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4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling?

It will Answer Selected Answer: Decrease Correct Answer: Decrease

Question 2
0 out of 4 points An increase in the demand for education will Answer Selected Answer: Increase the supply of education Correct Answer: Increase the equilibrium quantity of education

Question 3
4 out of 4 points I benefit because you become more educated. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 4
4 out of 4 points

Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 3.9 Correct Answer: 3.9

Question 5
0 out of 4 points As the number of years of education increases, the spillover benefits will Answer Selected Answer: Increase Correct Answer: Decrease

Question 6
4 out of 4 points Marginal social benefits equal Answer Selected Answer: MPB + spillover benefits Correct Answer: MPB + spillover benefits

Question 7
4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer

Selected Answer: Inconsistent Correct Answer: Inconsistent

Question 8
0 out of 4 points What is the relationship between student achievement and teacher pay? Answer Selected Answer: Mixed Correct Answer: Positive

Question 9
4 out of 4 points The current K-12 education system can be described as Answer Selected Answer: Centralized Correct Answer: Centralized

Question 10
4 out of 4 points What is the relationship between school funding and student achievement? Answer

Selected Answer: Positive Correct Answer: Positive

Question 11
4 out of 4 points In 2003, approximately what percent of school aged children attended public schools? Answer Selected Answer: 90% Correct Answer: 90%

Question 12
4 out of 4 points Students learn about health and nutrition in school. This provides a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 13
4 out of 4 points To be socially optimal, education should be provided to the point where Answer

Selected Answer: MSB = MSC Correct Answer: MSB = MSC

Question 14
4 out of 4 points In the existing public K-12 education system, spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries

Question 15
4 out of 4 points With positive externalities in consumption, the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal

Question 1
4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 2
4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 3
4 out of 4 points If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control

Question 4
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve

Question 5
4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination For each unit of pollution, the cost of clean-up is less than the benefit from its elimination

Question 6
4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music

Question 7
4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost

Correct Answer: Opportunity cost

Question 8
4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 9
4 out of 4 points When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 10
4 out of 4 points When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 11

4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC

Question 12
4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions

Question 13
4 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 14
0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily

Correct Answer: It seems straightforward and fair

Question 15
4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity

Question 16
4 out of 4 points If you are willing to take a pay cut to live near a ski resort, the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits

Question 17
4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 18
4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 19
4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her

Question 20
4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 21
4 out of 4 points Prostitution is an example of a(n)

Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 22
4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 23
4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 24
4 out of 4 points From an economic point of view, crime prevention activities should be expanded to the point at which Answer Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost

Question 25
4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it

Question 26
4 out of 4 points Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 27
4 out of 4 points In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds

of crime

Question 28
4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 29
4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 30
4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest

Sunday, July 28, 2013 8:16:33 PM EDT

Question 1
4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 2
4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 3
4 out of 4 points If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control

Question 4
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve

Question 5
4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination For each unit of pollution, the cost of clean-up is less than the benefit from its elimination

Question 6
4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music

Question 7
4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost

Correct Answer: Opportunity cost

Question 8
4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 9
4 out of 4 points When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 10
4 out of 4 points When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 11

4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC

Question 12
4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions

Question 13
4 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 14
0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily

Correct Answer: It seems straightforward and fair

Question 15
4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity

Question 16
4 out of 4 points If you are willing to take a pay cut to live near a ski resort, the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits

Question 17
4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 18
4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 19
4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her

Question 20
4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 21
4 out of 4 points Prostitution is an example of a(n)

Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 22
4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 23
4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 24
4 out of 4 points From an economic point of view, crime prevention activities should be expanded to the point at which Answer Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost

Question 25
4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it

Question 26
4 out of 4 points Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 27
4 out of 4 points In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds

of crime

Question 28
4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 29
4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 30
4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest

Sunday, July 28, 2013 8:16:33 PM EDT

Course Test

Econ Problems & Issues Week 4 Quiz 3 choice questions. The first 15 Chapter 4. The second 15 Chapter 5. Be sure you are in the the quiz.

Instructions This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take

Question 1
4 out of 4 points

Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good

Question 2
4 out of 4 points

The market output level tends to be socially optimal when Answer Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer: All costs and benefits are private and MSB=MSC

Question 3
4 out of 4 points

Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good

Question 4
4 out of 4 points

When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 5
4 out of 4 points

As additional units of pollution control are added, at some point each additional unit adds Answer Selected Answer: Less than the previous unit to total benefits Correct Answer: Less than the previous unit to total benefits

Question 6
4 out of 4 points

When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 7
4 out of 4 points

For a tax on pollution to be effective, it must be Answer Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution

Question 8
4 out of 4 points

Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 9
4 out of 4 points

Which of the following creates a positive externality in consumption? Answer Selected Answer: Vaccinations Correct Answer: Vaccinations

Question 10
4 out of 4 points

The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 11
4 out of 4 points

Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: The environment is collectively consumed

Question 12

4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 13
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 14
4 out of 4 points

Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost

Question 15
0 out of 4 points

If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer:

Below its MPC of pollution control

Question 16
4 out of 4 points

When an individual incurs costs in the form of negative personal satisfaction, the costs are Answer Selected Answer: Psychic costs Correct Answer: Psychic costs

Question 17
4 out of 4 points

Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 18
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 19
4 out of 4 points

Prostitution is an example of a(n) Answer Selected Answer:

Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 20
4 out of 4 points

Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 21
4 out of 4 points

Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her

The benefit of the last officer hired is just equal to what its cost to hire her

Question 22
4 out of 4 points

Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system

Question 23
4 out of 4 points

Arson is an example of a(n)

Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 24
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 25
4 out of 4 points

Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 26
4 out of 4 points

The marginal cost of a good is Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output

Question 27
0 out of 4 points

If you are willing to take a pay cut to live near a ski resort, the ski resort provides you

with Answer Selected Answer: Marginal social benefits Correct Answer: Psychic benefits

Question 28
4 out of 4 points

An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 29
4 out of 4 points

In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds of crime

Question 30
4 out of 4 points

Economic analysis of crime can Answer Selected Answer: Correct Answer: Determine what the economic impact will be of making certain activities illegal Determine what the economic impact will be of making certain activities illegal

Sunday, July 28, 2013 3:45:26 PM EDT OK

Question 1
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the
Answer Selected Answer:

MPB curve
Correct Answer:

MPB curve

Question 2
4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river?
Answer Selected Answer:

Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river
4 out of 4 points

Correct Answer:

Question 3

Costs incurred by the producer to buy or hire resources are called


Answer Selected Answer:

Explicit costs
Correct Answer:

Explicit costs

Question 4
0 out of 4 points

For a tax on pollution to be effective, it must be


Answer Selected Answer:

Placed on the firm polluting


Correct Answer:

Greater than the cost of cleaning-up the pollution

Question 5
0 out of 4 points

Complete elimination of pollution is economically rational when


Answer Selected Answer:

MSC of cleanup < MSB of cleanup

Correct Answer:

For each unit of pollution, the cost of clean-up is less than the benefit from its elimination
4 out of 4 points

Question 6

Which of the following creates a positive externality in production?


Answer Selected Answer:

Reducing the cost of producing of another good


Correct Answer:

Reducing the cost of producing of another good

Question 7
0 out of 4 points

When MPC is less than MSC,


Answer Selected Answer:

The firm will produce less than is socially optimal


Correct Answer:

Firms will tend to produce more than is socially optimal

Question 8
0 out of 4 points

An advantage of direct regulation as a method of controlling pollution is that


Answer Selected Answer:

Emission control standards can be enforced readily


Correct Answer:

It seems straightforward and fair

Question 9
4 out of 4 points

The market output level tends to be socially optimal when


Answer Selected Answer:

All costs and benefits are private and MSB=MSC


Correct Answer:

All costs and benefits are private and MSB=MSC

Question 10
4 out of 4 points

When pollution is not regulated in the market, polluting firms will


Answer Selected Answer:

Over-utilize resources and charge low prices

Correct Answer:

Over-utilize resources and charge low prices

Question 11
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists?
Answer Selected Answer:

Externality in production
Correct Answer:

Externality in production

Question 12
4 out of 4 points

Marginal private cost (MPC) always includes:


Answer Selected Answer:

The extra costs of production of one more unit of a good


Correct Answer:

The extra costs of production of one more unit of a good

Question 13
4 out of 4 points

Costs incurred by the producer for the use of self-owned resources are called
Answer Selected Answer:

Implicit costs
Correct Answer:

Implicit costs

Question 14
4 out of 4 points

Which of the following creates a positive externality in consumption?


Answer Selected Answer:

Vaccinations
Correct Answer:

Vaccinations

Question 15
4 out of 4 points

Another term for implicit cost is


Answer Selected Answer:

Opportunity cost

Correct Answer:

Opportunity cost

Question 16
0 out of 4 points

Economic analysis of crime can


Answer Selected Answer: Correct Answer:

Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal

Question 17
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana?
Answer Selected Answer:

Unemployment
Correct Answer:

Unemployment

Question 18
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as
Answer Selected Answer:

Psychic income
Correct Answer:

Psychic income

Question 19
4 out of 4 points

Aggravated assault is an example of a(n)


Answer Selected Answer:

Violent crime
Correct Answer:

Violent crime

Question 20
4 out of 4 points

From an economic point of view, crime prevention activities should be expanded to the point at which
Answer

Selected Answer:

Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer:

Question 21
4 out of 4 points

If a law is passed making it illegal for unlicensed barbers to cut hair, which of the following will result?
Answer Selected Answer:

Higher priced haircuts


Correct Answer:

Higher priced haircuts

Question 22
4 out of 4 points

An immoral act is
Answer Selected Answer:

Different in different societies


Correct Answer:

Different in different societies

Question 23
4 out of 4 points

The marginal cost of a good is


Answer Selected Answer:

The change in total cost per unit change in output


Correct Answer:

The change in total cost per unit change in output

Question 24
0 out of 4 points

If society receives no additional benefit from increasing crime prevention activities, the MSB of crime prevention
Answer Selected Answer:

Is equal to the MSC of crime prevention


Correct Answer:

Equals 0

Question 25
4 out of 4 points

Arson is an example of a(n)


Answer Selected Answer:

Crime against property


Correct Answer:

Crime against property

Question 26
0 out of 4 points

Some people give up high-paying city jobs to live much simpler, rural lives. Which of the following is a sound economic explanation for this?
Answer Selected Answer:

The fear of crime in the city


Correct Answer:

The very high psychic income they receive from the simple way of life

Question 27
4 out of 4 points

An additional expenditure on crime prevention should be allocated to the activity where


Answer Selected Answer:

MSB is greatest
Correct Answer:

MSB is greatest

Question 28
4 out of 4 points

Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost?
Answer Selected Answer:

Free-riding
Correct Answer:

Free-riding

Question 29
4 out of 4 points

Police officers should be hired up to the point where


Answer Selected Answer:

The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire

Correct Answer:

her

Question 30
4 out of 4 points

Prostitution is an example of a(n)


Answer Selected Answer:

Illegal trafficking of goods and services


Correct Answer:

Illegal trafficking of goods and services

Question 1
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the
Answer Selected Answer:

MPB curve
Correct Answer:

MPB curve

Question 2
4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river?
Answer Selected Answer:

Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river
4 out of 4 points

Correct Answer:

Question 3

Costs incurred by the producer to buy or hire resources are called


Answer Selected Answer:

Explicit costs
Correct Answer:

Explicit costs

Question 4
0 out of 4 points

For a tax on pollution to be effective, it must be


Answer Selected Answer:

Placed on the firm polluting


Correct Answer:

Greater than the cost of cleaning-up the pollution

Question 5
0 out of 4 points

Complete elimination of pollution is economically rational when


Answer Selected Answer:

MSC of cleanup < MSB of cleanup

Correct Answer:

For each unit of pollution, the cost of clean-up is less than the benefit from its elimination
4 out of 4 points

Question 6

Which of the following creates a positive externality in production?


