Question 1

Discuss and explain marginal cost, marginal benefit, the marginal decision rule, and constraint(s) in maximization of an objective or goal.

Accepted Answer

Marginal cost refers to the additional c

Question 2

Maximizing choices must be made within parameters imposed by:

Accepted Answer

A)  a constraint. 
B)  a boundary. 
C)  a limit. 
D)  all of the above. 
A)  a constraint. 
B)  a boundary. 
C)  a limit. 
D)  all of the above.

Question 3

An example of a public good is:

Accepted Answer

A)  courts of law. 
B)  clothing. 
C)  food. 
D)  state universities. 
A)  courts of law. 
B)  clothing. 
C)  food. 
D)  state universities.

Question 4

In the context of public goods and government efforts to correct market failure, economists may tend to be critical of the Endangered Species Act because:

Accepted Answer

A)  economists don't generally care about the environment. 
B)  species have no economic value. 
C)  the Act eliminates many activities that would contribute to the total output of the economy. 
D)  the Act does not generally provide for a weighing of the costs and the benefits of species preservation. 
A)  economists don't generally care about the environment. 
B)  species have no economic value. 
C)  the Act eliminates many activities that would contribute to the total output of the economy. 
D)  the Act does not generally provide for a weighing of the costs and the benefits of species preservation.

Question 5

The total benefit of an activity minus its total cost is:

Accepted Answer

A)  net benefit. 
B)  marginal benefit. 
C)  marginal cost. 
D)  utility. 
A)  net benefit. 
B)  marginal benefit. 
C)  marginal cost. 
D)  utility.

Question 6

Regardless of whether they pay for them, people cannot be excluded from receiving the benefits of:

Accepted Answer

A)  private goods. 
B)  public goods. 
C)  merit goods. 
D)  either private or public goods. 
A)  private goods. 
B)  public goods. 
C)  merit goods. 
D)  either private or public goods.

Question 7

There is/are _______ that economists can apply to determine whether the distribution of income is equitable or inequitable.

Accepted Answer

A)  several tests 
B)  no test 
C)  a specific social measurement test 
D)  positive tests 
A)  several tests 
B)  no test 
C)  a specific social measurement test 
D)  positive tests

Question 8

A resource for which no exclusive property rights exist is called a _______ resource.

Accepted Answer

A)  shared property 
B)  communal property 
C)  nonowner 
D)  common property 
A)  shared property 
B)  communal property 
C)  nonowner 
D)  common property

Question 9

Market failure occurs when:

Accepted Answer

A)  markets are competitive. 
B)  private decisions do not result in an efficient allocation of scarce resources. 
C)  private decisions result in an efficient allocation of scarce resources. 
D)  private decisions generate the highest level of consumer satisfaction. 
A)  markets are competitive. 
B)  private decisions do not result in an efficient allocation of scarce resources. 
C)  private decisions result in an efficient allocation of scarce resources. 
D)  private decisions generate the highest level of consumer satisfaction.

Question 10

An example of a resource for which no property rights exist is a:

Accepted Answer

A)  cow. 
B)  whale. 
C)  chicken. 
D)  goldfish. 
A)  cow. 
B)  whale. 
C)  chicken. 
D)  goldfish.

Question 11

Whenever a species is threatened with extinction, it is likely that:

Accepted Answer

A)  clearly defined property rights exist. 
B)  no one has exclusive property rights to it. 
C)  greedy folks are winning again. 
D)  it is the result of too much government regulation. 
A)  clearly defined property rights exist. 
B)  no one has exclusive property rights to it. 
C)  greedy folks are winning again. 
D)  it is the result of too much government regulation.

Question 12

Suppose that the expected exam scores from studying economics for 0, 1, 2, or 3 hours are 65, 80, 90, and 95 points, respectively, while the expected exam scores for studying 0, 1, 2, or 3 hours of accounting are 50, 65, 70, and 70 points, respectively.With 3 total hours of study time, your combined scores can be maximized by spending _______ hours studying economics.

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 13

A good for which exclusion is possible and for which the marginal cost of another user is positive is a _______ good.

Accepted Answer

A)  private 
B)  free 
C)  nonmarket 
D)  public 
A)  private 
B)  free 
C)  nonmarket 
D)  public

Question 14

To be effective in facilitating exchange, property rights must be:

Accepted Answer

A)  exclusive. 
B)  nontransferable. 
C)  nonexclusive. 
D)  defined to give complete freedom to the owner to use the property in any way the owner chooses. 
A)  exclusive. 
B)  nontransferable. 
C)  nonexclusive. 
D)  defined to give complete freedom to the owner to use the property in any way the owner chooses.

