ECO 405 Week 3 Quiz Strayer
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Chapter 02Economic Systems, Resource Allocation, And Social
Well-Being: Lessons From China's Transition
Multiple Choice Questions1.Which Of The Following Descriptions
Fits The American Economy Best?A.A Pure Market EconomyB.A Mixed
EconomyC.Purely Competitive EconomyD.A Command EconomyE.A Monopoly
Economy2.In A Market Economy,A.Resources Are Allocated By The
Private Parties Who Own The ResourcesB.Resources Are Allocated By
The Various Local, State, And Federal Planning Committees And
Zoning CommissionsC.Shortages Never ExistD.Surpluses Never
ExistE.Both C) And D)3.In 1978, The Chinese EconomyA.Opened Ties To
The Noncommunist WorldB.Became A Strictly Centralized Economy Under
Joseph StalinC.Became Communist Under Mao ZedongD.Moved To The
Island Of TaiwanE.Became A Purely Market-Oriented Economy4.In Both
The U.S. And Canada, Most, But Not All, Of Economic Resources Are
Owned And Controlled By Private Parties Who Make Decisions As To
How To Use Those Resources With Somewhat Limited Interference From
Government. As Such, These Economies Are Examples OfA.The Pure
Command EconomyB.Mixed Economies, Though Closer To The Market End
Of The SpectrumC.Mixed Economies, Though Closer To The Command End
Of The SpectrumD.The Pure Market EconomyE.The Communist Economy
5.In The Market Economy, Markets Serve The Function
OfA.Coordinating Resource Use Decisions Made By Individual Owners
Of ResourcesB.Bringing About Resource Allocation Changes Desired By
Resource OwnersC.Determining PricesD.All Of The AboveE.Both (A) And
(B)6.Which Of The Following Is Least Consistent With The Pure
Market Economy?A.An Established Legal System That Arbitrates
Contract DisputesB.An Individual Accepting A Job For $1 Per
HourC.The Institution Of Private Property RightsD.The Existence Of
A Minimum WageE.Private Property Rights7.Which Of The Following Is
Not A Characteristic Of A Purely Competitive Market?A.Enough
Sellers And Buyers So That No One Of Them Acting Alone Can
Influence The Price Of This ProductB.The Ability Of A Single Seller
To Block Potential Competitors Out Of The MarketC.Freedom Of The
Price To Move Up Or Down, That Is, No Price FixingD.Mobility Of
Buyers And SellersE.A Standardized Product8.A Market With Only One
Seller Of A Product That Has No Good Substitutes Is CalledA.A Pure
MonopolyB.A Pure Command EconomyC.Purely CompetitiveD.Imperfectly
CompetitiveE.An Oligopoly9.Which Of The Following Is Of Monopoly
Firms? TheyA.Can Manipulate The Price Of Their ProductB.Beat Their
Competitors' PricesC.Must Constantly Deal With The Entry Of New
FirmsD.Never Receive Government Help Blocking Entry Into The
MarketE.Do All Of The Above
10.Markets That Fall Between Pure Competition And Monopoly Are
Called:A.Anti-CompetitiveB.Imperfectly CompetitiveC.Command
MarketsD.Tweener MarketsE.Monopsonistic11.If A Consumer Always Eats
Cheese With Macaroni, Then For That Consumer Macaroni And Cheese
Are Examples Of:A.SubstitutesB.ComplementsC.Normal GoodsD.Inferior
GoodsE.Standardized Products12.If An Increase In The Price Of
Cookies Leads To A Decrease In The Demand For Ice Cream, Then Ice
Cream And Cookies Must BeA.SubstitutesB.ComplementsC.Normal
GoodsD.Inferior GoodsE.Standardized Products13.If An Increase In
The Price Of Bicycles Leads To An Increase In The Demand For Bus
Transportation, The Bicycles And Bus Rides Must
BeA.SubstitutesB.ComplementsC.Normal GoodsD.Inferior
GoodsE.Standardized Products
14.A Student Graduates From College And Gets A High-Paying Job.
As A Result Of The Increase In Income, The Student Buys More Frozen
Pizzas. For The Student, Frozen Pizzas Must Be
A(N)A.SubstituteB.ComplementC.Normal GoodD.Inferior
GoodE.Standardized Product15.You Receive A Big Raise At Work. As A
Result Of Your Now Higher Income, You Stop Bringing Your Lunch From
Home And Start Eating Lunch At A Nearby Restaurant. Your Homemade
Lunches Must BeA.A SubstituteB.A ComplementC.Normal GoodsD.Inferior
GoodsE.Standardized Products16.The Law Of Demand States That Price
AndA.Demand Are Positively RelatedB.Quantity Demanded Are
Positively RelatedC.Demand Are Negatively RelatedD.Quantity
Demanded Are Negatively RelatedE.None Of The Above17.The Law Of
Supply States That Price AndA.Supply Are Positively
RelatedB.Quantity Supplied Are Positively RelatedC.Supply Are
Negatively RelatedD.Quantity Supplied Are Negatively
RelatedE.Quantity Demanded Are Negatively Related
18.An Increase In The Price Of A Good Will Cause Which Of The
Following?A.Quantity Demanded To Demand To RiseB.Demand To
FallC.Quantity Supplied To FallD.Supply To RiseE.None Of The
Above19.Which Of The Following Will Cause Demand To Rise?A.A
Decrease In PriceB.A Decrease In The Price Of A Substitute GoodC.A
Decrease In The Price Of A Complementary GoodD.An Increase In
SupplyE.An Increase In The Cost Of Production20.Given A
Downward-Sloping Demand Curve And An Upward-Sloping Supply Curve,
An Increase In Supply Together With An Increase In Demand Will
Cause TheA.Equilibrium Quantity Purchased To Increase, But The
Effect On Price Will Be IndeterminateB.Equilibrium Quantity
Purchased To Decrease, But The Effect On Price Will Be
IndeterminateC.Price To Rise, But The Effect On The Equilibrium
Quantity Purchased Will Be IndeterminateD.Price To Fall, But The
Effect On The Quantity Bought And Sold Will Be
IndeterminateE.Equilibrium Price To Rise And The Equilibrium
Quantity Purchased Will Rise21.A Situation In Which The Demand For
A Product Is Decreasing While The Price Is Simultaneously
Increasing Can Be Explained ByA.A Decrease In SupplyB.An Increase
In SupplyC.Unchanged SupplyD.All Of The AboveE.None Of The
Above
Questions 22 - 24 Refer To The Graph Below.22.At Price P1 There
Is AA.Surplus Of X1x2B.Shortage Of X1x2C.Surplus Of Xx2D.Surplus Of
AbE.Shortage Of X1x23.At A Price Of P1, What Quantity Will Be Sold
In The Market?A.0B.XC.X1D.X2E.X1x224.If The Market Is In
Equilibrium, The Price And Quantity Will BeA.P1 And X1B.P And
X1C.P1 And XD.P And XE.P And X2
Questions 25 - 30 Refer To The Graph Below.25.The Demand Curve
And Supply Curve For Beef Are Dd And Ss. The Demand Curve Shifts To
D1d1 And A Price Ceiling Is Placed On Beef At Price P. The Result
Will BeA.A Surplus Equal To X1xB.A Shift In The Supply Curve To
S1s1C.An Increase In The Quantity Placed On The Market To X1D.Both
(B) And (C) AboveE.A Shortage Equal To X1x26.The Demand Curve And
Supply Curve For Beef Are Dd And Ss. Which Of The Following Could
Not Cause Demand To Shift To D1d1?A.An Increase In The Price Of A
Substitute GoodB.An Increase In The Price Of A Complementary
GoodC.An Increase In Consumer IncomeD.A Change In Consumer
TastesE.A Change In Consumer Expectations
27.The Demand Curve And Supply Curve For Beef Are Dd And Ss.
