question 24 4 out of 4 points The quantity theory of money emphasizes Answer Selected Answer: Changes in the money supply Correct Answer: Changes in the money supply  Question 25 4 out of 4 points .The equation of exchange is Answer Selected Answer: MV = PQ Correct Answer: MV = PQ  Question 21 4 out of 4 points The Federal Open Market Committee (FOMC) is highly concerned with Answer Selected Answer: Interest rates Correct Answer: Interest rates  Question 22 4 out of 4 points The money multiplier is Answer Selected Answer: 1/r Correct Answer: 1/r  Question 23 4 out of 4 points When the Fed increases the money supply.

and money market mutual funds M1.A collateralized debt obligation (or CDO) Answer Selected Answer: Is a financial instrument that obscures the underlying risks of the mortgages that comprise them Is a financial instrument that obscures the underlying risks of the mortgages that comprise them 4 out of 4 points Correct Answer:  Question 26 M2 includes Answer Selected Answer: M1. and money market mutual funds 4 out of 4 points Correct Answer:  Question 27 Home equity loans Answer Selected Answer: Allow a home owner to recapture some of the increase in the value of their home without selling the home Allow a home owner to recapture some of the increase in the value of their home without selling the home 0 out of 4 points Correct Answer:  Question 28 Banks make loans from their Answer Selected Answer: Required reserves Correct Answer: Excess reserves  Question 29 4 out of 4 points Commercial banks Answer Selected Answer: . plus savings and time deposits of small denomination. plus savings and time deposits of small denomination.

Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith Correct Answer: Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith 0 out of 4 points  Question 30 Corporations raise funds in Answer Selected Answer: Both the primary and secondary financial markets Correct Answer: The primary financial market .

it will lead to an increase in Answer Selected Answer: The demand for K-12 education Correct Answer: The demand for K-12 education  Question 4 4 out of 4 points In a purely private K-12 education system. spaces would be allocated based on . Question 1 4 out of 4 points Schools in which parents or other groups were permitted to create a new school with state funding and were given control over operations are known as Answer Selected Answer: Charter schools Correct Answer: Charter schools  Question 2 4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling? It will Answer Selected Answer: Decrease Correct Answer: Decrease  Question 3 4 out of 4 points If the earnings expected from a college education increase.

the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal  Question 6 4 out of 4 points A purely private K-12 system will lead to Answer Selected Answer: Increased inequality Correct Answer: Increased inequality  Question 7 4 out of 4 points A decrease in the cost of education will Answer Selected Answer: Increase the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education .Answer Selected Answer: Income Correct Answer: Income  Question 5 4 out of 4 points With positive externalities in consumption.

 Question 8 0 out of 4 points The current K-12 education system can be described as Answer Selected Answer: State owned Correct Answer: Centralized  Question 9 0 out of 4 points Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 5.3 Correct Answer: 3. spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries  Question 11 4 out of 4 points To be socially optimal.9  Question 10 4 out of 4 points In the existing public K-12 education system. education should be provided to the point where Answer .

This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption  Question 14 4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Inconsistent Correct Answer: Inconsistent .Selected Answer: MSB = MSC Correct Answer: MSB = MSC  Question 12 4 out of 4 points Which of the following will decrease the equilibrium quantity of education in a market? Answer Selected Answer: A decrease in the demand for education Correct Answer: A decrease in the demand for education  Question 13 4 out of 4 points Educated citizens are more likely to be informed voters.

 Question 15 4 out of 4 points The creation of new learning technologies will cause which of the following to decrease? Answer Selected Answer: The cost of education Correct Answer: The cost of education Sunday. August 4. 2013 6:10:09 PM EDT .

• Question 1 4 out of 4 points If all benefits from consuming a good go to consumers. the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve • Question 2 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river 4 out of 4 points Correct Answer: • Question 3 Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs • Question 4 0 out of 4 points For a tax on pollution to be effective. it must be Answer Selected Answer: Placed on the firm polluting Correct Answer: Greater than the cost of cleaning-up the pollution • Question 5 0 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: MSC of cleanup < MSB of cleanup .

Answer Selected Answer: The firm will produce less than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal • Question 8 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily Correct Answer: It seems straightforward and fair • Question 9 4 out of 4 points The market output level tends to be socially optimal when Answer Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer: All costs and benefits are private and MSB=MSC • Question 10 4 out of 4 points When pollution is not regulated in the market.Correct Answer: For each unit of pollution. polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices . the cost of clean-up is less than the benefit from its elimination 4 out of 4 points • Question 6 Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good • Question 7 0 out of 4 points When MPC is less than MSC.

Correct Answer: Over-utilize resources and charge low prices • Question 11 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production • Question 12 4 out of 4 points Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good • Question 13 4 out of 4 points Costs incurred by the producer for the use of self-owned resources are called Answer Selected Answer: Implicit costs Correct Answer: Implicit costs • Question 14 4 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: Vaccinations Correct Answer: Vaccinations • Question 15 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost .

crime prevention activities should be expanded to the point at which Answer . the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income • Question 19 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 20 4 out of 4 points From an economic point of view.Correct Answer: Opportunity cost • Question 16 0 out of 4 points Economic analysis of crime can Answer Selected Answer: Correct Answer: Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal • Question 17 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 18 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction.

Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost Correct Answer: • Question 21 4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair. the MSB of crime prevention Answer Selected Answer: Is equal to the MSC of crime prevention Correct Answer: Equals 0 • Question 25 4 out of 4 points . which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts • Question 22 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies • Question 23 4 out of 4 points The marginal cost of a good is Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output • Question 24 0 out of 4 points If society receives no additional benefit from increasing crime prevention activities.

Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property • Question 26 0 out of 4 points Some people give up high-paying city jobs to live much simpler. rural lives. Which of the following is a sound economic explanation for this? Answer Selected Answer: The fear of crime in the city Correct Answer: The very high psychic income they receive from the simple way of life • Question 27 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest • Question 28 4 out of 4 points Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost? Answer Selected Answer: Free-riding Correct Answer: Free-riding • Question 29 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire Correct Answer: .

her • Question 30 4 out of 4 points Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services .

 Question 1 4 out of 4 points If all benefits from consuming a good go to consumers. it must be Answer Selected Answer: Placed on the firm polluting Correct Answer: Greater than the cost of cleaning-up the pollution  Question 5 0 out of 4 points Complete elimination of pollution is economically rational when . the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve  Question 2 4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river 4 out of 4 points Correct Answer:  Question 3 Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs  Question 4 0 out of 4 points For a tax on pollution to be effective.

the cost of clean-up is less than the benefit from its elimination 4 out of 4 points  Question 6 Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good  Question 7 0 out of 4 points When MPC is less than MSC. Answer Selected Answer: The firm will produce less than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal  Question 8 0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily Correct Answer: It seems straightforward and fair  Question 9 4 out of 4 points The market output level tends to be socially optimal when Answer Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer: All costs and benefits are private and MSB=MSC .Answer Selected Answer: Correct Answer: MSC of cleanup < MSB of cleanup For each unit of pollution.

which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production  Question 12 4 out of 4 points Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good  Question 13 4 out of 4 points Costs incurred by the producer for the use of self-owned resources are called Answer Selected Answer: Implicit costs Correct Answer: Implicit costs  Question 14 4 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: . polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices  Question 11 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost. Question 10 4 out of 4 points When pollution is not regulated in the market.

the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income .Vaccinations Correct Answer: Vaccinations  Question 15 4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost  Question 16 0 out of 4 points Economic analysis of crime can Answer Selected Answer: Correct Answer: Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal  Question 17 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment  Question 18 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction.

crime prevention activities should be expanded to the point at which Answer Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost Correct Answer:  Question 21 4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair. Question 19 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime  Question 20 4 out of 4 points From an economic point of view. which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts  Question 22 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies  Question 23 4 out of 4 points The marginal cost of a good is .

Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output  Question 24 0 out of 4 points If society receives no additional benefit from increasing crime prevention activities. rural lives. the MSB of crime prevention Answer Selected Answer: Is equal to the MSC of crime prevention Correct Answer: Equals 0  Question 25 4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property  Question 26 0 out of 4 points Some people give up high-paying city jobs to live much simpler. Which of the following is a sound economic explanation for this? Answer Selected Answer: The fear of crime in the city Correct Answer: The very high psychic income they receive from the simple way of life  Question 27 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: .

MSB is greatest  Question 28 4 out of 4 points Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost? Answer Selected Answer: Free-riding Correct Answer: Free-riding  Question 29 4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her Correct Answer:  Question 30 4 out of 4 points Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services .

 Question 1 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized  Question 2 4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998  Question 3 0 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units 4 out of 4 points Correct Answer:  Question 4 A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 5 0 out of 4 points In the US. major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and payroll taxes at the state level .

the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Greater than the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points At the federal level.Income taxes at the federal level and income and sales taxes at the state level  Question 6 4 out of 4 points An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 7 4 out of 4 points Vertical equity implies that Answer Selected Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts Correct Answer:  Question 8 0 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Personal income tax Correct Answer: Real property tax  Question 9 0 out of 4 points According to the equimarginal principle. the largest revenue generating tax is the Answer .

Selected Answer: Personal income tax Correct Answer: Personal income tax  Question 11 0 out of 4 points A tax system that will not alter the distribution of income is Answer Selected Answer: Regressive Correct Answer: Proportional  Question 12 0 out of 4 points Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Falls as income rises Correct Answer: Remains the same as income rises  Question 13 0 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Remains the same as income rises Correct Answer: Falls as income rises  Question 14 0 out of 4 points Assuming positive externalities in consumption. is an example of a Answer . the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced greater than marginal external costs Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 15 4 out of 4 points A cash payment from the government to an individual. based on need.

consumers pay the Answer Selected Answer: Prearranged. fixed fee for services they receive Correct Answer: Full cost of the services they receive  Question 20 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans . their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Substitution effect  Question 18 0 out of 4 points A person with health insurance will tend to Answer Selected Answer: Have a lower demand for health care services Correct Answer: Demand more health care services than a person without insurance  Question 19 0 out of 4 points In a fee-for-service health care system.Selected Answer: Transfer payment Correct Answer: Transfer payment  Question 16 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance  Question 17 4 out of 4 points If people choose to work fewer hours because the Social Security tax reduces their real wage.

I am exhibiting which of the following effects? Answer Selected Answer: Retirement Correct Answer: Wealth substitution  Question 23 0 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Producer Price Index Correct Answer: Consumer Price Index  Question 24 0 out of 4 points As originally designed. Social Security was to be financed as a Answer Selected Answer: Pure income transfer program Correct Answer: Fully-funded insurance program  Question 25 0 out of 4 points .Answer Selected Answer: Require less paper work Correct Answer: Typically require less cost sharing  Question 21 4 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Raise Social Security taxes and/or lower benefits Correct Answer: Raise Social Security taxes and/or lower benefits  Question 22 0 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire.

due to NAFTA Correct Answer: Population bulge created by the "baby boom" generation  Question 28 0 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A fee-for-service market principle Correct Answer: A prearranged schedule of fixed prices  Question 29 0 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 70 .S.Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation  Question 26 0 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Provider and the consumer Correct Answer: Insurance company and the provider  Question 27 0 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Threat of foreign workers entering the U.S.

Correct Answer: 67  Question 30 4 out of 4 points The most significant argument against privatizing Social Security is that Answer Selected Answer: Future benefits levels cannot be guaranteed Correct Answer: Future benefits levels cannot be guaranteed .

 Question 1 4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes  Question 2 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 3 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices . The second 15 questions cover the material in Chapter 15. Be sure you are in the correct Chapter when you take the quiz. The first 15 questions cover the material in Chapter 14.Review Test Submission: Week 11 Quiz 10 SKIP TO COURSE MENU SKIP TO TOP FRAME TABS Course Econ Problems & Issues Test Week 11 Quiz 10 Instructions This quiz consist of 30 multiple choice questions.

since the revenues are used for road and highway construction and maintenance  Question 7 4 out of 4 points The ability to pay principle of taxation suggests that people with more income should pay more taxes.Correct Answer: The consumer in the form of higher prices  Question 4 4 out of 4 points A cash payment from the government to an individual. since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits. based on need. is an example of a Answer Selected Answer: Transfer payment Correct Answer: Transfer payment  Question 5 4 out of 4 points An output tax will be shifted completely Answer Selected Answer: Forward if demand is perfectly price inelastic Correct Answer: Forward if demand is perfectly price inelastic  Question 6 4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits. This means that Answer .

the largest revenue generating tax is the Answer Selected Answer: Personal income tax Correct Answer: Personal income tax  Question 11 0 out of 4 points .Selected Answer: Correct Answer: Progressive income rates are consistent with the ability to pay principle Progressive income rates are consistent with the ability to pay principle  Question 8 4 out of 4 points Assuming negative externalities in production. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs  Question 9 4 out of 4 points A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Public good Correct Answer: Public good  Question 10 4 out of 4 points At the federal level.

Assuming positive externalities in consumption. must be based on Answer Selected Answer: Correct Answer: The values of people as to what constitutes a "fair" distribution of income  The values of people as to what constitutes a "fair" distribution of income Question 14 4 out of 4 points Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: . say through taxes and subsidies. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  A subsidy on each unit consumed greater than marginal external benefits Question 12 4 out of 4 points A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 13 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive.

their behavior is dominated by the Answer Selected Answer: Income effect Correct Answer: Substitution effect  Question 18 4 out of 4 points If a program's benefits are funded out of current payments.Internal Revenue Service  Question 15 4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States  Question 16 4 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Raise Social Security taxes and/or lower benefits Correct Answer: Raise Social Security taxes and/or lower benefits  Question 17 0 out of 4 points If people choose to work fewer hours because the Social Security tax reduces their real wage. it is which type of system? Answer Selected Answer: A pay-as-you-go system .

Correct Answer: A pay-as-you-go system  Question 19 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 20 4 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider  Question 21 0 out of 4 points Part C of the Medicare program (Medicare + Choice) Answer Selected Answer: Correct Answer: Provides health care plan choices to the beneficiaries of Medicare  Restricts Medicare beneficiaries to a simple fee-for-service health care plan Question 22 4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer .

Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program  Question 24 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 25 4 out of 4 points If a program's benefits are funded by interest earned on accumulated payments.Selected Answer: Health care inflation Correct Answer: Health care inflation  Question 23 4 out of 4 points As originally designed. it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A fully funded scheme  Question 26 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these .

plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing  Question 27 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance  Question 28 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 29 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 30 .

consumers pay the Answer Selected Answer: Full cost of the services they receive Correct Answer: Full cost of the services they receive .4 out of 4 points In a fee-for-service health care system.

the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 3 4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Those who pay the tax receive benefits. Question 1 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 2 4 out of 4 points According to the equimarginal principle. This means that Answer Selected . since the revenues are used for road and highway construction and maintenance 4 out of 4 points Correct Answer:  Question 4 Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 5 0 out of 4 points The ability to pay principle of taxation suggests that people with more income should pay more taxes. since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits.

Answer: Regressive income rates may or may not be consistent with the ability to pay principle depending on the rate of regression Progressive income rates are consistent with the ability to pay principle 4 out of 4 points Correct Answer:  Question 6 Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises  Question 7 4 out of 4 points A cash payment from the government to an individual. based on need. is an example of a Answer Selected Answer: Transfer payment Correct Answer: Transfer payment  Question 8 4 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax  Question 9 4 out of 4 points A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Public good Correct Answer: Public good  Question 10 4 out of 4 points An efficient level of government expenditures is that level where Answer .

major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level Correct Answer:  Question 14 4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes  Question 15 4 out of 4 points .Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 11 4 out of 4 points Assuming positive externalities in consumption. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed equal to marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 12 4 out of 4 points Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service  Question 13 4 out of 4 points In the US.

their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Substitution effect  Question 18 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 19 4 out of 4 points If people choose to work more hours because the Social Security tax reduces their real wage. the largest revenue generating tax is the Answer Selected Answer: Personal income tax Correct Answer: Personal income tax  Question 16 4 out of 4 points If a program's benefits are funded out of current payments. it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system  Question 17 4 out of 4 points If people choose to work fewer hours because the Social Security tax reduces their real wage. their behavior is dominated by the Answer Selected Answer: Income effect Correct Answer: Income effect .At the federal level.

the company is using which of the following? Answer .S. Question 20 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 21 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 22 4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.000 for an appendectomy). during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation  Question 23 4 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs  Question 24 4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example. $5.

Selected Answer: A prospective payment system Correct Answer: A prospective payment system  Question 25 4 out of 4 points The most significant argument against privatizing Social Security is that Answer Selected Answer: Future benefits levels cannot be guaranteed Correct Answer: Future benefits levels cannot be guaranteed  Question 26 4 out of 4 points In a fee-for-service health care system. I am exhibiting which of the following effects? . Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program  Question 28 4 out of 4 points Part C of the Medicare program (Medicare + Choice) Answer Selected Answer: Provides health care plan choices to the beneficiaries of Medicare Correct Answer: Provides health care plan choices to the beneficiaries of Medicare  Question 29 4 out of 4 points If I put extra into a savings account so that I can leave assets to my children to compensate them for their payments into the Social Security system. consumers pay the Answer Selected Answer: Full cost of the services they receive Correct Answer: Full cost of the services they receive  Question 27 4 out of 4 points As originally designed.

This is known as Answer Selected Answer: Co-insurance Correct Answer: Co-insurance .Answer Selected Answer: Bequest Correct Answer: Bequest  Question 30 4 out of 4 points A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay.

the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 3 4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998  Question 4 4 out of 4 points Assuming negative externalities in production. 4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States  Question 2 4 out of 4 points According to the equimarginal principle. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs .

since the revenues are used for road and highway construction and maintenance  Question 6 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 7 4 out of 4 points In the US. Question 5 4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits. since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits. major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level  Question 8 4 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected .

Answer: Correct Answer: The supply of these goods and services is generally not divisible into small units The supply of these goods and services is generally not divisible into small units  Question 9 4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 10 4 out of 4 points Vertical equity implies that Answer Selected Answer: Correct Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts  Question 11 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 12 0 out of 4 points .

and people in different economic circumstances should pay unequal taxes  Question 14 4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service  Question 15 4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes  Question 16 . and people in different economic circumstances should pay unequal taxes People in the same economic circumstances should pay equal taxes.The fears of people concerning the size of government are Answer Selected Answer: Due to low income and low educational levels of many people Correct Answer: Well-founded in some instances and not well-founded in some instances  Question 13 4 out of 4 points Tax equity means that Answer Selected Answer: Correct Answer: People in the same economic circumstances should pay equal taxes.

it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system  Question 20 .4 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Consumer Price Index Correct Answer: Consumer Price Index  Question 17 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 18 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 19 4 out of 4 points If a program's benefits are funded out of current payments.

passed in 2003. established Answer Selected Answer: an added prescription drug benefit to the Medicare program Correct Answer: an added prescription drug benefit to the Medicare program  Question 23 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 24 .4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 21 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 22 4 out of 4 points The Medicare Modernization Act.

regardless of income  Question 27 4 out of 4 points As originally designed. Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program . $5.000 for an appendectomy). the company is using which of the following? Answer Selected Answer: A prospective payment system Correct Answer: A prospective payment system  Question 26 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older.4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 25 4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example. regardless of income Correct Answer: Affects persons 65 and older.

during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation  Question 30 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing Sunday.S. Question 28 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance  Question 29 4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U. September 8. 2013 7:39:38 PM EDT    Question 1 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: .

