Refer to Figure 2-10. If the economy is currently producing at point D, what is the opportunity cost of moving to point B?
A) 16 thousand spoons B) 46 thousand forks
C) 0 forks D) 60 thousand spoons
Ques. 2Consumer surplus is the difference between the highest price someone is willing to pay for a product and the price he actually pays for the product.
Indicate whether the statement is true or false
Ques. 3Refer to the Article Summary. Assuming the findings are correct and all else equal, people who do not shop at Trader Joe's can still benefit from living near the store, as is shown by the higher home values.
As a result, the marginal social benefit from living near a Trader Joe's is ________ the marginal private benefit to those who shop at Trader Joe's.
A) less than B) equal to C) greater than D) unrelated to
Ques. 4Suppose that the widget industry has a Herfindahl-Hirschman index of 1,200 . Two firms have proposed a merger. Firm A has a current market share of 5 percent. Firm B has a market share of 7 percent.
Will the Justice Department challenge the merger? Explain.
Ques. 5The health care system in Canada is referred to as ________, and is a system in which the government provides national health insurance to all Canadian residents.
A) an out-of-pocket system B) a single-payer health care system
C) a universal health insurance system D) socialized medicine
Ques. 6Explain what happens when nations don't trade. In addition, explain what happens after they decide to trade.
What will be an ideal response?
Ques. 7The current price of canvas messenger bags is 36 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to 44, how many messenger bags will be sold per week? Use the midpoint formula.
What will be an ideal response?
Ques. 8Which of the following is not an advantage of starting a new business as a proprietorship?
A) A proprietorship has few government rules and regulations to comply with.
B) The owner has complete control over the business.
C) Business profits are only taxed once, not twice.
D) A proprietorship can easily attain additional funding.
Ques. 9Explain how a consumer's income and the prices of goods limit consumption possibilities.
What will be an ideal response?
Ques. 10Is a player's best response in a game the same as his dominant strategy? Explain.
What will be an ideal response?
Ques. 11Refer to Figure 2-10. If the economy is currently producing at point C, what is the opportunity cost of moving to point B?
A) 46 thousand forks B) 26 thousand forks
C) 40 thousand spoons D) 20 thousand spoons
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