Which Of The Following Could Cause Supply To Shift To S1s1?A.An
Increase In The Cost Of ProductionB.A Decrease In The Cost Of
ProductionC.An Increase In The Price Of A Substitute In
ProductionD.An Increase In IncomeE.All Of The Above28.Which Of The
Following Statements Is Incorrect?A.If Supply Decreases And Demand
Remains Constant, Equilibrium Price Will RiseB.If Demand Decreases
And Supply Increases, Equilibrium Price Will RiseC.If Supply
Increases And Demand Decreases, Equilibrium Price Will FallD.If
Demand Increases And Supply Decreases, Equilibrium Price Will
RiseE.If Supply Is Constant And Demand Increases, Price Will
Rise29.If Demand And Supply Shift To D1d1 And S1s1, Market Price
Will BeA.PB.Above PC.Below PD.IndeterminateE.The Price That Goes
With The Quantity X30.Which Of The Following Will Cause A Change In
The Demand For Beer?A.A Change In The Average Income In The
EconomyB.A Change In The Price Of Hops (Used To Make Beer)C.A
Change In The Price Of BeerD.All Of The AboveE.None Of The
Above
31.The Law Of Demand Suggests ThatA.Higher Prices Automatically
Result In Higher ProfitsB.Demand Determines SupplyC.The Lower The
Price Of A Product, The More Consumers Will Wish To Purchase, Other
Things EqualD.Without Laws, Markets Would Not Reach
EquilibriumE.Both (A) And (C)32.A Change In The Quantity Supplied
Of A Good May Be Caused ByA.A Change In TechnologyB.A Change In The
Number Of Firms Selling The GoodC.A Change In The Price Of The
GoodD.A Change In The Demand For The GoodE.Either (C) Or
(D)Questions 33 - 37 Refer To The Graph Below.
33.Equilibrium Price And Quantity AreA.20 And 100B.20 And
200C.15 And 300D.15 And 200E.10 And 20034.A Price Of $10 Will Lead
To AA.Shortage Of 200B.Surplus Of 200C.Shortage Of 100D.Surplus Of
100E.Surplus Of 30035.A Price Of $20 Will Lead To AA.Shortage Of
200B.Surplus Of 200C.Shortage Of 100D.Surplus Of 100E.Surplus Of
30036.When Price Is $10, How Much Will Be Sold In The
Market?A.0B.100C.200D.300E.It Can Not Be Determined37.Which Of The
Following Could Lead To A Price Of $20 In The Market?A.An Increase
In DemandB.A Decrease In SupplyC.A Decrease In DemandD.An Increase
In SupplyE.An Increase In Both Supply And Demand
Questions 38 - 43 Refer To The Graph Below.38.If The Market
Starts In Equilibrium With D1 And S1, Price And Quantity AreA.13
And 55B.10 And 40C.10 And 65D.7 And 55E.10 And 5539.If The Market
Starts In Equilibrium With D1 And S1, And The Price Of Pepsi
Increases, The New Equilibrium Price And Quantity AreA.13 And
55B.10 And 40C.10 And 65D.7 And 55E.10 And 5540.If The Market
Starts In Equilibrium With D1 And S1, And The Price Of Carbonated
Water (The Main Ingredient In Dr. Pepper) Increases, The New
Equilibrium Price And Quantity AreA.13 And 55B.10 And 40C.10 And
65D.7 And 55E.10 And 55
41.If The Market Starts In Equilibrium With D1 And S1, And More
Consumers Develop A Preference For Dr. Pepper, The New Equilibrium
Price And Quantity AreA.13 And 55B.10 And 40C.10 And 65D.7 And
55E.10 And 5542.If The Market Starts In Equilibrium With D1 And S1,
And Equilibrium Price And Quantity Increase To $10 And 65, Which Of
The Following Could Have Caused The Change?A.An Increase In
Consumer IncomeB.An Increase In Production CostsC.The Discovery
That Dr. Pepper Causes Health ProblemsD.A Technological Advance In
Dr. Pepper ProductionE.All Of The Above43.Which Of The Following Is
Not One Of The "Other Things Equal" Underlying The Demand
Curve?A.Prices Of ResourcesB.Purchasing Power Of BuyersC.Buyers'
Tastes And PreferencesD.Numbers Of BuyersE.Buyers' Expectations44.A
Change In The Quantity DemandedA.Results Whenever One Of The "Other
Things Equal" Underlying The Demand Curve ChangesB.Results When The
Price Of The Product Increases Or DecreasesC.Means A Shift In The
Position Of The Demand CurveD.Means Movement Along A Given Demand
CurveE.Is Both (B) And (D)
45.Suppose That All Workers Receive A Wage Reduction. What Would
The Impact On The Market For Autos Be?A.The Supply Of Autos Would
DecreaseB.The Demand For Autos Would IncreaseC.The Supply Of Autos
Would Increase And The Demand For Autos Would FallD.Both A) And
B)E.It Can Not Be Determined46.There Is An Increase In The Quantity
Of Pizza Purchased But No Change In The Price Of Pizza. Which Of
The Following Is Most Likely To Have Occurred?A.Supply Increased
While Demand Remained UnchangedB.Both Supply And Demand
IncreasedC.Supply Increased While The Quantity Demanded
IncreasedD.Demand Increased While Supply Remained UnchangedE.Both
Supply And Demand Decreased47.Two Goods Are Said To Be Substitutes
In Consumption IfA.An Increase In The Price Of One Leads To A Fall
In The Demand For The OtherB.An Increase In The Price Of One Leads
To An Increase In The Demand For The OtherC.An Increase In The
Price Of One Leads To An Increase In The Supply Of The OtherD.A
Fall In The Price Of One Leads To An Increase In The Demand For The
OtherE.A Decrease In The Price Of One Leads To A Decrease In The
Supply Of The Other48.Assume Lettuce And Salad Dressing Are
Complements In Consumption. An Increase In The Price Of Lettuce
WillA.Lead To A Fall In The Demand For Salad DressingB.Lead To A
Fall In The Quantity Demanded Of Salad DressingC.Have No Impact On
The Demand For Salad DressingD.Lead To A Fall In The Supply Of
Salad DressingE.Lead To A Rise In The Supply Of Salad Dressing
49.Which Of The Following Is For Inferior Goods?A.The Law Of
Demand Does Not HoldB.They Are Of Low QualityC.The Demand For Them
Falls As Consumer Income RisesD.All Of The AboveE.None Of The
Above50.An Increase In The Wages Of Orange Pickers Will Have What
Effect In The Market For Oranges?A.Price Will Increase, Quantity
Will DecreaseB.Price Will Increase, Quantity Will IncreaseC.Price
Will Decrease, Quantity Will DecreaseD.Price Will Decrease,
Quantity Will IncreaseE.The New Equilibrium Price And Quantity Can
Not Be Determined51.An Increase In Consumer Income Will Have What
Effect On The Equilibrium Price And Quantity Of Hot Dogs?A.Price
Will Increase, Quantity Will DecreaseB.Price Will Increase,