The net benefits to society are maximized Correct Answer: The net benefits to society are maximized  Question 2 4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998  Question 3 0 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units 4 out of 4 points Correct Answer:  Question 4 A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 5 0 out of 4 points In the US. major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and payroll taxes at the state level Income taxes at the federal level and income and sales taxes at the state level  Question 6 4 out of 4 points An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: .

the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Greater than the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points At the federal level.Marginal benefits are equal to marginal costs  Question 7 4 out of 4 points Vertical equity implies that Answer Selected Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts Correct Answer:  Question 8 0 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Personal income tax Correct Answer: Real property tax  Question 9 0 out of 4 points According to the equimarginal principle. the largest revenue generating tax is the Answer Selected Answer: Personal income tax Correct Answer: Personal income tax  Question 11 0 out of 4 points A tax system that will not alter the distribution of income is Answer Selected Answer: Regressive Correct Answer: .

the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced greater than marginal external costs A subsidy on each unit consumed equal to marginal external benefits Correct Answer:  Question 15 4 out of 4 points A cash payment from the government to an individual. is an example of a Answer Selected Answer: Transfer payment Correct Answer: Transfer payment  Question 16 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance .Proportional  Question 12 0 out of 4 points Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Falls as income rises Correct Answer: Remains the same as income rises  Question 13 0 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Remains the same as income rises Correct Answer: Falls as income rises  Question 14 0 out of 4 points Assuming positive externalities in consumption. based on need.

consumers pay the Answer Selected Answer: Prearranged. Question 17 4 out of 4 points If people choose to work fewer hours because the Social Security tax reduces their real wage. their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Substitution effect  Question 18 0 out of 4 points A person with health insurance will tend to Answer Selected Answer: Have a lower demand for health care services Correct Answer: Demand more health care services than a person without insurance  Question 19 0 out of 4 points In a fee-for-service health care system. fixed fee for services they receive Correct Answer: Full cost of the services they receive  Question 20 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Require less paper work Correct Answer: Typically require less cost sharing  Question 21 4 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Raise Social Security taxes and/or lower benefits Correct Answer: Raise Social Security taxes and/or lower benefits  Question 22 0 out of 4 points If I spend more each year because I know that I will receive Social Security payments .

when I retire. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation  Question 26 0 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Provider and the consumer Correct Answer: Insurance company and the provider  Question 27 0 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer . I am exhibiting which of the following effects? Answer Selected Answer: Retirement Correct Answer: Wealth substitution  Question 23 0 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Producer Price Index Correct Answer: Consumer Price Index  Question 24 0 out of 4 points As originally designed.S. Social Security was to be financed as a Answer Selected Answer: Pure income transfer program Correct Answer: Fully-funded insurance program  Question 25 0 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.

due to NAFTA Correct Answer: Population bulge created by the "baby boom" generation  Question 28 0 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A fee-for-service market principle Correct Answer: A prearranged schedule of fixed prices  Question 29 0 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 70 Correct Answer: 67  Question 30 4 out of 4 points The most significant argument against privatizing Social Security is that Answer Selected Answer: Future benefits levels cannot be guaranteed Correct Answer: Future benefits levels cannot be guaranteed  Question 1 0 out of 4 points An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs .S.Selected Answer: Threat of foreign workers entering the U.

 Question 2 0 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes  Question 3 4 out of 4 points Assuming negative externalities in production. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs  Question 4 4 out of 4 points Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises  Question 5 0 out of 4 points .

since the revenues are used for road and highway construction and maintenance [None Given]  Question 7 0 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service  Question 8 0 out of 4 points Characteristics of public goods and services include which of the following? Answer .A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good [None Given]  Question 6 0 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits.

Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded Correct Answer: The supply of these goods and services is generally not divisible into small units  Question 9 0 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998  Question 10 4 out of 4 points Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service  Question 11 4 out of 4 points In the US. major sources of tax revenues are: Answer .

say through taxes and subsidies.Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level  Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive. must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income  Question 13 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 14 4 out of 4 points An efficient level of government expenditures is that level at which Answer .

$5.000 for an appendectomy). the company is using which of the following? Answer .Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized  Question 15 0 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax Correct Answer: Real property tax  Question 16 0 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices  Question 17 0 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example.

during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation  Question 20 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer .S.Selected Answer: A fee-for-service system Correct Answer: A prospective payment system  Question 18 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 19 0 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.

Selected Answer: Hospitals Correct Answer: Hospitals  Question 21 0 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation  Question 22 0 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits  Question 23 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: .

Social Security Correct Answer: Social Security  Question 24 4 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider  Question 25 0 out of 4 points If a program's benefits are funded out of current payments. it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system  Question 26 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care .

Social Security was to be financed as a Answer Selected Answer: Private insurance program .Correct Answer: Typically require less cost sharing  Question 27 0 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire. I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution  Question 28 0 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs  Question 29 0 out of 4 points As originally designed.

2013 11:51:43 AM EDT OK  Question 1 4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 2 4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: .Correct Answer: Fully-funded insurance program  Question 30 0 out of 4 points A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. September 8. This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance Sunday.

Government purchase of a service Correct Answer: Government purchase of a service  Question 3 4 out of 4 points Vertical equity implies that Answer .

the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 5 4 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax  Question 6 .Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts  Question 4 0 out of 4 points Assuming positive externalities in consumption.

0 out of 4 points Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes. and people in different economic circumstances should pay unequal taxes  Question 7 4 out of 4 points A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 8 0 out of 4 points An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic .

 Question 9 4 out of 4 points According to the equimarginal principle. major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level  Question 11 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized . the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points In the US.

must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income  Question 13 0 out of 4 points The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002  Question 14 4 out of 4 points An efficient level of government expenditures is that level where . say through taxes and subsidies.Correct Answer: The net benefits to society are maximized  Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive.

it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme  Question 17 0 out of 4 points .Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 15 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 16 0 out of 4 points If a program's benefits are funded by interest earned on accumulated payments.

established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program  Question 18 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 19 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 20 . passed in 2003.The Medicare Modernization Act.

4 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire. I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution  Question 21 4 out of 4 points Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.9% tax levied on wages and salaries Correct Answer: A 2. it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system .9% tax levied on wages and salaries  Question 22 4 out of 4 points If a program's benefits are funded out of current payments.

their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect  Question 24 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older. regardless of income Correct Answer: Affects persons 65 and older. Question 23 0 out of 4 points If people choose to work more hours because the Social Security tax reduces their real wage. regardless of income  Question 25 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing .

Correct Answer: Typically require less cost sharing  Question 26 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 27 4 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs  Question 28 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer .

Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program .Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 29 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 30 4 out of 4 points As originally designed.

.

.

 4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States  Question 2 4 out of 4 points According to the equimarginal principle. the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 3 4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998  Question 4 4 out of 4 points Assuming negative externalities in production. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs .

major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level  Question 8 4 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected . Question 5 4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits. since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits. since the revenues are used for road and highway construction and maintenance  Question 6 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 7 4 out of 4 points In the US.

Answer: Correct Answer: The supply of these goods and services is generally not divisible into small units The supply of these goods and services is generally not divisible into small units  Question 9 4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 10 4 out of 4 points Vertical equity implies that Answer Selected Answer: Correct Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts  Question 11 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 12 0 out of 4 points .

The fears of people concerning the size of government are Answer Selected Answer: Due to low income and low educational levels of many people Correct Answer: Well-founded in some instances and not well-founded in some instances  Question 13 4 out of 4 points Tax equity means that Answer Selected Answer: Correct Answer: People in the same economic circumstances should pay equal taxes. and people in different economic circumstances should pay unequal taxes People in the same economic circumstances should pay equal taxes. and people in different economic circumstances should pay unequal taxes  Question 14 4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service  Question 15 4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes  Question 16 .

it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system  Question 20 .4 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Consumer Price Index Correct Answer: Consumer Price Index  Question 17 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 18 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 19 4 out of 4 points If a program's benefits are funded out of current payments.

passed in 2003. established Answer Selected Answer: an added prescription drug benefit to the Medicare program Correct Answer: an added prescription drug benefit to the Medicare program  Question 23 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 24 .4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 21 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 22 4 out of 4 points The Medicare Modernization Act.

000 for an appendectomy). the company is using which of the following? Answer Selected Answer: A prospective payment system Correct Answer: A prospective payment system  Question 26 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older. Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program . regardless of income Correct Answer: Affects persons 65 and older. $5.4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 25 4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example. regardless of income  Question 27 4 out of 4 points As originally designed.

Question 28
4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance

Question 29
4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation

Question 30
4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing

Sunday, September 8, 2013 7:39:38 PM EDT

  

Question 1
4 out of 4 points

An efficient level of government expenditures is that level at which
Answer Selected Answer:

The net benefits to society are maximized
Correct Answer:

The net benefits to society are maximized

Question 2
4 out of 4 points

The first budget surplus since 1969 occurred in
Answer Selected Answer:

1998
Correct Answer:

1998

Question 3
0 out of 4 points

Characteristics of public goods and services include which of the following?
Answer Selected Answer:

The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units
4 out of 4 points

Correct Answer:

Question 4

A tax that is shifted backward is a tax that falls on
Answer Selected Answer:

The owners of resources in the form of lower resource prices
Correct Answer:

The owners of resources in the form of lower resource prices

Question 5
0 out of 4 points

In the US, major sources of tax revenues are:
Answer Selected Answer: Correct Answer:

Income taxes at the federal level and payroll taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 6
4 out of 4 points

An efficient level of government expenditures is that level where
Answer Selected Answer:

Marginal benefits are equal to marginal costs
Correct Answer:

Marginal benefits are equal to marginal costs

Question 7
4 out of 4 points

Vertical equity implies that
Answer Selected Answer:

People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Correct Answer:

Question 8
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the
Answer Selected Answer:

Personal income tax
Correct Answer:

Real property tax

Question 9
0 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is
Answer Selected Answer:

Greater than the benefit of the last dollar spent in the private sector
Correct Answer:

Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

At the federal level, the largest revenue generating tax is the
Answer Selected Answer:

Personal income tax
Correct Answer:

Personal income tax

Question 11
0 out of 4 points

A tax system that will not alter the distribution of income is
Answer Selected Answer:

Regressive
Correct Answer:

Proportional

Question 12
0 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income
Answer Selected Answer:

Falls as income rises
Correct Answer:

Remains the same as income rises

Question 13
0 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income
Answer Selected Answer:

Remains the same as income rises
Correct Answer:

Falls as income rises

Question 14
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be
Answer Selected Answer:

A tax levied on each unit produced greater than marginal external costs A subsidy on each unit consumed equal to marginal external benefits

Correct Answer:

Question 15
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a
Answer Selected Answer:

Transfer payment
Correct Answer:

Transfer payment

Question 16
4 out of 4 points

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines
Answer Selected Answer:

Private insurance
Correct Answer:

Private insurance

Question 17
4 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Substitution effect
Correct Answer:

Substitution effect

Question 18
0 out of 4 points

A person with health insurance will tend to
Answer Selected Answer:

Have a lower demand for health care services
Correct Answer:

Demand more health care services than a person without insurance

Question 19
0 out of 4 points

In a fee-for-service health care system, consumers pay the
Answer Selected Answer:

Prearranged, fixed fee for services they receive
Correct Answer:

Full cost of the services they receive

Question 20
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans
Answer Selected Answer:

Require less paper work
Correct Answer:

Typically require less cost sharing

Question 21
4 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to
Answer Selected Answer:

Raise Social Security taxes and/or lower benefits
Correct Answer:

Raise Social Security taxes and/or lower benefits

Question 22
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments

when I retire, I am exhibiting which of the following effects?
Answer Selected Answer:

Retirement
Correct Answer:

Wealth substitution

Question 23
0 out of 4 points

The cost of living adjustment (COLA) employed by Social Security is based on the
Answer Selected Answer:

Producer Price Index
Correct Answer:

Consumer Price Index

Question 24
0 out of 4 points

As originally designed, Social Security was to be financed as a
Answer Selected Answer:

Pure income transfer program
Correct Answer:

Fully-funded insurance program

Question 25
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Increased public support for health care
Correct Answer:

Health care inflation

Question 26
0 out of 4 points

How are payments to health care providers determined under a managed care system? By the
Answer Selected Answer:

Provider and the consumer
Correct Answer:

Insurance company and the provider

Question 27
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the
Answer

Selected Answer:

Threat of foreign workers entering the U.S. due to NAFTA
Correct Answer:

Population bulge created by the "baby boom" generation

Question 28
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A fee-for-service market principle
Correct Answer:

A prearranged schedule of fixed prices

Question 29
0 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

70
Correct Answer:

67

Question 30
4 out of 4 points

The most significant argument against privatizing Social Security is that
Answer Selected Answer:

Future benefits levels cannot be guaranteed
Correct Answer:

Future benefits levels cannot be guaranteed

Question 1
0 out of 4 points

An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 2
0 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes

Question 3
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 4
4 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises

Question 5
0 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good [None Given]

Question 6
0 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance [None Given]

Question 7
0 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service

Question 8
0 out of 4 points

Characteristics of public goods and services include which of the following? Answer

Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded Correct Answer: The supply of these goods and services is generally not divisible into small units

Question 9
0 out of 4 points

The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998

Question 10
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service

Question 11
4 out of 4 points

In the US, major sources of tax revenues are: Answer

Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 14
4 out of 4 points

An efficient level of government expenditures is that level at which Answer

Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized

Question 15
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax Correct Answer: Real property tax

Question 16
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices

Question 17
0 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer

S.Selected Answer: A fee-for-service system Correct Answer: A prospective payment system  Question 18 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 19 0 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation  Question 20 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer .

Selected Answer: Hospitals Correct Answer: Hospitals  Question 21 0 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation  Question 22 0 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits  Question 23 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: .

it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system  Question 26 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care .Social Security Correct Answer: Social Security  Question 24 4 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider  Question 25 0 out of 4 points If a program's benefits are funded out of current payments.

Correct Answer: Typically require less cost sharing  Question 27 0 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire. Social Security was to be financed as a Answer Selected Answer: Private insurance program . I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution  Question 28 0 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs  Question 29 0 out of 4 points As originally designed.

This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance Sunday.Correct Answer: Fully-funded insurance program  Question 30 0 out of 4 points A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. 2013 11:51:43 AM EDT OK  Question 1 4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 2 4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: . September 8.

Government purchase of a service Correct Answer: Government purchase of a service  Question 3 4 out of 4 points Vertical equity implies that Answer .

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts  Question 4 0 out of 4 points Assuming positive externalities in consumption. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 5 4 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax  Question 6 .

0 out of 4 points Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes. and people in different economic circumstances should pay unequal taxes  Question 7 4 out of 4 points A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 8 0 out of 4 points An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic .

the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points In the US. Question 9 4 out of 4 points According to the equimarginal principle. major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level  Question 11 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized .

Correct Answer: The net benefits to society are maximized  Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive. must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income  Question 13 0 out of 4 points The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002  Question 14 4 out of 4 points An efficient level of government expenditures is that level where . say through taxes and subsidies.

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 15 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 16 0 out of 4 points If a program's benefits are funded by interest earned on accumulated payments. it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme  Question 17 0 out of 4 points .

passed in 2003.The Medicare Modernization Act. established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program  Question 18 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 19 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 20 .

4 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire. it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system . I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution  Question 21 4 out of 4 points Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.9% tax levied on wages and salaries  Question 22 4 out of 4 points If a program's benefits are funded out of current payments.9% tax levied on wages and salaries Correct Answer: A 2.

their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect  Question 24 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older. regardless of income Correct Answer: Affects persons 65 and older. regardless of income  Question 25 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing . Question 23 0 out of 4 points If people choose to work more hours because the Social Security tax reduces their real wage.

Correct Answer: Typically require less cost sharing  Question 26 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 27 4 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs  Question 28 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer .

Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program .Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 29 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 30 4 out of 4 points As originally designed.

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The first 15 questions cover the material in Chapter 14.  Question 1 4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 2 4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service  Question 3 4 out of 4 points Vertical equity implies that Answer . Be sure you are in the correct Chapter when you take the quiz. The second 15 questions cover the material in Chapter 15.Instructions This quiz consist of 30 multiple choice questions.

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts  Question 4 0 out of 4 points Assuming positive externalities in consumption. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 5 4 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax  Question 6 .

and people in different economic circumstances should pay unequal taxes  Question 7 4 out of 4 points A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 8 0 out of 4 points An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic .0 out of 4 points Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes.

major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level  Question 11 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized . Question 9 4 out of 4 points According to the equimarginal principle. the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points In the US.

Correct Answer: The net benefits to society are maximized  Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive. must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income  Question 13 0 out of 4 points The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002  Question 14 4 out of 4 points An efficient level of government expenditures is that level where . say through taxes and subsidies.

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 15 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 16 0 out of 4 points If a program's benefits are funded by interest earned on accumulated payments. it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme  Question 17 0 out of 4 points .

passed in 2003.The Medicare Modernization Act. established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program  Question 18 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 19 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 20 .

4 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire. it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system . I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution  Question 21 4 out of 4 points Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.9% tax levied on wages and salaries Correct Answer: A 2.9% tax levied on wages and salaries  Question 22 4 out of 4 points If a program's benefits are funded out of current payments.

their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect  Question 24 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older. regardless of income  Question 25 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing . Question 23 0 out of 4 points If people choose to work more hours because the Social Security tax reduces their real wage. regardless of income Correct Answer: Affects persons 65 and older.

Correct Answer: Typically require less cost sharing  Question 26 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 27 4 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs  Question 28 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer .

Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 29 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 30 4 out of 4 points As originally designed. Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program .

Be sure you are in the correct Chapter when you take the quiz. The second 15 questions cover the material in Chapter 15.  Question 1 0 out of 4 points An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 2 0 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes  Question 3 4 out of 4 points Assuming negative externalities in production. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs .Review Test Submission: Week 11 Quiz 10 SKIP TO COURSE MENU SKIP TO TOP FRAME TABS Content Course Econ Problems & Issues Test Week 11 Quiz 10 Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 14.

since the revenues are used for road and highway construction and maintenance  Question 7 0 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service  Question 8 . Question 4 4 out of 4 points Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises  Question 5 0 out of 4 points A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good  [None Given] Question 6 0 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: [None Given] Those who pay the tax receive benefits.

major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level .0 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected Answer: Correct Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units  Question 9 0 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998  Question 10 4 out of 4 points Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service  Question 11 4 out of 4 points In the US.

say through taxes and subsidies. Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive. must be based on Answer Selected Answer: Correct Answer: The values of people as to what constitutes a "fair" distribution of income  The values of people as to what constitutes a "fair" distribution of income Question 13 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 14 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized  Question 15 0 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax .

Correct Answer: Real property tax  Question 16 0 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices  Question 17 0 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example. $5.S. the company is using which of the following? Answer Selected Answer: A fee-for-service system Correct Answer: A prospective payment system  Question 18 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 19 0 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U. during the past fifty years? .000 for an appendectomy).

Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation  Question 20 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 21 0 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation  Question 22 0 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits  Question 23 4 out of 4 points .

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 24 4 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider  Question 25 0 out of 4 points If a program's benefits are funded out of current payments. it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system  Question 26 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care Correct Answer: Typically require less cost sharing  Question 27 .

This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance . Social Security was to be financed as a Answer Selected Answer: Private insurance program Correct Answer: Fully-funded insurance program  Question 30 0 out of 4 points A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution  Question 28 0 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs  Question 29 0 out of 4 points As originally designed.0 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire.

2013 11:51:43 AM EDT OK . September 8.Sunday.

S. the economy is in which phase of the business cycle? Answer Selected Answer: Trough Correct Answer: Trough  Question 3 4 out of 4 points When the economy ends an expansion. Question 1 0 out of 4 points Which group is responsible for announcing the dates for each phase of a U. business cycle? Answer Selected Answer: The Bureau of Labor Statistics Correct Answer: The National Bureau of Economic Research  Question 2 4 out of 4 points When economic output hits a short-run economic low. it enters which phase of the business cycle? Answer Selected Answer: Peak Correct Answer: Peak  Question 4 .

service sector contributed to the slowdown in economic growth? Answer Selected Answer: The productivity of the service sector is hard to accurately measure Correct Answer: The productivity of the service sector is hard to accurately measure  Question 5 4 out of 4 points Which of the following terms is used to describe the purchase of capital? Answer Selected Answer: Investment Correct Answer: Investment  Question 6 4 out of 4 points Which phase of the business cycle best describes an economy that is experiencing a positive rate of economic growth? Answer Selected Answer: Expansion Correct Answer: Expansion  Question 7 4 out of 4 points .S.4 out of 4 points How has the increasing importance of the U.

Why does spending on capital tend to increase economic growth more than spending of consumption goods? Because Answer Selected Answer: Capital can be used to produce future goods and services Correct Answer: Capital can be used to produce future goods and services  Question 8 4 out of 4 points Saving in an economy is important for economic growth because Answer Selected Answer: It is the source of funds for investment Correct Answer: It is the source of funds for investment  Question 9 4 out of 4 points What is the "crowding out" effect? Answer Selected Answer: Correct Answer: Private investment is reduced because government borrowing diverts dollars away Private investment is reduced because government borrowing diverts dollars away  Question 10 4 out of 4 points .

Answer Selected Answer: Faster than Correct Answer: Faster than  Question 13 4 out of 4 points .In response to an economic recession. economy has grown at a rate ________ the growth in the labor force.S. monetary theories of the business cycle predict that the Federal Reserve would Answer Selected Answer: Increase the supply of money to create an expansion Correct Answer: Increase the supply of money to create an expansion  Question 11 4 out of 4 points What was the first theory put forth by an economist to explain the phenomena of business cycles? Answer Selected Answer: Jevons' sunspot theory Correct Answer: Jevons' sunspot theory  Question 12 4 out of 4 points The quantity of capital in the U.

it generally has the effect of Answer .Which of the following is the most commonly used measurement of economic growth? Changes in Answer Selected Answer: Real GDP Correct Answer: Real GDP  Question 14 4 out of 4 points What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend? Answer Selected Answer: Business cycle Correct Answer: Business cycle  Question 15 4 out of 4 points What are the two primary determinants of economic growth? Answer Selected Answer: The availability of resources and productivity factors Correct Answer: The availability of resources and productivity factors  Question 16 4 out of 4 points When the Fed increases the money supply.

Selected Answer: Lowering interest rates Correct Answer: Lowering interest rates  Question 17 4 out of 4 points The equation of exchange is Answer Selected Answer: MV = PQ Correct Answer: MV = PQ  Question 18 4 out of 4 points Excess reserves refer to Answer Selected Answer: Reserves over and above the bank's required reserves Correct Answer: Reserves over and above the bank's required reserves  Question 19 4 out of 4 points Who controls the aggregate volume of demand deposits in the banking system? Answer Selected Answer: The Federal Reserve Board of Governors .

Correct Answer: The Federal Reserve Board of Governors  Question 20 4 out of 4 points The Federal Open Market Committee (FOMC) is highly concerned with Answer Selected Answer: Interest rates Correct Answer: Interest rates  Question 21 4 out of 4 points Liquidity of an asset increases when Answer Selected Answer: It is easier to convert the asset into cash Correct Answer: It is easier to convert the asset into cash  Question 22 4 out of 4 points Commercial banks Answer Selected Answer: Correct Answer: Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith .

other things constant  Question 25 4 out of 4 points Banks make loans from their Answer Selected Answer: Excess reserves Correct Answer: Excess reserves  Question 26 . Answer Selected Answer: Correct Answer: The right-hand side will equal the left-hand side only if velocity does not change from year to year An increase in the quantity of money will lead to an increase in the price level. money is serving which function? Answer Selected Answer: A measure of value Correct Answer: A measure of value  Question 24 0 out of 4 points According to the equation of exchange. Question 23 4 out of 4 points When you compare a dollar's worth of apples to a dollar's worth of oranges.

money is serving which function? Answer Selected Answer: A medium of exchange Correct Answer: A medium of exchange  Question 27 4 out of 4 points The quantity theory of money emphasizes Answer Selected Answer: Changes in the money supply Correct Answer: Changes in the money supply  Question 28 4 out of 4 points A mortgage backed security is Answer Selected Answer: Correct Answer: A financial instrument that reduces risk by pooling together a large number of mortgages into one asset A financial instrument that reduces risk by pooling together a large number of mortgages into one asset  Question 29 .4 out of 4 points When you use dollar bills to pay for a purchase at a store.

4 out of 4 points The interest rate on an adjustable rate mortgage (ARM) is Answer Selected Answer: Adjusted periodically based upon current market conditions Correct Answer: Adjusted periodically based upon current market conditions  Question 30 4 out of 4 points A dividend Answer Selected Answer: Is a distribution of a corporation’s profits to stockholders Correct Answer: Is a distribution of a corporation’s profits to stockholders .

 Question 1 4 out of 4 points Which of the following is charged with enforcing the federal government's antidiscrimination laws? Answer Selected Answer: The EEOC Correct Answer: The EEOC  Question 2 4 out of 4 points Under the JTPA. the federal government gave money to states for programs that provided Answer Selected Answer: Employment training for disadvantaged workers Correct Answer: Employment training for disadvantaged workers  Question 3 4 out of 4 points Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training  Question 4 4 out of 4 points .

A number of reasons have been given to explain increasing income inequality in the US over the last few decades. One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector  Question 5 4 out of 4 points Income support programs have Answer Selected Answer: Provided a minimum level of income to millions of people Correct Answer: Provided a minimum level of income to millions of people  Question 6 4 out of 4 points The incidence of poverty is highest among Answer Selected Answer: Families headed by a female Correct Answer: Families headed by a female  Question 7 4 out of 4 points Unlike the old AFDC program of income support. TANF requires recipients to Answer Selected Answer: Work Correct Answer: .

Work  Question 8 4 out of 4 points According to recent studies. and Food Stamps are examples of programs that provide Answer Selected Answer: "in-kind" assistance to the poor Correct Answer: "in-kind" assistance to the poor  Question 10 4 out of 4 points An advantage of the negative income tax proposal is that Answer Selected Answer: Correct Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor  Question 11 . Medicaid. which of the following programs is most likely to pull the average poor family above the official poverty threshold? Answer Selected Answer: Earned Income Tax Credit (EITC) Correct Answer: Earned Income Tax Credit (EITC)  Question 9 4 out of 4 points Medicare.

S. poverty definition is an income sufficient to provide Answer Selected Answer: Three times the cost of an economy food budget Correct Answer: Three times the cost of an economy food budget  Question 14 0 out of 4 points An advantage of replacing all income-support programs with a negative income tax is that Answer . and health are examples of Answer Selected Answer: Investments in human capital Correct Answer: Investments in human capital  Question 12 4 out of 4 points Critics have claimed that the EITC Answer Selected Answer: Correct Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility  Question 13 4 out of 4 points The official U. training.4 out of 4 points Spending on education.

Selected Answer: Correct Answer: It discourages low-income workers from working more Households with income above the poverty threshold pay positive taxes  Question 15 4 out of 4 points Poverty in the US occurs as a result of Answer Selected Answer: Unequal distribution of income Correct Answer: Unequal distribution of income .

the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs . 4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States  Question 2 4 out of 4 points According to the equimarginal principle. the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 3 4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998  Question 4 4 out of 4 points Assuming negative externalities in production.

since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits. since the revenues are used for road and highway construction and maintenance  Question 6 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 7 4 out of 4 points In the US. Question 5 4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits. major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level  Question 8 4 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected .

Answer: Correct Answer: The supply of these goods and services is generally not divisible into small units The supply of these goods and services is generally not divisible into small units  Question 9 4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 10 4 out of 4 points Vertical equity implies that Answer Selected Answer: Correct Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts  Question 11 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 12 0 out of 4 points .

The fears of people concerning the size of government are Answer Selected Answer: Due to low income and low educational levels of many people Correct Answer: Well-founded in some instances and not well-founded in some instances  Question 13 4 out of 4 points Tax equity means that Answer Selected Answer: Correct Answer: People in the same economic circumstances should pay equal taxes. and people in different economic circumstances should pay unequal taxes People in the same economic circumstances should pay equal taxes. and people in different economic circumstances should pay unequal taxes  Question 14 4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service  Question 15 4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes  Question 16 .

4 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Consumer Price Index Correct Answer: Consumer Price Index  Question 17 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 18 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 19 4 out of 4 points If a program's benefits are funded out of current payments. it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system  Question 20 .

established Answer Selected Answer: an added prescription drug benefit to the Medicare program Correct Answer: an added prescription drug benefit to the Medicare program  Question 23 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 24 .4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 21 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 22 4 out of 4 points The Medicare Modernization Act. passed in 2003.

Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program . regardless of income  Question 27 4 out of 4 points As originally designed.000 for an appendectomy). the company is using which of the following? Answer Selected Answer: A prospective payment system Correct Answer: A prospective payment system  Question 26 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older. $5. regardless of income Correct Answer: Affects persons 65 and older.4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 25 4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example.

September 8. during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation  Question 30 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing Sunday.S. Question 28 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance  Question 29 4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U. 2013 7:39:38 PM EDT    Question 1 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: .

The net benefits to society are maximized Correct Answer: The net benefits to society are maximized  Question 2 4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998  Question 3 0 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units 4 out of 4 points Correct Answer:  Question 4 A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 5 0 out of 4 points In the US. major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and payroll taxes at the state level Income taxes at the federal level and income and sales taxes at the state level  Question 6 4 out of 4 points An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: .

the largest revenue generating tax is the Answer Selected Answer: Personal income tax Correct Answer: Personal income tax  Question 11 0 out of 4 points A tax system that will not alter the distribution of income is Answer Selected Answer: Regressive Correct Answer: .Marginal benefits are equal to marginal costs  Question 7 4 out of 4 points Vertical equity implies that Answer Selected Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts Correct Answer:  Question 8 0 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Personal income tax Correct Answer: Real property tax  Question 9 0 out of 4 points According to the equimarginal principle. the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Greater than the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points At the federal level.

based on need. is an example of a Answer Selected Answer: Transfer payment Correct Answer: Transfer payment  Question 16 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance . the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced greater than marginal external costs A subsidy on each unit consumed equal to marginal external benefits Correct Answer:  Question 15 4 out of 4 points A cash payment from the government to an individual.Proportional  Question 12 0 out of 4 points Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Falls as income rises Correct Answer: Remains the same as income rises  Question 13 0 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Remains the same as income rises Correct Answer: Falls as income rises  Question 14 0 out of 4 points Assuming positive externalities in consumption.

their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Substitution effect  Question 18 0 out of 4 points A person with health insurance will tend to Answer Selected Answer: Have a lower demand for health care services Correct Answer: Demand more health care services than a person without insurance  Question 19 0 out of 4 points In a fee-for-service health care system. Question 17 4 out of 4 points If people choose to work fewer hours because the Social Security tax reduces their real wage. consumers pay the Answer Selected Answer: Prearranged. fixed fee for services they receive Correct Answer: Full cost of the services they receive  Question 20 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Require less paper work Correct Answer: Typically require less cost sharing  Question 21 4 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Raise Social Security taxes and/or lower benefits Correct Answer: Raise Social Security taxes and/or lower benefits  Question 22 0 out of 4 points If I spend more each year because I know that I will receive Social Security payments .

when I retire, I am exhibiting which of the following effects?
Answer Selected Answer:

Retirement
Correct Answer:

Wealth substitution

Question 23
0 out of 4 points

The cost of living adjustment (COLA) employed by Social Security is based on the
Answer Selected Answer:

Producer Price Index
Correct Answer:

Consumer Price Index

Question 24
0 out of 4 points

As originally designed, Social Security was to be financed as a
Answer Selected Answer:

Pure income transfer program
Correct Answer:

Fully-funded insurance program

Question 25
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Increased public support for health care
Correct Answer:

Health care inflation

Question 26
0 out of 4 points

How are payments to health care providers determined under a managed care system? By the
Answer Selected Answer:

Provider and the consumer
Correct Answer:

Insurance company and the provider

Question 27
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the
Answer

Selected Answer:

Threat of foreign workers entering the U.S. due to NAFTA
Correct Answer:

Population bulge created by the "baby boom" generation

Question 28
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A fee-for-service market principle
Correct Answer:

A prearranged schedule of fixed prices

Question 29
0 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

70
Correct Answer:

67

Question 30
4 out of 4 points

The most significant argument against privatizing Social Security is that
Answer Selected Answer:

Future benefits levels cannot be guaranteed
Correct Answer:

Future benefits levels cannot be guaranteed

Question 1
0 out of 4 points

An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 2
0 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes

Question 3
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 4
4 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises

Question 5
0 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good [None Given]

Question 6
0 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance [None Given]

Question 7
0 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service

Question 8
0 out of 4 points

Characteristics of public goods and services include which of the following? Answer

Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded Correct Answer: The supply of these goods and services is generally not divisible into small units

Question 9
0 out of 4 points

The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998

Question 10
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service

Question 11
4 out of 4 points

In the US, major sources of tax revenues are: Answer

Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 14
4 out of 4 points

An efficient level of government expenditures is that level at which Answer

Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized

Question 15
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax Correct Answer: Real property tax

Question 16
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices

Question 17
0 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer

Selected Answer: A fee-for-service system Correct Answer: A prospective payment system

Question 18
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 19
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation

Question 20
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States? Answer

Selected Answer: Hospitals Correct Answer: Hospitals

Question 21
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation

Question 22
0 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits

Question 23
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer:

Social Security Correct Answer: Social Security

Question 24
4 out of 4 points

How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider

Question 25
0 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system

Question 26
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care

Correct Answer: Typically require less cost sharing

Question 27
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution

Question 28
0 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs

Question 29
0 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Private insurance program

Correct Answer: Fully-funded insurance program

Question 30
0 out of 4 points

A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance

Sunday, September 8, 2013 11:51:43 AM EDT OK

Question 1
4 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 2
4 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer:

Government purchase of a service Correct Answer: Government purchase of a service  Question 3 4 out of 4 points Vertical equity implies that Answer .

the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 5 4 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax  Question 6 .Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts  Question 4 0 out of 4 points Assuming positive externalities in consumption.

and people in different economic circumstances should pay unequal taxes  Question 7 4 out of 4 points A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 8 0 out of 4 points An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic .0 out of 4 points Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes.

the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points In the US. major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level  Question 11 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized . Question 9 4 out of 4 points According to the equimarginal principle.

must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income  Question 13 0 out of 4 points The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002  Question 14 4 out of 4 points An efficient level of government expenditures is that level where . say through taxes and subsidies.Correct Answer: The net benefits to society are maximized  Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive.

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 15 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 16 0 out of 4 points If a program's benefits are funded by interest earned on accumulated payments. it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme  Question 17 0 out of 4 points .

established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program  Question 18 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 19 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 20 .The Medicare Modernization Act. passed in 2003.

it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system . I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution  Question 21 4 out of 4 points Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.4 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire.9% tax levied on wages and salaries Correct Answer: A 2.9% tax levied on wages and salaries  Question 22 4 out of 4 points If a program's benefits are funded out of current payments.

regardless of income  Question 25 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing . their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect  Question 24 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older. Question 23 0 out of 4 points If people choose to work more hours because the Social Security tax reduces their real wage. regardless of income Correct Answer: Affects persons 65 and older.

Correct Answer: Typically require less cost sharing  Question 26 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 27 4 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs  Question 28 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer .

Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program .Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 29 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 30 4 out of 4 points As originally designed.

.

.

 4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States  Question 2 4 out of 4 points According to the equimarginal principle. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs . the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 3 4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998  Question 4 4 out of 4 points Assuming negative externalities in production.

 Question 5 4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits. since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits. since the revenues are used for road and highway construction and maintenance  Question 6 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 7 4 out of 4 points In the US. major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level  Question 8 4 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected .

Answer: Correct Answer: The supply of these goods and services is generally not divisible into small units The supply of these goods and services is generally not divisible into small units  Question 9 4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 10 4 out of 4 points Vertical equity implies that Answer Selected Answer: Correct Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts  Question 11 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 12 0 out of 4 points .

The fears of people concerning the size of government are Answer Selected Answer: Due to low income and low educational levels of many people Correct Answer: Well-founded in some instances and not well-founded in some instances  Question 13 4 out of 4 points Tax equity means that Answer Selected Answer: Correct Answer: People in the same economic circumstances should pay equal taxes. and people in different economic circumstances should pay unequal taxes  Question 14 4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service  Question 15 4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes  Question 16 . and people in different economic circumstances should pay unequal taxes People in the same economic circumstances should pay equal taxes.

it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system  Question 20 .4 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Consumer Price Index Correct Answer: Consumer Price Index  Question 17 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 18 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 19 4 out of 4 points If a program's benefits are funded out of current payments.

passed in 2003. established Answer Selected Answer: an added prescription drug benefit to the Medicare program Correct Answer: an added prescription drug benefit to the Medicare program  Question 23 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 24 .4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 21 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 22 4 out of 4 points The Medicare Modernization Act.

regardless of income Correct Answer: Affects persons 65 and older. Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program .4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 25 4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example. $5.000 for an appendectomy). regardless of income  Question 27 4 out of 4 points As originally designed. the company is using which of the following? Answer Selected Answer: A prospective payment system Correct Answer: A prospective payment system  Question 26 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older.