Answer Selected Answer:

Reducing the cost of producing of another good


Correct Answer:

Reducing the cost of producing of another good

Question 7
0 out of 4 points

When MPC is less than MSC,


Answer Selected Answer:

The firm will produce less than is socially optimal


Correct Answer:

Firms will tend to produce more than is socially optimal

Question 8
0 out of 4 points

An advantage of direct regulation as a method of controlling pollution is that


Answer Selected Answer:

Emission control standards can be enforced readily


Correct Answer:

It seems straightforward and fair

Question 9
4 out of 4 points

The market output level tends to be socially optimal when


Answer Selected Answer:

All costs and benefits are private and MSB=MSC


Correct Answer:

All costs and benefits are private and MSB=MSC

Question 10
4 out of 4 points

When pollution is not regulated in the market, polluting firms will


Answer Selected Answer:

Over-utilize resources and charge low prices

Correct Answer:

Over-utilize resources and charge low prices

Question 11
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists?
Answer Selected Answer:

Externality in production
Correct Answer:

Externality in production

Question 12
4 out of 4 points

Marginal private cost (MPC) always includes:


Answer Selected Answer:

The extra costs of production of one more unit of a good


Correct Answer:

The extra costs of production of one more unit of a good

Question 13
4 out of 4 points

Costs incurred by the producer for the use of self-owned resources are called
Answer Selected Answer:

Implicit costs
Correct Answer:

Implicit costs

Question 14
4 out of 4 points

Which of the following creates a positive externality in consumption?


Answer Selected Answer:

Vaccinations
Correct Answer:

Vaccinations

Question 15
4 out of 4 points

Another term for implicit cost is


Answer Selected Answer:

Opportunity cost

Correct Answer:

Opportunity cost

Question 16
0 out of 4 points

Economic analysis of crime can


Answer Selected Answer: Correct Answer:

Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal

Question 17
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana?
Answer Selected Answer:

Unemployment
Correct Answer:

Unemployment

Question 18
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as
Answer Selected Answer:

Psychic income
Correct Answer:

Psychic income

Question 19
4 out of 4 points

Aggravated assault is an example of a(n)


Answer Selected Answer:

Violent crime
Correct Answer:

Violent crime

Question 20
4 out of 4 points

From an economic point of view, crime prevention activities should be expanded to the point at which
Answer

Selected Answer:

Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer:

Question 21
4 out of 4 points

If a law is passed making it illegal for unlicensed barbers to cut hair, which of the following will result?
Answer Selected Answer:

Higher priced haircuts


Correct Answer:

Higher priced haircuts

Question 22
4 out of 4 points

An immoral act is
Answer Selected Answer:

Different in different societies


Correct Answer:

Different in different societies

Question 23
4 out of 4 points

The marginal cost of a good is


Answer Selected Answer:

The change in total cost per unit change in output


Correct Answer:

The change in total cost per unit change in output

Question 24
0 out of 4 points

If society receives no additional benefit from increasing crime prevention activities, the MSB of crime prevention
Answer Selected Answer:

Is equal to the MSC of crime prevention


Correct Answer:

Equals 0

Question 25
4 out of 4 points

Arson is an example of a(n)


Answer Selected Answer:

Crime against property


Correct Answer:

Crime against property

Question 26
0 out of 4 points

Some people give up high-paying city jobs to live much simpler, rural lives. Which of the following is a sound economic explanation for this?
Answer Selected Answer:

The fear of crime in the city


Correct Answer:

The very high psychic income they receive from the simple way of life

Question 27
4 out of 4 points

An additional expenditure on crime prevention should be allocated to the activity where


Answer Selected Answer:

MSB is greatest
Correct Answer:

MSB is greatest

Question 28
4 out of 4 points

Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost?
Answer Selected Answer:

Free-riding
Correct Answer:

Free-riding

Question 29
4 out of 4 points

Police officers should be hired up to the point where


Answer Selected Answer:

The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire

Correct Answer:

her

Question 30
4 out of 4 points

Prostitution is an example of a(n)


Answer Selected Answer:

Illegal trafficking of goods and services


Correct Answer:

Illegal trafficking of goods and services

Instructions This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take

choice questions. The first 15 Chapter 4. The second 15 Chapter 5. Be sure you are in the the quiz.

Question 1
4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 2
0 out of 4 points As additional units of pollution control are added, at some point each additional unit adds Answer Selected Answer: Less than the previous unit to total costs Correct Answer: Less than the previous unit to total benefits

Question 3
4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer:

Externality in production

Question 4
0 out of 4 points Costs incurred by the producer for the use of self-owned resources are called Answer Selected Answer: Explicit costs Correct Answer: Implicit costs

Question 5
0 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Vaccinations

Question 6
4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions

Question 7
4 out of 4 points

Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good

Question 8
4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination For each unit of pollution, the cost of clean-up is less than the benefit from its elimination

Question 9
4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity

Question 10
4 out of 4 points When MPC is less than MSC, Answer Selected Answer:

Firms will tend to produce more than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal

Question 11
0 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Recycling of waste materials, such as chemical wastes Correct Answer: Technological advances in production

Question 12
4 out of 4 points Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: The environment is collectively consumed

Question 13
4 out of 4 points If a pollution tax is placed on a firm emitting pollution, the firm will treat pollution, rather than pay the tax, as long as the tax is Answer Selected Answer: Above its MPC of pollution control Correct Answer: Above its MPC of pollution control

Question 14

4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 15
4 out of 4 points For a tax on pollution to be effective, it must be Answer Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution

Question 16
4 out of 4 points Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 17
4 out of 4 points Police officers should be hired up to the point where

Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her

The benefit of the last officer hired is just equal to what its cost to hire her

Question 18
4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 19
4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair, which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts

Question 20
4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income

Correct Answer: Psychic income

Question 21
4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 22
4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 23
4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 24

4 out of 4 points Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system

Question 25
4 out of 4 points If you are willing to take a pay cut to live near a ski resort, the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits

Question 26
4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 27
4 out of 4 points In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds

of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime

Question 28
4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 29
4 out of 4 points If society receives no additional benefit from increasing crime prevention activities, the MSB of crime prevention Answer Selected Answer: Equals 0 Correct Answer: Equals 0

Question 30
4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest

Sunday, July 28, 2013 6:19:25 PM EDT

4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling? It will Answer Selected Answer: Decrease Correct Answer: Decrease

Question 2
0 out of 4 points An increase in the demand for education will Answer Selected Answer: Increase the supply of education Correct Answer: Increase the equilibrium quantity of education

Question 3
4 out of 4 points I benefit because you become more educated. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 4
4 out of 4 points

Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 3.9 Correct Answer: 3.9

Question 5
0 out of 4 points As the number of years of education increases, the spillover benefits will Answer Selected Answer: Increase Correct Answer: Decrease

Question 6
4 out of 4 points Marginal social benefits equal Answer Selected Answer: MPB + spillover benefits Correct Answer: MPB + spillover benefits

Question 7
4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer

Selected Answer: Inconsistent Correct Answer: Inconsistent

Question 8
0 out of 4 points What is the relationship between student achievement and teacher pay? Answer Selected Answer: Mixed Correct Answer: Positive

Question 9
4 out of 4 points The current K-12 education system can be described as Answer Selected Answer: Centralized Correct Answer: Centralized

Question 10
4 out of 4 points What is the relationship between school funding and student achievement? Answer

Selected Answer: Positive Correct Answer: Positive

Question 11
4 out of 4 points In 2003, approximately what percent of school aged children attended public schools? Answer Selected Answer: 90% Correct Answer: 90%

Question 12
4 out of 4 points Students learn about health and nutrition in school. This provides a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 13
4 out of 4 points To be socially optimal, education should be provided to the point where Answer

Selected Answer: MSB = MSC Correct Answer: MSB = MSC

Question 14
4 out of 4 points In the existing public K-12 education system, spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries

Question 15
4 out of 4 points With positive externalities in consumption, the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal

4 out of 4 points

What happens to the marginal benefit of education as a child gets more schooling? It will Answer Selected Answer: Decrease Correct Answer: Decrease

Question 2
0 out of 4 points

An increase in the demand for education will Answer Selected Answer: Increase the supply of education Correct Answer: Increase the equilibrium quantity of education

Question 3
4 out of 4 points

I benefit because you become more educated. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 4
4 out of 4 points

Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 3.9 Correct Answer: 3.9

Question 5
0 out of 4 points

As the number of years of education increases, the spillover benefits will Answer Selected Answer: Increase Correct Answer: Decrease

Question 6
4 out of 4 points

Marginal social benefits equal Answer Selected Answer: MPB + spillover benefits Correct Answer: MPB + spillover benefits

Question 7
4 out of 4 points

The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Inconsistent Correct Answer: Inconsistent

Question 8
0 out of 4 points

What is the relationship between student achievement and teacher pay? Answer Selected Answer: Mixed Correct Answer: Positive

Question 9
4 out of 4 points

The current K-12 education system can be described as Answer Selected Answer: Centralized Correct Answer: Centralized

Question 10
4 out of 4 points

What is the relationship between school funding and student achievement? Answer Selected Answer: Positive Correct Answer: Positive

Question 11
4 out of 4 points

In 2003, approximately what percent of school aged children attended public schools? Answer Selected Answer: 90% Correct Answer: 90%

Question 12
4 out of 4 points

Students learn about health and nutrition in school. This provides a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 13
4 out of 4 points

To be socially optimal, education should be provided to the point where Answer Selected Answer: MSB = MSC Correct Answer: MSB = MSC

Question 14
4 out of 4 points

In the existing public K-12 education system, spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries

Question 15
4 out of 4 points

With positive externalities in consumption, the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal

This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 4. The second 15 questions cover the material in Chapter 5. Be sure you are in the correct Chapter when you take the quiz. Question 1
4 out of 4 points

Pollution rights markets


Answer Selected Answer:

Have been used to reduce sulfur dioxide emissions


Correct Answer:

Have been used to reduce sulfur dioxide emissions

Question 2
4 out of 4 points

For a tax on pollution to be effective, it must be


Answer Selected Answer:

Greater than the cost of cleaning-up the pollution


Correct Answer:

Greater than the cost of cleaning-up the pollution

Question 3
4 out of 4 points

The level of pollution increases when


Answer Selected Answer:

Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled
4 out of 4 points

Correct Answer:

Question 4

If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is
Answer Selected Answer:

Below its MPC of pollution control


Correct Answer:

Below its MPC of pollution control

Question 5
4 out of 4 points

The optimal level of pollution control occurs when


Answer Selected Answer:

MSB of control equals MSC


Correct Answer:

MSB of control equals MSC

Question 6
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the
Answer Selected Answer:

MPB curve
Correct Answer:

MPB curve

Question 7
4 out of 4 points

When the marginal private benefit of an activity does not equal the marginal social benefit, which of the following exists?
Answer Selected Answer:

Externality in consumption
Correct Answer:

Externality in consumption

Question 8
4 out of 4 points

Which of the following creates a negative externality in consumption?


Answer Selected Answer:

Playing loud music


Correct Answer:

Playing loud music

Question 9
4 out of 4 points

When pollution is not regulated in the market, polluting firms will


Answer

Selected Answer:

Over-utilize resources and charge low prices


Correct Answer:

Over-utilize resources and charge low prices

Question 10
4 out of 4 points

Which of the following is a factor leading to pollution?


