A good or service or a resource is excludable if
A) it is possible to prevent someone from enjoying its benefits.
B) it is not possible to prevent someone from enjoying its benefits.
C) its use by one person decreases the quantity available for someone else.
D) its use by one person does not decrease the quantity available for someone else.
Ques. 2Dole Co operates in a monopolistically competitive market. Which of the following characterizes Dole Co's market?
A) Dole Co. supplies a small portion of the market's output.
B) Dole Co.'s product is slightly different from its competitors.
C) Dole Co. faced no barrier to entry when it decided to enter its market.
D) All of the above describe Dole Co.'s market.
Ques. 3If all prices fall by 5 percent and money income remains constant, the new budget line will have
A) a positive slope.
B) the same slope.
C) a steeper slope.
D) a flatter slope.
Ques. 4If the price of a good falls, before the amount consumed changes the marginal utility per dollar from that good
A) decreases.
B) increases.
C) might either increase or decrease depending on whether the good is a substitute or a complement.
D) More information is needed to determine the answer.
Ques. 5In the above figure, if output is 30 units, then the total deadweight loss is
A) 5.
B) 10.
C) 20.
D) 60.
Ques. 6A sales tax is divided so that the
A) buyers pay the full amount if demand is perfectly elastic.
B) buyers pay the full amount if supply is perfectly inelastic.
C) sellers pay the full amount if supply is perfectly elastic.
D) sellers pay the full amount if demand is perfectly elastic.
Ques. 7The above table shows the short-run total product schedule for the campus book store. With which employee do diminishing marginal returns set in?
A) the 9th employee
B) the 6th employee
C) the 5th employee
D) the 2nd employee
Ques. 8Gilda's Art Gallery pays a commission to her sales people when they sell a painting. This practice is known as
A) the principal-agent problem.
B) incentive pay.
C) minimizing implicit costs.
D) minimizing explicit costs.
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