QN=1 (1620) (17145) Suppose a typical worker in France can produce 32 units of product in an

eight-hour day, while a typical worker in Germany can produce 30 units of product in a
10-hour day. We can conclude that
b. the standard of living will likely be higher in France than in Germany.

QN=2 (1635) (17142) The term market failure refers to

a. a situation in which the market on its own fails to allocate resources efficiently.

QN=3 (1613) (17127) Prices direct economic activity in a market economy by

a. influencing the actions of buyers and sellers.

QN=4 (17160) Refer to Figure 2-1. Which arrow shows the flow of spending by households?
(1649)

a. A

QN=5 (1659) (17176) The field of economics is traditionally divided into two broad subfields,
a. national economics and international economics.
b. consumer economics and producer economics.
c. private sector economics and public sector economics.
d. microeconomics and macroeconomics.
QN=6 (1636) (17150) A demand curve shows the relationship
c. between price and quantity demanded.

QN=7 (1680) (17222) What will happen in the rice market now if sellers expect higher rice prices in
the near future?
b. The supply of rice will decrease.

QN=8 (1697) (17193) Which of the following is not held constant in a demand schedule?
c. Price

QN=9 (1698) (17192) Which of these statements best represents the law of demand?
c. When the price of a good decreases, buyers purchase more of the good.

QN=10 (17256) Refer to Table 5-3. Using the midpoint method, what is the price elasticity of demand when
(1731) price rises from $9 to $12?

d. 2.33

QN=11 (1708) (17209) Who gets scarce resources in a market economy?

d. whoever is willing and able to pay the price

QN=12 (1721) (17237) If a good is a luxury, demand for the good would tend to be
b. elastic.

QN=13 (1748) (17242) When the price of a good is $5, the quantity demanded is 120 units per month;
when the price is $7, the quantity demanded is 100 units per month. Using the
midpoint method, the price elasticity of demand is about
a. 0.55.

QN=14 (1746) (17241) The flatter the demand curve through a given point, the
a. greater the price elasticity of demand at that point.

QN=15 (1754) (17284) If a price floor is a binding constraint on a market, then

c. sellers cannot sell all they want to sell at the price floor.

QN=16 (1759) (17289) A legal maximum on the price at which a good can be sold is called a price
d. ceiling.

QN=17 (1751) (17255) The price elasticity of demand for bread

a. (i) is computed as the percentage change in quantity demanded of bread divided by
the percentage change in price of bread.
b. (ii) depends, in part, on the availability of close substitutes for bread.
c. (iii) reflects the many economic, social, and psychological forces that influence
consumers' tastes for bread.
d. All of (i), (ii), and (iii) are correct.

QN=18 (1772) (17277) The goal of rent control is to

d. help the poor by making housing more affordable.

QN=19 (1743) (17250) Which of the following statements is correct?

c. (iii) The demand for bourbon whiskey is more elastic than the demand for alcoholic
beverages in general.

QN=20 (1781) (17294) A surplus results when

c. a binding price floor is imposed on a market.

QN=21 (1806) (17317) Market power refers to the

c. ability of market participants to influence price.

QN=22 (1808) (17336) 2. Refer to Figure 7-2. When the price is P1, consumer surplus is
c. A+B+C.

QN=23 (1794) (17345) Producer surplus measures the

a. benefits to sellers of participating in a market.

QN=24 (1782) (17279) A government-imposed maximum price at which a good can be sold is called a
price
b. ceiling.

QN=25 (17373) Refer to Figure 10-5. Which of the following statements is correct?
(1842)
c. The marginal cost of the negative externality is measured by P3 - P1.

QN=26 (1822) (17328) Raisins and milk are complementary goods. An increase in supply of raisins will
b. increase consumer surplus in the market for raisins and increase producer surplus in
the market for milk.

QN=27 (1829) (17343) Refer to Figure 7-5. What is the consumer surplus if the price is $100?
a. $2,500

QN=28 (1848) (17361) When the social cost curve is above a product's supply curve we know that
b. a negative externality exists in the market.

QN=29 (1849) (17379) The best remedy for market failure is often
a. a market-based solution.

QN=30 (1846) (17348) Which of the following is not correct?

d. Externalities cannot be positive.

QN=31 (1908) (17395) One way to eliminate the Tragedy of the Commons is to
b. limit access to the commons.

QN=32 (1895) (17393) When a good is excludable,

b. people can be prevented from using the good.

QN=33 (1899) (17416) Advocates of antipoverty programs believe that fighting poverty
a. can make everyone better off.

QN=34 (1946) (17444) Which of the following costs would be regarded as an implicit cost?
b. the opportunity cost of financial capital that has been invested in the business

QN=35 (17445) Refer to Table 13-3. What is total output when 5 workers are hired?
(1934)

d. 190

QN=36 (1921) (17462) Refer to Figure 13-2. As the number of workers increases,
a. (i) marginal product decreases.

QN=37 (1968) (17496) A competitive firm has been selling its output for $20 per unit and has been
maximizing its profit, which is positive. Then, the price rises to $25, and the firm makes
whatever adjustments are necessary to maximize its profit at the now-higher price.
Once the firm has adjusted, which of the following statements is correct?
a. (i) The firm's quantity of output is higher than it was previously.
b. (ii) The firm's average total cost is higher than it was previously.
c. (iii) The firm's marginal revenue is higher than it was previously.
d. All of (i), (ii), and (iii) are correct.

