The figure above shows the demand curve for Starbucks latte.   11) In the figure above, the demand is elastic in the range of prices between A) $3.50 and $4.50 per cup. B) $2.50 and $3.50 per cup. C) $1.00 and $2.00 per cup. D) $2.00 and $4.00 per cup. E) $1.75 and $2.75 per cup.   12) In the figure above, the […]

    11) Which of the following is not an example of a trade restriction? A) tariffs B) quotas and voluntary export restraints C) legislation requiring that cars sold in a country have a 50 percent domestic content D) consumer preferences for goods produced domestically   12) Under autarky, consumer surplus is represented by the area A) above the supply curve and below the equilibrium […]

    11) The table above gives four production possibilities for airplanes and cruise ships. In possibility A, how many resources are devoted to the production of airplanes? A) 0 B) few C) most D) all E) It is impossible to tell without more information about the prices of airplanes and cruise ships.   12) The table above gives four production possibilities for airplanes and […]

  31.Supposethatalcoholconsumptioncreatesanegativeexternality.Whatcanthegovernmentdotoequatetheequilibriumquantityofalcoholandthesociallyoptimalquantityofalcohol? a.imposeataxonalcoholthatisequaltotheper-unitexternality b.offerasubsidyonalcoholthatisequaltotheper-unitexternality c.imposearegulationlimitingtheamountofalcoholthateachconsumercanpurchase d.nothing 32.Supposethatsmokingcreatesanegativeexternality.Ifthegovernmentimposesaper-cigarettetaxequaltotheper-cigaretteexternality,then a.theafter-taxequilibriumquantityofcigarettessmokedwillbelessthanthesociallyoptimalquantityofcigarettessmoked. b.theafter-taxequilibriumquantityofcigarettessmokedwillbegreaterthanthesociallyoptimalquantityofcigarettessmoked. c.theafter-taxequilibriumquantityofcigarettessmokedwillequalthesociallyoptimalquantityofcigarettessmoked. d.Thereisnotenoughinformationtoanswerthequestion. 33.Supposethatelectricityproducerscreateanegativeexternalityequalto$5perunit.Furthersupposethatthegovernmentimposesa$5per-unittaxontheproducers.Whatistherelationshipbetweentheafter-taxequilibriumquantityandthesociallyoptimalquantityofelectricitytobeproduced? a.Theyareequal. b.Theafter-taxequilibriumquantityisgreaterthanthesociallyoptimalquantity. c.Theafter-taxequilibriumquantityislessthanthesociallyoptimalquantity. d.Thereisnotenoughinformationtoanswerthequestion. 34.Correctivetaxesthatareimposedupontheproducerofanastysmellcanbesuccessfulinreducingthatsmellbecausethetaxmakestheproducer a.externalizethepositiveexternality. b.externalizethenegativeexternality. c.internalizethepositiveexternality. d.internalizethenegativeexternality. 35.Supposethatelectricityproducerscreateanegativeexternalityequalto$5perunit.Furthersupposethatthegovernmentgivesa$5per-unitsubsidytoproducers.Whatistherelationshipbetweentheequilibriumquantityandthesociallyoptimalquantityofelectricitytobeproduced? a.Theyareequal. b.Theequilibriumquantityisgreaterthanthesociallyoptimalquantity. c.Theequilibriumquantityislessthanthesociallyoptimalquantity. d.Thereisnotenoughinformationtoanswerthequestion. 36.Supposethatelectricityproducerscreateanegativeexternalityequalto$6perunit.Furthersupposethatthegovernmentimposesa$8per-unittaxontheproducers.Whatistherelationshipbetweentheafter-taxequilibriumquantityandthesociallyoptimalquantityofelectricitytobeproduced? a.Theyareequal. b.Theafter-taxequilibriumquantityisgreaterthanthesociallyoptimalquantity. c.Theafter-taxequilibriumquantityislessthanthesociallyoptimalquantity. d.Thereisnotenoughinformationtoanswerthequestion. 37.Supposethatelementaryeducationcreatesapositiveexternality.Ifthegovernmentsubsidizeseducationbyanamountequaltotheper-unitexternalityitcreates,then a.theequilibriumquantityofeducationwillequalthesociallyoptimalquantityofeducation. b.theequilibriumquantityofeducationwillbegreaterthanthesociallyoptimalquantityofeducation. c.theequilibriumquantityofeducationwillbelessthanthesociallyoptimalquantityofeducation. d.Thereisnotenoughinformationtoanswerthequestion. 38.Universityresearcherscreateapositiveexternalitybecausewhattheydiscoverintheirresearchlabscaneasilybelearnedbyotherswhohaven’tcontributedtotheresearchcosts.Whatcouldthefederalgovernmentdotoequatetheequilibriumquantityofuniversityresearchandthesociallyoptimalquantityofuniversityresearchproduced? a.taxuniversityresearchers b.offergrantstouniversityresearchers c.eliminatesubsidizedstudentloans d.nothing 39.Universityresearcherscreateapositiveexternalitybecausewhattheydiscoverintheirresearchlabscaneasilybelearnedbyotherswhohaven’tcontributedtotheresearchcosts.Supposethatthefederalgovernmentgivesgrantstotheseresearchersequaltothetheirper-unitproductionexternality.Whatistherelationshipbetweentheequilibriumquantityofuniversityresearchandthesociallyoptimalquantityofuniversityresearchproduced? a.Theequilibriumquantityisgreaterthanthesociallyoptimalquantity. b.Theyareequal. c.Theequilibriumquantityislessthanthesociallyoptimalquantity. d.Thereisnotenoughinformationtoanswerthequestion. 40.Supposeplantingfloweringshrubscreatesapositiveexternalityequalto$7pershrub.Furthersupposethatthelocalgovernmentoffersa$7per-shrubsubsidytoplanters.Thenumberofshrubsthatareplantedisthen a.lessthanthesociallyoptimalquantity. b.greaterthanthesociallyoptimalquantity. c.equaltothesociallyoptimalquantity. d.Thereisnotenoughinformationtoanswerthequestion.    