Answer Selected Answer:

The environment is collectively consumed


Correct Answer:

The environment is collectively consumed

Question 11
4 out of 4 points

When MPC is less than MSC,


Answer Selected Answer:

Firms will tend to produce more than is socially optimal


Correct Answer:

Firms will tend to produce more than is socially optimal

Question 12
4 out of 4 points

Costs incurred by the producer to buy or hire resources are called


Answer Selected Answer:

Explicit costs
Correct Answer:

Explicit costs

Question 13
4 out of 4 points

Marginal private cost (MPC) always includes:


Answer Selected Answer:

The extra costs of production of one more unit of a good


Correct Answer:

The extra costs of production of one more unit of a good

Question 14
4 out of 4 points

Which of the following creates a positive externality in production?


Answer Selected Answer:

Reducing the cost of producing of another good


Correct Answer:

Reducing the cost of producing of another good

Question 15
4 out of 4 points

Another term for implicit cost is


Answer Selected Answer:

Opportunity cost
Correct Answer:

Opportunity cost

Question 16
4 out of 4 points

If society receives no additional benefit from increasing crime prevention activities, the MSB of crime prevention
Answer Selected Answer:

Equals 0
Correct Answer:

Equals 0

Question 17
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as
Answer Selected Answer:

Psychic income
Correct Answer:

Psychic income

Question 18
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana?
Answer Selected Answer:

Unemployment

Correct Answer:

Unemployment

Question 19
4 out of 4 points

Some people give up high-paying city jobs to live much simpler, rural lives. Which of the following is a sound economic explanation for this?
Answer Selected Answer:

The very high psychic income they receive from the simple way of life
Correct Answer:

The very high psychic income they receive from the simple way of life

Question 20
4 out of 4 points

Illegal acts are


Answer Selected Answer:

Designated as such by the criminal justice system


Correct Answer:

Designated as such by the criminal justice system

Question 21
4 out of 4 points

Government can effectively remedy the free-rider problem by


Answer Selected Answer:

Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it
4 out of 4 points

Correct Answer:

Question 22

Which of the following goods or services is a public good?


Answer Selected Answer:

National defense
Correct Answer:

National defense

Question 23
4 out of 4 points

An additional expenditure on crime prevention should be allocated to the activity where


Answer Selected Answer:

MSB is greatest
Correct Answer:

MSB is greatest

Question 24
4 out of 4 points

Prostitution is an example of a(n)


Answer Selected Answer:

Illegal trafficking of goods and services


Correct Answer:

Illegal trafficking of goods and services

Question 25
4 out of 4 points

If a law is passed making it illegal for unlicensed barbers to cut hair, which of the following will result?
Answer Selected Answer:

Higher priced haircuts


Correct Answer:

Higher priced haircuts

Question 26
4 out of 4 points

The marginal cost of a good is


Answer Selected Answer:

The change in total cost per unit change in output


Correct Answer:

The change in total cost per unit change in output

Question 27
4 out of 4 points

When an individual incurs costs in the form of negative personal satisfaction, the costs are
Answer Selected Answer:

Psychic costs

Correct Answer:

Psychic costs

Question 28
4 out of 4 points

Economic analysis of crime can


Answer Selected Answer:

Determine what the economic impact will be of making certain activities illegal Determine what the economic impact will be of making certain activities illegal

Correct Answer:

Question 29
4 out of 4 points

Police officers should be hired up to the point where


Answer Selected Answer:

The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her

Correct Answer:

Question 30
4 out of 4 points

A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. This is an example of
Answer Selected Answer:

The free-rider problem


Correct Answer:

The free-rider problem

Question 1
4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 2
4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 3
4 out of 4 points If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control

Question 4
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve

Question 5
4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination For each unit of pollution, the cost of clean-up is less than the benefit from its elimination

Question 6
4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music

Question 7
4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost

Correct Answer: Opportunity cost

Question 8
4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 9
4 out of 4 points When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 10
4 out of 4 points When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 11

4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC

Question 12
4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions

Question 13
4 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 14
0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily

Correct Answer: It seems straightforward and fair

Question 15
4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity

Question 16
4 out of 4 points If you are willing to take a pay cut to live near a ski resort, the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits

Question 17
4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 18
4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 19
4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her

Question 20
4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 21
4 out of 4 points Prostitution is an example of a(n)

Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 22
4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 23
4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 24
4 out of 4 points From an economic point of view, crime prevention activities should be expanded to the point at which Answer Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost

Question 25
4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it

Question 26
4 out of 4 points Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 27
4 out of 4 points In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds

of crime

Question 28
4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 29
4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 30
4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest

Sunday, July 28, 2013 8:16:33 PM EDT

Question 1
4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 2
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 3
4 out of 4 points

If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control

Question 4
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve

Question 5
4 out of 4 points

Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination For each unit of pollution, the cost of clean-up is less than the benefit from its elimination

Question 6
4 out of 4 points

Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music

Question 7

4 out of 4 points

Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost

Question 8
4 out of 4 points

The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 9
4 out of 4 points

When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 10
4 out of 4 points

When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 11
4 out of 4 points

The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC

Question 12
4 out of 4 points

Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions

Question 13
4 out of 4 points

Human production processes do not include which of the following services? Answer

Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 14
0 out of 4 points

An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily Correct Answer: It seems straightforward and fair

Question 15
4 out of 4 points

The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity

Question 16
4 out of 4 points

If you are willing to take a pay cut to live near a ski resort, the ski resort provides you with Answer Selected Answer:

Psychic benefits Correct Answer: Psychic benefits

Question 17
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 18
4 out of 4 points

An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 19
4 out of 4 points

Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her

Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her

Question 20
4 out of 4 points

Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 21
4 out of 4 points

Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 22
4 out of 4 points

Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 23
4 out of 4 points

Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 24
4 out of 4 points

From an economic point of view, crime prevention activities should be expanded to the point at which Answer Selected Answer: Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost

Their marginal social benefit no longer exceeds their marginal social cost

Question 25
4 out of 4 points

Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it

Question 26
4 out of 4 points

Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 27
4 out of 4 points

In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds of crime

Question 28
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 29

4 out of 4 points

Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 30
4 out of 4 points

An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest Sunday, July 28, 2013 8:16:33 PM EDT

Question 1
4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 2
4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 3
4 out of 4 points If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control

Question 4
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve

Question 5
4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination For each unit of pollution, the cost of clean-up is less than the benefit from its elimination

Question 6
4 out of 4 points Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music

Question 7
4 out of 4 points Another term for implicit cost is Answer Selected Answer: Opportunity cost

Correct Answer: Opportunity cost

Question 8
4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 9
4 out of 4 points When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 10
4 out of 4 points When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 11

4 out of 4 points The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC

Question 12
4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions

Question 13
4 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 14
0 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily

Correct Answer: It seems straightforward and fair

Question 15
4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity

Question 16
4 out of 4 points If you are willing to take a pay cut to live near a ski resort, the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits

Question 17
4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 18
4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 19
4 out of 4 points Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her

Question 20
4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 21
4 out of 4 points Prostitution is an example of a(n)

Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 22
4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 23
4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 24
4 out of 4 points From an economic point of view, crime prevention activities should be expanded to the point at which Answer Selected Answer: Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost

Question 25
4 out of 4 points Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it

Question 26
4 out of 4 points Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 27
4 out of 4 points In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds

of crime

Question 28
4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 29
4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 30
4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest

Sunday, July 28, 2013 8:16:33 PM EDT

Question 1
4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 2
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 3
4 out of 4 points

If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control

Question 4
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve

Question 5
4 out of 4 points

Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination For each unit of pollution, the cost of clean-up is less than the benefit from its elimination

Question 6
4 out of 4 points

Which of the following creates a negative externality in consumption? Answer Selected Answer: Playing loud music Correct Answer: Playing loud music

Question 7

4 out of 4 points

Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost

Question 8
4 out of 4 points

The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 9
4 out of 4 points

When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 10
4 out of 4 points

When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 11
4 out of 4 points

The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC

Question 12
4 out of 4 points

Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions

Question 13
4 out of 4 points

Human production processes do not include which of the following services? Answer

Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 14
0 out of 4 points

An advantage of direct regulation as a method of controlling pollution is that Answer Selected Answer: Emission control standards can be enforced readily Correct Answer: It seems straightforward and fair

Question 15
4 out of 4 points

The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity

Question 16
4 out of 4 points

If you are willing to take a pay cut to live near a ski resort, the ski resort provides you with Answer Selected Answer:

Psychic benefits Correct Answer: Psychic benefits

Question 17
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 18
4 out of 4 points

An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 19
4 out of 4 points

Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired is just equal to what its cost to hire her

Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her

Question 20
4 out of 4 points

Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 21
4 out of 4 points

Prostitution is an example of a(n) Answer Selected Answer: Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 22
4 out of 4 points

Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 23
4 out of 4 points

Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 24
4 out of 4 points

From an economic point of view, crime prevention activities should be expanded to the point at which Answer Selected Answer: Correct Answer: Their marginal social benefit no longer exceeds their marginal social cost

Their marginal social benefit no longer exceeds their marginal social cost

Question 25
4 out of 4 points

Government can effectively remedy the free-rider problem by Answer Selected Answer: Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it

Question 26
4 out of 4 points

Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 27
4 out of 4 points

In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds of crime

Question 28
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 29

4 out of 4 points

Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 30
4 out of 4 points

An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest Sunday, July 28, 2013 8:16:33 PM EDT

Course Test

Econ Problems & Issues Week 4 Quiz 3 choice questions. The first 15 Chapter 4. The second 15 Chapter 5. Be sure you are in the the quiz.

Instructions This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take

Question 1
4 out of 4 points

Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good

Question 2
4 out of 4 points

The market output level tends to be socially optimal when Answer Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer: All costs and benefits are private and MSB=MSC

Question 3
4 out of 4 points

Marginal private cost (MPC) always includes: Answer Selected Answer: The extra costs of production of one more unit of a good Correct Answer: The extra costs of production of one more unit of a good

Question 4
4 out of 4 points

When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices

Question 5
4 out of 4 points

As additional units of pollution control are added, at some point each additional unit adds Answer Selected Answer: Less than the previous unit to total benefits Correct Answer: Less than the previous unit to total benefits

Question 6
4 out of 4 points

When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality

Question 7
4 out of 4 points

For a tax on pollution to be effective, it must be Answer Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution

Question 8
4 out of 4 points

Human production processes do not include which of the following services? Answer Selected Answer: Technological advances in production Correct Answer: Technological advances in production

Question 9
4 out of 4 points

Which of the following creates a positive externality in consumption? Answer Selected Answer: Vaccinations Correct Answer: Vaccinations

Question 10
4 out of 4 points

The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 11
4 out of 4 points

Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: The environment is collectively consumed

Question 12

4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 13
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer: Externality in production

Question 14
4 out of 4 points

Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer: Opportunity cost

Question 15
0 out of 4 points

If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer:

Below its MPC of pollution control

Question 16
4 out of 4 points

When an individual incurs costs in the form of negative personal satisfaction, the costs are Answer Selected Answer: Psychic costs Correct Answer: Psychic costs

Question 17
4 out of 4 points

Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 18
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 19
4 out of 4 points

Prostitution is an example of a(n) Answer Selected Answer:

Illegal trafficking of goods and services Correct Answer: Illegal trafficking of goods and services

Question 20
4 out of 4 points

Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 21
4 out of 4 points

Police officers should be hired up to the point where Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her

