Refer to the information provided in Figure 4.1 below to answer the questions that follow.   Figure 4.1   11) Refer to Figure 4.1. At the world price of 30 cents per apple the United States imports ________ million apples per day. A) 2 B) 4 C) 6 D) 10   12) Refer to Figure 4.1. The United States will import 2 million apples […]

    41) Economists have used the ultimatum game and the dictator game in experiments designed to determine A) whether consumers care about fairness when they make decisions. B) whether consumers believe it is fair for producers to raise the price of a product for which there is excess demand. C) whether consumers understand the difference between implicit costs and explicit costs. D) whether consumers […]

  11.Consider two individuals — Howard and Mai — each of whom would like to wear sweaters and eat tasty food. The gains from trade between Howard and Mai are least obvious in which of the following cases? a.Howardisverygoodatknittingsweatersandatcookingtastyfood,butMai’sskillsinbothoftheseactivitiesareverypoor. b.Howardisverygoodatknittingsweatersandatcookingtastyfood;Maiisverygoodatknittingsweaters,butsheknowsnothingaboutcookingtastyfood. c.Howard’sskillsinknittingsweatersarefairlygood,buthisskillsincookingtastyfoodarefairlybad?Mai’sskillsinknittingsweatersarefairlybad,butherskillsincookingtastyfoodarefairlygood. d.Howard’sskillsaresuchthathecanproduceonlysweaters,andMai’sskillsaresuchthatshecanproduceonlytastyfood. 12.Aprofessorspends10hoursperdaygivinglecturesandwritingpapers.Fortheprofessor,agraphthatshowshisvariouspossiblemixesofoutput(lecturesgivenperdayandpaperswrittenperday)iscalledhis a.lineoftastes. b.trade-offcurve. c.productionpossibilitiesfrontier. d.consumptionpossibilitiesfrontier. 13.Supposethereareonlytwopeopleintheworld.Eachperson’sproductionpossibilitiesfrontieralsorepresentshisorherconsumptionpossibilitieswhen a.neitherpersonfacestrade-offs. b.thefrontiersarestraightlines. c.thefrontiersarebowedout. d.theychoosenottotradewithoneanother. 14.Themostobviousbenefitofspecializationandtradeisthattheyallowusto a.workmorehoursperweekthanweotherwisewouldbeabletowork. b.consumemoregoodsthanweotherwisewouldbeabletoconsume. c.spendmoremoneyongoodsthatarebeneficialtosociety,andlessmoneyongoodsthatareharmfultosociety. d.consumemoregoodsbyforcingpeopleinothercountriestoconsumefewergoods. 15.Asastudent,Annespends40hoursperweekwritingtermpapersandcompletinghomeworkassignments.Ononeaxisofherproductionpossibilitiesfrontierismeasuredthenumberoftermpaperswrittenperweek.Ontheotheraxisismeasuredthenumberofhomeworkassignmentscompletedperweek.Anne’sproductionpossibilitiesfrontierisastraightlineif a.shefacesnotrade-offbetweenwritingtermpapersandcompletinghomeworkassignments. b.shecanswitchbetweenwritingtermpapersandcompletinghomeworkassignmentsataconstantrate. c.therateatwhichshecanswitchbetweenhomeworkassignmentsandtermpapersdependsonthenumberofhomeworkassignmentssheiscompletingandonthenumberoftermpaperssheiswriting. d.sheisrequiredbyherprofessorstospendhalfofhertimeontermpapersandtheotherhalfofhertimeonhomeworkassignments. 16.Foraself-sufficientproducer,theproductionpossibilitiesfrontier a.isthesameastheconsumptionpossibilitiesfrontier. b.isgreaterthantheconsumptionpossibilitiesfrontier. […]

  111) What is potentially an important argument against regional trade agreements? A) The benefits of trade creation may be outweighed by the costs of trade diversion. B) They are more difficult to negotiate than multilateral agreements at the WTO. C) The gains from trade can only be realized with global trade agreements. D) Regional trade agreements lead to more volatile swings in national income. […]

1. Which of the following statements regarding the balanced scorecard approach is false?  A. Because of changing technology, global competition, and an increased awareness of the need to focus on customer needs, nonfinancial and qualitative performance measures have become an integral component of effective managerial decision making. B. The balance scorecard approach integrates both financial and nonfinancial performance measures. C. The balanced scorecard approach requires looking at performance from […]