Question 15

An exclusive property right is one that:

Accepted Answer

A)  lets anyone use a resource without cost to society. 
B)  allows its owners to prevent others from using a resource. 
C)  equates marginal benefits to marginal costs. 
D)  can be sold or leased to someone else. 
A)  lets anyone use a resource without cost to society. 
B)  allows its owners to prevent others from using a resource. 
C)  equates marginal benefits to marginal costs. 
D)  can be sold or leased to someone else.

Question 16

Use the following to answer question(s): Measuring Consumer Surplus
  
-(Exhibit: Measuring Consumer Surplus) If pizzas are $4 each, your consumer surplus is:

Accepted Answer

A)  $4. 
B)  $6. 
C)  $12. 
D)  $18. 
A)  $4. 
B)  $6. 
C)  $12. 
D)  $18.

Question 17

Use the following to answer question(s): Markets and Efficiency
  
-(Exhibit: Markets and Efficiency) What is the marginal benefit to a producer of an extra pound of apples in Panel (a)?

Accepted Answer

A)  It is the price the producer receives. 
B)  It is the price the consumer receives. 
C)  It is the price the producer pays. 
D)  It is all of the above. 
A)  It is the price the producer receives. 
B)  It is the price the consumer receives. 
C)  It is the price the producer pays. 
D)  It is all of the above.

Question 18

Utility is the difference between a firm's revenue and its total economic cost.

Accepted Answer

A) True 
 B)False

Question 19

The _______ is the amount by which an additional unit of an activity increases its total benefit.

Accepted Answer

A)  average benefit 
B)  net benefit 
C)  marginal benefit 
D)  top benefit 
A)  average benefit 
B)  net benefit 
C)  marginal benefit 
D)  top benefit

Discuss and explain marginal cost, marginal benefit, the marginal decision rule, and constraint(s) in maximization of an objective or goal.

Maximizing choices must be made within parameters imposed by:

An example of a public good is:

In the context of public goods and government efforts to correct market failure, economists may tend to be critical of the Endangered Species Act because:

The total benefit of an activity minus its total cost is:

Regardless of whether they pay for them, people cannot be excluded from receiving the benefits of:

There is/are _______ that economists can apply to determine whether the distribution of income is equitable or inequitable.

A resource for which no exclusive property rights exist is called a _______ resource.

Market failure occurs when:

An example of a resource for which no property rights exist is a:

Whenever a species is threatened with extinction, it is likely that:

A good for which exclusion is possible and for which the marginal cost of another user is positive is a _______ good.

To be effective in facilitating exchange, property rights must be:

An exclusive property right is one that:

Use the following to answer question(s): Measuring Consumer Surplus -(Exhibit: Measuring Consumer Surplus) If pizzas are $4 each, your consumer surplus is:

Use the following to answer question(s): Markets and Efficiency -(Exhibit: Markets and Efficiency) What is the marginal benefit to a producer of an extra pound of apples in Panel (a)?

Utility is the difference between a firm's revenue and its total economic cost.

The _______ is the amount by which an additional unit of an activity increases its total benefit.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 6: Markets, Maximizers, and Efficiency

Discuss and explain marginal cost, marginal benefit, the marginal decision rule, and constraint(s) in maximization of an objective or goal.

Maximizing choices must be made within parameters imposed by:

An example of a public good is:

In the context of public goods and government efforts to correct market failure, economists may tend to be critical of the Endangered Species Act because:

The total benefit of an activity minus its total cost is:

Regardless of whether they pay for them, people cannot be excluded from receiving the benefits of:

There is/are _______ that economists can apply to determine whether the distribution of income is equitable or inequitable.

A resource for which no exclusive property rights exist is called a _______ resource.

Market failure occurs when:

An example of a resource for which no property rights exist is a:

Whenever a species is threatened with extinction, it is likely that:

A good for which exclusion is possible and for which the marginal cost of another user is positive is a _______ good.

To be effective in facilitating exchange, property rights must be:

An exclusive property right is one that:

Use the following to answer question(s): Measuring Consumer Surplus -(Exhibit: Measuring Consumer Surplus) If pizzas are $4 each, your consumer surplus is:

Use the following to answer question(s): Markets and Efficiency -(Exhibit: Markets and Efficiency) What is the marginal benefit to a producer of an extra pound of apples in Panel (a)?

Utility is the difference between a firm's revenue and its total economic cost.

The _______ is the amount by which an additional unit of an activity increases its total benefit.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters