A relatively high base income in a cash assistance program:
- Reduces the incentive to work
- Increases incentive to work
- Does not affect the incentive to work
- Will reduce the incentive to work through the substitution effect, but will increase the incentive to work through the income effect
Which of the following statements about featherbedding is correct?
- It could increase production costs, resulting in higher prices for products
- The quantity of labor demanded by firms could actually decrease
- It could lead to a lower wage and smaller employment in the long run
- All of the above
In 1995, the United States threatened to impose 100% tariffs on ___ from ____ in it didn’t lose its protectionist policies.
- Luxury cars; Japan
- Auto parts; japan
- Brandies; France
- Light trucks; Germany
Which of the following is a question answered with positive economic analysis?
- Should the college reduce tuition for out of state residents?
- Should the college charger higher tuition for part-time students?
- If the college increased its eligibility requirements for enrollment, will class sized decline?
- Should the college eliminate its athletic program to cut is costs?
The quantity demanded of a product increases as ___?
- Consumer income rises
- The prices of other products fall
- The price of the product rises
- The price of the product falls
The market demand curve ___.
- Shows the relationship between the price of a good and the quantity that all consumers together are willing to buy.
- Is drawn assuming that variable such as income and tastes are variable.
- Is drawn assuming that the number of consumers is variable
- Is drawn assuming that the selling price is fixed.
Suppose that Victoria and her friends are running a fundraiser by selling donuts. They want to know what will happen to their revenue if they increase the price of each dot form $.80 to $1. What concept do they need to apply to find out their expected revenue?
- Price elasticity of supply
- Price elasticity of demand
- Cross elasticity of demand
- Income elasticity of demand
Which of the following would result from quota imposed on the quantity of cars that can be imported into the United States?
- An increase in the total surplus
- An increase in producer surplus
- An increase in prices for consumer
- an increase in consumer surplus
Assume that Crystal’s demand for handbags remains constant, but the price of the handbags increases. Crystal’s consumer surplus __?
- Remains constant
- May increase or decrease depending on the amount of the price decrease
Assume that production costs rise and demand remains constant. The equilibrium price will ___ and the producer surplus will __.
- Increase; increase
- Increase; decrease
- Decrease; decrease
- Decrease; increase
Utility can be thought of as the same as ___.
- Opportunity cost
- None of the above
Oligopoly differs from monopoly and perfect competition in that ___.
- Firms consider other firms actions when choosing price and quantity
- There are a few firms in the industry
- Firms act strategically
- All of the above
A minimum wage that is less than the prevailing market wage will ___.
- Have no effect on the market
- Increase unemployment
- Increase wages
- Reduce wages
In order to practice price discrimination, a firm must be in a market such that the consumers in its market ___.
- Have identical tastes
- Have identical elasticity of demand
- Have different elasticity of demand
- Have the same demand for its product
Which of the following statements is true?
- Free trade will benefit all workers in a nation equally
- As a result of specialization some workers will be displaced and harmed in the short run by free trade.
- Free trade leads to lower wages for all workers in both nations
- Specialization will result in a decline in an industry, and none of those workers will be able to find other jobs.