11.One of Tonic Corp’s employees invented a revolutionary coffee lid that cools coffee as you drink it in order to prevent burns. Two children ordered coffee and burned their mouths after failing to properly secure the lids. The children’s parents sued. TonicCorp’s. lawyers believe that it is highly probable that judgment will be rendered against TonicCorp and it is likely a payment in […]

    101) Refer to the table above. The government sector balance is a A) $900 billion deficit. B) $900 billion surplus. C) $2,900 billion balanced budget. D) $2,900 billion trade deficit. E) $500 billion deficit. 102) A country’s balance of payments accounts records its A) tax receipts and expenditures. B) tariffs and nontariff revenue and government purchases. C) international trading, borrowing, and lending. D) […]

  13.3   Explaining Unemployment   1) An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment. A) increase; cyclical B) increase; frictional C) decrease; cyclical D) decrease; frictional   2) Which of the following would increase the unemployment rate? A) a law making it illegal to work more than 35 hours […]

  41.Giventhemarketforillegaldrugs,whenthegovernmentissuccessfulinreducingtheflowofdrugsintotheUnitedStates, a.supplydecreases,demandisunaffected,andpriceincreases. b.demanddecreases,supplyisunaffected,andpricedecreases. c.demandandsupplybothdecrease,leavingpriceessentiallyunchanged. d.supplydecreases,demandincreases,andpriceincreasessubstantially. 42.AdruginterdictionprogramthatsuccessfullyreducesthesupplyofillegaldrugsintheUnitedStateslikelywill a.raisetheprice,reducethequantity,decreasetotalrevenues,anddecreasecrime. b.lowertheprice,increasethequantity,increasetotalrevenues,andincreasecrime. c.raisetheprice,increasethequantity,decreasetotalrevenues,andincreasecrime. d.raisetheprice,reducethequantity,increasetotalrevenues,andincreasecrime. 43.ThefederalgovernmentisconcernedaboutobesityintheUnitedStates.Congressisconsideringtwoplans.Onewillbantheproductionandsaleof“junkfood.”Theotherwillincreasenutrition­educationprogramsandincludesubstantialadvertisingcampaignstoencouragehealthyeatinghabits.Thejunk-foodbanprogram a.andtheeducationprogramwillreducethequantityofjunkfoodsoldandraisetheprice. b.andtheeducationprogramwillreducethequantityofjunkfoodsoldandlowertheprice. c.willreducethequantityofjunkfoodsoldandraisetheprice.Theeducationprogramwillreducethequantityofjunkfoodsoldandlowertheprice. d.willreducethequantityofjunkfoodsoldandlowertheprice.Theeducationprogramwillreducethequantityofjunkfoodsoldandraisetheprice. 44.ThefederalgovernmentisconcernedaboutthenegativeeffectsofcigarettesmokingintheUnitedStates.SupposeCongressisconsideringtwoplans.Oneplanwouldlimittheproductionofcigarettes.Theotherwouldrequiremanufacturerstoincludegraphicphotosoncigarettepackagesofpeoplesufferingcancer’seffects.Whichofthefollowingstatementsistrue? a.Bothprogramswouldincreasethepriceofcigarettes. b.Bothprogramswouldreducethequantityofcigarettessold. c.Bothprogramswoulddecreaserevenuesforcigarettemanufacturers. d.Alloftheabovearecorrect. 45.Theproductionofmethamphetamine(meth)isasocialproblemintheMidwest.Iowaisconsideringtwopotentialprograms:OperationMethbustwouldincreasethenumberofsheriffs’deputiestosearchoutanddestroymethamphetaminelabs.OperationSayNotoMethwouldincreasethetrainingrequiredofpublicschoolteacherssothattheycouldbettereducatestudentsaboutthehealthrisksofusingmeth.Assumingthateachprogramweresuccessful,whichofthefollowingstatementsiscorrect? a.BothOperationMethbustandSayNowouldreducethedemandformeth. b.BothOperationMethbustandSayNowouldreducethesupplyofmeth. c.OperationMethbustwouldreducethedemandformeth;OperationSayNowouldreducethesupplyofmeth. d.OperationMethbustwouldreducethesupplyofmeth;OperationSayNowouldreducethedemandformeth. 46.Theproductionofmethamphetamine(meth)isasocialproblemintheMidwest.Iowaisconsideringtwopotentialprograms:OperationMethbustwouldincreasethenumberofsheriffs’deputiestosearchoutanddestroymethamphetaminelabs.OperationSayNotoMethwouldincreasethetrainingrequiredofpublicschoolteacherssothattheycouldbettereducatestudentsaboutthehealthrisksofusingmeth.Assumingthateachprogramweresuccessful,whichofthefollowingstatementsiscorrect? a.BothOperationMethbustandSayNowouldreducetheequilibriumquantityandincreasetheequilibriumpriceofmeth. b.BothOperationMethbustandSayNowouldincreasetheequilibriumquantityandreducetheequilibriumpriceofmeth. c.BothOperationMethbustandSayNowouldreducetheequilibriumquantityofmeth;OperationMethbustwouldincreasetheequilibriumprice,whereasSayNowouldreducetheequilibriumpriceofmeth. d.BothOperationMethbustandSayNowouldreducetheequilibriumpriceofmeth;OperationMethbustwouldreducetheequilibriumquantity,whereasSayNowouldincreasetheequilibriumquantityofmeth. 47.Ifmarijuanawerelegalized,itislikelythattherewouldbeanincreaseinthedemandformarijuana.Ifdemandformarijuanaisinelasticandthesupplyofmarijuanaisperfectlyelastic,thiswillresultin a.higherpricesandhighertotalrevenuefrommarijuanasales. b.higherpricesbutlowertotalrevenuefrommarijuanasales. c.thesamepriceandhighertotalrevenuefrommarijuanasales. d.thesamepricebutlowertotalrevenuefrommarijuanasales.    

