ECO 202 Final Exam Quiz 2015

Question 1

0 out of 2 points

Suppose that every customer in a market wants to enjoy the good supplied by the best producer, and the good is produce with technology such that the best producer can supply to every customer at a low cost. This is an example of

Question 2

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The larger the number of firms in an oligopoly, the

Question 3

2 out of 2 points

Signaling in labor markets and advertising are examples where an informed party uses the signal to convince the uninformed party that the informed party is offering something of high quality.

Question 4

2 out of 2 points

Discrimination in the labor market occurs when employers pay different wages to workers who differ only by race, ethnicity, sex, age, or other personal characteristics.

Question 5

2 out of 2 points

A strategy that is best for a player in a game regardless of the strategies chosen by the other players is called a(n)

Question 6

2 out of 2 points

Movies and novels are examples of products sold in monopolistically-competitive industries.

Question 7

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Hidden characteristics typically lead to

Question 8

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Hidden actions typically lead to

Question 9

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The effect of an increase in interest rates on consumer savings in the current period is ambiguous.

Question 10

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The slope of the budget constraint will change whenever the

Question 11

2 out of 2 points

Economists measure the social cost of a monopoly by calculating monopoly profits.

Question 12

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Antitrust laws, regulation, public ownership, and doing nothing are all potential strategies that a government can use to deal with the problem of monopoly.

Question 13

2 out of 2 points

Human capital is

Question 14

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Economic mobility refers to the willingness of people to migrate across the United States to search for better jobs.

Question 15

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A Nash equilibrium is a strategy that is best for a player in game regardless of the strategies chosen by the other players.

Question 16

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Which of the following is not a controversial business practice that may be prohibited by antitrust laws?

Question 17

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Which of the following is not a characteristic of a monopolistically-competitive market?

Question 18

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For a monopolist, as output increases, the firm's total revenue

Question 19

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If there is a permanent increase in the demand for hybrid cars, hybrid car manufacturers will want to hire

Question 20

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Which of the following statements is not an example of a compensating differential?

Question 21

2 out of 2 points

The prisoner's dilemma game shows us that

Question 22

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According to the Condorcet paradox, majority rule will produce the outcome most preferred by the median voter.

Question 23

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An increase in the price of gasoline will likely lower the wages of oil workers.

Question 24

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Factors of production are the inputs used to produce goods and services.

Question 25

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An example of adverse selection is a parent who installs a hidden camera in the living room to observe the behavior of the family's nanny.

Question 26

2 out of 2 points

For which of the following market structures does a profit-maximizing firm charge a price greater than marginal cost?

(i) Perfect competition

(ii) Monopolistic competition

(iii) Monoply

Question 27

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Of all the income earned in the United States before taxes in 2008, the richest fifth of households earn about

Question 28

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A major critique of advertising is that it

Question 29

2 out of 2 points

Which of the following is an example of signaling in the labor market?

Question 30

2 out of 2 points

A cartel is an example of collusion among firms.

Question 31

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Which of the following is not an example of screening to uncover private information?

Question 32

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Which of the following would not increase the value of the marginal product of labor?

Question 33

2 out of 2 points

Minimum-wage laws tend to

Question 34

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The theory of efficiency wages predicts that firms will pay their workers a wage exactly equal to the value of the marginal product of labor.

Question 35

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Which of the following would not shift the labor-supply curve for the cranberry industry?

Question 36

2 out of 2 points

Studies of sports teams suggest that customer discrimination may

Question 37

2 out of 2 points

The price paid for any factor of production should equal the

Question 38

2 out of 2 points

Which of the following statements is not an example of human capital?

Question 39

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A monopoly sells a higher quantity and charges a higher price than a competitive market.

Question 40

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The change in consumption that results when a price change moves the consumer to a higher or lower indifference curve is called the

Question 41

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The long-run equilibrium for firms in a monopolistically-competitive market is characterized by

Question 42

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JumboJet Airways charges customers a lower fare for an airline ticket from Chicago to New York City if the customer purchases the ticket online rather than calling JumboJet Airways customer service agents. This is an example of

Question 43

2 out of 2 points

The political philosophy according to which the government should choose policies to maximize the total well-being of everyone in society is called

Question 44

2 out of 2 points

If firms in monopolistic competition are enjoying positive economic profits, in the long run this will attract new firms into the industry, causing prices for fall and profits to disappear.

Question 45

2 out of 2 points

Many antipoverty programs have the unintended consequence of

Question 46

2 out of 2 points

Suppose that canned spaghetti is an inferior good. A decrease in income will decrease the optimal consumption of canned spaghetti.

Question 47

0 out of 2 points

A monopoly must earn zero economic profit in the long run.

Question 48

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A cartel most closely resembles the market structure of

Question 49

2 out of 2 points

In-kind transfers complicate the measurement of inequality.

Question 50

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For a Giffen good, the income effect