QUESTION 25
What will happen in a market where a binding price floor is removed?
a.
There will be upward pressure on the prices.
b.
The price or quantity of the product sold in the legal market will not change.
c.
There will be downward pressure on the prices.
d.
The products sold will become scarcer.
e.
There will be increased pressure to buy and sell the good on the black market.
1.05000 points
QUESTION 26
The local bakery calculates the price elasticity of demand for its cinnamon rolls to be â1.25. This tells them that demand is ________ and price is ________ to the buyer.
a.
perfectly inelastic; everything
b.
perfectly elastic; meaningless
c.
elastic; more important than the quantity
d.
inelastic; less important than the quantity
e.
unitary elastic; on the same level as quantity
1.05000 points
QUESTION 27
Marginal product is the change in:
a.
total output minus the change in input.
b.
total output divided by the change in input.
c.
input divided by the change in total output.
d.
total output plus the change in input.
e.
total output times the change in input.
1.05000 points
QUESTION 28
The government imposes a tax on each plastic bag sold such that the producer of the plastic bags must pay the tax to the government. In the market for plastic bags, the:
a.
supply curve shifts to the left.
b.
supply curve shifts to the right.
c.
demand curve shifts to the right.
d.
demand curve shifts to the left.
e.
the supply curve and the demand curve shift to the left.
1.05000 points
QUESTION 29
Pepsi and Coke are considered substitute goods. Because of this, one would predict that, holding all else constant, if the price of Pepsi increases, we would see:
a.
the demand curve for Pepsi shift to the right.
b.
the demand curve for Coke shift to the right.
c.
no change in the demand for Coke.
d.
the demand curve for Coke shift to the left.
e.
the demand curve for Pepsi shift to the left.
1.05000 points
QUESTION 30
The government has identified a situation where the production of a good is creating a negative externality. The government should enact legislation to require firms to internalize the externality:
a.
as long as there are positive health benefits associated with this policy.
b.
as long as it will not increase the price of the good being produced.
c.
in all such cases.
d.
if the benefits of doing so outweigh the costs.
e.
as long as it will not create unemployment in this industry.
1.05000 points
QUESTION 31
The out-of-pocket expenses incurred in producing a good are also known as:
a.
wages and prices.
b.
fiduciary costs.
c.
explicit costs.
d.
capital costs.
e.
implicit costs.
QUESTION 25
What will happen in a market where a binding price floor is removed?
| a. |
There will be upward pressure on the prices. |
|
| b. |
The price or quantity of the product sold in the legal market will not change. |
|
| c. |
There will be downward pressure on the prices. |
|
| d. |
The products sold will become scarcer. |
|
| e. |
There will be increased pressure to buy and sell the good on the black market. |
1.05000 points
QUESTION 26
The local bakery calculates the price elasticity of demand for its cinnamon rolls to be â1.25. This tells them that demand is ________ and price is ________ to the buyer.
| a. |
perfectly inelastic; everything |
|
| b. |
perfectly elastic; meaningless |
|
| c. |
elastic; more important than the quantity |
|
| d. |
inelastic; less important than the quantity |
|
| e. |
unitary elastic; on the same level as quantity |
1.05000 points
QUESTION 27
Marginal product is the change in:
| a. |
total output minus the change in input. |
|
| b. |
total output divided by the change in input. |
|
| c. |
input divided by the change in total output. |
|
| d. |
total output plus the change in input. |
|
| e. |
total output times the change in input. |
1.05000 points
QUESTION 28
The government imposes a tax on each plastic bag sold such that the producer of the plastic bags must pay the tax to the government. In the market for plastic bags, the:
| a. |
supply curve shifts to the left. |
|
| b. |
supply curve shifts to the right. |
|
| c. |
demand curve shifts to the right. |
|
| d. |
demand curve shifts to the left. |
|
| e. |
the supply curve and the demand curve shift to the left. |
1.05000 points
QUESTION 29
Pepsi and Coke are considered substitute goods. Because of this, one would predict that, holding all else constant, if the price of Pepsi increases, we would see:
| a. |
the demand curve for Pepsi shift to the right. |
|
| b. |
the demand curve for Coke shift to the right. |
|
| c. |
no change in the demand for Coke. |
|
| d. |
the demand curve for Coke shift to the left. |
|
| e. |
the demand curve for Pepsi shift to the left. |
1.05000 points
QUESTION 30
The government has identified a situation where the production of a good is creating a negative externality. The government should enact legislation to require firms to internalize the externality:
| a. |
as long as there are positive health benefits associated with this policy. |
|
| b. |
as long as it will not increase the price of the good being produced. |
|
| c. |
in all such cases. |
|
| d. |
if the benefits of doing so outweigh the costs. |
|
| e. |
as long as it will not create unemployment in this industry. |
1.05000 points
QUESTION 31
The out-of-pocket expenses incurred in producing a good are also known as:
| a. |
wages and prices. |
|
| b. |
fiduciary costs. |
|
| c. |
explicit costs. |
|
| d. |
capital costs. |
|
| e. |
implicit costs. |