Quantity Will IncreaseC.Price Will Decrease, Quantity Will
DecreaseD.Price Will Decrease, Quantity Will IncreaseE.The New
Equilibrium Price And Quantity Can Not Be Determined52.An Increase
In The Price Of Cars Will Have What Effect On The Equilibrium Price
And Quantity Of Gasoline?A.Price Will Increase, Quantity Will
DecreaseB.Price Will Increase, Quantity Will IncreaseC.Price Will
Decrease, Quantity Will DecreaseD.Price Will Decrease, Quantity
Will IncreaseE.The New Equilibrium Price And Quantity Can Not Be
Determined
53.A Technological Advance In The Production Of Computers Will
Have What Effect On The Equilibrium Price And Quantity In The
Computer Market?A.Price Will Increase, Quantity Will
DecreaseB.Price Will Increase, Quantity Will IncreaseC.Price Will
Decrease, Quantity Will DecreaseD.Price Will Decrease, Quantity
Will IncreaseE.The New Equilibrium Price And Quantity Can Not Be
Determined54.A Publicized Report That Finds Orange Juice Prevents
Certain Diseases Will Have What Effect On The Equilibrium Price And
Quantity Of Orange Juice?A.Price Will Increase, Quantity Will
DecreaseB.Price Will Increase, Quantity Will IncreaseC.Price Will
Decrease, Quantity Will DecreaseD.Price Will Decrease, Quantity
Will IncreaseE.The New Equilibrium Price And Quantity Can Not Be
Determined55.As The Baby Boom Generation Continues To Age, What
Will Happen To The Equilibrium Price And Quantity Of Homes In
Retirement Communities?A.Price Will Increase, Quantity Will
DecreaseB.Price Will Increase, Quantity Will IncreaseC.Price Will
Decrease, Quantity Will DecreaseD.Price Will Decrease, Quantity
Will IncreaseE.The New Equilibrium Price And Quantity Can Not Be
Determined56.If Consumers Expect An Increase In The Price Of Coffee
Next Month, What Will Happen To The Equilibrium Price And Quantity
Of Coffee This Month?A.Price Will Increase, Quantity Will
DecreaseB.Price Will Increase, Quantity Will IncreaseC.Price Will
Decrease, Quantity Will DecreaseD.Price Will Decrease, Quantity
Will IncreaseE.The New Equilibrium Price And Quantity Can Not Be
Determined
57.The Entry Of New Firms Into A Market, All Other Things Equal,
Will Have What Effect On Equilibrium Price And Quantity?A.Price
Will Increase, Quantity Will DecreaseB.Price Will Increase,
Quantity Will IncreaseC.Price Will Decrease, Quantity Will
DecreaseD.Price Will Decrease, Quantity Will IncreaseE.The New
Equilibrium Price And Quantity Can Not Be Determined58.An Increase
In The Price Of Flashlights Will Have What Effect On The
Equilibrium Price And Quantity Of Batteries?A.Price Will Increase,
Quantity Will DecreaseB.Price Will Increase, Quantity Will
IncreaseC.Price Will Decrease, Quantity Will DecreaseD.Price Will
Decrease, Quantity Will IncreaseE.The New Equilibrium Price And
Quantity Can Not Be Determined59.If The Price Of Film Increases At
The Same Time The Cost Of Camera Production Increases, What Will
Happen To The Equilibrium Price And Quantity In The Camera
Market?A.Price Will Increase, Quantity Will DecreaseB.Price Will
Increase, Quantity Will IncreaseC.Price Will Decrease, Quantity
Will DecreaseD.Price Will Decrease, Quantity Will IncreaseE.The New
Equilibrium Price And Quantity Can Not Be Determined60.If There Is
A Technological Advance In The Production Of Paper At The Same Time
Consumer Income Increases (Assume Paper Is A Normal Good), What
Will Happen In The Market For Paper?A.Price Will Increase, Quantity
Will DecreaseB.Price Will Increase, Quantity Will IncreaseC.Price
Will Decrease, Quantity Will DecreaseD.Price Will Decrease,
Quantity Will IncreaseE.The New Equilibrium Price And Quantity Can
Not Be Determined
61.Suppose The United Auto Workers Union Successfully Lobbies
Congress To Enact An Import Quota On All Foreign Cars Imported Into
The U.S. Which Of The Following Is Most Likely To Occur In The
U.S.?A.A Fall In The Price Of Imported Cars And Increase In The
Price Of DomesticsB.An Increase In The Demand For Domestic CarsC.A
Decrease In American Autoworker WagesD.Higher Unemployment Among
American AutoworkersE.A Fall In The Demand For Imports62.As
Consumer Incomes Rise, The Demand Curve For Good X Shifts To The
Right. Given This, Good X Must BeA.Produced By A Competitive
FirmB.A High Quality ProductC.A Substitute GoodD.A Normal GoodE.An
Inferior Good63.Since 1990, China's Growth Has BeenA.Roughly Equal
To That Of The United StatesB.DecliningC.In The Double
DigitsD.About 3% Per YearE.None Of The Above64.China's Growth Has
Been A Result OfA.Increased Domestic DemandB.Rapidly Increasing
InflationC.Investment In Other EconomiesD.Trade DeficitsE.Trade
Surpluses
65.Since 1990, Foreign Investment In China HasA.Increased
SlightlyB.Increased SignificantlyC.Been UnchangedD.Decreased
SlightlyE.Decreased Significantly66.China Can Be Best Described As
AA.Market EconomyB.Mixed EconomyC.Transitional EconomyD.Competitive
EconomyE.Monopoly Economy67.From A Standpoint Of Resource
Allocation, A Surplus Of Corn ImpliesA.Consumers Would Prefer Some
Of The Resources Used To Produce Corn Be Used To Produce Something
ElseB.The Market For Agricultural Products Is FailingC.Government
Should Purchase The Surplus To Protect The FarmersD.The Price Of
Corn Is Too Low And Should Be IncreasedE.The Quantity Demanded Of
Corn Exceeds The Quantity Supplied68.After Establishing The
Republic Of China In 1949, Mao's Communist Party Patterned The
Chinese Economy AfterA.JapanB.TaiwanC.The UssrD.The United
StatesE.Europe
69.Following The Establishment Of A Soviet Style Society In
1949, The State Planning Commission Was Created ByA.Chiang
Kai-ShekB.Deng Xiaoping C.Mao Zedong D.Joseph StalinE.Wen
Jiabao70.The State Planning Commission In China Has The Task
OfA.Determining What Goods And Services Should Be
ProducedB.Determining What Quantities Of Goods And Services Are
ProducedC.Determining The Allocation Of Resources Used In The
Production Of Goods And ServicesD.How The Goods And Services Are To
Be DistributedE.Performing All Of The Tasks Listed Above71.The
Economy Of The Peoples Republic Of China Operated As A Command
EconomyA.From 1917 Until 1949B.From 1949 Until 1978 C.Since
1990D.From 1949 Until 1962E. Which Started China's Transition To A
Market Economy72.Chinas Transition To A Market-Oriented
EconomyA.Was Completed By Around 2004B.Was Abandoned In 2010 And
The Country Has Returned To Command EconomyC.Has Resulted In
Relatively Low Rates Of Economic GrowthD.Did Not Lead To Any
Problems With Inflation Or UnemploymentE.Did Not Lead To Any
Problems With Corruption73.In A Market Economy, A Shortage Of Wheat
Will Cause TheA.Price Of Bread To RiseB.Price Of Bread To
FallC.Price Of Wheat To FallD.Supply Of Bread To IncreaseE.Supply
Of Wheat To Fall
74.Which Of The Following Was Not A Problem For China's
Centralized Economy?A.Informational RequirementsB.Incentives For
EfficiencyC.The Emphasis On Heavy Machinery ProductionD.Low Quality
ProductsE.None Of The Above (They Were All Problems)75.If The
Demand Curve For Bran Muffins Has Shifted Out Due To A Medical
Study That Indicates That Regular Consumption Of Bran Lowers
Cholesterol, Then We Can Conclude That There Has BeenA.A Response
To The Increase Demand For A Complementary GoodB.A Change In
Consumer TastesC.A Reduction In The Production Costs Of BranD.An
Increase In Consumer ExpectationsE.An Improvement In The Economy,
Resulting In Higher Incomes76.Consumer Purchases Of Hybrid Cars
Have Risen Sharply In Recent Years. One Important Factor In This
Increased Demand For These Vehicles IsA.It's Cool To Be "Green" And
Drive A HybridB.Decreasing Prices Of A Complementary GoodC.Change
In Expectations Based Upon The Belief That Energy Prices Will Rise
In The FutureD.Reduced Availability Of A SubstituteE.Government
Fuel MandatesTrue / False Questions77. Mao Zedong Started China's
Transition To A Market Economy 78.Private Ownership Of An Economy's
Resources Is A Defining Feature Of The Pure Market Economy 79.The
Institution Of Private Property Rights Is An Essential Feature Of
The Market Economy 80.The U.S. Is Best Described As A Pure Market
Economy 81.In The Pure Command Economy, Most Resource Use Decisions
Are Made By Government 82.In A Market Economy, Price Fluctuations
Indicate There Is A Lack Of Effective Competition 83.For A Market
To Be Considered Purely Competitive, New Rivals Must Be Free To
Enter If They Feel They Can Effectively Compete 84.Blocked Entry Is
Essential For A Purely Competitive Market 85.Entry Is Blocked In
Monopoly Markets 86.In Response To An Increase In The Price Of
Beer, Bob Reduces His Consumption From 3 To 2 Beers Per Day. This
Reflects A Reduction In Bob's Demand For Beer
87.Surpluses Tend To Drive Competitive Prices Downward Toward
Equilibrium, And Shortages Tend To Drive Competitive Prices Upward
Toward Equilibrium 88.When The Entire Demand Curve Shifts Out To
The Right, We Say There Has Been An Increase In Demand 89.A Change
In Supply Occurs When One Of The Other Things Equal Changes And Is
Represented As Movement Along The Supply Curve 90.A Change In The
Price Of Automobiles Will Cause A Change In The Demand For
Automobiles 91.Demand Is The Quantity Of A Product Per Time Period
That Buyers Will Buy At The Prevailing Price, Other Things Equal
92.The Law Of Demand States That Consumers Will Buy Less At Lower
Prices, But Only If A Number Of Other Things Are Held Constant
93.The Law Of Supply States That Sellers Will Sell More At High
Prices Than At Low Prices
94.When An Economist Says That The Demand For A Product Has
Increased, This Means That Consumers Are Now Willing To Purchase
More Of The Product At Each Alternative Price 95.An Increase In The
Price Of A Good Will Decrease Demand For The Good 96.An Increase In
The Supply Of A Good Will Increase Demand For The Good 97.An
Increase In Consumer Income Can Either Increase Or Decrease Demand
For A Good 98.During December Each Year, The Number Of Christmas
Trees Sold Increases, As Does The Price Of The Trees. This Clearly
Violates The Law Of Demand 99.An Increase In The Demand For
Gasoline Accompanied By A Decrease In The Supply Of Gasoline Will
Cause The Price To Rise, But May Cause The Quantity Purchased To
Increase, Decrease, Or Remain The Same 100.Fluctuating Prices Tend
To Confuse Consumers, So Prices Should Be Government Controlled
Whenever Possible 101.An Increase In The Price Of Gas Will Cause An
Increase In The Supply Of Gas Since It Will Be More Profitable To
Sell
102.The Demand Curve For An Inferior Good Is Upward Sloping,
Like A Typical Supply Curve 103.When There Is An Increase In Both
Supply And Demand, It Is Impossible To Determine What Happens To
The Equilibrium Price Unless The Magnitudes Of The Supply And
Demand Changes Are Known 104.During The 1992 Presidential Campaign,
Ross Perot Recommended A 50-Cents-Per-Gallon Increase In The Tax On
Gasoline. Such An Increase Would Have Little Or No Effect On The
Quantity Of Gas Sold Since We Have Few Options To Driving 105.If
You Buy More Of A Good As A Result Of An Increase In Income, The
Good Is Known As A Consumer Good 106.Appliances And Electricity Are
An Example Of Complementary Goods 107.An Increase In The Supply Of
A Good Will Increase The Price Of The Good, Other Things Being
Equal 108.When Both Supply And Demand Increase, Price And Quantity
Will Increase 109.Shortages Of A Particular Good Can Be Expected To
Lead To Rising Prices And Increased Production For That Good In A
Market Economy
110.Shortages Of A Particular Good Can Be Expected To Lead To
Decreasing Prices And Lower Production For That Good In A Market
Economy 111.In The Short Run, An Increase In Demand For A Good Will
Result In Higher Prices In A Market Economy 112.In The Short Run,
An Increase In Demand For A Good Will Result In Long Lines In A
Command Economy 113.In The Long Run, An Increase In The Demand For
A Good Will Result In An Increase In Supply Of The Good In A Market
Economy 114.In The Long Run, An Increase In The Demand For A Good
Will Result In An Increase In Supply Of The Good In A Command
Economy 115.If The Demand For A Good Increases In A Monopoly
Market, Price Will Rise And Firms Will Enter The Industry In The
Long Run 116.China's Transition To A Market Economy Began In
1990.
117.Command Economies Introduce Incentives For Efficient
Production
118.Under The Great Leap Forward, The Task Of Determining How
Much To Produce Fell On The State Planning Commission 119.The
Chinese Communist Party Favored Production In The Heavy Industry
Sectors Of The Economy 120.In 1978, Deng Xiaoping Started The
Process Of Transitioning China To A "Socialist Market Economy."
121.While The Superiority Of The Market Orientation Seems Clear, It
Is Equally Clear That The Transition From A Command To A Market
Economy Is Very Difficult 122.China's Transition To A Market
Orientation Has Been Relatively Problem-Free 123.China's Transition
To A Market Orientation Began With Agricultural Reform 124.China's
Transitional Economy Is Free Of Unemployment And Inflation 125.15
Of The 20 Cities With The Highest Levels Of Air Pollution Are In
China.
Chapter 03
Government Control Of Prices In Mixed Systems: Who Are The
Winners And Losers?
Multiple Choice Questions1.In A Market Economy, If The Market
Supply Of A Product Decreases Relative To Its Demand, The Product's
Price WillA.FallB.RiseC.Be UnchangedD.Fall And Then RiseE.Rise And
Then Fall2.In A Mixed Economy, Governments May Intervene In Markets
In Which Of The Following Ways?A.Price CeilingsB.Minimum
WagesC.Agricultural Price SupportsD.Both A) And B)E.All Of The
Above3.Which Of The Following Is Of How Markets React To Government
Intervention? They ReactA.To Provide The Intended ResultsB.In Ways
That Offset Intended ImpactsC.Quickly To Reverse Intended
EffectsD.In Completely Unpredictable WaysE.So Slowly That Policies
Never Work As They Are Intended4.The Consequences Of Government
InterventionA.Are Generally As Planned By Policy MakersB.Often
Involve Unintended ConsequencesC.Fall On Low Income
IndividualsD.Are Not Felt Until The Next Fiscal YearE.Serve To
Increase Efficiency In Markets
5.A Maximum Allowable Price For A Good Or Service Is AA.Price
CeilingB.Price FloorC.Minimum WageD.Market EquilibriumE.Price
Support6.To Be Effective, A Price Ceiling Must Be SetA.By The
MarketB.Above EquilibriumC.Below EquilibriumD.At EquilibriumE.By
Producers7.The Purpose Of A Price Ceiling May Be To Hold
DownA.InflationB.UnemploymentC.Interest RatesD.WagesE.All Of The
Above8.Price Ceilings May Be Used On A Selective Basis ToA.Control
Inflation In The EconomyB.Make A Good Cheaper To ProduceC.Boost The
Income Of FirmsD.Make A Good Accessible To All Income
LevelsE.Increase Workers' Incomes9.During The 1970's About How Many
Cities In The U.S. Had Rent Controls?A.1,000B.200C.50D.15E.5
10.One Of The Earliest Known Rent Control Laws Was Instituted In
Which City And When?A.New York At The Start Of WwiiB.Washington
D.C. During The Civil WarC.Paris In The 1700sD.Rome In The
1400sE.Chicago During The Great Depression11.A Minimum Allowable
Price For A Good Or Service Is Known AsA.A Price FloorB.A Minimum
WageC.A Price SupportD.All Of The AboveE.None Of The Above12.Price
Floors Are Often Instituted For Which Of The Following
Purposes?A.To Prevent InflationB.To Make Goods And Services
Accessible To All Income LevelsC.To Increase The Income Of
SellersD.To Increase The Wages Of WorkersE.To Do All Of The
Above13.Which Of The Following Is Of The First U.S. Minimum
Wage?A.It Was Set Under The Fair Labor Standards ActB.It Was
Instituted In 1938C.It Set The Minimum Wage At 25 Cents Per
HourD.It Applied Only To Certain Designated IndustriesE.All Of The
Above14.In 1981, The U.S. Federal Minimum Wage Was Increased
ToA.$2.00 Per HourB.$2.50 Per HourC.$3.35 Per HourD.$4.00 Per
HourE.$5.15 Per Hour
15.Which Of The Following Is Of The U.S. Minimum Wage Over The
1980s And 1990s?A.It Was UnchangedB.It Increased Significantly
Through The 1980s And Was Constant Through The 1990sC.It Was
Constant Through The 1980s And Then Increased Significantly Through
The 1990sD.It Fell During The 1990sE.It Was Eliminated In The
1990s16.As Of Summer 2009, The U.S. Federal Minimum Wage Is Set At
What Rate Per Hour?A.$5.15B.$5.85C.$6.55D.$7.25E.$8.0017.Some
States Also Have Their Own Minimum Wage Legislation. Generally
These Laws Set The State Minimum WageA.Above The Federal Minimum
WageB. Below The Federal Minimum WageC.Equal To The Federal Minimum
WageD.To Either A) Or C)E.To Any Of The Above18.As The Price Of
Rental Housing Falls, Which Of The Following Occurs?A.The Quantity
Demanded Of Housing IncreasesB.People Take In Roommates To Share
CostsC.Individuals Move Back In With Their FamiliesD.More Rental
Housing Is ConstructedE.All Of The Above19.As The Price Of Rental
Housing Increases, Which Of The Following Will Happen?A.Property
Will Be Switched From Commercial Property To Rental HousingB.More
Rental Housing Will Be BuiltC.Renters Will Be Induced To Buy
HousingD.The Average Number Of Renters Per Rental Unit Will
IncreaseE.All Of The Above
Questions 20 - 24 Refer To The Graph Below.20.If The Demand For
Rental Housing Is Dd And The Supply Of Rental Housing Is Ss, The
Equilibrium Rent And Quantity (Number Of Units In Thousands)
AreA.$800 And 25B.$625 And 30C.$600 And 20D.$400 And 25E.$600 And
2521.If Demand And Supply Are Dd And Ss And Demand Increases To
D1d1, The New Equilibrium Rent And Quantity (Number Of Units In
Thousands) AreA.$800 And 25B.$625 And 30C.$600 And 20D.$400 And
25E.$600 And 25
22.An Increase In Rent That Leads To Increased Profitability Of
Producing Rental Housing Will Lead To Which Of The Following Shifts
In The Long Run?A.Dd To D1d1B.D1d1 To DdC.S1s1 To SsD.Ss To
S1s1E.None Of The Above23.If The Supply And Demand For Rental
Housing Are Dd And Ss, What Effect Will A Rent Control Law That
Sets The Maximum Allowable Rent At $400 Have On The Market? It Will
Lead ToA.A Surplus Of 5 Thousand UnitsB.A Shortage Of 5 Thousand
UnitsC.A Surplus Of 10 Thousand UnitsD.A Shortage Of 10 Thousand
UnitsE.No Change In Equilibrium Rent Or Quantity24.If The Supply
And Demand For Rental Housing Are Dd And Ss, What Effect Will A
Rent Control Law That Sets The Maximum Allowable Rent At $800 Have
On The Market? It Will Lead ToA.A Surplus Of 5 Thousand UnitsB.A
Shortage Of 5 Thousand UnitsC.A Surplus Of 10 Thousand UnitsD.A
Shortage Of 10 Thousand UnitsE.No Change In Equilibrium Rent Or
Quantity25.If People Are Forced To Commute As A Result Of A Rent
Control Law In A City, Which Of The Following Results? An Increase
InA.Rent Paid By CommutersB.Direct Commuting CostsC.Opportunity
Costs For CommutersD.Pollution And Traffic Congestion In
CitiesE.All Of The Above
26.Rent Control Laws Will _____________ The Search Costs Of
Potential
Renters.A.IncreaseB.DecreaseC.EliminateD.MitigateE.ReimburseQuestions
27 - 32 Refer To The Graph Below.27.The Equilibrium Rent And
Quantity (1,000s Of Units) AreA.$900 And 30B.$750 And 40C.$600 And
30D.$900 And 50E.$600 And 50
28.If Rent Is Controlled At $900, The Quantity Of Rental Housing
Demanded Will BeA.0B.30C.40D.50E.More Than 5029.If Rent Is
Controlled At $600, The Quantity Of Rental Housing Demanded Will
BeA.0B.30C.40D.50E.More Than 5030.If Rent Is Controlled At $900,
The Quantity Of Rental Housing Supplied Will
BeA.0B.30C.40D.50E.More Than 5031.If Rent Is Controlled At $600,
The Quantity Of Rental Housing Supplied Will
BeA.0B.30C.40D.50E.More Than 5032.If Rent Is Controlled At $600,
There Will Be A ______ Equal To ____ Thousand Units In The
Market.A.Surplus; 10B.Surplus; 20C.Shortage; 10D.Shortage;
20E.Excess Supply; 10
33.Rent Control Laws May Lead To Which Of The Following
Unintended Effects?A.Under-The-Table PaymentsB.Increased Forced
CommutingC.Higher Search CostsD.Lost Profit Incentives To Change
The Supply Of Rental HousingE.All Of The Above34.Owners Of Rent
Controlled Property May Attempt To Increase Profits ByA.Raising
RentsB.Improving The Quality Of Their Rental UnitsC.Taking
Under-The-Table PaymentsD.Converting Commercial Properties To
Rental PropertiesE.All Of The Above35.In The Short-Run, Who "Wins"
From Rent Control Laws?A.All People Who Want To Rent
HousingB.Owners Of Rent Controlled PropertyC.People Who Buy
HousingD.Governments That Pay To Enforce Rent Control LawsE.None Of
The Above36.In The Short-Run, Who "Loses" From Rent Control
Laws?A.Those Who Cannot Find Rental HousingB.People Who Are Forced
To CommuteC.Individuals Who Experience Increased Search Costs For
Rental HousingD.Those Who Must Make Under-The-Table Payments To
Secure Rental HousingE.All Of The Above37.The Demand For Labor Is A
Derived Demand Because It Is Dependent OnA.The Demand For The
Product Being ProducedB.The Marginal Revenue Of The Product Being
ProducedC.The Marginal Productivity Of The Workers Producing The
ProductD.All Of The AboveE.None Of The Above
38.The Additional Revenue That Accrues To A Firm When An
Additional Worker Is Hired IsA.The Marginal Revenue Product Of
LaborB.The Marginal Product Of LaborC.The Marginal Revenue Of
LaborD.The Marginal Utility Of LaborE.None Of The Above39.The
Marginal Product Of Labor Is The AdditionalA.Revenue Received When
A Worker's Output Is SoldB.Production Cost Of Hiring An Additional
LaborC.Output Produced As A Result Of Giving Workers Additional
CapitalD.Output Produced As A Result Of Hiring An Additional
WorkerE.Product Developed As A Result Of Ideas Generated By
Workers40.The Additional Revenue A Firm Receives As A Result Of
Selling An Additional Unit Of Output Is
CalledA.PriceB.ProfitC.Total RevenueD.Marginal RevenueE.Marginal
Revenue Product41.A Firm Increases The Number Of Workers It Hires
From 50 To 52 And, As A Result, Output Increases From 100 To 110.
