The relationship between two variables, x and y, is a vertical line. Thus x and y are :

The relationship between two variables, x and y, is a vertical line. Thus x and y are
 
  A) positively correlated.
  B) negatively correlated.
  C) not related.
  D) falsely related.

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Ques. 2

In 2007, the U.S. sold 73 million of cigarettes to Iran. Iran paid for these cigarettes using
 
  A) dollars.
  B) rials, the Iranian currency.
  C) euros.
  D) pounds.

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Ques. 3

Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is 12.50 what is the firm's economic profit?
 
  A) zero
  B) 10 per hour
  C) -10 per hour
  D) 20 per hour

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Ques. 4

If a monopolist is maximizing profits, then it is producing an amount of output so that
 
  A) MR = ATC.
  B) MC = AVC.
  C) MR = TC.
  D) MR = MC.

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Ques. 5

When the marginal product of labor exceeds the average product of labor
 
  A) the average product of labor is increasing.
  B) the average product of labor is decreasing.
  C) the total product curve is negatively sloped.
  D) the firm is experiencing decreasing returns to scale.

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Ques. 6

Two students are assigned a group project. Each has the option to work or not work to achieve a high grade. The payoffs are shown in the above table. Student 1 should
 
  A) work only if student 2 works.
  B) work regardless of the decision made by student 2.
  C) not work if student 2 works.
  D) not work regardless of what student 2 decides.

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Ques. 7

The mean household income is
 
  A) the income that separates households into two equal groups.
  B) the most common household income.
  C) the percentage of total income received by the richest 20 percent of households.
  D) the average household income.

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Ques. 8

As a result of an increase in the supply of a good, the equilibrium quantity ________ and the equilibrium price ________.
 
  A) increases; falls
  B) increases; rises
  C) decreases; falls
  D) decreases; rises

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Ques. 9

In the table above, the value of marginal product of the third unit of labor is
 
  A) 3.
  B) 4.
  C) 12.
  D) 16.

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Ques. 10

What are the two features of a public good?
 
  A) nonrival and excludable
  B) nonrival and nonexcludable
  C) rival and excludable
  D) rival and nonexcludable