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Economics multiple choice questions

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Question;Due in the lab no later than Tuesday, April 30, 2013. The early submission deadline is Friday, April 26. Early submissions will receive 2 extra credit;points. Late Homework will not be;accepted under any circumstances.;Answers must be submitted on a General Purpose NCS Answer Sheet No.;229633 available in the ASU Bookstore. The Answer Sheet must be completed in;pencil and contain your name and 10 digit ASU IdentificationNumber.;Price per foot in height;Height in feet demanded;Manny?s demand;Moe?s demand;Jack?s demand;$0;5 feet;4 feet;3 feet;$5;4 feet;3 feet;2 feet;$10;3 feet;2 feet;1 foot;$15;2 feet;1 foot;0 feet;$20;1 foot;0 feet;0 feet;1.;Manny, Moe and Jack constitute the market for a retaining wall which is;considered to be a public good.;The price per foot in height of the retaining wall and their demand for;the retaining wall is described in the table above. If the cost to supply the public good is $30;per foot, what is the efficient height of the retaining wall assuming that;it is a public good?;A) Since the government will;pay for the public good, 12 feet is optimal because that is what is demanded at;a price of zero to Manny, Moe and Jack.;B) Zero because no one is;willing and able to pay $30.;C) One foot in height.;D) Two feet in height.;E) Three feet in height.;2.;Manny, Moe and Jack constitute the market for a retaining wall which is;considered to be a private good.;The price per foot in height of the retaining wall and their demand for;the retaining wall is described in the table above. If the price of the wall is $10 per foot;what is the efficient height of the retaining wall assuming that the;retaining wall is a private good?;A) 9 feet;B) 3 feet;C) 5 feet;D) 12 feet;E) 6 feet;3. We;hear so much about the depletion of the ozone, the destruction of the rain;forest, the pollution of the oceans and rivers, and the depletion of wildlife;because;a. private individuals and businesses lack the;time to take full account of these issues.;b. private individuals and businesses don?t care;about our environment.;c. scientists are looking to make names for;themselves and thereby gain a lot of publicity.;d. the media focuses on negative stories.;e. private individuals and businesses lack;incentives to take full account of the consequences of their actions.;4. An;externality exists when;a. some of the costs of producing a product;affect people unable, within a market system, to influence how much of a;product should be produced.;b. only the buyers and sellers are affected by;the production of a product or service.;c. every person in a market system has a chance;to influence how much of a product should be produced.;d. the benefits from consuming the service;affect only the purchasers of that service.;e. the costs of producing a service affect only;the sellers of that service.;5. In;the figure above, assume that Dm and Ds represent the market- and social-demand;curves, respectively. The market-determined equilibrium quantity and price will;be, respectively;a. Q2 and P1.;b. Q1 and P1.;c. Q2 and P2.;d. Q1 and P2.;e. Q2 and P3.;6. In;the figure above, assume that Dm and Ds represent the market- and social-demand;curves, respectively. Which of the following is an accurate conclusion?;a. The external costs associated with providing;the good are equal to P2 per unit.;b. The external benefits associated with;providing the good are equal to P2 per unit.;c. The;external benefits associated with providing the good are equal to P3 minus P2 per unit.;d. The external costs associated with providing;the good are equal to P3 minus P1.;e. The external benefits associated with;providing the good are equal to P3 minus P1 per unit.;Output Private Marginal External;per Hour Marginal Cost Benefit Cost;1 $5.00 $10.00 $.10;2 5.20 9.25.20;3 5.45 8.50.35;4 5.75 7.75.60;5 6.10 7.00.90;6 6.50 6.50 1.40;7 7.20 6.00 2.00;8 8.00 5.50 2.80;7. In;the table above, if the equilibrium were determined by a free market, it would;be;a. 7 units, $9.20;b. 6 units, $6.50;c. 6 units, $7.90;d. 5 units, $7.;e. 4 units, $7.15;8. In;the table above, the socially optimal equilibrium would be;a. 6 units, $7.90;b. 7 units, $4;c. 5 units, $7;d. 7 units, $8;e. 6 units, $6.50;9. Why;are chickens and cows not listed on the endangered species list?;a. People want to eat chickens and cows.;b. People cannot own a chicken or a cow.;c. Chickens and cows reproduce regularly.;d. Private property rights exist for chicken and;cows.;e. People will pay to have chicken or beef.;10. Public;radio raises its funding by staging telethons where no programs are aired for a;period of time as the station solicits contributions. The stations have trouble;raising money because;a. the government assigns private property;rights to goods.;b. the consumption of a good cannot be limited;to the person who purchased it.;c. the broadcasts are private.;d. people do not act in their own self-interest.;e. a monopoly produces a good.;11. Which;of the following is the best example of a public good?;a. A beer;b. highways;c. An appendectomy;d. A retirement home;e. A soccer ball;Production;Possibilities Schedule;Country X Country Y;Choice Sugar Coffee Sugar Coffee;A 200 0 100 0;B 160 40 80 30;C 120 80 60 60;D 80 120 40 90;E 40 160 20 120;F 0 200 0 150;12. In;the table above, if trade were to occur, which of the following is true?;a. Country X should export sugar to country Y;and country Y should export coffee to country X.;b. Country X should export coffee to country Y;and country Y should export sugar to country