  11) For which type of good is it necessary to sum the marginal benefit curves vertically in order to obtain the economy’s marginal benefit curve? A) public goods B) mixed goods C) private goods D) goods that are subject to the exclusion principle E) common resources   12) Suppose a public good is provided in an economy with only two consumers, Popeye and Captain […]

Multiple Choice 1.Which of the following is generally true? A.  Most women use only the right lobe of their brain. B.  Most men use only the left lobe of their brain. C.  Most men’s brains are more highly integrated than most women’s brains. D.  A and B E.   None of the above. 2. Research into male hormones indicates that A. Men who act aggressively and […]

  8.2   Monopolistic Competition and Trade   1) Intra-industry trade is most common in the trade patterns of A) the industrial countries of Western Europe. B) the developing countries of Asia and Africa. C) raw material producers. D) China with the rest of the world. E) labor-intensive products.     2) If the market for products produced by firms in a monopolistically competitive industry becomes […]

    21) Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming A) the two previous hamburgers. B) all three hamburgers. C) just the third hamburger. D) just the second hamburger. E) the third hamburger minus the pleasure from consuming zero hamburgers. 22) What typically happens to benefits as the amount of an […]

  12.6  Restoring Efficiency 1) Which of the following statements is true? A) Under monopoly, the seller sets the price of its good below marginal costs. B) Under perfect competition, sellers set the price of their goods below marginal costs. C) Under monopoly, prospective buyers may not be able to buy a good even if they have a willingness to pay above marginal costs. D) […]

    54) The figure above shows the demand, marginal revenue, and marginal cost curves for Paul’s Parrot Pillows, a single-price monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, he produces ________ pillows per hour. A) 1,000 B) 3,000 C) 4,000 D) 0 E) 2,000   55) The figure above shows the demand, marginal revenue, and marginal cost curves for […]