Each Of The Additional Units Of Output Can Be Sold For $2. What Is
The Marginal Product Of The 52nd Worker?A.2B.5C.10D.20E.50
42.A Firm Increases The Number Of Workers It Hires From 50 To 52
And, As A Result, Output Increases From 100 To 110. Each Of The
Additional Units Of Output Can Be Sold For $2. What Is Marginal
Revenue For The Last 10 Units Produced?A.2B.5C.10D.20E.5043.A Firm
Increases The Number Of Workers It Hires From 50 To 52, And As A
Result, Output Increases From 100 To 110. Each Of The Additional
Units Of Output Can Be Sold For $2. What Is The Marginal Revenue
Product Of The 52nd Worker?A.2B.5C.10D.20E.5044.The Law Of
Diminishing Returns States That, As Additional Units Of A Variable
Input Are Added To A Given Amount Of A Fixed Input, Increases In
Output WillA.IncreaseB.DeclineC.Stay The SameD.AccelerateE.Become
Erratic45.A Firm Has A Given Amount Of Capital. When It Hires 10
Workers, Output Is 30. When It Hires 11 Workers, Output Is 40. If
The Law Of Diminishing Returns Applies, Which Of The Following Is
The Most Likely Amount Of Output When The Firm Hires 12
Workers?A.70B.60C.50D.45E.-10
46.Which Of The Following Represents The Demand Curve For Labor
For A Firm?A.The Mr CurveB.The Mp CurveC.The Mrp CurveD.The Mc
CurveE.None Of The AboveQuestions 47 - 51 Refer To The Table
Below.47.The Marginal Product Of The 4th Worker
IsA.20B.40C.100D.140E.16048.If Each Unit Of Output Is Sold For $5,
The Marginal Revenue Of The Second Unit Of Output Sold
IsA.$5B.$10C.$40D.$50E.$200
49.The Marginal Product Of The First Worker
IsA.0B.10C.40D.50E.Unable To Be Determined50.If Each Unit Of Output
Is Sold For $5, The Marginal Revenue Product Of The 3rd Worker
IsA.5B.50C.200D.250E.30051.If Each Unit Of Output Is Sold For $2,
The Marginal Revenue Product Of The 6th Worker
IsA.2B.4C.10D.20E.17052.As The Wage Increases, A Worker Will Choose
To WorkA.MoreB.LessC.The Same AmountD.OvertimeE.An Amount That
Cannot Be Determined53.A Change In The Hours Of Work That Occurs In
Response To A Wage Change, Other Things Equal, Is Known As
TheA.Supply Of LaborB.Substitution EffectC.Income EffectD.Wage
EffectE.Opportunity Cost Of Labor
54.An Increase In The Wage From $6 Per Hour To $6.50 Per Hour
Causes A Worker To Increase Her Hours Worked From 40 To 45 Hours
Per Week. For This Worker, Which Effect
Dominates?A.SubstitutionB.IncomeC.WageD.WealthE.Leisure55.Which Of
The Following Measures The Change In The Hours Of Work That Occurs
When There Is A Change In Income, Other Things Equal?A.The Supply
Of Labor CurveB.The Substitution EffectC.The Income
EffectD.Marginal ProductivityE.The Wage Effect56.If An Increase In
The Wage Rate From $6.00 Per Hour To $6.50 Per Hour Causes A Worker
To Decrease His Hours Worked From 40 To 35 Hours Per Week, Which
Effect
Dominates?A.SubstitutionB.IncomeC.WageD.WealthE.Leisure57.Which
Effect Dominates If A Workers Supply Curve For Labor Is Negatively
Sloped?A.SubstitutionB.IncomeC.WageD.WealthE.Leisure
Questions 58 - 63 Refer To The Graph Below.58.Equilibrium Wage
And Quantity In The Labor Market AreA.$3 And 8B.$5 And 22C.$7 And
16D.$10 And 8E.$10 And 2259.At A Wage Of $10, The Mrp Of Labor
IsA.$8B.$10C.$80D.$216E.Impossible To Determine Using This
Graph60.If The Wage Rate Is $10, What Is The Quantity Of Labor
Demanded?A.0B.8C.16D.22E.25
61.If The Wage Rate Is $10, What Is The Quantity Of Labor
Supplied?A.0B.8C.16D.22E.2562.If The Wage Rate Is $3, Which Of The
Following Will Occur?A.A Shortage Of 8B.A Surplus Of 8C.A Shortage
Of 17D.A Surplus Of 17E.A Surplus Of 1663.To Be Effective, A
Minimum Wage In This Market Would Have To Be SetA.Above $7B.Above
$10C.Below $5D.Below $7E.Below $10
Questions 64 - 68 Refer To The Graph Below.
64.A Minimum Wage Set At $12 Per Hour Would Result In A Surplus
OfA.0B.10C.20D.35E.None Of The Above65.A Minimum Wage Of $12 Would
Lead To A Quantity Of Labor Demanded Equal ToA.0B.15C.25D.35E.More
Than 3566.A Minimum Wage Of $12 Would Lead To A Quantity Of Labor
Supplied Equal ToA.0B.15C.25D.35E.More Than 3567.A Minimum Wage Set
At $4 Would Result In A Shortage OfA.0B.10C.20D.35E.None Of The
Above68.If A Minimum Wage Is Set At $4, The Quantity Of Labor
Demanded In The Market Will BeA.0B.15C.25D.35E.More Than 35
69.Which Of The Following Groups Most Suffers The Costs Of
Minimum Wage Laws?A.College GraduatesB.Senior
CitizensC.TeenagersD.Manufacturing WorkersE.Agricultural
Workers70.Which Of The Following Is Of The Minimum Wage?A.It Has
Significantly Reduced Poverty In The United StatesB.A Worker
Earning The Minimum Wage Will Keep A Family Of Three Out Of
PovertyC.It Results In A Much More Equal Distribution Of Income In
The United StatesD.Unemployment Rates Are Unaffected By The Minimum
WageE.None Of The Above Is 71.Research Suggests That As The Minimum
Wage Is Increased By 10%, The Associated Increase In The Teenage
Unemployment Rate Is NearlyA.1 PercentB.10 PercentC.20 PercentD.25
PercentE.30 Percent72.The Alternative Analysis Of The Minimum Wage
Indicates That Which Of The Following May Be ?A.The Demand Curve Is
Vertical Over The Relevant RangeB.The Supply Curve Is Vertical Over
The Relevant RangeC.There Is Only A Very Slight Unemployment Effect
Of A Minimum WageD.All Of The AboveE.None Of The Above
73.According To The Alternative Analysis Of The Minimum Wage,
Which Of The Following Might Lead The Demand Curve For Labor To Be
Vertical Over The Relevant Range?A.Firms Offset Higher Wages By
Allowing Longer Lines During Peak HoursB.Higher Wages Are Offset By
Increased EfficiencyC.Prices Are Increased For Goods That Are Not
Price-SensitiveD.All Of The AboveE.None Of The Above74.Which Of The