September 8.S. 2013 7:39:38 PM EDT    Question 1 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: . during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation  Question 30 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing Sunday. Question 28 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance  Question 29 4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.

major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and payroll taxes at the state level Income taxes at the federal level and income and sales taxes at the state level  Question 6 4 out of 4 points An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: .The net benefits to society are maximized Correct Answer: The net benefits to society are maximized  Question 2 4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998  Question 3 0 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units 4 out of 4 points Correct Answer:  Question 4 A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 5 0 out of 4 points In the US.

the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Greater than the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points At the federal level.Marginal benefits are equal to marginal costs  Question 7 4 out of 4 points Vertical equity implies that Answer Selected Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts Correct Answer:  Question 8 0 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Personal income tax Correct Answer: Real property tax  Question 9 0 out of 4 points According to the equimarginal principle. the largest revenue generating tax is the Answer Selected Answer: Personal income tax Correct Answer: Personal income tax  Question 11 0 out of 4 points A tax system that will not alter the distribution of income is Answer Selected Answer: Regressive Correct Answer: .

based on need. is an example of a Answer Selected Answer: Transfer payment Correct Answer: Transfer payment  Question 16 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance . the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced greater than marginal external costs A subsidy on each unit consumed equal to marginal external benefits Correct Answer:  Question 15 4 out of 4 points A cash payment from the government to an individual.Proportional  Question 12 0 out of 4 points Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Falls as income rises Correct Answer: Remains the same as income rises  Question 13 0 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Remains the same as income rises Correct Answer: Falls as income rises  Question 14 0 out of 4 points Assuming positive externalities in consumption.

consumers pay the Answer Selected Answer: Prearranged. Question 17 4 out of 4 points If people choose to work fewer hours because the Social Security tax reduces their real wage. their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Substitution effect  Question 18 0 out of 4 points A person with health insurance will tend to Answer Selected Answer: Have a lower demand for health care services Correct Answer: Demand more health care services than a person without insurance  Question 19 0 out of 4 points In a fee-for-service health care system. fixed fee for services they receive Correct Answer: Full cost of the services they receive  Question 20 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Require less paper work Correct Answer: Typically require less cost sharing  Question 21 4 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Raise Social Security taxes and/or lower benefits Correct Answer: Raise Social Security taxes and/or lower benefits  Question 22 0 out of 4 points If I spend more each year because I know that I will receive Social Security payments .

S. I am exhibiting which of the following effects? Answer Selected Answer: Retirement Correct Answer: Wealth substitution  Question 23 0 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Producer Price Index Correct Answer: Consumer Price Index  Question 24 0 out of 4 points As originally designed.when I retire. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation  Question 26 0 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Provider and the consumer Correct Answer: Insurance company and the provider  Question 27 0 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer . Social Security was to be financed as a Answer Selected Answer: Pure income transfer program Correct Answer: Fully-funded insurance program  Question 25 0 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.

S. due to NAFTA Correct Answer: Population bulge created by the "baby boom" generation  Question 28 0 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A fee-for-service market principle Correct Answer: A prearranged schedule of fixed prices  Question 29 0 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 70 Correct Answer: 67  Question 30 4 out of 4 points The most significant argument against privatizing Social Security is that Answer Selected Answer: Future benefits levels cannot be guaranteed Correct Answer: Future benefits levels cannot be guaranteed  Question 1 0 out of 4 points An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs .Selected Answer: Threat of foreign workers entering the U.

the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs  Question 4 4 out of 4 points Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises  Question 5 0 out of 4 points . Question 2 0 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes  Question 3 4 out of 4 points Assuming negative externalities in production.

since the revenues are used for road and highway construction and maintenance [None Given]  Question 7 0 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service  Question 8 0 out of 4 points Characteristics of public goods and services include which of the following? Answer .A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good [None Given]  Question 6 0 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits.

major sources of tax revenues are: Answer .Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded Correct Answer: The supply of these goods and services is generally not divisible into small units  Question 9 0 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998  Question 10 4 out of 4 points Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service  Question 11 4 out of 4 points In the US.

Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level  Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive. say through taxes and subsidies. must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income  Question 13 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 14 4 out of 4 points An efficient level of government expenditures is that level at which Answer .

$5. the company is using which of the following? Answer .Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized  Question 15 0 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax Correct Answer: Real property tax  Question 16 0 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices  Question 17 0 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example.000 for an appendectomy).

S.Selected Answer: A fee-for-service system Correct Answer: A prospective payment system  Question 18 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 19 0 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation  Question 20 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer .

Selected Answer: Hospitals Correct Answer: Hospitals  Question 21 0 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation  Question 22 0 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits  Question 23 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: .

Social Security Correct Answer: Social Security  Question 24 4 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider  Question 25 0 out of 4 points If a program's benefits are funded out of current payments. it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system  Question 26 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care .

I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution  Question 28 0 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs  Question 29 0 out of 4 points As originally designed.Correct Answer: Typically require less cost sharing  Question 27 0 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire. Social Security was to be financed as a Answer Selected Answer: Private insurance program .

2013 11:51:43 AM EDT OK  Question 1 4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 2 4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: . This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance Sunday.Correct Answer: Fully-funded insurance program  Question 30 0 out of 4 points A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. September 8.

Government purchase of a service Correct Answer: Government purchase of a service  Question 3 4 out of 4 points Vertical equity implies that Answer .

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts  Question 4 0 out of 4 points Assuming positive externalities in consumption. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 5 4 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax  Question 6 .

0 out of 4 points Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes. and people in different economic circumstances should pay unequal taxes  Question 7 4 out of 4 points A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 8 0 out of 4 points An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic .

the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points In the US. Question 9 4 out of 4 points According to the equimarginal principle. major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level  Question 11 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized .

say through taxes and subsidies.Correct Answer: The net benefits to society are maximized  Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive. must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income  Question 13 0 out of 4 points The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002  Question 14 4 out of 4 points An efficient level of government expenditures is that level where .

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 15 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 16 0 out of 4 points If a program's benefits are funded by interest earned on accumulated payments. it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme  Question 17 0 out of 4 points .

The Medicare Modernization Act. established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program  Question 18 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 19 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 20 . passed in 2003.

4 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire. I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution  Question 21 4 out of 4 points Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2. it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system .9% tax levied on wages and salaries Correct Answer: A 2.9% tax levied on wages and salaries  Question 22 4 out of 4 points If a program's benefits are funded out of current payments.

regardless of income Correct Answer: Affects persons 65 and older. their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect  Question 24 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older. Question 23 0 out of 4 points If people choose to work more hours because the Social Security tax reduces their real wage. regardless of income  Question 25 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing .

Correct Answer: Typically require less cost sharing  Question 26 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 27 4 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs  Question 28 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer .

Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 29 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 30 4 out of 4 points As originally designed. Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program .

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Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action. the firm will treat pollution. rather than pay the tax. which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution. as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer: .

polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action. which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: .Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market.

The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers. the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: .

Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction. the costs are Answer Selected Answer: Psychic costs Correct Answer: .

additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: .Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget.

Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer: .

2013 6:12:22 PM EDT .Determine what the economic impact will be of making certain activities illegal Saturday. July 27.

Question 1 4 out of 4 points There is an increase in the quantity of pizza purchased but no change in the price of pizza. then for that consumer macaroni and cheese are examples of: Answer Selected Answer: Complements Correct Answer: Complements Question 3 4 out of 4 points If an increase in the price of cookies leads to a decrease in the demand for ice cream. Which of the following is most likely to have occurred? Answer Selected Answer: Both supply and demand increased Correct Answer: Both supply and demand increased Question 2 4 out of 4 points If a consumer always eats cheese with macaroni. then ice cream and cookies must be Answer Selected Answer: Complements Correct Answer: Complements Question 4 .

the student buys more frozen pizzas. quantity will increase Correct Answer: Price will increase. frozen pizzas must be a(n) Answer Selected Answer: Normal good Correct Answer: Normal good Question 7 4 out of 4 points Since 1990. what will happen to the equilibrium price and quantity of homes in retirement communities? Answer Selected Answer: Price will increase.4 out of 4 points Two goods are said to be substitutes in consumption if Answer Selected Answer: An increase in the price of one leads to an increase in the demand for the other Correct Answer: An increase in the price of one leads to an increase in the demand for the other Question 5 4 out of 4 points As the baby boom generation continues to age. quantity will increase Question 6 4 out of 4 points A student graduates from college and gets a high-paying job. For the student. As a result of the increase in income. foreign investment in China has Answer Selected Answer: Increased significantly Correct Answer: Increased significantly Question 8 4 out of 4 points .

the demand curve for Good X shifts to the right. As a result of your now higher income. Given this. you stop bringing your lunch from home and start eating lunch at a nearby restaurant. the bicycles and bus rides must be Answer Selected Answer: Substitutes Correct Answer: Substitutes Question 11 4 out of 4 points As consumer incomes rise. Good X must be Answer Selected Answer: A normal good Correct Answer: A normal good Question 12 4 out of 4 points . Your homemade lunches must be Answer Selected Answer: Inferior goods Correct Answer: Inferior goods Question 9 4 out of 4 points China can be best described as a Answer Selected Answer: Transitional economy Correct Answer: Transitional economy Question 10 4 out of 4 points If an increase in the price of bicycles leads to an increase in the demand for bus transportation.You receive a big raise at work.

Which of the following will cause demand to rise? Answer Selected Answer: A decrease in the price of a complementary good Correct Answer: A decrease in the price of a complementary good Question 13 4 out of 4 points The Law of Demand suggests that Answer Selected Answer: The lower the price of a product. the more consumers will wish to purchase. other things equal Question 14 4 out of 4 points The economy of the People’s Republic of China operated as a command economy Answer Selected Answer: from 1949 until 1978 Correct Answer: from 1949 until 1978 Question 15 4 out of 4 points The Law of Demand states that price and Answer Selected Answer: Quantity demanded are negatively related Correct Answer: Quantity demanded are negatively related Question 16 4 out of 4 points A maximum allowable price for a good or service is a . other things equal Correct Answer: The lower the price of a product. the more consumers will wish to purchase.

as a result. output increases from 100 to 110.Answer Selected Answer: Price ceiling Correct Answer: Price ceiling Question 17 4 out of 4 points Given that a firm is selling its product in a competitive market. Each of the additional units of output can be sold for $2. what would the Law of Diminishing Returns to labor inputs imply about the demand for labor? Answer Selected Answer: The demand curve for labor has a negative slope resulting from declining marginal product Correct Answer: The demand curve for labor has a negative slope resulting from declining marginal product Question 18 0 out of 4 points Which effect dominates if a workers supply curve for labor is negatively sloped? Answer Selected Answer: Substitution Correct Answer: Income Question 19 0 out of 4 points A firm increases the number of workers it hires from 50 to 52 and. What is marginal revenue for the last 10 units produced? Answer Selected Answer: 5 Correct Answer: 2 Question 20 0 out of 4 points . meaning that its marginal revenue is constant.

S. What is the marginal product of the 52nd worker? Answer Selected Answer: 2 Correct Answer: 5 Question 21 0 out of 4 points A change in the hours of work that occurs in response to a wage change. output increases from 100 to 110. is known as the Answer Selected Answer: Supply of labor Correct Answer: Substitution effect Question 22 0 out of 4 points To be effective. other things equal. the U. a price ceiling must be set Answer Selected Answer: By the market Correct Answer: Below equilibrium Question 23 4 out of 4 points As of summer 2009. Each of the additional units of output can be sold for $2. federal minimum wage is set at what rate per hour? Answer Selected Answer: $7.A firm increases the number of workers it hires from 50 to 52 and.25 Question 24 4 out of 4 points Price floors are often instituted for which of the following purposes? Answer . as a result.25 Correct Answer: $7.

Answer Selected Answer: Increase Correct Answer: Increase Question 26 4 out of 4 points As the price of rental housing falls.Selected Answer: To increase the income of sellers Correct Answer: To increase the income of sellers Question 25 4 out of 4 points Rent control laws will _____________ the search costs of potential renters. which of the following occurs? Answer Selected Answer: The quantity demanded of housing increases Correct Answer: The quantity demanded of housing increases Question 27 4 out of 4 points One of the earliest known rent control laws was instituted in which city and when? Answer Selected Answer: Paris in the 1700s Correct Answer: Paris in the 1700s Question 28 4 out of 4 points The marginal product of labor is the additional Answer .

the product’s price will Answer Selected Answer: Rise Correct Answer: Rise Question 30 4 out of 4 points Which of the following represents the demand curve for labor for a firm? Answer Selected Answer: The MRP curve Correct Answer: The MRP curve .Selected Answer: Output produced as a result of hiring an additional worker Correct Answer: Output produced as a result of hiring an additional worker Question 29 4 out of 4 points In a market economy. if the market supply of a product decreases relative to its demand.

Current Location 1. Week 3 Assessment Items 4. Week 3 3. Review Test Submission: Week 3 Quiz 2 Skip to Course Content Skip to Top Frame Tabs Menu Management Options • • • • Course Menu: ECO405025MD014-1136-001 (Econ Problems & Issues) • • • • • • • • • • • Course Home Student Center Announcements Email Gradebook Class Introductions Week 1 Week 2 Week 3 Week 4 Review Test Submission: Week 3 Quiz 2 Skip to Course Menu Skip to Top Frame Tabs Content . ECO405025MD014-1136-001 Econ Problems & Issues 2.

Course Test Started Submitted Status Attempt Score Time Elapsed Instructions Econ Problems & Issues Week 3 Quiz 2 7/19/13 7:57 PM 7/19/13 9:14 PM Completed 88 out of 120 points 1 hour. quantity will increase . The first 15 Chapter 2. what will happen to the equilibrium price and quantity of homes in retirement communities? Answer Selected Answer: Price will increase. 16 minutes out of 2 hours. The second 15 Chapter 3. • Question 1 4 out of 4 points If an increase in the price of bicycles leads to an increase in the demand for bus transportation. This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take choice questions. Be sure you are in the the quiz. the bicycles and bus rides must be Answer Selected Answer: Substitutes Correct Answer: Substitutes • Question 2 4 out of 4 points As the baby boom generation continues to age. quantity will increase Correct Answer: Price will increase.

• Question 3 0 out of 4 points The Law of Demand states that price and Answer Selected Answer: Demand are negatively related Correct Answer: Quantity demanded are negatively related • Question 4 4 out of 4 points The economy of the People’s Republic of China operated as a command economy Answer Selected Answer: from 1949 until 1978 Correct Answer: from 1949 until 1978 • Question 5 4 out of 4 points China can be best described as a Answer Selected Answer: Transitional economy Correct Answer: Transitional economy • Question 6 4 out of 4 points .

then for that consumer macaroni and cheese are examples of: Answer Selected Answer: Complements Correct Answer: Complements • Question 7 4 out of 4 points If an increase in the price of cookies leads to a decrease in the demand for ice cream. then ice cream and cookies must be Answer Selected Answer: Complements Correct Answer: Complements • Question 8 4 out of 4 points Since 1990.If a consumer always eats cheese with macaroni. foreign investment in China has Answer Selected Answer: Increased significantly Correct Answer: Increased significantly • Question 9 4 out of 4 points The Law of Demand suggests that .

? Answer Selected Answer: Correct Answer: An increase in the demand for domestic cars • A fall in the price of imported cars and increase in the price of domestics Question 11 0 out of 4 points Which of the following will cause demand to rise? Answer Selected Answer: A decrease in price Correct Answer: A decrease in the price of a complementary good • Question 12 0 out of 4 points . the more consumers will wish to purchase. Which of the following is most likely to occur in the U.Answer Selected Answer: Correct Answer: The lower the price of a product.S. other things equal • Question 10 0 out of 4 points Suppose the United Auto Workers union successfully lobbies Congress to enact an import quota on all foreign cars imported into the U.S. other things equal The lower the price of a product. the more consumers will wish to purchase.

the demand curve for Good X shifts to the right. quantity will increase Correct Answer: Price will decrease. Which of the following is most likely to have occurred? Answer Selected Answer: Supply increased while demand remained unchanged Correct Answer: Both supply and demand increased • Question 14 4 out of 4 points China's growth has been a result of Answer Selected Answer: Trade surpluses Correct Answer: Trade surpluses • Question 15 4 out of 4 points As consumer incomes rise. Good X must be Answer . Given this. quantity will increase • Question 13 0 out of 4 points There is an increase in the quantity of pizza purchased but no change in the price of pizza.A technological advance in the production of computers will have what effect on the equilibrium price and quantity in the computer market? Answer Selected Answer: Price will increase.

increases in output will Answer Selected Answer: Decline .Selected Answer: A normal good Correct Answer: A normal good • Question 16 4 out of 4 points One of the earliest known rent control laws was instituted in which city and when? Answer Selected Answer: Paris in the 1700s Correct Answer: Paris in the 1700s • Question 17 0 out of 4 points Research suggests that as the minimum wage is increased by 10%. as additional units of a variable input are added to a given amount of a fixed input. the associated increase in the teenage unemployment rate is nearly Answer Selected Answer: 10 percent Correct Answer: 1 percent • Question 18 4 out of 4 points The Law of Diminishing Returns states that.

Correct Answer: Decline • Question 19 4 out of 4 points The additional revenue that accrues to a firm when an additional worker is hired is Answer Selected Answer: The marginal revenue product of labor Correct Answer: The marginal revenue product of labor • Question 20 4 out of 4 points Which of the following groups most suffers the costs of minimum wage laws? Answer Selected Answer: Teenagers Correct Answer: Teenagers • Question 21 4 out of 4 points The marginal product of labor is the additional Answer Selected Answer: Output produced as a result of hiring an additional worker Correct Answer: Output produced as a result of hiring an additional worker • Question 22 .

federal minimum wage is set at what rate per hour? Answer Selected Answer: $7.4 out of 4 points The additional revenue a firm receives as a result of selling an additional unit of output is called Answer Selected Answer: Marginal revenue Correct Answer: Marginal revenue • Question 23 4 out of 4 points As of summer 2009.25 Correct Answer: $7. Answer Selected Answer: Increase Correct Answer: Increase • Question 25 4 out of 4 points . the U.25 • Question 24 4 out of 4 points Rent control laws will _____________ the search costs of potential renters.S.

