Which of the following is an example of money functioning as a unit of account?
A) Bank of America charging 7 percent on an auto loan.
B) Pepsi charging 1 for a can of soda.
C) eBay using PayPal as a method of payment.
D) Your writing a check at Target to pay for new clothes.
Ques. 2The above figure shows the Lorenz curves for four different countries. Which country has the most unequal distribution of income?
A) country A
B) country B
C) country C
D) country D
Ques. 3The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive and unregulated, how much steel will be produced?
A) 0 tons
B) 2 tons
C) 4 tons
D) 8 tons
Ques. 4A firm's demand for labor curve is the same as the firm's
A) marginal product curve.
B) marginal cost curve.
C) marginal revenue curve.
D) value of marginal product curve.
Ques. 5The economy's marginal social benefit curve for a public good is obtained by
A) horizontally summing each individual's demand curve.
B) horizontally summing each individual's marginal benefit curve.
C) vertically summing each individual's marginal benefit curve.
D) averaging each individual's marginal benefit curve.
Ques. 6When firms in monopolistic competition are making an economic profit, firms will
A) enter the industry, and demand will increase for the original firms.
B) exit the industry, and demand will increase for the firms that remain.
C) exit the industry, and demand will decrease for the firms that remain.
D) enter the industry, and demand will decrease for the original firms.
Ques. 7Bobby spends 100 per month on pizza and CDs. His utility from these goods is shown in the table above. The price of a pizza is 10 and the price of a CD is 20. Which of the following combinations of the two goods maximizes Bobby's utility?
A) 2 pizzas and 4 CDs
B) 6 pizzas and 2 CDs
C) 4 pizzas and 3 CDs
D) 8 pizzas and 1 CDs
Ques. 8Kansas Power and Light, the only supplier of electricity in Kansas, is an example of a firm in what type of market?
A) a monopoly market
B) an oligopolistic market
C) a perfectly competitive market
D) a monopolistically competitive market
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