  11) Consider an industry that is made up of nine firms each with a market share (percent of sales) as follows: a.Firm A: 30% b.Firm B: 20% c.Firms C, D and E: 10% each d.Firms F, G, H and J: 5% each   What is the value of the Herfindahl-Hirschman Index and how is the industry categorized? A) 1700; moderately concentrated B) 1425; moderately […]

    11) Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali’s opportunity cost of attending the review session is A) the $10 he could have earned at his job. B) the value of the session minus the $10 he could have earned at his job. C) nothing, because the […]

  11.Equilibriumquantitymustdecreasewhendemand a.increasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplydecreases,andwhenbothdemandandsupplydecrease. b.increasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplyincreases,andwhenbothdemandandsupplydecrease. c.decreasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplyincreases,andwhenbothdemandandsupplydecrease. d.decreasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplydecreases,andwhenbothdemandandsupplydecrease. 12.Equilibriumquantitymustincreasewhendemand a.increasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplyincreases,andwhenbothdemandandsupplyincrease. b.increasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplyincreases,andwhenbothdemandandsupplydecrease. c.decreasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplydecreases,andwhenbothdemandandsupplyincrease. d.decreasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplydecreases,andwhenbothdemandandsupplydecrease. 13.Equilibriumpricemustdecreasewhendemand a.increasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplydecreases,andwhendemanddecreasesandsupplyincreasessimultaneously. b.increasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplydecreases,andwhendemandincreasesandsupplydecreasessimultaneously. c.decreasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplyincreases,andwhendemanddecreasesandsupplyincreasessimultaneously. d.decreasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplyincreases,andwhendemandincreasesandsupplydecreasessimultaneously. 14.Equilibriumpricemustincreasewhendemand a.increasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplydecreases,andwhendemanddecreasesandsupplyincreasessimultaneously. b.increasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplydecreases,andwhendemandincreasesandsupplydecreasessimultaneously. c.decreasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplyincreases,andwhendemanddecreasesandsupplyincreasessimultaneously. d.decreasesandsupplydoesnotchange,whendemanddoesnotchangeandsupplyincreases,andwhendemandincreasesandsupplydecreasessimultaneously. 15.Whichofthefollowingeventsmustcauseequilibriumpricetorise? a.demandincreasesandsupplydecreases b.demandandsupplybothdecrease c.demanddecreasesandsupplyincreases d.demandandsupplybothincrease 16.Ifthedemandforaproductincreases,thenwewouldexpectequilibriumprice a.toincreaseandequilibriumquantitytodecrease. b.todecreaseandequilibriumquantitytoincrease. c.andequilibriumquantitybothtoincrease. d.andequilibriumquantitybothtodecrease. 17.Ifthedemandforaproductdecreases,thenwewouldexpectequilibriumprice a.toincreaseandequilibriumquantitytodecrease. b.todecreaseandequilibriumquantitytoincrease. c.andequilibriumquantitytobothincrease. d.andequilibriumquantitytobothdecrease. 18.Ifthesupplyofaproductincreases,thenwewouldexpectequilibriumprice a.toincreaseandequilibriumquantitytodecrease. b.todecreaseandequilibriumquantitytoincrease. c.andequilibriumquantitytobothincrease. d.andequilibriumquantitytobothdecrease. 19.Ifthesupplyofaproductdecreases,thenwewouldexpectequilibriumprice a.toincreaseandequilibriumquantitytodecrease. b.todecreaseandequilibriumquantitytoincrease. c.andequilibriumquantitytobothincrease. d.andequilibriumquantitytobothdecrease. 20.Whensupplyanddemandbothincrease,equilibrium a.pricewillincrease. b.pricewilldecrease. c.quantitymayincrease,decrease,orremainunchanged. d.pricemayincrease,decrease,orremainunchanged.    

  7.5  Equity and Efficiency 1) Which of the following statements is true? A) The command system is remarkable at providing price signals that guides resources in a way that maximizes social surplus. B) Market economies minimize waste and provide incentives to all market participants to promote their own interests. C) Coordination of different economic agents and bringing them together to trade is a central […]

  3.5   Chapter Figures     1) The figure above shows a production possibilities frontier. In the figure, which of the following combinations of the two goods cannot be produced with the current resources and technology? A) 2 million cell phones and 13 million DVDs B) 4 million cell phones and 4 million DVDs C) 1 million cell phones and 14 million DVDs D) 3 […]