51) Which of the following represents a pair of isotopes? A) 14C, 14N B) 1H, 2H C) 32S, 32S-2 D) O2, O3   52) Chlorine, which exists in nature in two isotopic forms, has an atomic mass of 35.5 amu. This means that ________. A) all chlorine atoms have masses of 35.5 amu B) 35.5 amu is the upper limit for the mass of […]

  11) Refer to Figure 11-3.What is the area that represents the total fixed cost of production? A) 0P1aQa B) P0adP3 C) P1bdP3 D) That information cannot be determined from the graph. 12) Refer to Figure 11-3.What is the area that represents the loss made by the firm? A) the area P0adP3 B) the area P1bcP2 C) the area P0acP2 D) the area P2cdP3 13) […]

  11) How do advertising and other selling costs affect a firm? A) They shift the marginal cost curve upward. B) The only effect is that the excess capacity is reduced. C) The only effect is that the demand for the product increases. D) They shift the average total cost curve upward. E) They do not change demand and shift the average total cost curve […]

  11) Which of the following Nobel laureates became known for the study of asymmetric information? A) Gary Becker B) Michael Spence C) George Ackerlof D) Ronald Coase     12) Adverse selection will occur in a market as a result of A) asymmetric information. B) moral hazard. C) the sale of “lemons.” D) rational ignorance.     13) Which of the following is an […]

    ABC Corporation ABC Corporation has a capital structure that consists of $20 million in debt and $40 million in equity. The debt has a coupon rate of 10%, while the industry return on equity is 15%. ABC Corporation is unsure of the state of the economy in the next year. The tax rate facing the company is 40%.   State of the EconomyBADGOODGREAT […]

  41) Which of the following is NOT a necessary precondition for economic growth? A) economic freedom B) democracy C) property rights D) free markets E) ALL of the above are necessary preconditions. 42) Which of the following characteristics is a precondition for economic growth? i.economic freedom ii.free markets iii.active government policy to discourage saving A) i only B) ii only C) iii only D) […]

    21) Zero pollution is almost surely NOT a desirable social goal because A) the marginal benefit is equal to zero. B) the marginal cost is equal to zero. C) the totals costs of complete pollution elimination will be far greater than the total benefits. D) the total benefits of complete pollution elimination will be far greater than the total costs. E) society benefits […]

  12.5   Integrative Questions   1) Moral hazard typically occurs because A) people are dishonest. B) agreements sometimes create incentives that are costly to monitor so people can act in their self-interest. C) workers possess diminishing marginal productivity. D) screening leads to informed people revealing their relevant private information. E) workers possess adverse selection. 2) Moral hazard results from ________ information, and adverse selection results […]

    11) If the real interest rate rises, A) the quantity of loanable funds demanded increases. B) the quantity of loanable funds demanded decreases. C) there is is movement down along the demand for loanable funds curve. D) the demand for loanable funds curve shifts leftward. E) the demand for loanable funds curve shifts rightward.   12) An increase in the quantity of loanable […]

  31) Average product is equal to A) marginal product + total product. B) total product ÷ marginal product. C) total product ÷ quantity of labor. D) total product × quantity of labor. E) marginal product × quantity of labor.   32) Jill runs a factory that makes lie detectors in Little Rock, Arkansas. This month, Jill’s 34 workers produced 680 machines. Jill’s average product […]