question
The XYZ Corporation's collective bargaining agreement indicates that it may hire either union or nonunion workers and that the latter are under no obligation to join the union. This agreement embodies?
answer
An open shop.
question
The labor supply curve facing a purely competitive employer is __________, whereas the labor supply curve facing a monopsonist is ___________.
answer
Horizontal; upsloping.
question
Answer the question using the accompanying cost ratios for two products, fish (F) and chicken (C), in countries Singsong and Harmony. Assume that production occurs under conditions of constant costs and that these are the only two nations in the world.
Singsong: 1F = 2C
Harmony: 1F = 4C
Which one of the following would not be feasible terms for trade between Singsong and Harmony?
Singsong: 1F = 2C
Harmony: 1F = 4C
Which one of the following would not be feasible terms for trade between Singsong and Harmony?
answer
1 chicken for 1/5 fish.
question
Meat Per Worker Per Day/Houses Per Worker Per Day
A 40 80
B 10 40
The accompanying table shows labor-productivity figures in two countries facing constant costs. It can be deduced that
A 40 80
B 10 40
The accompanying table shows labor-productivity figures in two countries facing constant costs. It can be deduced that
answer
Country A has the absolute advantage in producing both meat and houses.
question
Which of the following is a likely result of imposing tariffs to increase domestic employment?
answer
An increase in the possibility of retaliatory tariffs.
question
A "welfare cliff" refers to a situation where?
answer
A welfare recipient's total income falls if they earn more money from work.
question
One main complaint about the official income thresholds used in defining poverty is that they?
answer
Are inadequate to meet the basic needs in major metropolitan areas.
question
Sandy currently earns wages of $20,000 per year. In her state, that qualifies her for $5,000 worth of housing credits, but those credits are withdrawn for anyone earning $22,000 per year or more. If Sandy were to find a part-time job that earned her $3,000 per year?
answer
Sandy would be worse off by $2,000 if she took the job.
question
Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a differentiated oligopolist in a highly concentrated industry?
answer
Ford Motor Company.
question
An industry having a four-firm concentration ratio of 85 percent is?
answer
An oligopoly.
question
In which market model is there mutual interdependence?
answer
Oligopoly.
question
A major distinction between a monopolistically competitive firm and an oligopolistic firm is that?
answer
A recognized interdependence exists between firms in one industry but not the other.
question
The representative firm in a purely competitive industry?
answer
Will earn zero economic profits in the long run.
question
A constant-cost industry is one in which?
answer
Resource prices remain unchanged as output is increased.
question
(Q1, Q2, Q3) <-- in that order
In the diagram, at output level Q1,
In the diagram, at output level Q1,
answer
Neither productive nor allocative efficiency is achieved.
question
Workers Total Revenue
1 $1,000
2 1,400
3 2,000
4 1,600
5 800
Wayne's Jacket Shop sells Wayne's jackets for $20 each. Wayne finds that when he hires different numbers of workers, the corresponding total revenues are as shown in the table. What is the marginal revenue product of the third worker?
1 $1,000
2 1,400
3 2,000
4 1,600
5 800
Wayne's Jacket Shop sells Wayne's jackets for $20 each. Wayne finds that when he hires different numbers of workers, the corresponding total revenues are as shown in the table. What is the marginal revenue product of the third worker?
answer
$600.
question
We say that the demand for labor is a derived demand because?
answer
We demand the product that labor helps produce rather than labor services per se.
question
Alex owns a luxury automobile and regularly purchases high-end fashion items online. Kara drives an old sedan and does most online shopping on eBay and Amazon. Suppose both Alex and Kara search the same online retailer for a nice watch to give on Father's Day. Based on Big Data and personalized pricing, we would expect?
answer
Alex to see a higher price than Kara for the same watch.
question
What is the meaning of the phrase "dilemma of regulation"?
answer
The socially optimal price achieves allocative efficiency but may produce economic losses; the fair-return price yields a normal profit but may not be allocatively efficient.
question
In a natural monopoly, the fair-return price is?
answer
Allocatively inefficient; the socially optimal price is allocatively efficient.
question
Which of the following is NOT a precondition for price discrimination?
answer
The commodity involved must be a durable good.
question
Assuming no change in product demand, a pure monopolist?
answer
Must lower prices to increase sales.
question
Given a linear demand curve, at which combination of price and marginal revenue (P, MR) is the price elasticity of demand greater than 1?
answer
P = 15, MR = 8
question
In which of the following market models do demand and marginal revenue diverge?
answer
Pure monopoly, oligopoly, and monopolistic competition.
question
Monopolistic competitive firms are productively inefficient because production occurs where?
answer
Average total cost is not at its lowest.
question
Which of the following is a characteristic of monopolistic competition?
answer
Relatively easy entry.
question
Xavier produces and sells tomatoes in a purely competitive market. This implies that Xavier's marginal revenue from an extra unit of tomatoes is always equal to the?
answer
Unit price.
question
Outpuit AFC AVC ATC MC
1 $300 $100 $400 $100
2 150 75 225 50
3 100 70 170 60
4 75 73 148 80
5 60 80 140 110
6 50 90 140 140
7 43 103 146 180
8 38 119 156 230
9 33 138 171 290
10 30 160 190 360
The accompanying table shows cost data for a firm that is selling in a purely competitive market. If the market price for the firm's product is $80, the firm will?
1 $300 $100 $400 $100
2 150 75 225 50
3 100 70 170 60
4 75 73 148 80
5 60 80 140 110
6 50 90 140 140
7 43 103 146 180
8 38 119 156 230
9 33 138 171 290
10 30 160 190 360
The accompanying table shows cost data for a firm that is selling in a purely competitive market. If the market price for the firm's product is $80, the firm will?
answer
Produce 4 units.
question
Output Marginal Revenue Marginal Cost
0 -- --
1 $16 $10
2 16 9
3 16 13
4 16 17
5 16 21
Refer to the data in the accompanying table. Assuming total fixed costs equal to zero, the firm's economic profit equals?
0 -- --
1 $16 $10
2 16 9
3 16 13
4 16 17
5 16 21
Refer to the data in the accompanying table. Assuming total fixed costs equal to zero, the firm's economic profit equals?
answer
$16
question
Suppose that at 500 units of output, marginal revenue is equal to marginal cost. The firm is selling its output at $5 per unit, and average total cost at 500 units of output is $6. On the basis of this information, we?
answer
Cannot determine whether the firm should produce or shut down in the short run.
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