Question : 11) At all points a demand curve, the i.consumer’s budget : 1238697

Economics

11) At all points on a demand curve, the

i.consumer’s budget has been allocated to maximize total utility.

ii.quantity is the quantity demanded at each price when total utility is maximized.

iii.price represents the marginal benefit the consumer gets from an extra unit of a good.

A) i only

B) ii only

C) i and ii

D) i and iii

E) i, ii, and iii

12) As more of a good is consumed, the marginal utility of an additional unit ________, so consumers are willing to pay ________ for an additional unit.

A) decreases; less

B) increases; less

C) decreases; more

D) increases; more

E) does not change; less

13) The paradox of value refers to the

A) utility maximizing rule.

B) fact that water is vital but cheap while diamonds are relatively useless but expensive.

C) fact that consumers have different preferences and utility schedules.

D) law of demand.

E) issue of why the consumer surplus from water equals the consumer surplus from diamonds.

14) One reason why water is cheap compared to diamonds is because the

A) marginal utility of water is enormous.

B) marginal utility of water is small.

C) total utility of water is enormous.

D) total utility of water is small.

E) total utility of water and diamonds must be equal, but the marginal utility of water is much lower than the marginal utility of diamonds.

15) In the paradox of value between expensive diamonds and inexpensive water, we see that

A) the consumer surpluses are very high for both goods.

B) diamonds have a low consumer surplus while water has a high consumer surplus.

C) diamonds have a high consumer surplus while water has a low consumer surplus.

D) the consumer surpluses are very low for both goods.

E) the consumer surpluses for the two goods cannot be compared.

16) Over the past 10 years, the price of a downloaded song has ________ which has lead to ________.

A) increased; a decrease in consumer surplus

B) increased; an increase in consumer efficiency

C) decreased; an increase in consumer surplus

D) decreased; a decrease in consumer efficiency

E) not changed; no change in consumer surplus

17) ________ in consumer surplus occurs when the price of a good ________.

A) An increase; decreases and consumers can buy more of the good at the lower price

B) A decrease; decreases and consumers buy less of the good at the cheaper price

C) An increase; decreases and consumer efficiency declines

D) A decrease; increases and the paradox of value is no longer valid

E) An increase; increases but the relative price does not change

18) Goods that are valuable will have a ________ consumer surplus because ________ units of the good are consumed at a ________ price.

A) large; more; lower

B) large; less; higher

C) smaller; more; lower

D) smaller; fewer; lower

E) larger; fewer; lower

19) Diamonds have ________ consumer surplus because ________.

A) a smaller; fewer diamonds are sold at higher prices

B) a smaller; there is a lower marginal utility for diamonds

C) a large; diamonds are a rare and valuable stone

D) zero; diamonds have a high price and provide low total utility

E) zero; diamonds are not necessary for life

13.4 Chapter Figures

The figure above shows three budget lines.

1) Based on the figure above, which of the following would lead the consumer’s budget line to shift from BL0 to BL1?

A) a rise in the price of water

B) a fall in the price of water

C) a rise in the price of water and the price of gum

D) a decrease in the consumer’s budget

E) an increase in the consumer’s budget

2) Based on the figure above, which of the following would lead the consumer’s budget line to shift from BL0 to BL2?

A) a rise in the price of water

B) a fall in the price of water

C) a rise in the price of water and the price of gum

D) a decrease in the consumer’s budget

E) an increase in the consumer’s budget

3) Based on the figure above, on which budget line is the relative price of gum the highest?

A) budget line BL2

B) budget line BL0

C) budget line BL1

D) The relative price is the same along all three budget lines.

E) To answer the question, more information is needed about the consumer’s income.

The figure above shows two budget lines.

4) Based on the figure above, which of the following would lead the budget line to change from BL0 to BL1?

A) a rise in the price of water

B) a fall in the price of water

C) a rise in the price of water and the price of gum

D) a decrease in the consumer’s budget

E) an increase in the consumer’s budget

The figure above shows the markets for water and diamonds.

5) Based on the figures above, it is the case that the consumer surplus from water ________ the consumer surplus from diamonds and the marginal utility from water ________ the marginal utility from diamonds.

A) is equal to; is equal to

B) is larger than; is equal to

C) is larger than; is larger than

D) is larger than; is smaller than

E) is smaller than; is smaller than

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July 1, 2023

41) The above figure shows the production possibility frontier for an economy. The point or points that are attainable and production efficient are

A) points B and C.

B) points A, B, and C.

C) point E.

D) points A, B, C, and D.

