21) A marginal external cost of a product is equal to A) what the producer has to pay to hire resources to produce another unit. B) the cost someone other than the producer incurs when another unit is produced. C) the cost the producer incurs to produce another unit. D) what the consumer must pay when he or she buys the good or […]

  41) Consider the following economic agents: a.the government b. consumers c.producers A) the government B) producers C) consumers D) consumers and producers E) the government, consumers and producers 42) In a modern mixed economy, who decides what goods and services will be produced? A) only the producers B) only consumers C) only the government D) all of the above 43) How are the fundamental […]

  21) If there is a decrease in the percentage of employees whose wages adjust automatically with changes in the price level, the aggregate supply curve will become A) steeper. B) flatter. C) horizontal. D) vertical. 22) If there is an increase in the percentage of employees whose wages adjust automatically with changes in the price level, the aggregate supply curve will become A) steeper. […]

  111.Prudent Policy Life Insurance Co. offers a 10-year term life insurance policy with a $250,000 benefit and annual premiums of $200, paid at the beginning of each year. If Prudent can earn 8% on invested capital, what is the present value to the firm of the premiums from one policy, assuming the policy holder outlives the policy term? a.$1,120 b.$1,342 c.$1,449 d.$1,852 112.Prudent Policy […]

  61.The _____ is the less controversial sister institution of the IMF which was created along with the IMF in 1944.   A. G-20 B. International Court of Justice C. League of Nations D. World Trade Organization E. World Bank 62.According to the UN Charter, one of the four purposes of the UN is to:   A. be a center for harmonizing the actions of nations. B. encourage member-nations to increase trade barriers. C. provide […]

    11) ________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium. A) Marginal cost B) Producer atrophy C) Deadweight loss D) Economic shortage   12) Economic surplus A) does not exist when a competitive market is in equilibrium. B) is equal to the sum of consumer surplus and producer surplus. C) is the difference between quantity demanded and […]

  Table 7-1   Quantity of Pita Wraps Total Utility Quantity of Bubble Tea Total Utility 1   60 1   40 2 102 2   70 3 132 3   91 4 144 4 106 5 144 5 112 6 138 6 115 7 128 7 115   Keegan has $30 to spend on Pita Wraps and Bubble Tea.  The price of a Pita […]

  101) A perfectly competitive firm’s short-run supply curve is A) horizontal at the market price. B) its total cost curve above the AVC. C) its marginal cost curve below the marginal revenue curve. D) its marginal cost curve above the AVC curve. E) its marginal revenue curve below the ATC curve.   102) The firm’s supply curve is its A) marginal cost curve above […]

    2.2   Comparative Advantage and Trade   1) If you can produce more of something than others with the same resources, you have A) a comparative advantage. B) an absolute advantage. C) an efficient production system. D) a free-market economy.   Table 2-4     George Jack Lawns Mowed 10 6 Gardens Cultivated 5 4   Table 2-4 shows the output per day of […]

  65) Firms A) have no influence on the circular flow in a market economy. B) purchase resources in the product market. C) sell goods in the product market. D) sell resources in the factor market.     66) Households A) purchase final goods and services in the factor market. B) purchase final goods and services in the product market. C) purchase resources in the […]