The benefit of the last officer hired is just equal to what its cost to hire her

Question 22
4 out of 4 points

Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system

Question 23
4 out of 4 points

Arson is an example of a(n)

Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 24
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income

Question 25
4 out of 4 points

Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 26
4 out of 4 points

The marginal cost of a good is Answer Selected Answer: The change in total cost per unit change in output Correct Answer: The change in total cost per unit change in output

Question 27
0 out of 4 points

If you are willing to take a pay cut to live near a ski resort, the ski resort provides you

with Answer Selected Answer: Marginal social benefits Correct Answer: Psychic benefits

Question 28
4 out of 4 points

An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 29
4 out of 4 points

In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Will usually be achieved at the expense of an increase in other kinds of crime

Question 30
4 out of 4 points

Economic analysis of crime can Answer Selected Answer: Correct Answer: Determine what the economic impact will be of making certain activities illegal Determine what the economic impact will be of making certain activities illegal

Sunday, July 28, 2013 3:45:26 PM EDT OK

4 out of 4 points

Income support programs have Answer Selected Answer: Provided a minimum level of income to millions of people Correct Answer: Provided a minimum level of income to millions of people

Question 2
4 out of 4 points

In 1996, the Personal Responsibility and Work Opportunity Act established which of the following programs? Answer Selected Answer: Temporary Assistance for Needy Families (TANF) Correct Answer: Temporary Assistance for Needy Families (TANF)

Question 3
4 out of 4 points

A number of reasons have been given to explain increasing income inequality in the US over the last few decades. One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector

Question 4
4 out of 4 points

The Supplemental Social Insurance (SSI) program is not available to Answer Selected Answer: Households comprised of illegal residents Correct Answer: Households comprised of illegal residents

Question 5
4 out of 4 points

Most federal assistance to the poor is in the form of Answer Selected Answer: Cash payments Correct Answer: Cash payments

Question 6
4 out of 4 points

Discrimination is indicated when Answer Selected Answer: People having equal productivity receive unequal pay Correct Answer: People having equal productivity receive unequal pay

Question 7
4 out of 4 points

An advantage of replacing all income-support programs with a negative income tax is that Answer Selected Answer: Households with income above the poverty threshold pay positive taxes Correct Answer: Households with income above the poverty threshold pay positive taxes

Question 8
4 out of 4 points

An advantage of the negative income tax proposal is that Answer Selected Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor Correct Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor

Question 9
4 out of 4 points

The major piece of legislation that makes it illegal to discriminate in the labor market on the basis of race, gender, or religion is the Answer

Selected Answer: Civil Rights Act of 1964 Correct Answer: Civil Rights Act of 1964

Question 10
4 out of 4 points

Critics have claimed that the EITC Answer Selected Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility Correct Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility

Question 11
4 out of 4 points

According to recent studies, which of the following programs is most likely to pull the average poor family above the official poverty threshold? Answer Selected Answer: Earned Income Tax Credit (EITC) Correct Answer: Earned Income Tax Credit (EITC)

Question 12
4 out of 4 points

Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training

Question 13
4 out of 4 points

Which of the following is charged with enforcing the federal government's antidiscrimination laws? Answer Selected Answer: The EEOC Correct Answer: The EEOC

Question 14
4 out of 4 points

Ending discrimination against minority groups in educational processes and in employment situations would cause GDP to Answer Selected Answer: Rise because of an increase in the quality and productivity of the labor force Correct Answer: Rise because of an increase in the quality and productivity of the labor force

Question 15
4 out of 4 points

A government transfer payment is a payment Answer Selected Answer: To a person NOT in return for goods or services Correct Answer: To a person NOT in return for goods or services Monday, August 12, 2013 3:10:59 PM EDT

Question 1
4 out of 4 points Which of the following is charged with enforcing the federal government's antidiscrimination laws? Answer Selected Answer: The EEOC Correct Answer: The EEOC

Question 2
4 out of 4 points Under the JTPA, the federal government gave money to states for programs that provided Answer Selected Answer: Employment training for disadvantaged workers Correct Answer: Employment training for disadvantaged workers

Question 3
4 out of 4 points Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training

Question 4
4 out of 4 points

A number of reasons have been given to explain increasing income inequality in the US over the last few decades. One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector

Question 5
4 out of 4 points Income support programs have Answer Selected Answer: Provided a minimum level of income to millions of people Correct Answer: Provided a minimum level of income to millions of people

Question 6
4 out of 4 points The incidence of poverty is highest among Answer Selected Answer: Families headed by a female Correct Answer: Families headed by a female

Question 7
4 out of 4 points Unlike the old AFDC program of income support, TANF requires recipients to Answer Selected Answer: Work Correct Answer:

Work

Question 8
4 out of 4 points According to recent studies, which of the following programs is most likely to pull the average poor family above the official poverty threshold? Answer Selected Answer: Earned Income Tax Credit (EITC) Correct Answer: Earned Income Tax Credit (EITC)

Question 9
4 out of 4 points Medicare, Medicaid, and Food Stamps are examples of programs that provide Answer Selected Answer: "in-kind" assistance to the poor Correct Answer: "in-kind" assistance to the poor

Question 10
4 out of 4 points An advantage of the negative income tax proposal is that Answer Selected Answer: Correct Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor

Question 11

4 out of 4 points Spending on education, training, and health are examples of Answer Selected Answer: Investments in human capital Correct Answer: Investments in human capital

Question 12
4 out of 4 points Critics have claimed that the EITC Answer Selected Answer: Correct Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility

Question 13
4 out of 4 points The official U.S. poverty definition is an income sufficient to provide Answer Selected Answer: Three times the cost of an economy food budget Correct Answer: Three times the cost of an economy food budget

Question 14
0 out of 4 points An advantage of replacing all income-support programs with a negative income tax is that Answer

Selected Answer: Correct Answer:

It discourages low-income workers from working more Households with income above the poverty threshold pay positive taxes

Question 15
4 out of 4 points Poverty in the US occurs as a result of Answer Selected Answer: Unequal distribution of income Correct Answer: Unequal distribution of income

Instructions

This quiz consist of 15 multiple choice questions and covers the material in Chapter 7. Be sure you are in Chapter 7 when you take the quiz.
4 out of 4 points

Question 1

In the past, women were usually taught early in life to believe their economic role was unimportant. The effect of this was to
Answer Selected Answer:

Segregate women to certain occupations


Correct Answer:

Segregate women to certain occupations

Question 2
0 out of 4 points

Under the JTPA, the federal government gave money to states for programs that provided
Answer Selected Answer:

Guaranteed child care facilities for poor working mothers


Correct Answer:

Employment training for disadvantaged workers

Question 3
4 out of 4 points

A number of reasons have been given to explain increasing income inequality in the US over the last few decades. One of these is
Answer Selected Answer:

The decline of the US manufacturing sector


Correct Answer:

The decline of the US manufacturing sector

Question 4
0 out of 4 points

From the point of view of economics, discrimination


Answer Selected Answer:

Provides incentives for minority groups to work harder at their jobs


Correct Answer:

Results in an actual GDP that is below potential GDP

Question 5
4 out of 4 points

A government transfer payment is a payment

Answer Selected Answer:

To a person NOT in return for goods or services


Correct Answer:

To a person NOT in return for goods or services

Question 6
4 out of 4 points

Skill levels vary among individuals because of


Answer Selected Answer:

Differences in education and training


Correct Answer:

Differences in education and training

Question 7
0 out of 4 points

An advantage of the negative income tax proposal is that


Answer Selected Answer: Correct Answer:

A family's size would be the fundamental criterion of eligibility Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor
0 out of 4 points

Question 8

The official U.S. poverty definition is an income sufficient to provide


Answer Selected Answer:

The average U.S. welfare allowance


Correct Answer:

Three times the cost of an economy food budget

Question 9
4 out of 4 points

The Civil Rights Act of 1964 protects workers from discrimination based on all the following characteristics except one? Which one?
Answer Selected Answer:

Age
Correct Answer:

Age

Question 10
4 out of 4 points

The Supplemental Social Insurance (SSI) program is not available to


Answer Selected Answer:

Households comprised of illegal residents


Correct Answer:

Households comprised of illegal residents

Question 11
0 out of 4 points

The incidence of poverty is highest among


Answer Selected Answer:

Black families
Correct Answer:

Families headed by a female

Question 12
0 out of 4 points

Poverty in the US occurs as a result of


Answer Selected Answer:

Inadequate GDP
Correct Answer:

Unequal distribution of income

Question 13
0 out of 4 points

Most federal assistance to the poor is in the form of


Answer Selected Answer:

Housing programs
Correct Answer:

Cash payments

Question 14
0 out of 4 points

The record-breaking economic expansion in the 1990s


Answer Selected Answer:

Reduced significantly the incidence of poverty


Correct Answer:

Did not alter significantly the incidence of poverty

Question 15
4 out of 4 points

Medicare, Medicaid, and Food Stamps are examples of programs that provide

Answer Selected Answer:

"in-kind" assistance to the poor


Correct Answer:

"in-kind" assistance to the poor

Instructions

This quiz consist of 15 multiple choice questions and covers the material in Chapter 7. Be sure you are in Chapter 7 when you take the quiz.
4 out of 4 points

Question 1

In the past, women were usually taught early in life to believe their economic role was unimportant. The effect of this was to
Answer Selected Answer:

Segregate women to certain occupations


Correct Answer:

Segregate women to certain occupations

Question 2
0 out of 4 points

Under the JTPA, the federal government gave money to states for programs that provided
Answer Selected Answer:

Guaranteed child care facilities for poor working mothers


Correct Answer:

Employment training for disadvantaged workers

Question 3
4 out of 4 points

A number of reasons have been given to explain increasing income inequality in the US over the last few decades. One of these is
Answer Selected Answer:

The decline of the US manufacturing sector


Correct Answer:

The decline of the US manufacturing sector

Question 4
0 out of 4 points

From the point of view of economics, discrimination


Answer Selected Answer:

Provides incentives for minority groups to work harder at their jobs


Correct Answer:

Results in an actual GDP that is below potential GDP

Question 5
4 out of 4 points

A government transfer payment is a payment

Answer Selected Answer:

To a person NOT in return for goods or services


Correct Answer:

To a person NOT in return for goods or services

Question 6
4 out of 4 points

Skill levels vary among individuals because of


Answer Selected Answer:

Differences in education and training


Correct Answer:

Differences in education and training

Question 7
0 out of 4 points

An advantage of the negative income tax proposal is that


Answer Selected Answer: Correct Answer:

A family's size would be the fundamental criterion of eligibility Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor
0 out of 4 points

Question 8

The official U.S. poverty definition is an income sufficient to provide


Answer Selected Answer:

The average U.S. welfare allowance


Correct Answer:

Three times the cost of an economy food budget

Question 9
4 out of 4 points

The Civil Rights Act of 1964 protects workers from discrimination based on all the following characteristics except one? Which one?
Answer Selected Answer:

Age
Correct Answer:

Age

Question 10
4 out of 4 points

The Supplemental Social Insurance (SSI) program is not available to


Answer Selected Answer:

Households comprised of illegal residents


Correct Answer:

Households comprised of illegal residents

Question 11
0 out of 4 points

The incidence of poverty is highest among


Answer Selected Answer:

Black families
Correct Answer:

Families headed by a female

Question 12
0 out of 4 points

Poverty in the US occurs as a result of


Answer Selected Answer:

Inadequate GDP
Correct Answer:

Unequal distribution of income

Question 13
0 out of 4 points

Most federal assistance to the poor is in the form of


Answer Selected Answer:

Housing programs
Correct Answer:

Cash payments

Question 14
0 out of 4 points

The record-breaking economic expansion in the 1990s


Answer Selected Answer:

Reduced significantly the incidence of poverty


Correct Answer:

Did not alter significantly the incidence of poverty

Question 15
4 out of 4 points

Medicare, Medicaid, and Food Stamps are examples of programs that provide

Answer Selected Answer:

"in-kind" assistance to the poor


Correct Answer:

"in-kind" assistance to the poor

Question 1
4 out of 4 points

Which of the following is responsible for officially tracking the Index of Leading Economic Indicators?
Answer Selected Answer:

The Conference Board


Correct Answer:

The Conference Board

Question 2
4 out of 4 points

Which of the following terms is used to describe the purchase of capital?


Answer Selected Answer:

Investment
Correct Answer:

Investment

Question 3
4 out of 4 points

When economic output hits a short-run economic low, the economy is in which phase of the business cycle?
Answer Selected Answer:

Trough
Correct Answer:

Trough

Question 4
4 out of 4 points

Human capital refers to


Answer Selected Answer:

Skills and training that increase a worker's productivity


Correct Answer:

Skills and training that increase a worker's productivity

Question 5
4 out of 4 points

Which of the following is a "pro-growth" economic policy?


Answer

Selected Answer:

Investing in human capital


Correct Answer:

Investing in human capital

Question 6
4 out of 4 points

In response to an economic recession, monetary theories of the business cycle predict that the Federal Reserve would
Answer Selected Answer:

Increase the supply of money to create an expansion


Correct Answer:

Increase the supply of money to create an expansion

Question 7
4 out of 4 points

What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend?
Answer Selected Answer:

Business cycle
Correct Answer:

Business cycle

Question 8
4 out of 4 points

For an economy to expand its investment in the production of capital goods, it must
Answer Selected Answer:

Forego some production of consumer goods and services


Correct Answer:

Forego some production of consumer goods and services

Question 9
4 out of 4 points

When the economy ends an expansion, it enters which phase of the business cycle?
Answer Selected Answer:

Peak
Correct Answer:

Peak

Question 10
4 out of 4 points

Which group is responsible for announcing the dates for each phase of a U.S. business cycle?
Answer Selected Answer:

The National Bureau of Economic Research


Correct Answer:

The National Bureau of Economic Research

Question 11
4 out of 4 points

Why does spending on capital tend to increase economic growth more than spending of consumption goods? Because
Answer Selected Answer:

Capital can be used to produce future goods and services


Correct Answer:

Capital can be used to produce future goods and services

Question 12
4 out of 4 points

What was the first theory put forth by an economist to explain the phenomena of business cycles?
Answer Selected Answer:

Jevons' sunspot theory


Correct Answer:

Jevons' sunspot theory

Question 13
4 out of 4 points

According to Real Business Cycle Theory, the primary factor that increases aggregate supply is
Answer Selected Answer:

Technological improvements
Correct Answer:

Technological improvements

Question 14
4 out of 4 points

What are the two primary determinants of economic growth?


Answer Selected Answer:

The availability of resources and productivity factors


Correct Answer:

The availability of resources and productivity factors

Question 15
4 out of 4 points

Which of the following lists the four phases of the business cycle in the correct sequence?
Answer Selected Answer:

Expansion, peak, contraction, trough


Correct Answer:

Expansion, peak, contraction, trough

Question 16
4 out of 4 points

The money multiplier is


Answer Selected Answer:

1/r
Correct Answer:

1/r

Question 17
4 out of 4 points

Corporations raise funds in


Answer Selected Answer:

The primary financial market


Correct Answer:

The primary financial market

Question 18
4 out of 4 points

A stock is
Answer Selected Answer:

A financial instrument that provides ownership rights to shareholders


Correct Answer:

A financial instrument that provides ownership rights to shareholders

Question 19
4 out of 4 points

M2 includes
Answer Selected Answer:

M1, plus savings and time deposits of small denomination, and money market mutual funds M1, plus savings and time deposits of small denomination, and money market mutual funds
4 out of 4 points

Correct Answer:

Question 20

The quantity theory of money emphasizes


Answer Selected Answer:

Changes in the money supply


Correct Answer:

Changes in the money supply

Question 21
4 out of 4 points

When you compare a dollar's worth of apples to a dollar's worth of oranges, money is serving which function?
Answer Selected Answer:

A measure of value
Correct Answer:

A measure of value

Question 22
4 out of 4 points

The basic money supply is


Answer Selected Answer:

Composed of assets that are completely liquid and easily accessible


Correct Answer:

Composed of assets that are completely liquid and easily accessible

Question 23

4 out of 4 points

M1 includes
Answer Selected Answer:

Currency and coins in circulation, traveler's checks, demand deposits at commercial banks, and other checkable deposits Currency and coins in circulation, traveler's checks, demand deposits at commercial banks, and other checkable deposits
4 out of 4 points

Correct Answer:

Question 24

A capital gain exists


Answer Selected Answer:

When the price of an asset exceeds the price paid for it


Correct Answer:

When the price of an asset exceeds the price paid for it

Question 25
4 out of 4 points

Money is "liquid" because


Answer Selected Answer:

It does not have to be sold to buy goods and services


Correct Answer:

It does not have to be sold to buy goods and services

Question 26
4 out of 4 points

Investment banks
Answer Selected Answer:

Work with corporations to finance their operations through primary financial markets Work with corporations to finance their operations through primary financial markets
4 out of 4 points

Correct Answer:

Question 27

A dividend
Answer

Selected Answer:

Is a distribution of a corporations profits to stockholders


Correct Answer:

Is a distribution of a corporations profits to stockholders

Question 28
4 out of 4 points

The equation of exchange is


Answer Selected Answer:

MV = PQ
Correct Answer:

MV = PQ

Question 29
4 out of 4 points

The interest rate on an adjustable rate mortgage (ARM) is


Answer Selected Answer:

Adjusted periodically based upon current market conditions


Correct Answer:

Adjusted periodically based upon current market conditions

Question 30
4 out of 4 points

The Federal Open Market Committee (FOMC) is highly concerned with


Answer Selected Answer:

Interest rates
Correct Answer:

Interest rates

This quiz consist of 15 multiple choice questions and covers the material in Chapter 6. Be sure you are in Chapter 6 when you take the quiz. Question 1
0 out of 4 points

A decrease in the cost of education will


Answer Selected Answer:

Decrease the equilibrium quantity of education


Correct Answer:

Increase the equilibrium quantity of education

Question 2
0 out of 4 points

In the existing public K-12 education system, spaces are allocated based on
Answer Selected Answer:

Income
Correct Answer:

Geographic boundaries

Question 3
4 out of 4 points

The creation of new learning technologies will cause which of the following to decrease?
Answer Selected Answer:

The cost of education


Correct Answer:

The cost of education

Question 4
4 out of 4 points

I benefit because you become more educated. This is an example of a


Answer Selected Answer:

Positive externality in consumption


Correct Answer:

Positive externality in consumption

Question 5
0 out of 4 points

Which of the following happens as tuition increases?


Answer Selected Answer:

The demand for education decreases


Correct Answer:

The years of education demanded fall

Question 6
4 out of 4 points

In a purely private K-12 education system, spaces would be allocated based on


Answer Selected Answer:

Income
Correct Answer:

Income

Question 7
4 out of 4 points

To be socially optimal, education should be provided to the point where


Answer Selected Answer:

MSB = MSC
Correct Answer:

MSB = MSC

Question 8
4 out of 4 points

Schools in which parents or other groups were permitted to create a new school with state funding and were given control over operations are known as
Answer Selected Answer:

Charter schools
Correct Answer:

Charter schools

Question 9
4 out of 4 points

An increase in the marginal benefit of education will cause which of the following?
Answer Selected Answer:

The demand curve for education shifts right


Correct Answer:

The demand curve for education shifts right

Question 10
0 out of 4 points

About how much does the United States spend on education, per pupil?
Answer Selected Answer:

$8,000
Correct Answer:

$9,000

Question 11
0 out of 4 points

Education is said to be which of the following?


Answer Selected Answer:

Individually consumed
Correct Answer:

A semi-private good

Question 12
0 out of 4 points

Educated citizens are more likely to be informed voters. This is an example of a


Answer Selected Answer:

Positive externality in production


Correct Answer:

Positive externality in consumption

Question 13
0 out of 4 points

With positive externalities in consumption, the market equilibrium quantity will be


Answer Selected Answer:

Greater than socially optimal


Correct Answer:

Less than socially optimal

Question 14
0 out of 4 points

A purely private K-12 system will lead to


Answer Selected Answer:

Decreased racial segregation


Correct Answer:

Increased inequality

Question 15
0 out of 4 points

If the earnings expected from a college education increase, it will lead to an increase in
Answer Selected Answer:

The teacher salaries


Correct Answer:

The demand for K-12 education

Question 1
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the
Answer Selected Answer:

MPB curve
Correct Answer:

MPB curve

Question 2
4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river?
Answer Selected Answer:

Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river
4 out of 4 points

Correct Answer:

Question 3

Costs incurred by the producer to buy or hire resources are called


Answer Selected Answer:

Explicit costs
Correct Answer:

Explicit costs

Question 4
0 out of 4 points

For a tax on pollution to be effective, it must be


Answer Selected Answer:

Placed on the firm polluting


Correct Answer:

Greater than the cost of cleaning-up the pollution

Question 5
0 out of 4 points

Complete elimination of pollution is economically rational when


Answer Selected Answer:

MSC of cleanup < MSB of cleanup

Correct Answer:

For each unit of pollution, the cost of clean-up is less than the benefit from its elimination
4 out of 4 points

Question 6

Which of the following creates a positive externality in production?


Answer Selected Answer:

Reducing the cost of producing of another good


Correct Answer:

Reducing the cost of producing of another good

Question 7
0 out of 4 points

When MPC is less than MSC,


Answer Selected Answer:

The firm will produce less than is socially optimal


Correct Answer:

Firms will tend to produce more than is socially optimal

Question 8
0 out of 4 points

An advantage of direct regulation as a method of controlling pollution is that


Answer Selected Answer:

Emission control standards can be enforced readily


Correct Answer:

It seems straightforward and fair

Question 9
4 out of 4 points

The market output level tends to be socially optimal when


Answer Selected Answer:

All costs and benefits are private and MSB=MSC


Correct Answer:

All costs and benefits are private and MSB=MSC

Question 10
4 out of 4 points

When pollution is not regulated in the market, polluting firms will


Answer Selected Answer:

Over-utilize resources and charge low prices

Correct Answer:

Over-utilize resources and charge low prices

Question 11
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists?
Answer Selected Answer:

Externality in production
Correct Answer:

Externality in production

Question 12
4 out of 4 points

Marginal private cost (MPC) always includes:


Answer Selected Answer:

The extra costs of production of one more unit of a good


Correct Answer:

The extra costs of production of one more unit of a good

Question 13
4 out of 4 points

Costs incurred by the producer for the use of self-owned resources are called
Answer Selected Answer:

Implicit costs
Correct Answer:

Implicit costs

Question 14
4 out of 4 points

Which of the following creates a positive externality in consumption?