Following Individuals Lose As A Result Of An Effective Minimum Wage
Law?A.Those Who Remain Employed After The Minimum Wage Is
InstitutedB.Teenagers Who Lose Their Jobs And Valuable On-The-Job
TrainingC.Skilled Workers Who Earn Wages Above The Minimum
WageD.All Of The AboveE.None Of The Above75.If There Is A Price
Ceiling Set For Milk At $2.50 Per Gallon And The Current
Equilibrium Price Is $2.25 Per Gallon, Then We Can ConcludeA.That
The Price Ceiling Is Doing Its Job, Keeping Prices LowB.That The
Price Ceiling Is Non-Binding And Has No Effect On The Market
EquilibriumC.That Milk Imports Are Reducing The PriceD.That Grocery
Stores Are Afraid To Raise The Price To The Ceiling Level, For Fear
Of Prosecution By The GovernmentE.That Price Ceilings Set A Minimum
Price76.Given That A Firm Is Selling Its Product In A Competitive
Market, Meaning That Its Marginal Revenue Is Constant, What Would
The Law Of Diminishing Returns To Labor Inputs Imply About The
Demand For Labor?A.That The Demand For Labor Would Be Constant If
The Market Is StableB.That The Firm Would Pay Increasing Wages To
Attract Qualified EmployeesC.The Demand Would Diminish With The
Output Of New WorkersD.The Demand Curve For Labor Has A Negative
Slope Resulting From Declining Marginal ProductE.The Law Of
Diminishing Returns Has No Effect On Labor Demand
77.The Fact That We Observe Positively Sloped Market Labor
Supply Curves Implies ThatA.The Substitution Effect Is Stronger
That The Income Effect For Most WorkersB.The Income Effect Is
Stronger Than The Substitution Effect For Most WorkersC.Most
Workers Don't Have Income Or Substitution EffectsD.The Income
Effect Plus Substitution Effect Results In The Positive
SlopeE.Labor Laws Require Workers To Work At Least 40 Hours Per
Week
True / False Questions78.In A Mixed Economy, Markets Adjust
Freely And All Markets Are Cleared. 79.In A Mixed Economy,
Governments Intervene In Markets To Affect The Prices Of Individual
Goods. 80.In A Mixed Economy, Governments Intervene In Markets To
Control Inflation. 81.Approximately 20 U.S. Cities Have Rent
Control Laws. 82.There Are Examples Of Rent Controls From As Early
As The 1700s. 83.Many Rent Controls Were Established As A Result Of
World War Ii And Were Kept Even After The War Ended.
84.Some Universities Have Rent Controlled Student Housing.
85.Price Floors Are Instituted To Increase The Income Of Sellers.
86.The 1938 Fair Labor Standards Act Created The First U.S. Rent
Control Law. 87.The First U.S. Minimum Wage Was Set At 25 Cents An
Hour. 88.The U.S. Minimum Wage Did Not Change Throughout The 1980s
And 1990s. 89.All U.S. Workers Are Covered Under The U.S. Minimum
Wage Law. 90.Some States Enact Their Own Minimum Wage Laws. 91.The
Quantity Of Housing Demanded Does Not Change When Prices Increase
Because People Have To Live Somewhere. 92.In The Short-Run, The
Supply Of Housing Can Increase Quickly.
93.A Price Ceiling Must Be Set Above Equilibrium To Have Any
Effect On The Market For Housing. 94.Rent Controls Result In
Illegal Payments To Acquire Housing. 95.Rent Controls Decrease
Renters' Housing Search Costs. 96.Rent Controls Lead To Increased
Commuting. 97.6 Of The 10 Cities With The Highest Homelessness Have
Rent Control Laws. 98.Rent Controls Create Profit Incentives To
Increase The Supply Of Rental Housing. 99.Minimum Housing Standards
Prevent Any Property Deterioration In Rent Controlled Housing.
100.Rent Controls Result In A Misallocation Of Resources.
101.The Majority Of Individuals Support The Minimum Wage.
102.The Minimum Wage Allows An Individual To Earn Enough To Keep A
Family Of Three Above The Poverty Line. 103.Rent Controls Lead To
Housing Shortages. 104.Rent Controls Lead To Conversion Of Rental
Housing To Commercial Uses. 105.Rent Controls Make Housing More
Accessible To Homeless Individuals. 106.The Demand For A Product Is
A Derived Demand. 107.If 10 Workers Produce 100 Units Of Output And
11 Workers Produce 108 Units Of Output, The Marginal Product Of The
11th Worker Is 8. 108.If All Units Of A Firm's Output Sell For $10
Each, Marginal Revenue Is Constant.
109.The Additional Revenue A Firm Receives As A Result Of Hiring
An Additional Worker Is Mrp. 110.Limited Amounts Of Capital
Eventually Lead To Diminishing Returns To Labor. 111.A Firm's
Marginal Revenue Curve Is Also Its Demand Curve. 112.As The Wage
Increases, The Quantity Of Labor An Individual Supplies Will
Increase. 113.As The Wage Increases, The Quantity Of Labor An
Individual Supplies May Decrease. 114.If A Worker Works More As The
Wage Increases, The Substitution Effect Is Dominating. 115.If A
Worker Works More As The Wage Increases, The Income Effect Is
Dominating. 116.If The Supply Of Labor Curve Is Positively Sloped,
The Substitution Effect Is Dominating. 117.If The Supply Curve Of
Labor Is Positively Sloped, The Income Effect Is Dominating.
118.Evidence Indicates The Supply Curve Of Labor Is Positively
Sloped. 119.A Surplus Of Labor Is Unemployment. 120.Teenagers Are
The Group Most Likely To Work For Minimum Wage. 121.Working For The
Minimum Wage Provides Valuable On-The-Job-Training. 122.The Minimum
Wage In 2008 Was Approximately 37% Of Average Earnings. 123.The
Minimum Wage Is 100% Of The Poverty Level. 124.A 10% Increase In
The Minimum Wage Is Estimated To Increase Teenage Unemployment By
15%. 125.Firms Can Offset Increased Wage Costs Due To An Increase
In The Minimum Wage By Increasing Efficiency. 126.Evidence
Indicates The Minimum Wage Has Little Effect On The Income
Distribution. 127.The Supply Of Labor Is Very Responsive To Changes
In The Wage.