Each of the additional units of output can be sold for $2. if the market supply of a product decreases relative to its demand. What is marginal revenue for the last 10 units produced? Answer Selected Answer: 5 Correct Answer: 2 • Question 27 4 out of 4 points Price floors are often instituted for which of the following purposes? Answer Selected Answer: To increase the income of sellers Correct Answer: To increase the income of sellers • Question 28 4 out of 4 points In a market economy. as a result. the product's price will Answer .Owners of rent controlled property may attempt to increase profits by Answer Selected Answer: Taking under-the-table payments Correct Answer: Taking under-the-table payments • Question 26 0 out of 4 points A firm increases the number of workers it hires from 50 to 52 and. output increases from 100 to 110.

as a result. which effect dominates? Answer Selected Answer: Substitution Correct Answer: Substitution • Question 30 0 out of 4 points A firm increases the number of workers it hires from 50 to 52 and. output increases from 100 to 110.Selected Answer: Rise Correct Answer: Rise • Question 29 4 out of 4 points An increase in the wage from $6 per hour to $6. July 19. 2013 9:14:16 PM EDT OK . What is the marginal product of the 52nd worker? Answer Selected Answer: 10 Correct Answer: 5 Friday. Each of the additional units of output can be sold for $2. For this worker.50 per hour causes a worker to increase her hours worked from 40 to 45 hours per week.

spaces would be allocated based on . it will lead to an increase in Answer Selected Answer: The demand for K-12 education Correct Answer: The demand for K-12 education  Question 4 4 out of 4 points In a purely private K-12 education system. Question 1 4 out of 4 points Schools in which parents or other groups were permitted to create a new school with state funding and were given control over operations are known as Answer Selected Answer: Charter schools Correct Answer: Charter schools  Question 2 4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling? It will Answer Selected Answer: Decrease Correct Answer: Decrease  Question 3 4 out of 4 points If the earnings expected from a college education increase.

Answer Selected Answer: Income Correct Answer: Income  Question 5 4 out of 4 points With positive externalities in consumption. the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal  Question 6 4 out of 4 points A purely private K-12 system will lead to Answer Selected Answer: Increased inequality Correct Answer: Increased inequality  Question 7 4 out of 4 points A decrease in the cost of education will Answer Selected Answer: Increase the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education .

spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries  Question 11 4 out of 4 points To be socially optimal. education should be provided to the point where Answer .9  Question 10 4 out of 4 points In the existing public K-12 education system. Question 8 0 out of 4 points The current K-12 education system can be described as Answer Selected Answer: State owned Correct Answer: Centralized  Question 9 0 out of 4 points Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 5.3 Correct Answer: 3.

Selected Answer: MSB = MSC Correct Answer: MSB = MSC  Question 12 4 out of 4 points Which of the following will decrease the equilibrium quantity of education in a market? Answer Selected Answer: A decrease in the demand for education Correct Answer: A decrease in the demand for education  Question 13 4 out of 4 points Educated citizens are more likely to be informed voters. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption  Question 14 4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Inconsistent Correct Answer: Inconsistent .

 Question 15 4 out of 4 points The creation of new learning technologies will cause which of the following to decrease? Answer Selected Answer: The cost of education Correct Answer: The cost of education Sunday. August 4. 2013 6:10:09 PM EDT .

This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption  Question 5 0 out of 4 points Which of the following happens as tuition increases? Answer Selected Answer: The demand for education decreases Correct Answer: . spaces are allocated based on Answer Selected Answer: Income Correct Answer: Geographic boundaries  Question 3 4 out of 4 points The creation of new learning technologies will cause which of the following to decrease? Answer Selected Answer: The cost of education Correct Answer: The cost of education  Question 4 4 out of 4 points I benefit because you become more educated. Question 1 0 out of 4 points A decrease in the cost of education will Answer Selected Answer: Decrease the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education  Question 2 0 out of 4 points In the existing public K-12 education system. Be sure you are in Chapter 6 when you take the quiz. This quiz consist of 15 multiple choice questions and covers the material in Chapter 6.

The years of education demanded fall  Question 6 4 out of 4 points In a purely private K-12 education system.000 Correct Answer: . per pupil? Answer Selected Answer: $8. education should be provided to the point where Answer Selected Answer: MSB = MSC Correct Answer: MSB = MSC  Question 8 4 out of 4 points Schools in which parents or other groups were permitted to create a new school with state funding and were given control over operations are known as Answer Selected Answer: Charter schools Correct Answer: Charter schools  Question 9 4 out of 4 points An increase in the marginal benefit of education will cause which of the following? Answer Selected Answer: The demand curve for education shifts right Correct Answer: The demand curve for education shifts right  Question 10 0 out of 4 points About how much does the United States spend on education. spaces would be allocated based on Answer Selected Answer: Income Correct Answer: Income  Question 7 4 out of 4 points To be socially optimal.

$9.000  Question 11 0 out of 4 points Education is said to be which of the following? Answer Selected Answer: Individually consumed Correct Answer: A semi-private good  Question 12 0 out of 4 points Educated citizens are more likely to be informed voters. This is an example of a Answer Selected Answer: Positive externality in production Correct Answer: Positive externality in consumption  Question 13 0 out of 4 points With positive externalities in consumption. the market equilibrium quantity will be Answer Selected Answer: Greater than socially optimal Correct Answer: Less than socially optimal  Question 14 0 out of 4 points A purely private K-12 system will lead to Answer Selected Answer: Decreased racial segregation Correct Answer: Increased inequality  Question 15 0 out of 4 points If the earnings expected from a college education increase. it will lead to an increase in Answer Selected Answer: The teacher salaries Correct Answer: The demand for K-12 education .

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Be sure you are in Chapter 6 when you take the quiz. spaces would be allocated based on Answer Selected Answer: Income Correct Answer: Income  Question 3 4 out of 4 points Educated citizens are more likely to be informed voters.Review Test Submission: Week 5 Quiz Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 6.  Question 1 4 out of 4 points Which of the following will decrease the equilibrium quantity of education in a market? Answer Selected Answer: A decrease in the demand for education Correct Answer: A decrease in the demand for education  Question 2 4 out of 4 points In a purely private K-12 education system. This is an example of a Answer Selected Answer: Positive externality in consumption .

000 Correct Answer: $9.000  Question 6 0 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Positive Correct Answer: Inconsistent  Question 7 4 out of 4 points Which of the following happens as tuition increases? Answer Selected Answer: The years of education demanded fall Correct Answer: . per pupil? Answer Selected Answer: $9.Correct Answer: Positive externality in consumption  Question 4 4 out of 4 points A purely private K-12 system will lead to Answer Selected Answer: Increased inequality Correct Answer: Increased inequality  Question 5 4 out of 4 points About how much does the United States spend on education.

This provides a Answer Selected Answer: Positive externality in production Correct Answer: Positive externality in consumption  Question 9 4 out of 4 points I benefit because you become more educated. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption  Question 10 4 out of 4 points The supply of private education is represented by Answer Selected Answer: The MPC curve Correct Answer: The MPC curve  Question 11 0 out of 4 points What is the relationship between school funding and student achievement? Answer Selected Answer: Mixed Correct Answer: Positive .The years of education demanded fall  Question 8 0 out of 4 points Students learn about health and nutrition in school.

August 4. Question 12 4 out of 4 points A decrease in the cost of education will Answer Selected Answer: Increase the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education  Question 13 4 out of 4 points An increase in the marginal benefit of education will cause which of the following? Answer Selected Answer: The demand curve for education shifts right Correct Answer: The demand curve for education shifts right  Question 14 4 out of 4 points Education is said to be which of the following? Answer Selected Answer: A semi-private good Correct Answer: A semi-private good  Question 15 4 out of 4 points With positive externalities in consumption. the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal Sunday. 2013 1:57:24 PM EDT .

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Question 1 4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled • Question 2 0 out of 4 points As additional units of pollution control are added. Be sure you are in the the quiz. which of the following exists? Answer Selected Answer: Externality in production Correct Answer: . at some point each additional unit adds Answer Selected Answer: Less than the previous unit to total costs Correct Answer: Less than the previous unit to total benefits • Question 3 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost.Instructions This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take • choice questions. The first 15 Chapter 4. The second 15 Chapter 5.

Externality in production • Question 4 0 out of 4 points Costs incurred by the producer for the use of self-owned resources are called Answer Selected Answer: Explicit costs Correct Answer: Implicit costs • Question 5 0 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Vaccinations • Question 6 4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions • Question 7 4 out of 4 points .

the cost of clean-up is less than the benefit from its elimination For each unit of pollution. the cost of clean-up is less than the benefit from its elimination • Question 9 4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity • Question 10 4 out of 4 points When MPC is less than MSC.Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good • Question 8 4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution. Answer Selected Answer: .

Firms will tend to produce more than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal • Question 11 0 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Recycling of waste materials. the firm will treat pollution. as long as the tax is Answer Selected Answer: Above its MPC of pollution control Correct Answer: Above its MPC of pollution control • Question 14 . such as chemical wastes Correct Answer: Technological advances in production • Question 12 4 out of 4 points Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: The environment is collectively consumed • Question 13 4 out of 4 points If a pollution tax is placed on a firm emitting pollution. rather than pay the tax.

4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river • Question 15 4 out of 4 points For a tax on pollution to be effective. it must be Answer Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution • Question 16 4 out of 4 points Job training programs. remedial education courses. and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes • Question 17 4 out of 4 points Police officers should be hired up to the point where .

the benefits are known as Answer Selected Answer: Psychic income .Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her • The benefit of the last officer hired is just equal to what its cost to hire her Question 18 4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense • Question 19 4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair. which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts • Question 20 4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction.

Correct Answer: Psychic income • Question 21 4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime • Question 22 4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances • Question 23 4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment • Question 24 .

the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits • Question 26 4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property • Question 27 4 out of 4 points In any city with a given crime prevention budget. additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds .4 out of 4 points Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system • Question 25 4 out of 4 points If you are willing to take a pay cut to live near a ski resort.

of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime • Question 28 4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies • Question 29 4 out of 4 points If society receives no additional benefit from increasing crime prevention activities. the MSB of crime prevention Answer Selected Answer: Equals 0 Correct Answer: Equals 0 • Question 30 4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest .

July 28.Sunday. 2013 6:19:25 PM EDT .

Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action. the firm will treat pollution. as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer: . rather than pay the tax. which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution.

Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market. which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: . polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action.

The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers. the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: .

the costs are Answer Selected Answer: Psychic costs Correct Answer: .Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction.

additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: .Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget.

Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer: .

2013 6:12:22 PM EDT .Determine what the economic impact will be of making certain activities illegal Saturday. July 27.

which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution. the firm will treat pollution.Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action. as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer: . rather than pay the tax.

which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: . polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action.Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market.

The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers. the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: .

This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction.Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. the costs are Answer Selected Answer: Psychic costs Correct Answer: .

Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget. additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: .

the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer: .Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction.

Determine what the economic impact will be of making certain activities illegal Saturday. July 27. 2013 6:12:22 PM EDT .

the Personal Responsibility and Work Opportunity Act established which of the following programs? Answer Selected Answer: Temporary Assistance for Needy Families (TANF) Correct Answer: Temporary Assistance for Needy Families (TANF)  Question 3 4 out of 4 points A number of reasons have been given to explain increasing income inequality in the US over the last few decades. One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector . 4 out of 4 points Income support programs have Answer Selected Answer: Provided a minimum level of income to millions of people Correct Answer: Provided a minimum level of income to millions of people  Question 2 4 out of 4 points In 1996.

 Question 4 4 out of 4 points The Supplemental Social Insurance (SSI) program is not available to Answer Selected Answer: Households comprised of illegal residents Correct Answer: Households comprised of illegal residents  Question 5 4 out of 4 points Most federal assistance to the poor is in the form of Answer Selected Answer: Cash payments Correct Answer: Cash payments  Question 6 4 out of 4 points Discrimination is indicated when Answer Selected Answer: People having equal productivity receive unequal pay Correct Answer: People having equal productivity receive unequal pay .

or religion is the Answer . gender. Question 7 4 out of 4 points An advantage of replacing all income-support programs with a negative income tax is that Answer Selected Answer: Households with income above the poverty threshold pay positive taxes Correct Answer: Households with income above the poverty threshold pay positive taxes  Question 8 4 out of 4 points An advantage of the negative income tax proposal is that Answer Selected Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor Correct Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor  Question 9 4 out of 4 points The major piece of legislation that makes it illegal to discriminate in the labor market on the basis of race.

Selected Answer: Civil Rights Act of 1964 Correct Answer: Civil Rights Act of 1964  Question 10 4 out of 4 points Critics have claimed that the EITC Answer Selected Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility Correct Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility  Question 11 4 out of 4 points According to recent studies. which of the following programs is most likely to pull the average poor family above the official poverty threshold? Answer Selected Answer: Earned Income Tax Credit (EITC) Correct Answer: Earned Income Tax Credit (EITC)  Question 12 4 out of 4 points .

Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training  Question 13 4 out of 4 points Which of the following is charged with enforcing the federal government's antidiscrimination laws? Answer Selected Answer: The EEOC Correct Answer: The EEOC  Question 14 4 out of 4 points Ending discrimination against minority groups in educational processes and in employment situations would cause GDP to Answer Selected Answer: Rise because of an increase in the quality and productivity of the labor force Correct Answer: Rise because of an increase in the quality and productivity of the labor force .

 Question 15 4 out of 4 points A government transfer payment is a payment Answer Selected Answer: To a person NOT in return for goods or services Correct Answer: To a person NOT in return for goods or services Monday. August 12. 2013 3:10:59 PM EDT .

approximately what percent of school aged children attended public schools? Answer Selected Answer: 90% Correct Answer: 90%  Question 5 4 out of 4 points Education is said to be which of the following? Answer Selected Answer: A semi-private good Correct Answer: . Question 1 4 out of 4 points Students learn about health and nutrition in school. This provides a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption  Question 2 4 out of 4 points The current K-12 education system can be described as Answer Selected Answer: Centralized Correct Answer: Centralized  Question 3 4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling? It will Answer Selected Answer: Decrease Correct Answer: Decrease  Question 4 4 out of 4 points In 2003. This quiz consist of 15 multiple choice questions and covers the material in Chapter 6. Be sure you are in Chapter 6 when you take the quiz.

000 Correct Answer: $9. per pupil? Answer Selected Answer: $9. spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries  Question 8 4 out of 4 points A program to provide public funding for students in poor performing public schools to attend other schools is known as Answer Selected Answer: A voucher program Correct Answer: A voucher program  Question 9 4 out of 4 points The supply of private education is represented by Answer Selected Answer: The MPC curve Correct Answer: The MPC curve  Question 10 4 out of 4 points I benefit because you become more educated.A semi-private good  Question 6 4 out of 4 points About how much does the United States spend on education.000  Question 7 4 out of 4 points In the existing public K-12 education system. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: .

9  Question 14 4 out of 4 points Educated citizens are more likely to be informed voters.Positive externality in consumption  Question 11 4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Inconsistent Correct Answer: Inconsistent  Question 12 4 out of 4 points What is the relationship between school funding and student achievement? Answer Selected Answer: Positive Correct Answer: Positive  Question 13 4 out of 4 points Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 3.9 Correct Answer: 3. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption  Question 15 4 out of 4 points An increase in the demand for education will Answer Selected Answer: Increase the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education .

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Be sure you are in Chapter 6 when you take the quiz. spaces would be allocated based on Answer Selected Answer: Income Correct Answer: Income  Question 3 4 out of 4 points Educated citizens are more likely to be informed voters. This is an example of a Answer Selected Answer: Positive externality in consumption .  Question 1 4 out of 4 points Which of the following will decrease the equilibrium quantity of education in a market? Answer Selected Answer: A decrease in the demand for education Correct Answer: A decrease in the demand for education  Question 2 4 out of 4 points In a purely private K-12 education system.Review Test Submission: Week 5 Quiz Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 6.

Correct Answer: Positive externality in consumption  Question 4 4 out of 4 points A purely private K-12 system will lead to Answer Selected Answer: Increased inequality Correct Answer: Increased inequality  Question 5 4 out of 4 points About how much does the United States spend on education. per pupil? Answer Selected Answer: $9.000 Correct Answer: $9.000  Question 6 0 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Positive Correct Answer: Inconsistent  Question 7 4 out of 4 points Which of the following happens as tuition increases? Answer Selected Answer: The years of education demanded fall Correct Answer: .

This provides a Answer Selected Answer: Positive externality in production Correct Answer: Positive externality in consumption  Question 9 4 out of 4 points I benefit because you become more educated. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption  Question 10 4 out of 4 points The supply of private education is represented by Answer Selected Answer: The MPC curve Correct Answer: The MPC curve  Question 11 0 out of 4 points What is the relationship between school funding and student achievement? Answer Selected Answer: Mixed Correct Answer: Positive .The years of education demanded fall  Question 8 0 out of 4 points Students learn about health and nutrition in school.

2013 1:57:24 PM EDT . the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal Sunday. August 4. Question 12 4 out of 4 points A decrease in the cost of education will Answer Selected Answer: Increase the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education  Question 13 4 out of 4 points An increase in the marginal benefit of education will cause which of the following? Answer Selected Answer: The demand curve for education shifts right Correct Answer: The demand curve for education shifts right  Question 14 4 out of 4 points Education is said to be which of the following? Answer Selected Answer: A semi-private good Correct Answer: A semi-private good  Question 15 4 out of 4 points With positive externalities in consumption.

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that is.Every high-level computer programming language contains a while statement. Answer . Answer for while do until repeat Loops are frequently used to ____. Answer transaction total validator accumulator The ____ loop provides three actions in one compact statement. except that you usually add a value other than one to this type of variable. Answer True False It is the programmer’s responsibility to initialize all variables that must start with a specific value. Answer True False A(n) ____ is very similar to a counter that you use to count loop iterations. Answer validate data restructure data simulate data corroborate data A mistake programmers often make with loops is that they ____. to make sure it is meaningful and useful.

Answer indefinite definite inner outer ____ a data item means you override incorrect data by setting the variable to a specific value. Answer Flexing Tracing Forcing Blanking Business reports that list only totals. Answer detail reports summary reports transaction reports control-break reports The last step in a while loop is usually to ____. are called ____. Answer compare the loop control variable to a constant value initialize the loop control variable increment the loop control variable . with no individual item details.initialize the loop control variable prior to entering the loop body increment the loop control variable inside of the loop body include statements inside the loop that belong outside the loop enclose the inner loop entirely within the outer loop in a nested loop The amount by which a for loop control variable changes is often called a(n) ____ value. Answer group key step sentinel You usually use the for loop with ____ loops.

it can increment or decrement. Answer incrementing decrementing accumulating deprecating Programmers use the term “____” to describe programs that are well designed and easy to understand and maintain. What is an advantage of using fewer instructions? .execute the body of the loop A(n) ____ loop executes a predetermined number of times. that is. Answer industrial intractable well-behaved elegant What is a step value? The amount by which a for loop control variable changes is often called a step value. Answer accumulator key index counter Many loop control variable values are altered by ____. Answer terminal definite indefinite infinite A(n) ____ is any numeric variable you use to count the number of times an event has occurred. or adding to them. The step value can be positive or negative.

to accumulate totals in business reports. What are common mistakes made by programmers in coding loops? The mistakes programmers most often make with loops are: Neglecting to initialize the loop control variable Neglecting to alter the loop control variable Using the wrong comparison with the loop control variable Including statements inside the loop that belong outside the loop  1 out of 1 points Every high-level computer programming language contains a while statement. An accumulator is a variable that you use to gather or accumulate values. What is an accumulator? To create the sales report. Answer Selected Answer: True Correct Answer: True .Using fewer instructions not only results in less time required for design and coding. but in less compile time and reduced errors. you must output the address and price for each property sold and add its value to an accumulator. Answer Selected Answer: True Correct Answer: True  Question 2 1 out of 1 points It is the programmer’s responsibility to initialize all variables that must start with a specific value. Loops are also used to ensure that user data entries are valid by continuously reprompting the user. How might user data be validated? Loops are used in many applications . An accumulator is very similar to a counter that you use to count loop iterations.for example.

that is. Answer Selected Answer: for Correct Answer: for  Question 5 1 out of 1 points Loops are frequently used to ____. Question 3 1 out of 1 points A(n) ____ is very similar to a counter that you use to count loop iterations. Answer Selected Answer: accumulator Correct Answer: accumulator  Question 4 1 out of 1 points The ____ loop provides three actions in one compact statement. Answer Selected Answer: include statements inside the loop that belong outside the loop . to make sure it is meaningful and useful. except that you usually add a value other than one to this type of variable. Answer Selected Answer: validate data Correct Answer: validate data  Question 6 1 out of 1 points A mistake programmers often make with loops is that they ____.

