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economics mcq homework with A+ answers

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Question;1);Once a firm is forced to consider an external cost, the price of its product;will;a.;increase and output will decrease;b.;increase and output will increase;c.;decrease and output will decrease;decrease and output will;increase;2);Which of the following would be classified as an external cost?;a.;as more firms began hiring computer programmers, the;salaries of computer programmers increased and therefore the firm's cost of;production increased.;b.;you eat too much pizza and end up with a stomach ache;c.;you are not able to study at night because there is so much;noise coming from the dorm room next to yours.;d.;when you purchase a prescription drug you are not made fully;aware of all the possible side effects that may result from taking the dug.;3);If the government taxes a firm that is generating an external cost, the price;of the firm's product will.;a.;increase and output will decrease;b.;increase and output will increase;c.;decrease and output will decrease;d.;decrease and output will increase;4);If, while producing goods and services, a factory is producing pollution and;not incurring the cost of this pollution, then a (n) exists.;a.;government failure;b.;market failure;c.;acceptable outcome;d.;none of the above;5);Recall the application about the marginal cost and marginal benefit of reducing;methane emissions. What does the optimal level of methane abatement depend on?;a.;the level at which the polluting firms are able to maximize;their profits;b.;the total cost of;abatement;c.;the marginal benefit of abatement;d.;it is possible to determine an optimal level of methane;6);Jamal and Lauren live in the countryside 30 minutes from a city in Virginia.;They moved there because they wanted to enjoy the fresh air. After a year of;living in their house, the 200 acres that surround their neighborhood were;zoned for an industrial property. A paper mill was built on the land and now;emits strong gases that can be smelled from miles away. The paper mill's;emission of gases is an example of a (n;a.;public good;b.;good that imposes an external cost;c.;good that provides an external benefit;d.;efficient good;7);Markets that have external costs will produce______ output than the socially;efficient level, whereas markets that have external benefits will;produce_______output than the socially efficient level.;a.;less, less;b.;more, more;c.;more, less;d.;less, more;8);When the government imposes a tax on a firm that generates external costs, the;tax is;a.;always borne entirely by the firm;b.;always borne entirely by the consumer;c.;usually borne by both the firm and the consumer;d.;borne only by the government;9);Which of the following would be an example of an external benefit?;a.;More people start to ride the bus and as a result air;pollution is reduced;b.;Firms are able to reduce their costs of production by using;a more efficient technology;c.;The government requires polluting firms to pay a special tax;d.;A firm has just;gotten permission to open a landfill on property that is adjacent to your home;10);The study of external costs I a major concern of;a.;labor economics;b.;international economics;c.;environmental economics;d.;macroeconomists;11);The idea behind the pollution tax equal to the external cost per unit of;pollution is to;a.;increase the social benefit to be above the marginal cost;b.;internalize the externality;c.;allow the firm to evade external costs;d.;drive polluting firms out of developed countries;12);The government imposes taxes on firms that generate external costs in an effort;to;a.;make it easier for economists to measure external costs;b.;lead to a zero level of output;c.;force decision makers to consider the full costs of their;actions;d.;lower the firm's costs of production;13);The biggest problem with using a tax as a way to solve an externality problem;is that;a.;the tax sometimes increases the external cost;b.;damages must be estimated n financial terms to determine the;correct level of the tax;c.;the firm will pass the entire tax onto the consumer;d.;the commerce clause forbids such taxes;14);An external cost of production is;a.;a cost incurred by someone other than the producer;b.;the production cost borne by a producer;c.;the result of the sum of private and social cost;d.;another word for a tax;15);A harbor lighthouse tat guides approaching ships is an example of;a.;a public good;b.;a private good;c.;a monopoly;d.;a good that is rival;16);Private goods are;a.;rival in consumption and their benefits are excludable;b.;nonrival in consumption and their benefit are excludable;c.;nonrival in consumption and their benefits are nonexcludable;d.;rival in consumption and their benefits are nonexcludable;17);Which of the following would NOT be considered a public good?;a.;national defense;b.;radio broadcasts;c.;police protection;d.;a newspaper;18);Goods that are nonrival in consumption and that have benefits that are;nonexcludable are;a.;private goods;b.;neighbor effects;c.;public goods;d.;none of the above;19);Based on society's perspective, what are the benefits from pollution abatement?;a.;better