Question : 11) If the marginal benefit of a hot dog greater : 1241548

11) If the marginal benefit of a hot dog is greater than its marginal cost, then to increase efficiency,

A) more hot dogs should be produced.

B) fewer hot dogs should be produced.

C) nothing should be done if the marginal benefit is greater than the marginal cost by the maximum amount because in this case the efficient quantity of hot dogs is being produced.

D) production should be halted.

E) More information is needed about the price of a hot dog in order to determine if production should be increased, decreased, or not changed.

12) If the demand curve is the same as the marginal benefit curve and the supply curve is the same as the marginal cost curve, then the quantity at which they cross is

i.the equilibrium quantity.

ii.the allocatively efficient quantity.

iii.the quantity with no deadweight loss.

A) i, ii, and iii.

B) only i.

C) only ii.

D) only i and ii.

E) only i and iii.

13) The figure above shows the competitive market for slices of key lime pie. If the production is 40 slices per day, someone is willing to buy another slice of pie for

A) more than it costs to produce the slice.

B) less than it costs to produce the slice.

C) an amount equal to the cost of producing the slice.

D) an amount equal to the cost of producing all 40 slices.

E) an amount that is not comparable to the cost of producing the slice.

14) The figure above represents the competitive market for slices of key lime pie. If the production is 80 slices per day, the cost of the 80th slice is

A) less than anyone is willing to pay for it.

B) more than anyone is willing to pay for it.

C) equal to what someone is willing to pay for it.

D) indeterminant.

E) equal to the deadweight loss from the 80th slice.

15) The figure above represents the competitive market for slices of key lime pie. When 60 slices are produced, the marginal cost

A) exceeds the marginal benefit.

B) is less than the marginal benefit.

C) equals the marginal benefit.

D) is not defined.

E) equals the deadweight loss on the 60th slice.

16) The figure above represents the competitive market for slices of key lime pie. When the price equals $3

A) there is a shortage of slices of pie.

B) there is a surplus of slices of pie.

C) the efficient quantity of slices is being produced.

D) the quantity produced is inefficient.

E) the deadweight loss is maximized.

17) The figure above represents the competitive market for slices of key lime pie. When the price is $3, the total consumer surplus equals

A) $120.

B) $90.

C) $60.

D) $0.

E) None of the above answers is correct.

18) The figure above represents the competitive market for slices of key lime pie. When the price is $3, the total producer surplus equals

A) $0.

B) $60.

C) $90.

D) $120.

E) None of the above answers is correct.

19) The figure above shows the marginal benefit and marginal cost curves for pizza. In the figure, what is the efficient quantity of pizza?

A) 0 pizzas

B) 10,000 pizzas

C) 20,000 pizzas

D) 30,000 pizzas

E) The efficient quantity cannot be determine without more information.

20) In the figure above, if the market price is $12, then the total consumer surplus is

A) $12.

B) $10.

C) minimized.

D) $240.

E) $480.

21) In the figure above, if the market is at equilibrium, then the total consumer surplus equals the area ________ and the total producer surplus equals the area ________.

A) A; B

B) B; C

C) C; B

D) A; C

E) A + B; C

22) In the figure above, if the market is at equilibrium, the sum of the total consumer surplus and the total producer surplus is

A) $240.

B) $600.

C) $1,000.

D) $0.

E) $60.

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.