Under what conditions will the political process provide an inefficient amount of a public good?
What will be an ideal response?
Ques. 2The most powerful individual in the Federal Reserve is the Chairman of the Board of Governors.
Indicate whether the statement is true or false
Ques. 3U.S. auto sales took a beating in September 2008 as the nation's worsening economy turned dealer showrooms into ghost towns.
Automakers reported a sharp drop-off in sales in the last ten days of the month as news of bank failures and a stock market meltdown increased economic uncertainty. What type of constraint do the automakers face when there is increased economic uncertainty? A) information constraint
B) technology constraint
C) marketmconstraint
D) price constraint
Ques. 4Suppose there are two types of labor, high skilled and low skilled.
The demand curve for high skilled labor lies ________ the demand curve for low skilled labor and the supply curve of high skilled labor lies ________ the supply curve of low skilled labor. A) above; above
B) above; below
C) below; below
D) below; above
Ques. 5Based on the above figure of the costs at Barney's Bagel Bakery, at which level of output will diminishing marginal returns first occur?
A) at 1 bagel
B) at 500 bagels
C) at 2000 bagels
D) at 3000 bagels
Ques. 6The above figure shows a firm in monopolistic competition. What is the profit maximizing level of output the firm will produce?
A) 4 units per day
B) 8 units per day
C) 10 units per day
D) 16 units per day
Ques. 7The figure shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates is a monopoly and charges one price to all customers, then the consumer surplus is ________.
A) 400
B) 900
C) 0
D) 200
Ques. 8According to the fair rules view of fairness, are taxes fair? Explain.
What will be an ideal response?
Ques. 9Suppose that the government wants the burden of the cigarette tax to fall equally on buyers and sellers and declares that a 1.00 tax be imposed on each. Is the burden of the tax shared equally? Why or why not?
What will be an ideal response?
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