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True
In the T shirt trade case, US consumption is higher than in the non-trade case. TERM 2
True
DEFINITION 2 When Boeing exports airplanes, domestic consumption decreases. TERM 3
False
DEFINITION 3 I argued that companies are abandoning wellness programs for their employees since they do not pay in terms of reduced healthcare costs and increased productivity TERM 4
True
DEFINITION 4 comparing the trade restrictions of a tariff versus a quota, in the former there is revenue for the government and in the latter case there is profit for the importer and no revenue for government TERM 5
Comparative
DEFINITION 5 Following your ____ advantage means avoiding those activities that have relatively high opportunity costs.
Producer
In the case of a quota on the importation of T-shirts (instead of free trade), ____ surplus increases. TERM 7
Financial
Services
DEFINITION 7 Which of the following is NOT a significant US import:a. financial servicesb. automobilesc. clothingd. none of the above TERM 8
US consumer surplus is increased, partially at
the expense of producer surplus
DEFINITION 8 In the case of importing T-shirts:a. US producer surplus is increasedb. US consumer surplus is decreasedc. US consumer surplus is increased, partially at the expense of producer surplusd. none of the above TERM 9
US producer surplus is increased
DEFINITION 9 In the case of exporting airplanes:a. US producer surplus is increasedb. US consumer surplus is increasedc. US production is decreasedd. None of the above TERM 10
increase in imports
DEFINITION 10 which of the following did not happen as a result of a $2 tariff on T-shirts (versus the free-trade case):a. increase in domestic productionb. decrease in domestic consumptionc. increase in importsd. none of the above
true
to compute price elasticity of demand we calculate the percentage change in quantity divided by the percentage change in price, all multiplied by 100 TERM 17
inferior
DEFINITION 17 If the good is an ______ good, an increase in income will decrease the demand for this good. TERM 18
decrease
DEFINITION 18 suppose, we decrease both supply and demand. For price to _____ demand would have decrease by more than the decrease in supply. TERM 19
Substitute goods in production
DEFINITION 19 A manufacturing company makes two goods A and B. If an increase in the price of A causes a decrease in the supply of B the two goods must be:a. substitute goods in productionb. complement goods in productionc. superior goodsd. none of the above TERM 20
none of the above
DEFINITION 20 when the price is higher than the equilibrium price:a. we still have a market clearing priceb. we have excess demandc. we have a market resting placed. none of the above
greater than
for demand to be price elastic, the value (coefficient) of elasticity must be:a. greater than or equal to 2.0b. less than 1.0c. greater than 1.0d. none of the above TERM 22
false
DEFINITION 22 A one percentage point increase in the administrative fee of your mutual fund will, at most, reduce your rate of return 10% TERM 23
true
DEFINITION 23 Overall, auto sales in this country were up in August TERM 24
false
DEFINITION 24 When the demand is perfectly elastic an increase in price has no impact on quantity demanded TERM 25
false
DEFINITION 25 We expect the demand for salt to be price elastic
perfectly
inelastic
the vertical supply curve illustrates the case of:a. perfectly elasticb. unitary elasticityc. perfectly inelasticd. none of the above TERM 32
positive and greater than
DEFINITION 32 in the case of an income elastic normal good the coefficient of income elasticity is:a. positive and greater than 1.0b. positive and greater than zeroc. negative with a value below minus 1.0 (e.g., -1.5)d. none of the above TERM 33
true
DEFINITION 33 over the last three years worker productivity has been positive (increasing) in most quarters TERM 34
true
DEFINITION 34 Cisco Systems Inc. has saved millions of dollars by promoting from within the company TERM 35
false
DEFINITION 35 Any point on the production possibility frontier represents allocative efficiency
true
the demand curve shows the maximum price consumers are willing and able to pay, while the supply curve shows the minimum price producers must have to be willing to supply a particular quantity. TERM 37
true
DEFINITION 37 The federal minimum wage is form of a price floor TERM 38
opportunity
DEFINITION 38 the marginal cost curve indicates the _____ cost of producing one more unit of X (e.g., pizza.) TERM 39
ceiling
DEFINITION 39 Rent controls are a form of a price ______ TERM 40
none of the above
DEFINITION 40 the marginal benefit curve:a. slopes upwardb. is horizontalc. is verticald. none of the above
true
employment managers, on average, spend less than one minute to review a resume. TERM 47
true
DEFINITION 47 rent controls decrease both the quantity and quality of rental units available on the market TERM 48
false
DEFINITION 48 a tax on the seller always lead to market inefficiency TERM 49
true
DEFINITION 49 The federal minimum wage eliminates some jobs, causes some minimum wage workers to have their work hours cut, and leads to a black market for minimum wage workers. TERM 50
true