health;b.;increased enjoyment of the natural environment;c.;lower production costs;d.;all of the above;20);Taxes on a firm's external costs;a.;are designed to encourage more production;b.;are meant to force some firms out of business;c.;are simply meat to force decision makers to consider the;full costs of their actions;d.;are designed primarily as a way to raise money so that the;government can compensate the victims of the spillover;21);You are the owner and only employee of a company that repairs computers. Last;year, you earned total revenues of 75,000. Your costs for equipment, rent and;supplies were 10,000. To start this business you quit a job at another computer;software;a.;10,000;b.;40,000;c.;50,000;d.;75,000;22);You are the owner and only employee of a company that repairs computers. Last;year, you earned total revenues of 75,000. Your costs for equipment, rent and;supplies were 10,000. To start this business you quit a job at another computer;software firm that paid 40,000 a year. Last year, your economic profits were;a.;100,000;b.;75,000;c.;50,000;d.;25,000;23);Which of the following is a reason why the marginal product increase as output;increases?;a.;decreasing repetition;b.;increasing continuity;c.;both A and B;d.;neither A nor B;24);As more of anyone good s consumed in a given period, its;a.;total utility decreases, then remains constant;b.;marginal utility decreases;c.;total utility decreases, then increases;d.;marginal utility increases;25);Dan owns a factor that manufactures smartphones. He has many costs every month;to keep his factory running. Which of the following is one of Dan's fixed;costs?;a.;plastic used to make the smartphones;b.;his electricity bill for the factory;c.;his mortgage on the factory;d.;memory devices used to store music and video on the;smartphones;26);According to the law of diminishing marginal utility;a.;as the consumption of a particular good increases, marginal;utility increases;b.;as the consumption of a particular good increases, marginal;utility decreases;c.;total utility is negative;d.;both and c are;correct;27);From 1998, to 2010, the cost of electricity produced with nuclear power;has______and the cost of electricity produced with sola power has;a.;increased, increased;b.;increased, decreased;c.;decreased, increased;d.;decreased, decreased;28);Brandon eats four slices of pizza on a Sunday night but admits each slice of;pizza doesn't taste as delicious as the previous one. This suggests that for;Brandon;a.;the marginal utility of a slice of pizza is positive but;decreasing;b.;the marginal utility of a slice of pizza is negative but;increasing;c.;the total utility of slice of pizza is declining by larger;and larger increments;d.;the total utility of slice of pizza is increasing by larger;and larger increments;29);The short run can be defined as any period of time;a.;less than one year;b.;in which some inputs are fixed;c.;in which all inputs are variable;d.;in which price is fixed;30);Utility can be thought of as the same as;a.;opportunity cost;b.;satisfaction;c.;choice;d.;none of the above;31);The period of time when a firm is unable to change all inputs, or factors of;production, is called the;a.;economic term;b.;short run;c.;accounting term;d.;long run;32);Mario has a company that produces plastic freezer bags. His company objective;is to maximize;a.;his company's revenues;b.;his company's total out-of-pocket cost;c.;his company's opportunity costs of each factor of production;d.;his company's economic profits, the difference between total;revenue and total cost;33);The equimarginal rule;a.;equates the marginal utility per dollar spent on each good;purchased;b.;states that in order to maximize utility the consumer should;buy more of those goods with a high marginal utility;c.;states that in order to maximize utility the consumer should;buy more of those goods that cost less;d.;none of the above;34);Consumers should allocate their scarce income so that;a.;the marginal utility for all goods consumed is zero;b.;the marginal utility for all goods consumed is equal;c.;the marginal utility divided by price is equal for all goods;consumed;d.;the marginal utility divided by price is maximized for all;goods consumed;35);Which of the following statements about fixed costs is correct?;a.;fixed costs are not opportunity costs;b.;fixed costs must be paid even if the firm's output is zero;c.;fixed costs are always the largest portion of total costs;none of the above;36);Suppose that Erin spends all of her income on two goods: pizza and fiction;novels. If the price of pizza rises, then;a.;the current marginal utility per dollar spent on pizza will;rise;b.;the current marginal utility per dollar spent on pizza will;fall;c.;the current marginal utility per dollar spent on fiction;novels will rise;d.;the current marginal utility per dollar spent on fiction;novels will fall;37);The principle of opportunity cost is;a.;what someone sacrifices to get something;b.;the satisfaction of obtaining the best next alternative;c.;the choice someone has to make between two different goods;d.;the cost of paying for something someone needs

 

Paper#55490 | Written in 18-Jul-2015

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