E) points A and D.

42) The above figure shows the production possibility frontier for an economy. The point or points that are attainable are

A) points B and C.

B) points A, B, and C.

C) point E.

D) points A, B, C, and D.

E) points A and D.

43) The above figure shows the production possibility frontier for an economy. The point or points that are NOT attainable are

A) points B and C.

B) points A, B, and C.

C) point E.

D) points A, B, C, and D.

E) points A and D.

44) In order for Ireland to grow more potatoes, wool production must decrease. This situation is an example of

A) producing at a point that lies beyond the PPF.

B) zero opportunity cost.

C) opportunity benefit.

D) a free lunch.

E) a tradeoff.

45) As we move along the production possibilities frontier,

A) the production of one good increases as the production of the other good decreases.

B) the possibilities of tradeoffs diminish.

C) a tradeoff is not possible because nations need all goods.

D) more of both goods can be produced.

E) less of both goods can be produced.

46) Which of the following statements is correct?

A) If capital is idle, the economy is producing at its full potential.

B) The production possibilities frontier shows that there are no limits to production.

C) A tradeoff is a limit that forces an exchange or a substitution of one thing for something else.

D) Any point on or within the PPF is production efficient.

E) None of the above answers is correct.

47) When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods

A) must increase.

B) must decrease.

C) must remain the same.

D) must change, but they might increase or decrease.

E) might increase if the nation can produce more efficiently.

48) The negative slope of the production possibilities frontier represents the idea

A) that free lunches are possible.

B) of tradeoffs, that in order to produce more of one good, the nation must produce less of another.

C) of unemployment.

D) of inefficient production.

E) that prices rise as less is produced.

49) A movement from one point on a production possibilities frontier to another represents

A) a tradeoff.

B) a free lunch.

C) full employment of labor but not capital.

D) unemployment.

E) an advance in technology.

50) The saying "There's no such thing as a free lunch," applies

A) when there is some unemployment.

B) on the production possibilities frontier.

C) to unattainable combinations of goods and services.

D) when more of one good can be produced without decreasing production of another.

E) at all points inside the PPF.

July 1, 2023

31) Steve, an HR supervisor at APEX construction, has recently noticed a shortage of skilled workers due to a building boom in the area. He must find new workers quickly because it is uncertain how long the boom will last. He decides to hire nontraditional laborers. The most likely disadvantage of using nontraditional laborers is the:

A) high costs of making reasonable accommodations.

B) additional training that will be necessary.

C) extensive involvement of the EEOC.

D) high advertising costs.

32) Which of the following is primarily associated with hiring external candidates?

A) Lowers training costs

B) Provides new ideas and perspectives

C) Decreases recruitment time and expense

D) Motivates other workers to strive for advancement

33) One of the advantages of promoting internal candidates is:

A) rejuvenating work units.

B) reducing training costs.

C) fostering innovative ideas.

D) reducing employee turnover.

34) Tatiana needs to hire a line manager and has a very small recruiting budget. The firm's current employees don't feel they have many advancement opportunities. It would be best for Tatiana to recruit:

A) internally.

B) externally.

C) former military members.

D) nontraditional workers.

35) Which of the following is most likely a true statement about recruiting?

A) Internal recruiting enhances organizational communication.

B) External recruiting fills positions quickly and inexpensively.

C) External recruiting promotes innovation and new perspectives.

D) Internal recruiting requires developing new organizational policies.

36) Which of the following is most likely a true statement about recruiting employees in a protected class?

A) The recruiting message should be targeted to specific minority groups.

B) All private sector firms are legally required to have an affirmative action policy.

C) Using media that focuses on minorities is an effective way to recruit protected group members.

D) Intense minority competition for jobs ensures a large pool of qualified and motivated applicants.

37) Which of the following must have written affirmative action plans?

A) Non-profit groups

B) Government contractors

C) Privately-held corporations

D) Publicly-held corporations

38) In human resource planning the answer to the question, "How many candidates should we recruit?":

A) is based on the firm's affirmative action plan.

B) comes from the yield ratio calculated in the forecast.

C) is directed by EEO consideration and the size of the labor pool.

D) depends on the state of the labor pool and the current economy.

39) The offer-to-acceptance ratio at Central Manufacturing is 6:1. How many offers will the firm need to make in order to fill 80 positions?

A) 120

B) 240

C) 480

D) 540

40) After an extensive recruiting effort, your company has contacted 225 interested individuals. At the application deadline, you have received 75 applications. What is your contact-to-applicant ratio?