DEFINITION 50 farm price supports lead to overproduction of the product in question
inelastic
The seller pays a large share of a tax the more ____ supply is TERM 52
benefit
DEFINITION 52 the demand for labor indicates (gives us) the marginal ____ of labor TERM 53
A. The demand curve is perfectly
inelastic
DEFINITION 53 There is a tax on the seller and the buyer pays the entire tax when:a. The demand curve is perfectly inelasticb. the demand curve is perfectly elasticc. the supply curve is perfectly inelasticd. the good is a luxury TERM 54
C. The market is efficient
DEFINITION 54 Which of the following is NOT true about rent controls:a. consumer surplus is reducedb. producer surplus is reducedc. The market is efficientd. none of the above TERM 55
A. The MB of labor minus the wage
DEFINITION 55 In the case of a minimum wage, the firm's surplus is:a. The MB of labor minus the wageb. The MC of labor minus the wagec. The wage minus the MC of labord. None of the above
behavioral
the use of tough/wacky questions in job interviews by employers is referred to as _____ interviewing TERM 62
C. Relative
scarcity
DEFINITION 62 The basis for the study of economics is:a. absolute scarcityb. human greedc. Relative scarcityd. none of the above TERM 63
C. 80%
DEFINITION 63 the earnings premium of individuals with a college degree (how much more they make compared to those with only a high school diploma) is about:a. 10%b. 50%c. 80%d. 150% TERM 64
B. Federal deficit
DEFINITION 64 Which of the following is NOT a microeconomic issues:a. incentives for firms to decreasing their pollutionb. federal deficitc. support programs for farmersd. behavior of individual consumers TERM 65
A. Zero
DEFINITION 65 according to the article on the middle class, the income of the average American taxpayer has grown about what percent over the last 20 years (adjusted for inflammation):a. zerob. 3c. 7d. 10
true
During this slow economy, specialty stores, like Staples, are not doing very well TERM 67
false
DEFINITION 67 The richest 5% of the population has about 75% of total income TERM 68
true
DEFINITION 68 Marginal social costs is equal to marginal private costs plus marginal external costs TERM 69
false
DEFINITION 69 a negative production externality causes underproduction of the item in question TERM 70
false
DEFINITION 70 if it cost you (the producer) $5,000 to clean up 2,000 barrels of toxic waste yourself or you can use your permit for 2, barrels which has a market value of a $4,000, you should sell the permit and clean you own toxic waste.
A. An efficient market equilibrium is
achieved
Regarding the use a pollution charge/tax on the producer:a. an efficient market equilibrium is achievedb. Over- production resultsc. The firm's supply curve (MC)is less than marginal social costsd. none of the above TERM 77
B
DEFINITION 77 which of the following is NOT true about public provision of education:A. tuition is set to determine optimum enrollmentB. The difference between tuition and the cost of education is given to the schools in the form of a subsidy, thus lowering their costC. the optimum level is determined where MSB equals MCD. Where MB equals MC, too little education is provided TERM 78
False
DEFINITION 78 US export growth has been increasing lately (over the last year) TERM 79
true
DEFINITION 79 Japan is selling less autos in China due to Chines protests over contested geography TERM 80
true
DEFINITION 80 Democracy and free markets generally go hand-in-hand (go together)
true
Economists take a broader view of costs than do accountants. TERM 82
false
DEFINITION 82 In the short run, all factors of production must be fixed in quantity TERM 83
true
DEFINITION 83 marginal product is equal to the change in total product divided by the change in labor TERM 84
voucher
DEFINITION 84 A school ____ system fosters competition among schools. TERM 85
networking
DEFINITION 85 The majority of job openings are never advertised; people learn about them by way of _____.
True
In the long run all factors of production vary in quantity TERM 92
true
DEFINITION 92 Total fixed costs plus total variable costs equal total costs TERM 93
false
DEFINITION 93 when total costs increases at a decreasing rate, average total cost will increase TERM 94
tre
DEFINITION 94 when labor and capital increase by 20% and output increases by less than 20% we have diseconomies of scale TERM 95
total
DEFINITION 95 as average variable costs turns up, average ___ cost declines for a bit because of decreasing average fixed costs
A
The change in total costs divided by the change in output gives us:a. marginal costsb. average variable costsc. average fixed costsd. none of the above TERM 97
D
DEFINITION 97 Which of the following is NOT a fixed costs:a. rentb. loan paymentsc. insurance premiumsd. none of the above TERM 98
A
DEFINITION 98 A change in technology that leads to increased productivity will:a. shift average variable costs downb. shift average fixed costs downc. shift total product downd. none of the above TERM 99
B
DEFINITION 99 Diseconomies of scale are caused by:a. rising input pricesb. coordination and control problemsc. saturation of the fixed factord. none of the above TERM 100
True
DEFINITION 100 Zappos was in the best top ten companies to work for