Answer Selected Answer: definite Correct Answer: definite  Question 9 1 out of 1 points ____ a data item means you override incorrect data by setting the variable to a specific value. Answer Selected Answer: Forcing Correct Answer: Forcing  Question 10 1 out of 1 points . Answer Selected Answer: step Correct Answer: step  Question 8 1 out of 1 points You usually use the for loop with ____ loops.Correct Answer: include statements inside the loop that belong outside the loop  Question 7 1 out of 1 points The amount by which a for loop control variable changes is often called a(n) ____ value.

Answer Selected Answer: definite Correct Answer: definite  Question 13 1 out of 1 points A(n) ____ is any numeric variable you use to count the number of times an event has occurred. are called ____. Answer Selected Answer: increment the loop control variable Correct Answer: increment the loop control variable  Question 12 1 out of 1 points A(n) ____ loop executes a predetermined number of times.Business reports that list only totals. Answer Selected Answer: counter Correct Answer: counter . Answer Selected Answer: summary reports Correct Answer: summary reports  Question 11 1 out of 1 points The last step in a while loop is usually to ____. with no individual item details.

or adding to them. Question 14 1 out of 1 points Many loop control variable values are altered by ____. The step value can be positive or negative. it can increment or decrement. The step value can be positive or negative. that is. it can increment or decrement. Answer Selected Answer: elegant Correct Answer: elegant  Question 16 Needs Grading What is a step value? Answer Selected The amount by which a for loop control variable changes is often called a Answer: step value. Correct Answer: The amount by which a for loop control variable changes is often called a step value. Answer Selected Answer: incrementing Correct Answer: incrementing  Question 15 1 out of 1 points Programmers use the term “____” to describe programs that are well designed and easy to understand and maintain. that is. Response Feedback: [None Given]  Question 17 .

to make sure it falls within an acceptable range. Correct Answer: Using fewer instructions not only results in less time required for design and coding. Loops are frequently used to validate data. for example 1. For example. before proceeding. For example: • You could display an error message and stop the program. you must take some sort of action. suppose part of a program you are writing asks a user to enter a number that represents his or her birth month.for example. • You could reprompt the user for valid input. • You could choose to assign a default value for the month. Correct Answer: When you ask a user to enter data into a computer program. Loops are also used to ensure that user data entries are valid by continuously reprompting the user. but in less compile time and reduced errors. Response Feedback: [None Given]  Question 18 Needs Grading How might user data be validated? Answer Selected Loops are used in many applications .Needs Grading What is an advantage of using fewer instructions? Answer Selected Using fewer instructions not only results in less time required for design Answer: and coding. to accumulate totals in Answer: business reports. If the user types a number lower than 1 or greater than 12. Response Feedback: [None Given]  Question 19 Needs Grading What is an accumulator? Answer . you have no assurance that the data the user enters will be accurate. but in less compile time and reduced errors. that is.

However. you must output the address and price for each property sold and add its value to an accumulator. An accumulator is very similar to a counter that you use to count loop iterations. [None Given] Correct Answer: Response Feedback:  Question 20 Needs Grading What are common mistakes made by programmers in coding loops? Answer Selected Answer: The mistakes programmers most often make with loops are: Neglecting to initialize the loop control variable Neglecting to alter the loop control variable Using the wrong comparison with the loop control variable Including statements inside the loop that belong outside the loop Correct Answer: • Neglecting to initialize the loop control variable • Neglecting to alter the loop control variable • Using the wrong comparison with the loop control variable • Including statements inside the loop that belong outside the loop .Selected Answer: To create the sales report. An accumulator is very similar to a counter that you use to count loop iterations. An accumulator is a variable that you use to gather or accumulate values. usually you add just one to a counter. whereas you add some other value to an accumulator. An accumulator is a variable that you use to gather or accumulate values.

Answer Selected Answer: size Correct Answer: size  Question 4 1 out of 1 points Array elements all have the same ____ in common. Answer Selected Answer: constants Correct Answer: constants  Question 3 1 out of 1 points The number of elements in an array is called the ____ of the array. Answer Selected Answer: False Correct Answer: True  Question 2 1 out of 1 points Named ____ hold values that do not change during a program’s execution. Answer Selected Answer: data type Correct Answer: data type . Java. and C# use the bracket notation for arrays. Question 1 0 out of 1 points Many newer programming languages such as C++.

it is important to use a ____ containing a value that accesses memory occupied by the array. Answer Selected Answer: name Correct Answer: name  Question 6 1 out of 1 points In every programming language. Question 5 1 out of 1 points All array elements have the same group ____. you can set its value to ____. when you access data stored in an array. Answer Selected Answer: indirect . Answer Selected Answer: true or false Correct Answer: true or false  Question 8 1 out of 1 points Parallel arrays are most useful when value pairs have a(n) ____ relationship. Answer Selected Answer: subscript Correct Answer: subscript  Question 7 1 out of 1 points If you declare a variable to be Boolean.

To perform a range check. Answer Selected Answer: nested decisions Correct Answer: nested decisions  Question 10 Needs Grading What is an advantage of using an array to match a value in a range of values? Answer Selected When you need to compare a value to a range of values in an array. Common errors that occur when programmers perform range checks include asking unnecessary and previously answered questions. you use a loop to make a series of comparisons that would otherwise require many separate decisions. Correct Answer: When using an array to store range limits. and modifications to your method will be easier to make in the future. make comparisons with either the lowest or highest value in each range of values you are using.Correct Answer: indirect  Question 9 1 out of 1 points An array can be used to replace ____.or high-end value of each range for comparison. Response [None Given] Feedback:  Question 11 Needs Grading . you can Answer: store either the low. The program that determines customer discount rates is written using fewer instructions than would be required if you did not use an array.

[None Given] Response Feedback:  Question 12 1 out of 1 points You can easily merge files even if each file contains a different record layout. If you assume that an array’s fi rst subscript is 1. you will always be “off by one” in your array manipulation. Answer Selected Answer: . Answer Selected Answer: read Correct Answer: read  Question 14 1 out of 1 points ____ involves combining two or more files while maintaining the sequential order.What happens when a beginning programmer forgets that array subscripts start with 0? Answer Selected A common error by beginning programmers is to forget that array Answer: subscripts start with 0. Answer Selected Answer: False Correct Answer: False  Question 13 1 out of 1 points When you copy data from a file on a storage device into RAM. If you assume that an array’s first subscript is 1. you will always be “off by one” in your array manipulation. you ____ from the file. Correct Answer: A common error by beginning programmers is to forget that array subscripts start with 0.

one after the other. you are using ____ storage. Answer Selected Answer: temporary Correct Answer: temporary  Question 17 1 out of 1 points ____ is not lost when a computer loses power. Answer Selected Answer: Batch processing Correct Answer: Batch processing  Question 16 1 out of 1 points When you write a program that stores a value in a variable.Merging files Correct Answer: Merging files  Question 15 1 out of 1 points ____ is processing that involves performing the same tasks with many records. Answer Selected Answer: Permanent storage Correct Answer: Permanent storage  Question 18 Needs Grading .

” and “display” means the same thing all Answer: produce output.” “write. there is no difference in the verb you use for output. and salaries.” Answer Selected Logically. Binary files. Examples include images and music. However.” “write. However. Response [None Given] Feedback:  Question 19 Needs Grading Discuss text files and binary files. such as a payroll fi le that contains employee numbers. the verbs “print. Th e programs in this chapter will use text fi les. no matter what type of hardware you use. monitors. you simply assign different output devices (such as printers.” Programmers are more likely to use “write” when talking about sending records to a data fi le. Answer Selected Text files.” and “display. In some programming languages. and disk drives) as needed to programmer-named objects that represent them. programmers usually reserve the word “print” for situations in which they mean “produce hard copy output.” and “display” mean the same thing— all produce output. the verbs “print. you simply assign different output devices (such as printers. there is no difference in the verb you use for output. programmers usually reserve the word “print” for situations in which they mean “produce hard copy output. which contain data that can be read in a text editor because the Answer: data has been encoded using a scheme such as ASCII or Unicode. and “display” when sending records to a monitor. and “display” when sending records to a monitor. and disk drives) as needed to programmer-named objects that represent them. which contain data that has not been encoded as text. Correct Answer: Logically.” “write. in conversation. names.” Programmers are more likely to use “write” when talking about sending records to a data file. Text files might include facts and figures used by business programs. In some programming languages. monitors. no matter what type of hardware you use. in conversation. Correct Answer: Text files contain data that can be read in a text editor because the data has .Explain the difference in how programmers use the words “print.

Each file contains fields for name and customer balance. 2013 7:38:15 PM EDT . two conditions must be met: Answer: o Each file must contain the same record layout.been encoded using a scheme such as ASCII or Unicode. August 6. You want to merge the two files. and each location maintains a customer file in alphabetical order by customer name. For example. You can call the fields in the East Coast file eastName and eastBalance. Examples include images and music. creating one combined file containing records for all customers. one on the East Coast and one on the West Coast. such as a payroll file that contains employee numbers. Response [None Given] Feedback: Tuesday. and you want the new file to store records in alphabetical order. suppose your business has two locations. Correct Answer: Because the two input files contain records stored in alphabetical order. and salaries. o Each file used in the merge must be sorted in the same order (ascending or descending) based on the same field. and the fields in the West Coast file westName and westBalance. you first output the input record that has the lower alphabetical value in the name field. names. Binary files contain data that has not been encoded as text. Text files might include facts and figures used by business programs. Response Feedback:  [None Given] Question 20 Needs Grading How do you merge two alphabetically ordered input files into a new output file when you wish the output file to be in alphabetical order? Answer Selected Before you can easily merge fi les.

The first 15 questions cover the material in Chapter 8.  Question 1 0 out of 4 points Concentration ratios are used to measure the Answer Selected Answer: Potential monopoly power of a firm Correct Answer: Potential monopoly power within an industry  Question 2 0 out of 4 points The government's regulation of pollution Answer Selected Answer: Is justified by concentration ratios Correct Answer: Is justified by poorly defined property rights  Question 3 4 out of 4 points A pure monopoly industry has a 4-firm concentration ratio equal to Answer Selected Answer: 1.0 . The second 15 questions cover the material in Chapter 9.Review Test Submission: Week 7 Quiz 6 SKIP TO COURSE MENU SKIP TO TOP FRAME TABS Content Course Econ Problems & Issues Test Week 7 Quiz 6 Instructions This quiz consist of 30 multiple choice questions. Be sure you are in the correct Chapter when you take the quiz.

the firm's total revenue equals Answer Selected Answer: $300 Correct Answer: $500  Question 6 0 out of 4 points To maximize profits.0  Question 4 0 out of 4 points Monopolization of a previously competitive market leads to Answer Selected Answer: Correct Answer: Reduced production and product quality and increased costs and prices  Increased production.Correct Answer: 1. a monopolist produces the output level at which Answer Selected Answer: Its total receipts are greatest Correct Answer: Its marginal cost equals its marginal revenue  Question 7 4 out of 4 points A guarantee that allows the purchase of shares of stock at a fixed price is a(n) Answer Selected Answer: . product quality and prices Question 5 0 out of 4 points If a firm sells 100 units of output at a price of $5 and each unit costs $3 to produce.

Stock option Correct Answer: Stock option  Question 8 0 out of 4 points Monopoly refers to Answer Selected Answer: A large firm Correct Answer: A single seller of a product for which there are no good substitutes  Question 9 0 out of 4 points Profit equals Answer Selected Answer: Marginal cost minus marginal revenue Correct Answer: Total revenue minus total cost  Question 10 4 out of 4 points A major objective of firms in all types of market structures is Answer Selected Answer: Profit maximization Correct Answer: Profit maximization  Question 11 0 out of 4 points A monopoly is not efficient because Answer Selected Answer: Monopoly is illegal .

Answer Selected Answer: Government regulation ensures that consumer's interests will be served . at the output level at which marginal revenue equals marginal cost.Correct Answer: Price exceeds marginal cost  Question 12 0 out of 4 points For a firm. Answer Selected Answer: Output is maximized Correct Answer: Profits are highest  Question 13 0 out of 4 points The dead-weight welfare loss due to monopoly is Answer Selected Answer: Unable to be determined in a complex economy such as our own Correct Answer: About 1% of GDP per year  Question 14 4 out of 4 points Which of the following is a private barrier to entry? Answer Selected Answer: Ownership of raw materials Correct Answer: Ownership of raw materials  Question 15 0 out of 4 points With a natural monopoly.

Answer Selected Answer: Antitrust Correct Answer: Antitrust  Question 19 0 out of 4 points Today. Answer Selected Answer: Resourceful buyers find goods that are otherwise unavailable Correct Answer: Buyers and sellers exchange factors of production  Question 18 4 out of 4 points Professional baseball enjoys an exemption from ________ laws that make cartels illegal in most other industries.Correct Answer: The long-run average cost curve of the firm declines over the range of production  Question 16 0 out of 4 points A monopsony exists whenever there Answer Selected Answer: Is only one seller in a market Correct Answer: Is only one buyer in a market  Question 17 0 out of 4 points In a resource market. the primary source of revenue for most major league clubs is Answer Selected Answer: .

the difference between the marginal revenue product of labor and the wage rate is known as Answer .Merchandising Correct Answer: Broadcast rights  Question 20 0 out of 4 points Which of the following is a work stoppage initiated by management? Answer Selected Answer: Strike Correct Answer: Lockout  Question 21 0 out of 4 points In a product market with a cartel. higher Correct Answer: Higher. lower  Question 22 0 out of 4 points The relatively high salaries paid to professional athletes reflect Answer Selected Answer: Their contribution to society's general well-being Correct Answer: Their contribution to team revenue  Question 23 0 out of 4 points In a monopsony. prices will be _____ and output will be _____ than in a competitive market. Answer Selected Answer: Lower.

a cartel will produce output up to the point where Answer Selected Answer: TR = MC Correct Answer: MR = MC  Question 27 0 out of 4 points The difference between a worker's contribution to the firm's receipts and the wage is . free agency in professional sports has Answer Selected Answer: Correct Answer: Reduced the monopsonistic power of leagues and caused salaries to rise  Had little effect on the sports industry Question 26 0 out of 4 points To maximize joint profits.Selected Answer: Cartel profit Correct Answer: Monopsonistic profit  Question 24 4 out of 4 points If a cartel discovers that its marginal cost is greater than marginal revenue. the cartel should Answer Selected Answer: Reduce production Correct Answer: Reduce production  Question 25 0 out of 4 points Over the past twenty years.

2013 6:50:27 PM EDT OK .Answer Selected Answer: Cartel profit Correct Answer: Monopsony profit  Question 28 4 out of 4 points Which of the following conditions can give rise to a monopsony employer? Answer Selected Answer: Immobile workers with highly specialized skills Correct Answer: Immobile workers with highly specialized skills  Question 29 0 out of 4 points The additional cost incurred as a result of hiring an additional worker is the firm's Answer Selected Answer: Labor cost Correct Answer: Marginal cost of labor  Question 30 0 out of 4 points Under which of the following conditions will a monopsony hire an additional worker? When Answer Selected Answer: MRP = D Correct Answer: MCL < MRP Sunday. August 18.

you create a(n) ____ variable to hold one of the values. Answer Selected Answer: numeric Correct Answer: numeric  Question 4 1 out of 1 points When you create a ____ report. the records must have been sorted in order by a key field.Attempt Score Grade not available. Instructions  Question 1 1 out of 1 points In every popular computer coding scheme. they always use ____ values when making comparisons between values. Answer . “A” is numerically one greater than “B.” Answer Selected Answer: False Correct Answer: False  Question 2 1 out of 1 points To correctly swap two values. Answer Selected Answer: temporary Correct Answer: temporary  Question 3 1 out of 1 points When computers sort data. Time Elapsed 44 minutes out of 1 hour.

in which the first subscript represents the row and the second one represents the column. One subscript to determine the row and a second to determine the column. Answer Selected Answer: random-access Correct Answer: random-access  Question 7 Needs Grading Describe why you access a two-dimensional array value using two subscripts.Selected Answer: control break Correct Answer: control break  Question 5 1 out of 1 points ____ are arrays that have more than one dimension. in which the . you can store records on a ____ storage device. You access a two-dimensional array value using two subscripts. Answer Selected Answer: Multidimensional arrays Correct Answer: Multidimensional arrays  Question 6 1 out of 1 points When you use an index. Correct Answer: You access a two-dimensional array value using two subscripts. Answer Selected Each element in a two dimensional array requires two subscripts to Answer: reference it.

the first square bracket holds the number of rows. Answer Selected When you declare a one-dimensional array. To declare a two-dimensional array. the two dimensions represent the array’s height and its width. and the second one holds the number of columns. In other words. Response Feedback:  [None Given] Question 8 Needs Grading Describe the brackets that you use when declaring one-dimensional and two-dimensional arrays. [None Given] Response Feedback:  Question 9 Needs Grading Discuss how you declare one-dimensional and two-dimensional arrays. Answer Selected When you declare a one-dimensional array. many languages require you to type two sets of brackets after the array type and name. In other words. and the second one holds the number of columns. you type a set of square brackets after the array type and name. many languages require you to type two sets of brackets after the array type and name. To declare a two-dimensional array. Correct Answer: When you declare a one-dimensional array. the two dimensions represent the array ’s height and its width.first subscript represents the row and the second one represents the column. many languages require you to type two sets of brackets after the array type and name. For each element in the array. you type a set of square Answer: brackets after the array type and name. . To declare a two-dimensional array. For each element in the array. you type a set of square Answer: brackets after the array type and name. the first square bracket holds the number of rows.

[None Given] Response Feedback:  Question 10 1 out of 1 points A method could be called using any numeric value as an argument. or a literal constant. you type a set of square brackets after the array type and name. For each element in the array.Correct Answer: When you declare a one-dimensional array. a named constant. Answer Selected Answer: Polymorphism Correct Answer: . and the second one holds the number of columns. To declare a two-dimensional array. whether it is a variable. the first square bracket holds the number of rows. many languages require you to type two sets of brackets after the array type and name. Answer Selected Answer: True Correct Answer: True  Question 11 1 out of 1 points A calling method sends a(n) ____ to a called method. Answer Selected Answer: argument Correct Answer: argument  Question 12 1 out of 1 points ____ is the ability of a method to act appropriately depending on the context. the two dimensions represent the array’s height and its width. In other words.