  11) Which of the following statements best describes the concept of consumer surplus? A) “Safeway was having a sale on Dreyer’s ice cream so I bought 3 quarts.” B) “I was all ready to pay $300 for a new leather jacket that I had seen in Macy’s but I ended up paying only $180 for the same jacket.” C) “I paid $130 for a […]

  Figure 15-15     Figure 15-15 shows the cost and demand curves for the Erickson Power Company.   18) Refer to Figure 15-15. Erickson Power is a natural monopoly because A) it is a power company and all power companies are natural monopolies. B) average total cost is still declining when it intersects demand. C) of its continually declining marginal revenue curve as output […]

  82.According to the attraction-selection-attrition (ASA) theory, job applicants:  A.with a variety of personal characteristics are preferred by organizations, resulting in a more heterogeneous organization. B.avoid employment in companies whose values seem incompatible with their own values. C.do not typically pay much heed to organizational values when applying for work. D.avoid other applicants if they are competing for the same jobs. E.are attracted to companies […]

  31) Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie. Leann is making A) a decision that does not involve an opportunity cost. B) a rational decision if her marginal cost from the movie is greater than her marginal benefit. C) a rational decision if her marginal benefit from the movie is greater than her […]

  11.              The behavioral norms expected within work groups and considered to be among the most important from the organization’s perspective are known as: a.visions b.organizational culture and credos c.group cohesion d.groupthink 12.              Which of the following statements regarding group cohesion is NOT accurate? a.group cohesion can enhance job satisfaction for members. b.group cohesion can enhance organizational productivity. c.highly cohesive groups tend to have higher […]

  39.Ethical issues that primarily affect the internal conduct of organization members include all of the following except _____. a.bribery and corruption (pages 53-54, moderate) b.discrimination c.safe working conditions d.adequate compensation 40.Which of the following is not a cross-cultural ethical issue arising from increasing globalization and its international interaction? a.the intentional sale of dangerous products b.intentional misrepresentation in negotiations c.the use of children and prisoners […]