Answer Selected Answer:

Vaccinations
Correct Answer:

Vaccinations

Question 15
4 out of 4 points

Another term for implicit cost is


Answer Selected Answer:

Opportunity cost

Correct Answer:

Opportunity cost

Question 16
0 out of 4 points

Economic analysis of crime can


Answer Selected Answer: Correct Answer:

Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal

Question 17
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana?
Answer Selected Answer:

Unemployment
Correct Answer:

Unemployment

Question 18
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as
Answer Selected Answer:

Psychic income
Correct Answer:

Psychic income

Question 19
4 out of 4 points

Aggravated assault is an example of a(n)


Answer Selected Answer:

Violent crime
Correct Answer:

Violent crime

Question 20
4 out of 4 points

From an economic point of view, crime prevention activities should be expanded to the point at which
Answer

Selected Answer:

Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer:

Question 21
4 out of 4 points

If a law is passed making it illegal for unlicensed barbers to cut hair, which of the following will result?
Answer Selected Answer:

Higher priced haircuts


Correct Answer:

Higher priced haircuts

Question 22
4 out of 4 points

An immoral act is
Answer Selected Answer:

Different in different societies


Correct Answer:

Different in different societies

Question 23
4 out of 4 points

The marginal cost of a good is


Answer Selected Answer:

The change in total cost per unit change in output


Correct Answer:

The change in total cost per unit change in output

Question 24
0 out of 4 points

If society receives no additional benefit from increasing crime prevention activities, the MSB of crime prevention
Answer Selected Answer:

Is equal to the MSC of crime prevention


Correct Answer:

Equals 0

Question 25
4 out of 4 points

Arson is an example of a(n)


Answer Selected Answer:

Crime against property


Correct Answer:

Crime against property

Question 26
0 out of 4 points

Some people give up high-paying city jobs to live much simpler, rural lives. Which of the following is a sound economic explanation for this?
Answer Selected Answer:

The fear of crime in the city


Correct Answer:

The very high psychic income they receive from the simple way of life

Question 27
4 out of 4 points

An additional expenditure on crime prevention should be allocated to the activity where


Answer Selected Answer:

MSB is greatest
Correct Answer:

MSB is greatest

Question 28
4 out of 4 points

Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost?
Answer Selected Answer:

Free-riding
Correct Answer:

Free-riding

Question 29
4 out of 4 points

Police officers should be hired up to the point where


Answer Selected Answer:

The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire

Correct Answer:

her

Question 30
4 out of 4 points

Prostitution is an example of a(n)


Answer Selected Answer:

Illegal trafficking of goods and services


Correct Answer:

Illegal trafficking of goods and services

Attempt 60 out of 60 points Score Time 18 minutes out of 3 hours. Elapsed Instructions This quiz consist

of 15 multiple choice questions and covers the material in Chapter 10. Be sure you are in Chapter 10 when you take the quiz.
4 out of 4 points

Question 1

In a free market, who benefits from voluntary exchange?


Answer Selected Answer:

Both buyers and sellers


Correct Answer:

Both buyers and sellers

Question 2
4 out of 4 points

What are taxes placed on imports called?


Answer Selected Answer:

Tariffs
Correct Answer:

Tariffs

Question 3
4 out of 4 points

The multi-national currency adopted by members of the European Union is called the
Answer Selected Answer:

Euro
Correct Answer:

Euro

Question 4
4 out of 4 points

A tariff leads to a leftward shift of the _______curve, resulting in ______ prices and __________ imports.
Answer Selected Answer:

Supply; higher; lower


Correct Answer:

Supply; higher; lower

Question 5
4 out of 4 points

Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used?
Answer Selected Answer:

Consumption possibilities curve


Correct Answer:

Consumption possibilities curve

Question 6
4 out of 4 points

An exchange rate is
Answer Selected Answer:

The price of one country's currency in terms of the monetary units of another country The price of one country's currency in terms of the monetary units of another country
4 out of 4 points

Correct Answer:

Question 7

When a quota is enforced on an imported good, the supply curve for that good
Answer Selected Answer:

Becomes vertical at the quota limit


Correct Answer:

Becomes vertical at the quota limit

Question 8
4 out of 4 points

Economists generally agree that international trade restrictions


Answer Selected Answer:

Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods
4 out of 4 points

Correct Answer:

Question 9

A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n)
Answer Selected Answer:

Comparative advantage

Correct Answer:

Comparative advantage

Question 10
4 out of 4 points

Protecting an industry that is vital to national security from international competition is


Answer Selected Answer:

The key industry argument


Correct Answer:

The key industry argument

Question 11
4 out of 4 points

Which of the following is a likely result of a country engaging in free trade?


Answer Selected Answer:

The price of imports falls


Correct Answer:

The price of imports falls

Question 12
4 out of 4 points

A new industry producing cutting-edge products should


Answer Selected Answer:

Be protected from international competition, according to the infant industry argument Be protected from international competition, according to the infant industry argument
4 out of 4 points

Correct Answer:

Question 13

The European Union is an example of a(n)


Answer Selected Answer:

Customs union
Correct Answer:

Customs union

Question 14
4 out of 4 points

The exchange rate ceiling on the dollar price of the pound will result in
Answer Selected Answer:

A balance of payments deficit


Correct Answer:

A balance of payments deficit

Question 15
4 out of 4 points

The primary factor affecting the demand for any nation's currency is
Answer Selected Answer:

The demand for the products produced by that nation


Correct Answer:

The demand for the products produced by that nation

Question 1
0 out of 4 points

Free trade can result in what impact on an economy?


Answer Selected Answer:

Free trade always harms an economy


Correct Answer:

A net increase or decrease in overall employment

Question 2
4 out of 4 points

With international trade, which of the following curves for an economy will shift outward?
Answer Selected Answer:

Consumption possibilities
Correct Answer:

Consumption possibilities

Question 3
0 out of 4 points

Outsourcing is the practice of


Answer Selected Answer:

Manufacturing product in another country by opening a factory in that nation Purchasing customer services from suppliers in another country where the costs of these services are lower than domestic suppliers
4 out of 4 points

Correct Answer:

Question 4

Economists generally agree that international trade restrictions


Answer Selected Answer:

Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods
0 out of 4 points

Correct Answer:

Question 5

The largest part of U.S. demand for foreign currencies arises from
Answer Selected Answer:

Gifts that persons in the U.S. sent abroad


Correct Answer:

Imports of merchandise

Question 6
4 out of 4 points

In a free market, who benefits from voluntary exchange?


Answer Selected Answer:

Both buyers and sellers


Correct Answer:

Both buyers and sellers

Question 7
4 out of 4 points

Most __________ have been banned under the World Trade Organization.
Answer Selected Answer:

Quotas
Correct Answer:

Quotas

Question 8
4 out of 4 points

A tariff leads to a leftward shift of the _______curve, resulting in ______ prices and __________ imports.
Answer Selected Answer:

Supply; higher; lower


Correct Answer:

Supply; higher; lower

Question 9
4 out of 4 points

Which of the following best describes NAFTA? It is a(n)


Answer Selected Answer:

Free trade area


Correct Answer:

Free trade area

Question 10
4 out of 4 points

Which of the following is a likely result of a country engaging in free trade?


Answer

Selected Answer:

The price of imports falls


Correct Answer:

The price of imports falls

Question 11
4 out of 4 points

What are taxes placed on imports called?


Answer Selected Answer:

Tariffs
Correct Answer:

Tariffs

Question 12
4 out of 4 points

The price of one nation's currency in terms of another is called


Answer Selected Answer:

The exchange rate


Correct Answer:

The exchange rate

Question 13
4 out of 4 points

The primary factor affecting the demand for any nation's currency is
Answer Selected Answer:

The demand for the products produced by that nation


Correct Answer:

The demand for the products produced by that nation

Question 14
4 out of 4 points

A new industry producing cutting-edge products should


Answer Selected Answer:

Be protected from international competition, according to the infant industry argument Be protected from international competition, according to the infant industry argument
4 out of 4 points

Correct Answer:

Question 15

A nation that enjoys a lower opportunity cost in the production of goods, relative to

another nation, is said to have a(n)


Answer Selected Answer:

Comparative advantage
Correct Answer:

Comparative advantage

Question 1
4 out of 4 points

Aggregate supply can be increased by


Answer Selected Answer:

Policies to induce more saving


Correct Answer:

Policies to induce more saving

Question 2
4 out of 4 points

The effect that inflation has on the allocation of resources is known as


Answer Selected Answer:

The efficiency effects of inflation


Correct Answer:

The efficiency effects of inflation

Question 3
0 out of 4 points

A useful measure of the size of the workforce, that is, the number of individuals who are willing and able to work, is
Answer Selected Answer:

The unemployment rate


Correct Answer:

The labor force participation rate

Question 4
0 out of 4 points

When inflation redistributes income from one group in the economy to another, it is an example of which effect?
Answer Selected Answer:

Output
Correct Answer:

Equity

Question 5
0 out of 4 points

The psychological law of consumption tells us the marginal propensity to consume will be
Answer Selected Answer:

Equal to 1

Correct Answer:

Greater than 0 but less than 1

Question 6
0 out of 4 points

The effect of inflation on production and employment is known as


Answer Selected Answer:

The equity effects of inflation


Correct Answer:

The output effects of inflation

Question 7
4 out of 4 points

Aggregate demand
Answer Selected Answer:

Represents the sum of the demands by all purchasers of goods and services in an economy Represents the sum of the demands by all purchasers of goods and services in an economy
4 out of 4 points

Correct Answer:

Question 8

If inflation causes the demand for houses to increase more rapidly than the demand for other goods, the economy has experienced which effect of inflation?
Answer Selected Answer:

Efficiency
Correct Answer:

Efficiency

Question 9
4 out of 4 points

A person is considered unemployed if the person is


Answer Selected Answer:

Qualified for a job, willing to work, but unable to find work for over 30 days Qualified for a job, willing to work, but unable to find work for over 30 days

Correct Answer:

Question 10
4 out of 4 points

Which price index is also known as the cost-of-living index?


Answer Selected Answer:

Consumer price index


Correct Answer:

Consumer price index

Question 11
4 out of 4 points

Technological change in an industry that historically required specific labor skills will lead to
Answer Selected Answer:

Structural unemployment
Correct Answer:

Structural unemployment

Question 12
4 out of 4 points

A trade deficit will occur in an economy


Answer Selected Answer:

When the value of exports is less than the value of imports


Correct Answer:

When the value of exports is less than the value of imports

Question 13
4 out of 4 points

Unemployment rates tend to rise when


Answer Selected Answer:

There is a recession
Correct Answer:

There is a recession

Question 14
4 out of 4 points

Injections in the circular flow consist of


Answer Selected Answer:

Government spending, investment, and exports


Correct Answer:

Government spending, investment, and exports

Question 15
4 out of 4 points

If inflation stimulates production and employment, the economy experiences which of the following effects of inflation?
Answer Selected Answer:

Output
Correct Answer:

Output

Question 1
4 out of 4 points

An increase in government borrowing will cause which of the following?