Answer Selected Answer: in scope Correct Answer: in scope  Question 14 1 out of 1 points You can think of the ____ in a method declaration as a funnel into the method. or local to.Polymorphism  Question 13 1 out of 1 points Variables and constants are ____ within. Answer Selected Answer: parentheses Correct Answer: parentheses  Question 15 1 out of 1 points Every time you call a method. Answer Selected Answer: stack Correct Answer: stack  Question 16 1 out of 1 points ____ occurs when a method is defined in terms of itself. only the method in which they are declared. . the address to which the program should return at the completion of the method is stored in a memory location called the ____.

but not necessarily how it carries out tasks internally The method’s name The method’s required parameters. if any The method’s return type. you should know four things: What the method does in general. so that you can use any returned value appropriately Correct Answer: When you want to use a method. but not necessarily how it carries out tasks internally o The method’s name o The method’s required parameters.Answer Selected Answer: Recursion Correct Answer: Recursion  Question 17 Needs Grading List the four things that you need to know when you want to use a method. Answer Selected When you want to use a method. Answer . you should know four things: Answer: o What the method does in general. if any o The method’s return type. so that you can use any returned value appropriately Response Feedback:  [None Given] Question 18 Needs Grading Discuss the cumulative summing relationship.

Answer Selected A return statement—A module’s return statement marks the end of the Answer: module and identifies the point at which control returns to the program or module that called the module. is simply 1. Correct Answer: When thinking about cumulative summing relationships. plus 4. is simply 1. remember that the sum of all the integers up to and including any number is that number plus the sum of the integers for the next lowest number. In other words. up to and including 1. [None Given] Response Feedback:  Question 19 Needs Grading Describe what a method’s return statement can return. up to and including 1. And so on. • The sum of the digits from 1 through 2 is the previous sum. consider the following: • The sum of the digits from 1. plus 3. plus 2. consider the following: o o o o o The sum of the digits from 1. plus 4. • The sum of the digits 1 through 4 is the previous sum. remember that the sum of all the integers up to and including any number is that number plus the sum of the integers for the next lowest number. The sum of the digits from 1 through 3 is the previous sum.Selected Answer: When thinking about cumulative summing relationships. plus 3. • The sum of the digits from 1 through 3 is the previous sum. The last statement in the body is a return body Correct . The sum of the digits from 1 through 2 is the previous sum. In other words. A method must include a method header (also called the declaration or definition) and a method statement. plus 2. • And so on. The sum of the digits 1 through 4 is the previous sum.

Response Feedback: [None Given] Tuesday.Answer: A method’s return statement can return one value at most. Correct Answer: A method can require more than one parameter. You create and use a method with multiple parameters by doing the following: You list the arguments within the method call. Answer Selected A method can require more than one parameter. August 13. You list a data type and local identifier for each parameter within the method header’s parentheses. a structure or an object. 2013 8:28:21 PM EDT . separating each declaration with a comma. You create and use a Answer: method with multiple parameters by doing the following: o o You list the arguments within the method call. separating each declaration with a comma. separated by commas. separated by commas. The value can be a simple data type or it can be a more complex type—for example. [None Given] Response Feedback:  Question 20 Needs Grading Describe how you create and use a method with multiple parameters. You list a data type and local identifier for each parameter within the method header’s parentheses.

Review Test Submission: Week 8 Quiz 7 Attempt 48 out of 60 points Score Time 50 minutes out of 3 hours. Be sure you are in Chapter 10 when you take the quiz. Elapsed Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 10.  Question 1 4 out of 4 points Most __________ have been banned under the World Trade Organization. Answer Selected Answer: Quotas Correct Answer: Quotas  Question 2 0 out of 4 points What do you call an alliance of nations that share common external tariffs? A(n) Answer Selected Answer: International trade consortium Correct Answer: Customs union  Question 3 4 out of 4 points What do you call it when producers sell abroad at a price below their cost of production or their domestic price? Answer Selected Answer: Dumping .

Correct Answer: Dumping  Question 4 4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro  Question 5 4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit  Question 6 4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation  Question 7 0 out of 4 points .

Which of the following is a likely result of a country engaging in free trade? Answer Selected Answer: Jobs are lost in the export sector Correct Answer: The price of imports falls  Question 8 4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve  Question 9 4 out of 4 points Economists generally agree that international trade restrictions Answer Selected Answer: Correct Answer: Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods  Question 10 4 out of 4 points A country has a comparative advantage in the production of any good that it can produce Answer Selected Answer: With a smaller sacrifice of some alternative good or service than can other .

is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage  Question 12 4 out of 4 points Which organization is charged with settlement of international trade disputes? Answer Selected Answer: The WTO Correct Answer: The WTO  Question 13 4 out of 4 points The fundamental reason countries engage in trade is that Answer Selected Answer: It enables each country to improve its standard of living Correct Answer: It enables each country to improve its standard of living . relative to another nation.countries Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries  Question 11 4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods.

which of the following curves for an economy will shift outward? Answer . lower Sunday. higher. resulting in ______ prices and __________ imports. August 25. lower Correct Answer: Supply. Question 14 4 out of 4 points In a free market. who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers  Question 15 0 out of 4 points A tariff leads to a leftward shift of the _______curve. lower. 2013 8:10:37 PM EDT Question 1 0 out of 4 points Free trade can result in what impact on an economy? Answer Selected Answer: Free trade always harms an economy Correct Answer: A net increase or decrease in overall employment  Question 2 4 out of 4 points With international trade. Answer Selected Answer: Supply.

Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities  Question 3 0 out of 4 points Outsourcing is the practice of Answer Selected Answer: Manufacturing product in another country by opening a factory in that nation Purchasing customer services from suppliers in another country where the costs of these services are lower than domestic suppliers 4 out of 4 points Correct Answer:  Question 4 Economists generally agree that international trade restrictions Answer Selected Answer: Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods 0 out of 4 points Correct Answer:  Question 5 The largest part of U. who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers  Question 7 .S. sent abroad Correct Answer: Imports of merchandise  Question 6 4 out of 4 points In a free market. demand for foreign currencies arises from Answer Selected Answer: Gifts that persons in the U.S.

lower  Question 9 4 out of 4 points Which of the following best describes NAFTA? It is a(n) Answer Selected Answer: Free trade area Correct Answer: Free trade area  Question 10 4 out of 4 points Which of the following is a likely result of a country engaging in free trade? Answer Selected Answer: The price of imports falls Correct Answer: The price of imports falls  Question 11 4 out of 4 points What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs  Question 12 . higher. Answer Selected Answer: Quotas Correct Answer: Quotas  Question 8 4 out of 4 points A tariff leads to a leftward shift of the _______curve. resulting in ______ prices and __________ imports.4 out of 4 points Most __________ have been banned under the World Trade Organization. higher. lower Correct Answer: Supply. Answer Selected Answer: Supply.

4 out of 4 points The price of one nation's currency in terms of another is called Answer Selected Answer: The exchange rate Correct Answer: The exchange rate  Question 13 4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation  Question 14 4 out of 4 points A new industry producing cutting-edge products should Answer Selected Answer: Be protected from international competition. according to the infant industry argument 4 out of 4 points Correct Answer:  Question 15 A nation that enjoys a lower opportunity cost in the production of goods. is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage  0 out of 4 points A new industry producing cutting-edge products should Answer Selected . relative to another nation. according to the infant industry argument Be protected from international competition.

according to the infant industry argument  Question 2 4 out of 4 points Which of the following will occur when a tariff is placed on imported sugar? Answer Selected Answer: The price of imported and domestic sugar will rise Correct Answer: The price of imported and domestic sugar will rise  Question 3 4 out of 4 points The fundamental reason countries engage in trade is that Answer Selected Answer: It enables each country to improve its standard of living Correct Answer: It enables each country to improve its standard of living  Question 4 4 out of 4 points What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs . according to the key industry argument Be protected from international competition.Answer: Correct Answer: Be protected from international competition.

 Question 5 4 out of 4 points Environmental damage must be addressed in international trade agreements when a country's actions create Answer Selected Answer: Negative externalities Correct Answer: Negative externalities  Question 6 4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit  Question 7 4 out of 4 points What do you call an alliance of nations that share common external tariffs? A(n) Answer Selected Answer: Customs union Correct Answer: Customs union  Question 8 4 out of 4 points A country has a comparative advantage in the production of any good that it can produce Answer .

Answer Selected Answer: Quotas Correct Answer: Quotas  Question 11 4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro .Selected Answer: Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries With a smaller sacrifice of some alternative good or service than can other countries  Question 9 4 out of 4 points In a free market. who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers  Question 10 4 out of 4 points Most __________ have been banned under the World Trade Organization.

relative to another nation. the supply curve for that good Answer Selected Answer: Shifts to the left Correct Answer: Becomes vertical at the quota limit  Question 14 4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods. is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage  Question 15 4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? . which of the following curves for an economy will shift outward? Answer Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities  Question 13 0 out of 4 points When a quota is enforced on an imported good. Question 12 4 out of 4 points With international trade.

the supply curve for that good Answer Selected Answer: Becomes vertical at the quota limit Correct Answer: Becomes vertical at the quota limit  Question 3 4 out of 4 points A country has a comparative advantage in the production of any good that it can produce .Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve  Question 1 4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation  Question 2 4 out of 4 points When a quota is enforced on an imported good.

Answer Selected Answer: With a smaller sacrifice of some alternative good or service than can other countries Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries  Question 4 4 out of 4 points What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs  Question 5 4 out of 4 points What do you call it when producers sell abroad at a price below their cost of production or their domestic price? Answer Selected Answer: Dumping Correct Answer: Dumping  Question 6 .

4 out of 4 points Protecting an industry that is vital to national security from international competition is Answer Selected Answer: The key industry argument Correct Answer: The key industry argument  Question 7 4 out of 4 points Free trade can result in what impact on an economy? Answer Selected Answer: A net increase or decrease in overall employment Correct Answer: A net increase or decrease in overall employment  Question 8 4 out of 4 points Which organization is charged with settlement of international trade disputes? Answer Selected Answer: The WTO Correct Answer: The WTO  Question 9 .

4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods. which of the following curves for an economy will shift outward? Answer Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities  Question 11 4 out of 4 points The European Union is an example of a(n) Answer Selected Answer: Customs union Correct Answer: Customs union . is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage  Question 10 4 out of 4 points With international trade. relative to another nation.

 Question 12 4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve  Question 13 4 out of 4 points An exchange rate is Answer Selected Answer: The price of one country's currency in terms of the monetary units of another country Correct Answer: The price of one country's currency in terms of the monetary units of another country  Question 14 4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro .

who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers  Question 2 4 out of 4 points What are taxes placed on imports called? . August 28.Correct Answer: Euro  Question 15 4 out of 4 points Which of the following best describes NAFTA? It is a(n) Answer Selected Answer: Free trade area Correct Answer: Free trade area Wednesday. 2013 9:39:40 PM EDT OK Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 10. 4 out of 4 points  Question 1 In a free market. Be sure you are in Chapter 10 when you take the quiz.

Answer Selected Answer:

Tariffs
Correct Answer:

Tariffs

Question 3
4 out of 4 points

The multi-national currency adopted by members of the European Union is called the
Answer Selected Answer:

Euro
Correct Answer:

Euro

Question 4
4 out of 4 points

A tariff leads to a leftward shift of the _______curve, resulting in ______ prices and __________ imports.
Answer Selected Answer:

Supply; higher; lower
Correct Answer:

Supply; higher; lower

Question 5
4 out of 4 points

Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used?
Answer

Selected Answer:

Consumption possibilities curve
Correct Answer:

Consumption possibilities curve

Question 6
4 out of 4 points

An exchange rate is
Answer Selected Answer:

The price of one country's currency in terms of the monetary units of another country
Correct Answer:

The price of one country's currency in terms of the monetary units of another country

Question 7
4 out of 4 points

When a quota is enforced on an imported good, the supply curve for that good
Answer Selected Answer:

Becomes vertical at the quota limit
Correct Answer:

Becomes vertical at the quota limit

Question 8
4 out of 4 points

Economists generally agree that international trade restrictions
Answer Selected Answer:

Generate significant costs to consumers in the form of higher prices and reduced

quantity of goods
Correct Answer:

Generate significant costs to consumers in the form of higher prices and reduced quantity of goods

Question 9
4 out of 4 points

A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n)
Answer Selected Answer:

Comparative advantage
Correct Answer:

Comparative advantage

Question 10
4 out of 4 points

Protecting an industry that is vital to national security from international competition is
Answer Selected Answer:

The key industry argument
Correct Answer:

The key industry argument

Question 11
4 out of 4 points

Which of the following is a likely result of a country engaging in free trade?
Answer Selected Answer:

The price of imports falls

Correct Answer:

The price of imports falls

Question 12
4 out of 4 points

A new industry producing cutting-edge products should
Answer Selected Answer:

Be protected from international competition, according to the infant industry argument
Correct Answer:

Be protected from international competition, according to the infant industry argument

Question 13
4 out of 4 points

The European Union is an example of a(n)
Answer Selected Answer:

Customs union
Correct Answer:

Customs union

Question 14
4 out of 4 points

The exchange rate ceiling on the dollar price of the pound will result in
Answer Selected Answer:

A balance of payments deficit
Correct Answer:

A balance of payments deficit

Question 15
4 out of 4 points

The primary factor affecting the demand for any nation's currency is
Answer Selected Answer:

The demand for the products produced by that nation
Correct Answer:

The demand for the products produced by that nation

Review Test Submission: Week 8 Quiz 7

Question 1
4 out of 4 points Which of the following is a likely result of a country engaging in free trade? Answer Selected Answer: The price of imports falls Correct Answer: The price of imports falls

Question 2
4 out of 4 points A new industry producing cutting-edge products should Answer Selected Answer: Correct Answer: Be protected from international competition, according to the infant industry argument Be protected from international competition, according to the infant

industry argument

Question 3
4 out of 4 points What do you call an alliance of nations that share common external tariffs? A(n) Answer Selected Answer: Customs union Correct Answer: Customs union

Question 4
4 out of 4 points Free trade can result in what impact on an economy? Answer Selected Answer: A net increase or decrease in overall employment Correct Answer: A net increase or decrease in overall employment

Question 5
4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro

Question 6
4 out of 4 points

The largest part of U.S. demand for foreign currencies arises from Answer Selected Answer: Imports of merchandise Correct Answer: Imports of merchandise

Question 7
4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation

Question 8
4 out of 4 points Most __________ have been banned under the World Trade Organization. Answer Selected Answer: Quotas Correct Answer: Quotas

Question 9
4 out of 4 points When a quota is enforced on an imported good, the supply curve for that good Answer Selected Answer: Becomes vertical at the quota limit Correct Answer: Becomes vertical at the quota limit

Question 10
4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage

Question 11
4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit

Question 12
4 out of 4 points The European Union is an example of a(n) Answer Selected Answer: Customs union Correct Answer: Customs union

Question 13
4 out of 4 points Which of the following best describes NAFTA? It is a(n) Answer

Selected Answer: Free trade area Correct Answer: Free trade area

Question 14
4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve

Question 15
4 out of 4 points The largest part of the U.S. supply of foreign currency arises from Answer Selected Answer: Exports of merchandise Correct Answer: Exports of merchandise

Review Test Submission: Week 8 Quiz 7
SKIP TO COURSE MENU SKIP TO TOP FRAME TABS

Course Econ Problems & Issues Test Week 8 Quiz 7 Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 10. Be sure you are in Chapter 10 when you take the quiz.

Question 1
4 out of 4 points

The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation

Question 2
4 out of 4 points

When a quota is enforced on an imported good, the supply curve for that good Answer Selected Answer: Becomes vertical at the quota limit Correct Answer: Becomes vertical at the quota limit

Question 3
4 out of 4 points

A country has a comparative advantage in the production of any good that it can produce Answer Selected Answer: Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries With a smaller sacrifice of some alternative good or service than can other countries

Question 4
4 out of 4 points

What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs

Question 5
4 out of 4 points

What do you call it when producers sell abroad at a price below their cost of production or their domestic price? Answer Selected Answer: Dumping Correct Answer: Dumping

Question 6
4 out of 4 points

Protecting an industry that is vital to national security from international competition is Answer Selected Answer: The key industry argument Correct Answer: The key industry argument

Question 7
4 out of 4 points

Free trade can result in what impact on an economy? Answer Selected Answer: A net increase or decrease in overall employment Correct Answer: A net increase or decrease in overall employment

Question 8
4 out of 4 points

Which organization is charged with settlement of international trade disputes? Answer Selected Answer: The WTO Correct Answer: The WTO

Question 9
4 out of 4 points

A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage

Question 10
4 out of 4 points

With international trade, which of the following curves for an economy will shift outward? Answer Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities

Question 11
4 out of 4 points

The European Union is an example of a(n) Answer Selected Answer: Customs union Correct Answer: Customs union

 Question 12 4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve  Question 13 4 out of 4 points An exchange rate is Answer Selected Answer: Correct Answer: The price of one country's currency in terms of the monetary units of another country The price of one country's currency in terms of the monetary units of another country  Question 14 4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro  Question 15 4 out of 4 points Which of the following best describes NAFTA? It is a(n) Answer Selected Answer: Free trade area Correct Answer: .

August 28. 2013 9:39:40 PM EDT OK .Free trade area Wednesday.

Time Elapsed Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 10. Answer Selected Answer: Quotas Correct Answer: Quotas  Question 2 0 out of 4 points What do you call an alliance of nations that share common external tariffs? A(n) Answer Selected Answer: International trade consortium Correct Answer: Customs union  Question 3 4 out of 4 points What do you call it when producers sell abroad at a price below their cost of production or their domestic price? Answer .  Question 1 4 out of 4 points Most __________ have been banned under the World Trade Organization. Be sure you are in Chapter 10 when you take the quiz.Review Test Submission: Week 8 Quiz 7 Attempt 48 out of 60 points Score 50 minutes out of 3 hours.

Selected Answer: Dumping Correct Answer: Dumping  Question 4 4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro  Question 5 4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit  Question 6 4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation  Question 7 .

0 out of 4 points Which of the following is a likely result of a country engaging in free trade? Answer Selected Answer: Jobs are lost in the export sector Correct Answer: The price of imports falls  Question 8 4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve  Question 9 4 out of 4 points Economists generally agree that international trade restrictions Answer Selected Answer: Correct Answer: Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods  Question 10 4 out of 4 points A country has a comparative advantage in the production of any good that it can produce Answer .

Selected Answer: Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries With a smaller sacrifice of some alternative good or service than can other countries  Question 11 4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods. relative to another nation. is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage  Question 12 4 out of 4 points Which organization is charged with settlement of international trade disputes? Answer Selected Answer: The WTO Correct Answer: The WTO  Question 13 4 out of 4 points The fundamental reason countries engage in trade is that Answer Selected Answer: It enables each country to improve its standard of living Correct Answer: .

