The assertion that if resources are allocated efficiently, they also are allocated fairly is made by
A) all utilitarians.
B) John Rawls, who proposed making the poorest as well off as possible.
C) Robert Nozick, who believes that equality of opportunity is fair.
D) all economists who understand the big tradeoff.
Ques. 2John's reservation wage is 10 per hour. This means that
A) John will not supply labor in the market until he receives a wage of at least 10 per hour.
B) John will supply labor in the market at a wage of 10 and lower.
C) John will work 10 hours per day.
D) John will decrease the hours he works when his wage rate exceeds 10 per hour.
Ques. 3In the long run, a firm in monopolistic competition produces where the slope of the average total cost curve is
A) negative.
B) zero.
C) positive.
D) equal to the marginal cost.
Ques. 4A supply curve that is horizontal reflects a supply that
A) is elastic.
B) is inelastic.
C) is unit elastic.
D) has a zero elasticity.
Ques. 5Two candidates are running for election as mayors of New York City that was recently impacted by Superstorm Sandy. In their election platforms, both candidates supported spending very similar amounts on hurricane protection.
This similarity is most likely the result of A) both candidates necessarily having the same preferences towards risk and protection.
B) the Principle of Minimum Differentiation.
C) both the candidates realize that hurricane protection is a public good.
D) politicians only take efficiency into account and hence all candidates will suggest the efficient outcome.
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