If a voter is ignorant of some of the issues that affect public policy, then the voter is definitely behaving irrationally.
Indicate whether the statement is true or false
Ques. 2The Denver Broncos is a football team in the NFL, the Colorado Crush is an arena football team, and the Highlands Ranch Falcons is a local High School team.
Broncos tickets cost about 415, the Crush cost between 30 and 85 and Falcons tickets are 6. What do the prices per unit tell you about the marginal utility from each of these football games? A) The marginal utility will be equal from each game.
B) The marginal utility will be greatest from a Crush game.
C) The marginal utility will be greatest from a Falcons game.
D) The marginal utility will be greatest from a Broncos game.
Ques. 3Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. If the market price is 4 cents per page, what is Fast Copy's economic profit?
A) zero
B) between 0 and 0.50 per hour
C) between 0.51 and 1.00 per hour
D) more than 1.00 per hour
Ques. 4As long as technology increases, economic growth is free.
Indicate whether the statement is true or false
Ques. 5When a consumer is at his or her best affordable point, the budget line
A) is flatter than the highest attainable indifference curve.
B) is tangent to the highest attainable indifference curve.
C) is steeper than the highest attainable indifference curve.
D) does not touch the highest attainable indifference curve.
Ques. 6The monopsony will hire the amount of labor so that the
A) demand for labor equals supply for labor.
B) value of marginal product of labor equals the wage rate.
C) value of marginal product of labor equals the marginal cost of labor.
D) supply for labor equals the wage rate.
Ques. 7The figure above shows the market for tickets to the Super Bowl the day of the game. Suppose the government imposes an entertainment tax of 100 per ticket.
a) What is the equilibrium price of a Super Bowl ticket before the tax? What is the price paid by buyers after the tax? What is the price received by sellers after the tax? b) What is the equilibrium quantity of tickets before the tax? What is the equilibrium quantity after the tax? c) Do buyers or sellers bear the largest incidence of the tax?
Ques. 8A monopolistically competitive firm is like a perfectly competitive firm insofar as both
A) have negatively sloping demand curves.
B) can make zero economic profit in the long run.
C) have horizontal MR curves.
D) are protected by high barriers to entry.
Ques. 9In the United States, why are cartels among firms usually kept secret?
What will be an ideal response?
Ques. 10If marginal cost is less than average total cost, then ________ is ________.
A) average total cost; falling
B) average variable cost; falling
C) marginal cost; falling
D) marginal cost; rising
Ques. 11International data supports the quantity theory of money conclusion that high money growth rates are associated with inflation.
Indicate whether the statement is true or false
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