Answer Selected Answer: Supply. lower. who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers  Question 15 0 out of 4 points A tariff leads to a leftward shift of the _______curve.It enables each country to improve its standard of living  Question 14 4 out of 4 points In a free market. lower Correct Answer: Supply. lower Sunday. resulting in ______ prices and __________ imports. August 25. 2013 8:10:37 PM EDT . higher.

The first 15 questions cover the material in Chapter 11.Course Econ Problems & Issues Test Week 9 Quiz 8 Instructions This quiz consist of 30 multiple choice questions.  Question 1 0 out of 4 points What are the two primary determinants of economic growth? Answer Selected Answer: The quantity of capital and the quantity of money Correct Answer: The availability of resources and productivity factors  Question 2 0 out of 4 points Saving in an economy is important for economic growth because Answer Selected Answer: One person's saving is another person's consumption Correct Answer: It is the source of funds for investment  Question 3 0 out of 4 points Which of the following is the most commonly used measurement of economic growth? Changes in Answer Selected Answer: The federal government debt Correct Answer: Real GDP  Question 4 . The second 15 questions cover the material in Chapter 12. Be sure you are in the correct Chapter when you take the quiz.

S.0 out of 4 points How has the increasing importance of the U. service sector contributed to the slowdown in economic growth? Answer Selected Answer: Correct Answer: The productivity of the service sector is hard to accurately measure  Most investment takes place in the goods producing sector of the economy Question 5 4 out of 4 points Human capital refers to Answer Selected Answer: Skills and training that increase a worker's productivity Correct Answer: Skills and training that increase a worker's productivity  Question 6 0 out of 4 points What was the first theory put forth by an economist to explain the phenomena of business cycles? Answer Selected Answer: Real business cycle theories Correct Answer: Jevons' sunspot theory  Question 7 4 out of 4 points A decline in the level of economic activity occurs during which phase of the business cycle? Answer Selected Answer: Contraction Correct Answer: Contraction .

 Question 8 0 out of 4 points Which phase of the business cycle best describes an economy that is experiencing a positive rate of economic growth? Answer Selected Answer: Contraction Correct Answer: Expansion  Question 9 4 out of 4 points Which theories concerning the business cycle focus on factors outside of the economy? Answer Selected Answer: Exogenous theories Correct Answer: Exogenous theories  Question 10 0 out of 4 points What is technology? Answer Selected Answer: The mix of labor and capital used in production Correct Answer: The means and methods of production  Question 11 0 out of 4 points Which of the following focuses primarily on aggregate supply variables? Answer Selected Answer: Monetary theories Correct Answer: Real business cycle theories .

contraction. Question 12 0 out of 4 points The most commonly used tool to forecast future changes in economic activity is the Answer Selected Answer: Correct Answer: Leading economic indicators index  [None Given] Question 13 0 out of 4 points Which of the following is responsible for officially tracking the Index of Leading Economic Indicators? Answer Selected Answer: Correct Answer: The Conference Board  [None Given] Question 14 0 out of 4 points In response to an economic recession. peak. monetary theories of the business cycle predict that the Federal Reserve would Answer Selected Answer: Increase the demand for money to bring about economic growth Correct Answer: Increase the supply of money to create an expansion  Question 15 0 out of 4 points Which of the following lists the four phases of the business cycle in the correct sequence? Answer Selected Answer: Expansion. peak. trough . depression Correct Answer: Expansion. contraction.

it generally has the effect of Answer Selected Answer: Lowering interest rates Correct Answer: Lowering interest rates  Question 19 0 out of 4 points A key assumption in the quantity theory of money is that Answer Selected Answer: Correct Answer: [None Given] . and money market mutual funds  Question 17 4 out of 4 points Investment banks Answer Selected Answer: Correct Answer: Work with corporations to finance their operations through primary financial markets Work with corporations to finance their operations through primary financial markets  Question 18 4 out of 4 points When the Fed increases the money supply. plus savings and time deposits of small denomination. Question 16 0 out of 4 points M2 includes Answer Selected Answer: Correct Answer: M1 plus savings and time deposits of large denomination (over $100.000) M1.

money is serving which function? Answer Selected Answer: A measure of value Correct Answer: A store of value  Question 23 0 out of 4 points A capital gain exists Answer Selected Answer: When the price of an asset goes up .The velocity of money is constant  Question 20 0 out of 4 points The interest rate on an adjustable rate mortgage (ARM) is Answer Selected Answer: Set to rise at the end of every year for the life of the mortgage Correct Answer: Adjusted periodically based upon current market conditions  Question 21 0 out of 4 points The quantity theory of money emphasizes Answer Selected Answer: Government spending policies Correct Answer: Changes in the money supply  Question 22 0 out of 4 points If you keep some cash in a safe place so that you have it to use later.

Correct Answer: When the price of an asset exceeds the price paid for it  Question 24 0 out of 4 points The money multiplier is Answer Selected Answer: R/E Correct Answer: 1/r  Question 25 4 out of 4 points Money is "liquid" because Answer Selected Answer: It does not have to be sold to buy goods and services Correct Answer: It does not have to be sold to buy goods and services  Question 26 0 out of 4 points Liquidity of an asset increases when Answer Selected Answer: The asset’s value is below its original price Correct Answer: It is easier to convert the asset into cash  Question 27 4 out of 4 points A stock is Answer Selected Answer: A financial instrument that provides ownership rights to shareholders .

August 31. and lower the discount rate Sell government securities. and raise the discount rate  Question 29 0 out of 4 points A collateralized debt obligation (or CDO) Answer Selected Answer: Correct Answer: Is sold in the primary financial market Is a financial instrument that obscures the underlying risks of the mortgages that comprise them  Question 30 0 out of 4 points Who controls the aggregate volume of demand deposits in the banking system? Answer Selected Answer: Congress Correct Answer: The Federal Reserve Board of Governors Saturday. 2013 9:39:15 PM EDT OK . raise reserve requirements. lower reserve requirements. the Federal Reserve authorities should Answer Selected Answer: Correct Answer: Sell government securities.Correct Answer: A financial instrument that provides ownership rights to shareholders  Question 28 0 out of 4 points To reduce inflationary pressures.

 Question 1 0 out of 4 points If the economy is initially at full employment. an increase in aggregate demand will result in Answer Selected Answer: Profit-push inflation Correct Answer: Demand-pull inflation  Question 2 0 out of 4 points A trade deficit will occur in an economy Answer Selected Answer: When the value of exports exceeds the value of imports Correct Answer: When the value of exports is less than the value of imports  Question 3 0 out of 4 points If inflation is not observable in the form of rising prices. it is called . Be sure you are in Chapter 13 when you take the quiz.Review Test Submission: Week 10 Quiz 9 SKIP TO COURSE MENU SKIP TO TOP FRAME TABS Course Econ Problems & Issues Test Week 10 Quiz 9 Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 13.

Answer Selected Answer: Dynamic Correct Answer: Suppressed  Question 4 4 out of 4 points If inflation causes the demand for houses to increase more rapidly than the demand for other goods. the economy has experienced which effect of inflation? Answer Selected Answer: Efficiency Correct Answer: Efficiency  Question 5 0 out of 4 points Aggregate supply can be increased by Answer Selected Answer: Increases in government spending Correct Answer: Policies to induce more saving  Question 6 0 out of 4 points Technological change in an industry that historically required specific labor skills will lead to Answer Selected Answer: Cyclical unemployment Correct Answer: Structural unemployment  Question 7 .

and exports Correct Answer: Savings.0 out of 4 points Leakages in the circular flow consist of Answer Selected Answer: Government spending. and imports  Question 8 0 out of 4 points Which price index is also known as the cost-of-living index? Answer Selected Answer: Implicit price deflator Correct Answer: Consumer price index  Question 9 0 out of 4 points The determinants of aggregate supply are Answer Selected Answer: Real income Correct Answer: Resources. prices. investment. taxes. and technology  Question 10 0 out of 4 points Unemployment rates tend to rise when Answer Selected Answer: Correct Answer: There is a recession  [None Given] Question 11 0 out of 4 points .

due to a variety of institutional and social factors. wages tend to be Answer Selected Answer: Highly rigid Correct Answer: Sticky  Question 13 0 out of 4 points People who are unemployed due to a downturn in economic activity are classified in the category of Answer Selected Answer: Frictional unemployment Correct Answer: Cyclical unemployment  Question 14 4 out of 4 points If inflation stimulates production and employment.People who are in the process of changing jobs are classified in the category of Answer Selected Answer: Cyclical unemployment Correct Answer: Frictional unemployment  Question 12 0 out of 4 points In an economy like that of the US. the economy experiences which of the following effects of inflation? Answer Selected Answer: Output Correct Answer: Output  Question 15 .

but unable to find work for over 30 days Saturday. August 31.0 out of 4 points A person is considered unemployed if the person is Answer Selected Answer: Correct Answer: Seeking a job requiring greater qualifications than the person possesses and no one is willing to hire the person for such a job Qualified for a job. 2013 9:02:19 PM EDT OK . willing to work.

 Question 1 0 out of 4 points An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 2 0 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes  Question 3 4 out of 4 points Assuming negative externalities in production. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs . Be sure you are in the correct Chapter when you take the quiz. The first 15 questions cover the material in Chapter 14.Review Test Submission: Week 11 Quiz 10 SKIP TO COURSE MENU SKIP TO TOP FRAME TABS Content Course Econ Problems & Issues Test Week 11 Quiz 10 Instructions This quiz consist of 30 multiple choice questions. The second 15 questions cover the material in Chapter 15.

 Question 4 4 out of 4 points Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises  Question 5 0 out of 4 points A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good  [None Given] Question 6 0 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: [None Given] Those who pay the tax receive benefits. since the revenues are used for road and highway construction and maintenance  Question 7 0 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service  Question 8 .

major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level .0 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected Answer: Correct Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units  Question 9 0 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998  Question 10 4 out of 4 points Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service  Question 11 4 out of 4 points In the US.

must be based on Answer Selected Answer: Correct Answer: The values of people as to what constitutes a "fair" distribution of income  The values of people as to what constitutes a "fair" distribution of income Question 13 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 14 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized  Question 15 0 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax . Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive. say through taxes and subsidies.

during the past fifty years? . $5. the company is using which of the following? Answer Selected Answer: A fee-for-service system Correct Answer: A prospective payment system  Question 18 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 19 0 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.000 for an appendectomy).S.Correct Answer: Real property tax  Question 16 0 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices  Question 17 0 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example.

Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation  Question 20 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 21 0 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation  Question 22 0 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits  Question 23 4 out of 4 points .

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 24 4 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider  Question 25 0 out of 4 points If a program's benefits are funded out of current payments. it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system  Question 26 0 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care Correct Answer: Typically require less cost sharing  Question 27 .

This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance . Social Security was to be financed as a Answer Selected Answer: Private insurance program Correct Answer: Fully-funded insurance program  Question 30 0 out of 4 points A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution  Question 28 0 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs  Question 29 0 out of 4 points As originally designed.0 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire.

Sunday. 2013 11:51:43 AM EDT OK . September 8.

Review Test Submission: Week 11 Quiz 10 SKIP TO COURSE MENU SKIP TO TOP FRAME TABS Course Econ Problems & Issues Test Week 11 Quiz 10 Instructions This quiz consist of 30 multiple choice questions.  Question 1 4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes  Question 2 4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate  Question 3 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices . The second 15 questions cover the material in Chapter 15. The first 15 questions cover the material in Chapter 14. Be sure you are in the correct Chapter when you take the quiz.

based on need.Correct Answer: The consumer in the form of higher prices  Question 4 4 out of 4 points A cash payment from the government to an individual. since the revenues are used for road and highway construction and maintenance  Question 7 4 out of 4 points The ability to pay principle of taxation suggests that people with more income should pay more taxes. This means that Answer . is an example of a Answer Selected Answer: Transfer payment Correct Answer: Transfer payment  Question 5 4 out of 4 points An output tax will be shifted completely Answer Selected Answer: Forward if demand is perfectly price inelastic Correct Answer: Forward if demand is perfectly price inelastic  Question 6 4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits. since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits.

the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs  Question 9 4 out of 4 points A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Public good Correct Answer: Public good  Question 10 4 out of 4 points At the federal level.Selected Answer: Correct Answer: Progressive income rates are consistent with the ability to pay principle Progressive income rates are consistent with the ability to pay principle  Question 8 4 out of 4 points Assuming negative externalities in production. the largest revenue generating tax is the Answer Selected Answer: Personal income tax Correct Answer: Personal income tax  Question 11 0 out of 4 points .

Assuming positive externalities in consumption. must be based on Answer Selected Answer: Correct Answer: The values of people as to what constitutes a "fair" distribution of income  The values of people as to what constitutes a "fair" distribution of income Question 14 4 out of 4 points Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: . the type of government action that could bring about an efficient level of production would be Answer Selected Answer: Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  A subsidy on each unit consumed greater than marginal external benefits Question 12 4 out of 4 points A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 13 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive. say through taxes and subsidies.

their behavior is dominated by the Answer Selected Answer: Income effect Correct Answer: Substitution effect  Question 18 4 out of 4 points If a program's benefits are funded out of current payments.Internal Revenue Service  Question 15 4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States  Question 16 4 out of 4 points The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Raise Social Security taxes and/or lower benefits Correct Answer: Raise Social Security taxes and/or lower benefits  Question 17 0 out of 4 points If people choose to work fewer hours because the Social Security tax reduces their real wage. it is which type of system? Answer Selected Answer: A pay-as-you-go system .

Correct Answer: A pay-as-you-go system  Question 19 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 20 4 out of 4 points How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider  Question 21 0 out of 4 points Part C of the Medicare program (Medicare + Choice) Answer Selected Answer: Correct Answer: Provides health care plan choices to the beneficiaries of Medicare  Restricts Medicare beneficiaries to a simple fee-for-service health care plan Question 22 4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U. during the past fifty years? Answer .S.

Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program  Question 24 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 25 4 out of 4 points If a program's benefits are funded by interest earned on accumulated payments.Selected Answer: Health care inflation Correct Answer: Health care inflation  Question 23 4 out of 4 points As originally designed. it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A fully funded scheme  Question 26 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these .

plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing  Question 27 4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance  Question 28 4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals  Question 29 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 30 .

consumers pay the Answer Selected Answer: Full cost of the services they receive Correct Answer: Full cost of the services they receive .4 out of 4 points In a fee-for-service health care system.

according to the key industry argument Be protected from international competition. 0 out of 4 points A new industry producing cutting-edge products should Answer Selected Answer: Correct Answer: Be protected from international competition. according to the infant industry argument  Question 2 4 out of 4 points Which of the following will occur when a tariff is placed on imported sugar? Answer Selected Answer: The price of imported and domestic sugar will rise Correct Answer: The price of imported and domestic sugar will rise  Question 3 4 out of 4 points The fundamental reason countries engage in trade is that Answer Selected Answer: It enables each country to improve its standard of living Correct Answer: It enables each country to improve its standard of living  Question 4 4 out of 4 points .

What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs  Question 5 4 out of 4 points Environmental damage must be addressed in international trade agreements when a country's actions create Answer Selected Answer: Negative externalities Correct Answer: Negative externalities  Question 6 4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit  Question 7 4 out of 4 points What do you call an alliance of nations that share common external tariffs? A(n) Answer .

Selected Answer: Customs union Correct Answer: Customs union  Question 8 4 out of 4 points A country has a comparative advantage in the production of any good that it can produce Answer Selected Answer: Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries With a smaller sacrifice of some alternative good or service than can other countries  Question 9 4 out of 4 points In a free market. who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers  Question 10 4 out of 4 points Most __________ have been banned under the World Trade Organization. Answer Selected Answer: .

which of the following curves for an economy will shift outward? Answer Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities  Question 13 0 out of 4 points When a quota is enforced on an imported good. the supply curve for that good Answer Selected Answer: Shifts to the left Correct Answer: .Quotas Correct Answer: Quotas  Question 11 4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro  Question 12 4 out of 4 points With international trade.

is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage  Question 15 4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve .Becomes vertical at the quota limit  Question 14 4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods. relative to another nation.

Instructions This quiz consist of 30 multiple choice questions. The second 15 questions cover the material in Chapter 15. The first 15 questions cover the material in Chapter 14.  Question 1 4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises  Question 2 4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service  Question 3 4 out of 4 points Vertical equity implies that Answer . Be sure you are in the correct Chapter when you take the quiz.

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts  Question 4 0 out of 4 points Assuming positive externalities in consumption. the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits  Question 5 4 out of 4 points The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax  Question 6 .

0 out of 4 points Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes. and people in different economic circumstances should pay unequal taxes  Question 7 4 out of 4 points A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices  Question 8 0 out of 4 points An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic .

 Question 9 4 out of 4 points According to the equimarginal principle. major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level  Question 11 4 out of 4 points An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized . the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector  Question 10 4 out of 4 points In the US.

Correct Answer: The net benefits to society are maximized  Question 12 4 out of 4 points Shifting income from those who are relatively productive to those who are relatively unproductive. must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income  Question 13 0 out of 4 points The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002  Question 14 4 out of 4 points An efficient level of government expenditures is that level where . say through taxes and subsidies.

it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme  Question 17 0 out of 4 points .Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs  Question 15 4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices  Question 16 0 out of 4 points If a program's benefits are funded by interest earned on accumulated payments.

The Medicare Modernization Act. passed in 2003. established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program  Question 18 4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security  Question 19 4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation  Question 20 .

I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution  Question 21 4 out of 4 points Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2. it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system .9% tax levied on wages and salaries Correct Answer: A 2.4 out of 4 points If I spend more each year because I know that I will receive Social Security payments when I retire.9% tax levied on wages and salaries  Question 22 4 out of 4 points If a program's benefits are funded out of current payments.

their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect  Question 24 4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older. Question 23 0 out of 4 points If people choose to work more hours because the Social Security tax reduces their real wage. regardless of income  Question 25 4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing . regardless of income Correct Answer: Affects persons 65 and older.

Correct Answer: Typically require less cost sharing  Question 26 4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67  Question 27 4 out of 4 points Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs  Question 28 4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer .

Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices  Question 29 4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance  Question 30 4 out of 4 points As originally designed. Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program .

which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution. rather than pay the tax. the firm will treat pollution.Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action. as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer: .

Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market. which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: . polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action.

the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: .The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers.

Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. the costs are Answer Selected Answer: Psychic costs Correct Answer: . This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction.

additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: .Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget.

Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer: .

Determine what the economic impact will be of making certain activities illegal Saturday. 2013 6:12:22 PM EDT . July 27.

Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action. the firm will treat pollution. rather than pay the tax. which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution. as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer: .

which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: .Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market. polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action.

The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers. the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: .

Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. the costs are Answer Selected Answer: Psychic costs Correct Answer: . This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction.

Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget. additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: .

Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction. the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer: .

July 27. 2013 6:12:22 PM EDT .Determine what the economic impact will be of making certain activities illegal Saturday.

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