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Used Car Market




Suppose buyers in the used car market are willing to pay$6,000 for a plum (high-quality) used car and $3,000 for a lemon (low-quality) used car. If buyers believe that 75% of the used cars on the market are loemons (low quality), what would they be willing to pay for a used car?;A.4,250;B.4,000;C.3,500;D.3,750;When economists say that a good is non-rival in consumption, they mean that;A. no one wants the good; than one person can enjoy the good at the same time;C.everyone wants the good;D.the good is widely available;If the marginal costs of water pollution abatement is increased, then the optimal amount of water pollution increases;True;False;A firm that generates pollution is illustrated in figure 16.1. the government has chosen to impose a pollution tax equal to p(2). From the firms point of view, the marginal benefit of abatement is; because abatement benefits the general public, not the firm;B.the reciprocal of the marginal cost of abatement;C.avoiding the pollution tax imposed by the government;D.the positive publicity the firm will receive by having a green production plant;number of workers units of output;2 100;3 160;4 210;5 250;6 280;7 300;8 310;Refer to the table,if the price of output is $2 per unit and we observe the firm hiring 4 workers, if the firm is maximizing profit, the wage rate must be between ____________ and ______________.;A. 40-50;B.320-500;C.80-100;D.50-90;Consider a labor market in equilibrium. If both demand curve and supply curve of labor shift to the right, then the number of workers hired in the market will ___________________.;A, increase;B.decrease;C.remain unchanged;D.either increase or decrease or remain unchanged;Under the temporary aid to needy families a recipient loses their cash benefits when they get a job.;True;False;Bananas, chocolate bars, chewing gum, orange juice and yogurt are considered to be ______ goods.;A. service;B.nondurable;C.durable;D.essential;During 2008, Wal-marts sales were approx $374 billion, or roughly 2.6 percent of U.S. GDP, and its cost of sales was $286 billion;According to this, what was the approx value of Wal-Mart,s value added in 2008?;A. 88 bil;B.286 bil;C.374 bil;D.661 bil;A chain index; a useful tool for determining which fence to purchase; used to understate the rate of inflation;C.calculates changes in prices by using an average of base years from neighboring years to obtain a more accurate measure of real GDP growth;D.uses neighboring years data to calculate changes in nominal GDP;Comparing changes in happiness to changes in per capita income over the last 30 years, economists at Dartmouth College and Warwicl University have measured levels of happiness in the united state and the united kingdom based on income levels, ethnicity, age, and gender;Acoording to this;A.retires people report higher levels of happiness than people below the age 40;B.stable marriages account for no more happiness than marriages ending in divorce;C.reported levels of happiness in the united states have increased over the past 30 years; does appear to buy happiness, ceteris parabus;In June 2012, the US labor force consisted of 142,415,000 employed and 12,749,000 unemployed. The US unemployment rate for June 2012 was about;A.7.4percent;B.8.2%;C.9.0 %;D.11.2%;In the united states today, economists estimate that the natural rate of unemplyment is between _____ and _______ percent.;A.3,5.5;B.3,4;C.6.5,7.5;D.5,6.5;the principal reason why the chain index for GDP and the CPI both overstate actual changes in prices is that; is hard to measure quality changes;B.the basket of goods purchased by consumers never changed;C.price data is oftem inacurate;D.all of the above;is perhaps the most critical aspect of a countrys economic perormance;A.the inflation rate;B.the living standard;C.the unemployment rate;D.growth in GDP;Net investment plus depreciation is equal to;A.gross depreciation;B.gross investment;C.gross domestic product;D.gross exports;Economists Carol Corrado and Charles Hulten found that in recent years, as a source of economic growth;A.the contribution from tangible capital exceeded the contribution from intangible capital;b.the contribution from intangible exceeded the contribtuion from tangible capital;c.the contribution from tangible capital and intangible capital are, at best,negligible;d.the contributions from tangible capital and intangible capital are about the same


Paper#35115 | Written in 18-Jul-2015

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