Economics 1021A/B Chapter Notes - Chapter 7: Externality
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True |
False |
Moral hazard exists when a person does not have high moral standards |
True |
False |
Hope scholarship was aimed to make colleges more affordable |
True |
False |
Companies who offer rebates for safe driving are trying to deal with the moral hazard problem |
True |
False |
Past health history is an example of a hidden action |
True |
False |
The market for lemons explains the adverse selection problem |
True |
False |
An increase in wages increases productivity |
True |
False |
Going to college increases your human capital |
True |
False |
Political stability is an important factor in a country's standard of living |
True |
False |
Immigration decreases productivity |
True |
False |
Japan has a limited amount of natural resources |
True |
False |
A future contract is beneficial to the farmer when prices of the commodity rise |
True |
False |
Stocks are usually safer than bonds and have higher return rates |
True |
False |
Value of bond increases as interest rates increase |
True |
False |
The market efficiency hypothesis says that all stocks are fairly valued |
True |
False |
One of the determinants of the stock price is the future profitability of a company |
True |
False |
The majority voting rule is always better than the plurality voting rule |
True |
False |
Politicians always agree with each other because they want to implement the same policies |
True |
False |
The median voter decides the outcome of the election in case of a tie |
True |
False |
Lobbyists promote policies supported by the majority of voters |
True |
False |
The individual vote is most likely not going to determine the outcome of a major election |
Microeconomics
A | B | Answer |
As a student of economics, when you speak of scarcity, you are referring to the ability of society to. | A. Extra benefit | |
What is the economic meaning of the expression that "There is no such thing as a free lunch?" | B. Entrepreneur. | |
Which expression is another way of saying "marginal benefit"? | C. Very limited government role in the economy | |
A tradeoff exists between two economic goals, X and Y. This tradeoff means that. | D. Price ceilings and the resulting product shortages. | |
The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the | E. Explicit costs. | |
The Soviet Union economy of the 1980s would best be classified as | F. Easy entry, many firms, and differentiated products | |
The simple circular-flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through | G. Product markets | |
Laissez-faire capitalism is characterized by | H. Satisfy economic wants given limited resources. | |
Black markets are associated with | I. Oligopoly | |
Cash expenditures a firm makes to pay for resources are called | J. The Resource Markets | |
Which set of characteristics below best describes the basic features of monopolistic competition | K. A command System | |
Mutual interdependence would tend to limit control over price in which market model | L. Getting more of X requires getting less of Y | |
Markets in which firms sell their output of goods and services are called | M. It means that there is an opportunity cost when resources are used to provide "free" products |