QN=38 (1960) (17482) Scenario 14-1

Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's
marginal cost equals $15 and its average total cost equals $11. The firm sells its output
for $12 per unit.
Refer to Scenario 14-1. At Q = 999, the firm's profits equal
c. $1,003.

QN=39 (17491) In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive
(1970) market, and panel (b) depicts the linear market supply curve for a market with a fixed number
of identical firms.
 Refer to Figure 14-8. If at a market price of $1.75, 52,500 units of output are supplied to this
market, how many identical firms are participating in this market?

d. 300

QN=40 (2016) (17527) Refer to Figure 15-5. A profit-maximizing monopoly's profit is equal to
c. (P4-P1) * Q3.

QN=41 (1994) (17481) Scenario 14-1

Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's
marginal cost equals $15 and its average total cost equals $11. The firm sells its output
for $12 per unit.
Refer to Scenario 14-1. At Q = 1,000, the firm's profits equal
b. $1,000

QN=42 (2013) (17556) What is the shape of the monopolist’s marginal revenue curve?
b. a downward-sloping line that lies below the demand curve

QN=43 (2026) (17533) Refer to Figure 15-11. If the monopoly firm perfectly price discriminates, then
consumer surplus amounts to
a. $0.

QN=44 (2033) (17547) A monopoly chooses to supply the market with a quantity of a product that is
determined by the intersection of the
d. marginal revenue and marginal cost curves.

QN=45 (2050) (17566) A monopolistically competitive firm is currently producing 10 units of output.
At this level of output the firm is charging a price equal to $10, has marginal revenue
equal to $6, has marginal cost equal to $6, and has average total cost equal to $12.
From this information we can infer that
a. (i) the firm is currently maximizing its profit.
b. (ii) the profits of the firm are negative.
c. (iii) firms are likely to leave this market in the long run.
d. All of (i), (ii), and (iii) are correct.

QN=46 (2166) (17646) A decrease in population can be expected to

c. decrease the rents on land.

QN=47 (2162) (17655) Which of the following statements is correct? An individual worker's labor
supply curve
c. slopes downward if that person responds to a higher opportunity cost of leisure by
working fewer hours per week.

QN=48 (2082) (17563) A profit-maximizing firm in a monopolistically competitive market is

characterized by which of the following?
a. (i) average revenue exceeds marginal revenue
b. (ii) marginal revenue equals marginal cost
c. (iii) price exceeds marginal cost
d. All of (i), (ii), and (iii) are correct.

QN=49 (2174) (17684) Diana and Sarah each like jewelry and music by the Rolling Stones. If we were
to graph an indifference curve with jewelry on the horizontal axis and cd’s by the
Rolling Stones on the vertical axis, then
d. Because we do not know the intensity of each woman’s preferences, we do not have
enough information to compare their indifference curves.

QN=50 (2161) (17665) If Emma's individual labor supply curve is upward sloping, then Emma
responds to an increase in
a. (i) the wage by working more hours per week.
[id=1620, Mark=1]1. B

[id=1635, Mark=1]2. A

[id=1613, Mark=1]3. A

[id=1649, Mark=1]4. A

[id=1659, Mark=1]5. D

[id=1636, Mark=1]6. C

[id=1680, Mark=1]7. B

[id=1697, Mark=1]8. C

[id=1698, Mark=1]9. C

[id=1731, Mark=1]10. D

[id=1708, Mark=1]11. D

[id=1721, Mark=1]12. B

[id=1748, Mark=1]13. A

[id=1746, Mark=1]14. A

[id=1754, Mark=1]15. C

[id=1759, Mark=1]16. D

[id=1751, Mark=1]17. D

[id=1772, Mark=1]18. D

[id=1743, Mark=1]19. C

[id=1781, Mark=1]20. C

[id=1806, Mark=1]21. C

[id=1808, Mark=1]22. C

[id=1794, Mark=1]23. A

[id=1782, Mark=1]24. B

[id=1842, Mark=1]25. C

[id=1822, Mark=1]26. B

[id=1829, Mark=1]27. A

[id=1848, Mark=1]28. B

[id=1849, Mark=1]29. A
[id=1846, Mark=1]30. D

[id=1908, Mark=1]31. B

[id=1895, Mark=1]32. B

[id=1899, Mark=1]33. A

[id=1946, Mark=1]34. B

[id=1934, Mark=1]35. D

[id=1921, Mark=1]36. A

[id=1968, Mark=1]37. D

[id=1960, Mark=1]38. C

[id=1970, Mark=1]39. D

[id=2016, Mark=1]40. C

[id=1994, Mark=1]41. B

[id=2013, Mark=1]42. B

[id=2026, Mark=1]43. A

[id=2033, Mark=1]44. D

[id=2050, Mark=1]45. D

[id=2166, Mark=1]46. C

[id=2162, Mark=1]47. C

[id=2082, Mark=1]48. D

[id=2174, Mark=1]49. D

[id=2161, Mark=1]50. A