Answer Selected Answer:

An increase in the interest rate


Correct Answer:

An increase in the interest rate

Question 2
4 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is
Answer Selected Answer:

Equal to the benefit of the last dollar spent in the private sector
Correct Answer:

Equal to the benefit of the last dollar spent in the private sector

Question 3
4 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because
Answer Selected Answer:

Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance
4 out of 4 points

Correct Answer:

Question 4

Regressive tax rates mean that the ratio of tax collections to income
Answer Selected Answer:

Falls as income rises


Correct Answer:

Falls as income rises

Question 5
0 out of 4 points

The ability to pay principle of taxation suggests that people with more income should pay more taxes. This means that
Answer Selected

Answer:

Regressive income rates may or may not be consistent with the ability to pay principle depending on the rate of regression Progressive income rates are consistent with the ability to pay principle
4 out of 4 points

Correct Answer:

Question 6

Proportional tax rates mean that the ratio of tax collection to income
Answer Selected Answer:

Remains the same as income rises


Correct Answer:

Remains the same as income rises

Question 7
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a


Answer Selected Answer:

Transfer payment
Correct Answer:

Transfer payment

Question 8
4 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the
Answer Selected Answer:

Real property tax


Correct Answer:

Real property tax

Question 9
4 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a


Answer Selected Answer:

Public good
Correct Answer:

Public good

Question 10
4 out of 4 points

An efficient level of government expenditures is that level where


Answer

Selected Answer:

Marginal benefits are equal to marginal costs


Correct Answer:

Marginal benefits are equal to marginal costs

Question 11
4 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be
Answer Selected Answer:

A subsidy on each unit consumed equal to marginal external benefits


Correct Answer:

A subsidy on each unit consumed equal to marginal external benefits

Question 12
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the


Answer Selected Answer:

Internal Revenue Service


Correct Answer:

Internal Revenue Service

Question 13
4 out of 4 points

In the US, major sources of tax revenues are:


Answer Selected Answer:

Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Correct Answer:

Question 14
4 out of 4 points

Which of the following is the major tax source of the federal government?
Answer Selected Answer:

Income taxes
Correct Answer:

Income taxes

Question 15
4 out of 4 points

At the federal level, the largest revenue generating tax is the


Answer Selected Answer:

Personal income tax


Correct Answer:

Personal income tax

Question 16
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system?
Answer Selected Answer:

A pay-as-you-go system
Correct Answer:

A pay-as-you-go system

Question 17
4 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Substitution effect
Correct Answer:

Substitution effect

Question 18
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

67
Correct Answer:

67

Question 19
4 out of 4 points

If people choose to work more hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Income effect
Correct Answer:

Income effect

Question 20
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A prearranged schedule of fixed prices


Correct Answer:

A prearranged schedule of fixed prices

Question 21
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States?
Answer Selected Answer:

Hospitals
Correct Answer:

Hospitals

Question 22
4 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Health care inflation


Correct Answer:

Health care inflation

Question 23
4 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called
Answer Selected Answer:

Social insurance programs


Correct Answer:

Social insurance programs

Question 24
4 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following?
Answer

Selected Answer:

A prospective payment system


Correct Answer:

A prospective payment system

Question 25
4 out of 4 points

The most significant argument against privatizing Social Security is that


Answer Selected Answer:

Future benefits levels cannot be guaranteed


Correct Answer:

Future benefits levels cannot be guaranteed

Question 26
4 out of 4 points

In a fee-for-service health care system, consumers pay the


Answer Selected Answer:

Full cost of the services they receive


Correct Answer:

Full cost of the services they receive

Question 27
4 out of 4 points

As originally designed, Social Security was to be financed as a


Answer Selected Answer:

Fully-funded insurance program


Correct Answer:

Fully-funded insurance program

Question 28
4 out of 4 points

Part C of the Medicare program (Medicare + Choice)


Answer Selected Answer:

Provides health care plan choices to the beneficiaries of Medicare


Correct Answer:

Provides health care plan choices to the beneficiaries of Medicare

Question 29
4 out of 4 points

If I put extra into a savings account so that I can leave assets to my children to compensate them for their payments into the Social Security system, I am exhibiting which of the following effects?

Answer Selected Answer:

Bequest
Correct Answer:

Bequest

Question 30
4 out of 4 points

A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. This is known as
Answer Selected Answer:

Co-insurance
Correct Answer:

Co-insurance

Question 1
4 out of 4 points

An efficient level of government expenditures is that level at which


Answer Selected Answer:

The net benefits to society are maximized


Correct Answer:

The net benefits to society are maximized

Question 2
4 out of 4 points

The first budget surplus since 1969 occurred in


Answer Selected Answer:

1998
Correct Answer:

1998

Question 3
0 out of 4 points

Characteristics of public goods and services include which of the following?


Answer Selected Answer:

The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units
4 out of 4 points

Correct Answer:

Question 4

A tax that is shifted backward is a tax that falls on


Answer Selected Answer:

The owners of resources in the form of lower resource prices


Correct Answer:

The owners of resources in the form of lower resource prices

Question 5
0 out of 4 points

In the US, major sources of tax revenues are:


Answer Selected Answer: Correct Answer:

Income taxes at the federal level and payroll taxes at the state level

Income taxes at the federal level and income and sales taxes at the state level

Question 6
4 out of 4 points

An efficient level of government expenditures is that level where


Answer Selected Answer:

Marginal benefits are equal to marginal costs


Correct Answer:

Marginal benefits are equal to marginal costs

Question 7
4 out of 4 points

Vertical equity implies that


Answer Selected Answer:

People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Correct Answer:

Question 8
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the
Answer Selected Answer:

Personal income tax


Correct Answer:

Real property tax

Question 9
0 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is
Answer Selected Answer:

Greater than the benefit of the last dollar spent in the private sector
Correct Answer:

Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

At the federal level, the largest revenue generating tax is the


Answer

Selected Answer:

Personal income tax


Correct Answer:

Personal income tax

Question 11
0 out of 4 points

A tax system that will not alter the distribution of income is


Answer Selected Answer:

Regressive
Correct Answer:

Proportional

Question 12
0 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income
Answer Selected Answer:

Falls as income rises


Correct Answer:

Remains the same as income rises

Question 13
0 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income
Answer Selected Answer:

Remains the same as income rises


Correct Answer:

Falls as income rises

Question 14
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be
Answer Selected Answer:

A tax levied on each unit produced greater than marginal external costs
Correct Answer:

A subsidy on each unit consumed equal to marginal external benefits

Question 15
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a


Answer

Selected Answer:

Transfer payment
Correct Answer:

Transfer payment

Question 16
4 out of 4 points

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines
Answer Selected Answer:

Private insurance
Correct Answer:

Private insurance

Question 17
4 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Substitution effect
Correct Answer:

Substitution effect

Question 18
0 out of 4 points

A person with health insurance will tend to


Answer Selected Answer:

Have a lower demand for health care services


Correct Answer:

Demand more health care services than a person without insurance

Question 19
0 out of 4 points

In a fee-for-service health care system, consumers pay the


Answer Selected Answer:

Prearranged, fixed fee for services they receive


Correct Answer:

Full cost of the services they receive

Question 20
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans

Answer Selected Answer:

Require less paper work


Correct Answer:

Typically require less cost sharing

Question 21
4 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to
Answer Selected Answer:

Raise Social Security taxes and/or lower benefits


Correct Answer:

Raise Social Security taxes and/or lower benefits

Question 22
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects?
Answer Selected Answer:

Retirement
Correct Answer:

Wealth substitution

Question 23
0 out of 4 points

The cost of living adjustment (COLA) employed by Social Security is based on the
Answer Selected Answer:

Producer Price Index


Correct Answer:

Consumer Price Index

Question 24
0 out of 4 points

As originally designed, Social Security was to be financed as a


Answer Selected Answer:

Pure income transfer program


Correct Answer:

Fully-funded insurance program

Question 25
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Increased public support for health care


Correct Answer:

Health care inflation

Question 26
0 out of 4 points

How are payments to health care providers determined under a managed care system? By the
Answer Selected Answer:

Provider and the consumer


Correct Answer:

Insurance company and the provider

Question 27
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the
Answer Selected Answer:

Threat of foreign workers entering the U.S. due to NAFTA


Correct Answer:

Population bulge created by the "baby boom" generation

Question 28
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A fee-for-service market principle


Correct Answer:

A prearranged schedule of fixed prices

Question 29
0 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

70

Correct Answer:

67

Question 30
4 out of 4 points

The most significant argument against privatizing Social Security is that


Answer Selected Answer:

Future benefits levels cannot be guaranteed


Correct Answer:

Future benefits levels cannot be guaranteed

Question 1
4 out of 4 points

A monopoly is not efficient because


Answer Selected Answer:

Price exceeds marginal cost


Correct Answer:

Price exceeds marginal cost

Question 2
4 out of 4 points

A guarantee that allows the purchase of shares of stock at a fixed price is a(n)
Answer Selected Answer:

Stock option
Correct Answer:

Stock option

Question 3
0 out of 4 points

If a firm sells 100 units at a price of $5 and each unit costs $3 to produce, its total cost equals
Answer Selected Answer:

$500
Correct Answer:

$300

Question 4
4 out of 4 points

A pure monopoly industry has a 4-firm concentration ratio equal to


Answer Selected Answer:

1.0
Correct Answer:

1.0

Question 5
4 out of 4 points

Monopolization of a previously competitive market leads to


Answer Selected Answer:

Reduced production and product quality and increased costs and prices
Correct Answer:

Reduced production and product quality and increased costs and prices

Question 6
4 out of 4 points

The dead-weight welfare loss due to monopoly is


Answer Selected Answer:

About 1% of GDP per year


Correct Answer:

About 1% of GDP per year

Question 7
4 out of 4 points

The "agency problem" is caused by


Answer Selected Answer:

Corporate managers pursuing goals different from stockholder's goals


Correct Answer:

Corporate managers pursuing goals different from stockholder's goals

Question 8
4 out of 4 points

With a natural monopoly,


Answer Selected Answer:

The long-run average cost curve of the firm declines over the range of production The long-run average cost curve of the firm declines over the range of production
0 out of 4 points

Correct Answer:

Question 9

Which of the following is a negative consequence of allowing competition in an industry that is a natural monopoly?
Answer Selected Answer:

Deadweight welfare loss


Correct Answer:

Higher average costs

Question 10
4 out of 4 points

Which of the following is a private barrier to entry?


Answer Selected Answer:

Ownership of raw materials

Correct Answer:

Ownership of raw materials

Question 11
4 out of 4 points

Patents and copyright laws


Answer Selected Answer:

Are governmental barriers to market entry


Correct Answer:

Are governmental barriers to market entry

Question 12
4 out of 4 points

If a firm sells 100 units of output at a price of $5 and each unit costs $3 to produce, the firm's total revenue equals
Answer Selected Answer:

$500
Correct Answer:

$500

Question 13
4 out of 4 points

If a firm sells 100 units of output at a price of $5 and each unit costs $3 to produce, the firm is earning a
Answer Selected Answer:

Profit of $200
Correct Answer:

Profit of $200

Question 14
0 out of 4 points

To maximize profits, a monopolist produces the output level at which


Answer Selected Answer:

Its total costs are minimum


Correct Answer:

Its marginal cost equals its marginal revenue

Question 15
4 out of 4 points

Imperfect competition can best be described as a situation in which


Answer Selected Answer:

Firms exercise some monopoly power


Correct Answer:

Firms exercise some monopoly power

Question 16
4 out of 4 points

Over the past twenty years, free agency in professional sports has
Answer Selected Answer:

Reduced the monopsonistic power of leagues and caused salaries to rise


Correct Answer:

Reduced the monopsonistic power of leagues and caused salaries to rise

Question 17
4 out of 4 points

Professional baseball enjoys an exemption from ________ laws that make cartels illegal in most other industries.
Answer Selected Answer:

Antitrust
Correct Answer:

Antitrust

Question 18
4 out of 4 points

Which of the following best characterizes a cartel arrangement?


Answer Selected Answer:

Shared monopoly
Correct Answer:

Shared monopoly

Question 19
0 out of 4 points

To maximize profit, a monopsony will hire workers up to the point where


Answer Selected Answer:

MC = MR
Correct Answer:

MCL = MRP

Question 20
4 out of 4 points

Which of the following conditions can give rise to a monopsony employer?