X.;c. Country Y should export sugar and coffee to;country X.;d. Country X should export coffee to country Y;but the two countries should not exchange sugar.;e. Country X should export sugar and coffee to;country Y.;13. In;the table above, if trade were to occur, what is the most country Y is willing;to pay for 1 unit of sugar?;a. 1/2 unit of coffee;b. 3/2 units of coffee;c. 2/3 unit of coffee;d. 1 unit of coffee;e. 150 units of coffee;14. In;the table above, if trade were to occur, what is the least country X is willing;to accept for 1 unit of sugar?;a. 3/2 units of coffee;b. 1/2 unit of coffee;c. 2/3 unit of coffee;d. 1 unit of coffee;e. 200 units of coffee;15. In;the table above, assume that before specialization and trade, both countries;were producing at production possibility C. Now if each country specializes;according to comparative advantage, what will be the gains from trade?;a. 20 units of coffee and 10 units of sugar;b. 20 units of sugar and 10 units of coffee;c. 10 units of sugar;d. 80 units of coffee and 90 units of sugar;e. 20 units of coffee;16. A;world-renowned brain surgeon can type twice as fast as her secretarial;assistant. Which of the following best describes the idea of comparative;advantage in this situation?;a. The secretary has an absolute advantage in;typing.;b. The surgeon should work weekends and evenings;to stay up on her typing and fire the assistant.;c. The surgeon should do her own typing to save;money.;d. The surgeon should spend her time doing brain;surgery and allow her secretary to do the typing because the surgeon has a;comparative advantage in typing.;e. The surgeon should spend her time doing brain;surgery and allow her secretary to do the typing because the secretary has a;comparative advantage in typing.;17. The;United States is a major trading partner for many nations because of the;a. size of the U.S. economy and its relatively;high level of income.;b. free market benefits of capitalism.;c. commitment of the United States to help;immigrants by both importing from and exporting to their countries of origin.;d. active participation of the United States in;both the International Monetary Fund and the World Bank.;e. protection to shipping offered by the U.S.;strategic presence in vital commercial areas, such as the Middle East.;18. Which;of the following statements about international trade restrictions is true?;a. They typically benefit foreign producers at;the expense of domestic consumers.;b. They ensure that countries will specialize in;those products which they can produce most efficiently.;c. In the majority of cases they harm consumers.;d. They ensure that only efficient producers;survive.;e. They ensure that higher-quality goods are;provided at lower prices.;19. Typically;restrictions to "save domestic jobs" simply redistribute jobs by;creating;a. conditions that favor domestic labor unions;at the expense of employment in nonunionized industries.;b. employment in the protected industry and;reducing employment elsewhere.;c. inflation in the overall economy.;d. pockets of full employment and unemployment;corresponding to free trade zones.;e. employment in nonprotected industries and;reducing employment in the protected industry.;20. If the;world price of a good is lower than its domestic equilibrium price, the country;will;a. export a quantity of the good equal to the;difference between the quantity demanded domestically and the quantity supplied;domestically.;b. import a quantity of the good equal to the;difference between the quantity demanded domestically and the quantity supplied;by foreign producers.;c. import a quantity of the good equal to the;difference between the quantity demanded domestically and the quantity supplied;domestically.;d. import a quantity of the good equal to the;difference between the quantity demanded by foreign consumers and the quantity;supplied by foreign producers.;e. import a quantity of the good equal to the;difference between the quantity demanded by foreign consumers and the quantity;supplied domestically.;21. Refer;to the figure above. With no international trade, the domestic equilibrium;price per ton of corn is;a. P3.;b. P2.;c. None of these answers are true.;d. P1.;e. between P1 and P3.;22. Refer;to the figure above. How much corn would be imported if the world equilibrium;price is P1?;a. Q5 - Q3;b. None;c. Q3 + Q1;d. Q5 - Q1;e. Q3 - Q1;23. Refer;to the figure above. If the world price of corn is P1 and a tariff equal to P2 - P1 is;imposed on each ton of imported corn, which of the following is not;true?;a. Imports will decrease to Q4 - Q2.;b. The government will collect (P2-P1)(Q4-Q2);in revenue.;c. There will be a loss of domestic consumer;surplus.;d. There will be a loss of domestic producer;surplus.;e. The price will increase.;24. Assume;that the world price of corn is P1 in the;figure above. What would be the effect on imports of corn if a tariff equal to;P3 - P1 is;imposed on each ton of imported corn?;a. Imports of corn would be reduced by an amount;equal to Q4 - Q2.;b. Imports of corn would be reduced by an amount;equal to Q5 - Q3.;c. Imports of corn would be completely eliminated.;d. Imports of corn would be reduced by an amount;equal to Q4 - Q3.;e. Imports of corn would be reduced by an amount;equal to Q3 - Q1.;25. Refer;to the figure above. If the world equilibrium price is P1 and a quota of (Q4-Q2) is imposed;a. price will be P2.;b.;domestic;producers will supply Q2.;c.;total;tariff revenue is zero.;d. domestic consumers will lose consumer surplus;e. All of these answers are true.

 

Paper#55906 | Written in 18-Jul-2015

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