Answer Selected Answer:

Immobile workers with highly specialized skills


Correct Answer:

Immobile workers with highly specialized skills

Question 21
4 out of 4 points

When professional sports leagues seek to achieve parity, they are seeking
Answer Selected Answer:

Competitive balance
Correct Answer:

Competitive balance

Question 22
0 out of 4 points

To maximize joint profits, a cartel will set the market price and output such that
Answer Selected Answer:

Each firm's marginal revenue equals its marginal cost


Correct Answer:

The market's marginal revenue equals the market's marginal cost

Question 23
4 out of 4 points

The difference between a worker's contribution to the firm's receipts and the wage is
Answer Selected Answer:

Monopsony profit
Correct Answer:

Monopsony profit

Question 24
4 out of 4 points

Professional sports clubs differ from most other business firms in their
Answer Selected Answer:

Organizational structure and relationship with employees


Correct Answer:

Organizational structure and relationship with employees

Question 25
4 out of 4 points

Which of the following is a work stoppage initiated by workers?


Answer Selected Answer:

Strike

Correct Answer:

Strike

Question 26
4 out of 4 points

Today, the primary source of revenue for most major league clubs is
Answer Selected Answer:

Broadcast rights
Correct Answer:

Broadcast rights

Question 27
4 out of 4 points

Firms that coordinate their actions to maximize joint profits are said to have formed a(n)
Answer Selected Answer:

Cartel
Correct Answer:

Cartel

Question 28
4 out of 4 points

To maximize joint profits, a cartel will produce output up to the point where
Answer Selected Answer:

MR = MC
Correct Answer:

MR = MC

Question 29
4 out of 4 points

The additional cost incurred as a result of hiring an additional worker is the firm's
Answer Selected Answer:

Marginal cost of labor


Correct Answer:

Marginal cost of labor

Question 30
4 out of 4 points

A monopsony exists whenever there


Answer Selected Answer:

Is only one buyer in a market


Correct Answer:

Is only one buyer in a market

Question 1
0 out of 4 points

The quantity of capital in the U.S. economy has grown at a rate ________ the growth in the labor force.
Answer Selected Answer:

Slower than
Correct Answer:

Faster than

Question 2
4 out of 4 points

In response to an economic recession, monetary theories of the business cycle predict that the Federal Reserve would
Answer Selected Answer:

Increase the supply of money to create an expansion


Correct Answer:

Increase the supply of money to create an expansion

Question 3
4 out of 4 points

What are the two primary determinants of economic growth?


Answer Selected Answer:

The availability of resources and productivity factors


Correct Answer:

The availability of resources and productivity factors

Question 4
4 out of 4 points

When the economy ends an expansion, it enters which phase of the business cycle?
Answer Selected Answer:

Peak
Correct Answer:

Peak

Question 5
0 out of 4 points

For an economy to expand its investment in the production of capital goods, it must
Answer Selected Answer:

Expand its geographic territory


Correct Answer:

Forego some production of consumer goods and services

Question 6
0 out of 4 points

When economic output hits a short-run economic low, the economy is in which phase of the business cycle?
Answer Selected Answer:

Expansion
Correct Answer:

Trough

Question 7
0 out of 4 points

Which of the following is responsible for officially tracking the Index of Leading Economic Indicators?
Answer Selected Answer:

The Bureau of Labor Statistics


Correct Answer:

The Conference Board

Question 8
4 out of 4 points

Which of the following is the most commonly used measurement of economic growth? Changes in
Answer Selected Answer:

Real GDP
Correct Answer:

Real GDP

Question 9
0 out of 4 points

According to Real Business Cycle Theory, the primary factor that increases aggregate supply is
Answer Selected Answer:

Increases in the size of the labor force


Correct Answer:

Technological improvements

Question 10
4 out of 4 points

What is technology?
Answer

Selected Answer:

The means and methods of production


Correct Answer:

The means and methods of production

Question 11
4 out of 4 points

What was the first theory put forth by an economist to explain the phenomena of business cycles?
Answer Selected Answer:

Jevons' sunspot theory


Correct Answer:

Jevons' sunspot theory

Question 12
4 out of 4 points

What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend?
Answer Selected Answer:

Business cycle
Correct Answer:

Business cycle

Question 13
4 out of 4 points

Which of the following lists the four phases of the business cycle in the correct sequence?
Answer Selected Answer:

Expansion, peak, contraction, trough


Correct Answer:

Expansion, peak, contraction, trough

Question 14
4 out of 4 points

How has the increasing importance of the U.S. service sector contributed to the slowdown in economic growth?
Answer Selected Answer:

The productivity of the service sector is hard to accurately measure


Correct Answer:

The productivity of the service sector is hard to accurately measure

Question 15

4 out of 4 points

Human capital refers to


Answer Selected Answer:

Skills and training that increase a worker's productivity


Correct Answer:

Skills and training that increase a worker's productivity

Question 16
4 out of 4 points

A capital gain exists


Answer Selected Answer:

When the price of an asset exceeds the price paid for it


Correct Answer:

When the price of an asset exceeds the price paid for it

Question 17
4 out of 4 points

A stock is
Answer Selected Answer:

A financial instrument that provides ownership rights to shareholders


Correct Answer:

A financial instrument that provides ownership rights to shareholders

Question 18
4 out of 4 points

The basic money supply is


Answer Selected Answer:

Composed of assets that are completely liquid and easily accessible


Correct Answer:

Composed of assets that are completely liquid and easily accessible

Question 19
4 out of 4 points

The interest rate on an adjustable rate mortgage (ARM) is


Answer Selected Answer:

Adjusted periodically based upon current market conditions


Correct Answer:

Adjusted periodically based upon current market conditions

Question 20
4 out of 4 points

The equation of exchange is


Answer Selected Answer:

MV = PQ
Correct Answer:

MV = PQ

Question 21
4 out of 4 points

The Federal Open Market Committee (FOMC) is highly concerned with


Answer Selected Answer:

Interest rates
Correct Answer:

Interest rates

Question 22
4 out of 4 points

The money multiplier is


Answer Selected Answer:

1/r
Correct Answer:

1/r

Question 23
4 out of 4 points

When the Fed increases the money supply, it generally has the effect of
Answer Selected Answer:

Lowering interest rates


Correct Answer:

Lowering interest rates

Question 24
4 out of 4 points

The quantity theory of money emphasizes


Answer Selected Answer:

Changes in the money supply


Correct Answer:

Changes in the money supply

Question 25
4 out of 4 points

A collateralized debt obligation (or CDO)


Answer Selected Answer:

Is a financial instrument that obscures the underlying risks of the mortgages that comprise them Is a financial instrument that obscures the underlying risks of the mortgages that comprise them
4 out of 4 points

Correct Answer:

Question 26

M2 includes
Answer Selected Answer:

M1, plus savings and time deposits of small denomination, and money market mutual funds M1, plus savings and time deposits of small denomination, and money market mutual funds
4 out of 4 points

Correct Answer:

Question 27

Home equity loans


Answer Selected Answer:

Allow a home owner to recapture some of the increase in the value of their home without selling the home Allow a home owner to recapture some of the increase in the value of their home without selling the home
0 out of 4 points

Correct Answer:

Question 28

Banks make loans from their


Answer Selected Answer:

Required reserves
Correct Answer:

Excess reserves

Question 29
4 out of 4 points

Commercial banks
Answer Selected Answer:

Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith
Correct Answer:

Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith
0 out of 4 points

Question 30

Corporations raise funds in


Answer Selected Answer:

Both the primary and secondary financial markets


Correct Answer:

The primary financial market

Question 1
0 out of 4 points

The quantity of capital in the U.S. economy has grown at a rate ________ the growth in the labor force.
Answer Selected Answer:

Slower than
Correct Answer:

Faster than

Question 2
4 out of 4 points

In response to an economic recession, monetary theories of the business cycle predict that the Federal Reserve would
Answer Selected Answer:

Increase the supply of money to create an expansion


Correct Answer:

Increase the supply of money to create an expansion

Question 3
4 out of 4 points

What are the two primary determinants of economic growth?


Answer Selected Answer:

The availability of resources and productivity factors


Correct Answer:

The availability of resources and productivity factors

Question 4
4 out of 4 points

When the economy ends an expansion, it enters which phase of the business cycle?
Answer Selected Answer:

Peak
Correct Answer:

Peak

Question 5
0 out of 4 points

For an economy to expand its investment in the production of capital goods, it must
Answer Selected Answer:

Expand its geographic territory


Correct Answer:

Forego some production of consumer goods and services

Question 6
0 out of 4 points

When economic output hits a short-run economic low, the economy is in which phase of the business cycle?
Answer Selected Answer:

Expansion
Correct Answer:

Trough

Question 7
0 out of 4 points

Which of the following is responsible for officially tracking the Index of Leading Economic Indicators?
Answer Selected Answer:

The Bureau of Labor Statistics


Correct Answer:

The Conference Board

Question 8
4 out of 4 points

Which of the following is the most commonly used measurement of economic growth? Changes in
Answer Selected Answer:

Real GDP
Correct Answer:

Real GDP

Question 9
0 out of 4 points

According to Real Business Cycle Theory, the primary factor that increases aggregate supply is
Answer Selected Answer:

Increases in the size of the labor force


Correct Answer:

Technological improvements

Question 10
4 out of 4 points

What is technology?
Answer

Selected Answer:

The means and methods of production


Correct Answer:

The means and methods of production

Question 11
4 out of 4 points

What was the first theory put forth by an economist to explain the phenomena of business cycles?
Answer Selected Answer:

Jevons' sunspot theory


Correct Answer:

Jevons' sunspot theory

Question 12
4 out of 4 points

What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend?
Answer Selected Answer:

Business cycle
Correct Answer:

Business cycle

Question 13
4 out of 4 points

Which of the following lists the four phases of the business cycle in the correct sequence?
Answer Selected Answer:

Expansion, peak, contraction, trough


Correct Answer:

Expansion, peak, contraction, trough

Question 14
4 out of 4 points

How has the increasing importance of the U.S. service sector contributed to the slowdown in economic growth?
Answer Selected Answer:

The productivity of the service sector is hard to accurately measure


Correct Answer:

The productivity of the service sector is hard to accurately measure

Question 15

4 out of 4 points

Human capital refers to


Answer Selected Answer:

Skills and training that increase a worker's productivity


Correct Answer:

Skills and training that increase a worker's productivity

Question 16
4 out of 4 points

A capital gain exists


Answer Selected Answer:

When the price of an asset exceeds the price paid for it


Correct Answer:

When the price of an asset exceeds the price paid for it

Question 17
4 out of 4 points

A stock is
Answer Selected Answer:

A financial instrument that provides ownership rights to shareholders


Correct Answer:

A financial instrument that provides ownership rights to shareholders

Question 18
4 out of 4 points

The basic money supply is


Answer Selected Answer:

Composed of assets that are completely liquid and easily accessible


Correct Answer:

Composed of assets that are completely liquid and easily accessible

Question 19
4 out of 4 points

The interest rate on an adjustable rate mortgage (ARM) is


Answer Selected Answer:

Adjusted periodically based upon current market conditions


Correct Answer:

Adjusted periodically based upon current market conditions

Question 20
4 out of 4 points

The equation of exchange is


Answer Selected Answer:

MV = PQ
Correct Answer:

MV = PQ

Question 21
4 out of 4 points

The Federal Open Market Committee (FOMC) is highly concerned with


Answer Selected Answer:

Interest rates
Correct Answer:

Interest rates

Question 22
4 out of 4 points

The money multiplier is


Answer Selected Answer:

1/r
Correct Answer:

1/r

Question 23
4 out of 4 points

When the Fed increases the money supply, it generally has the effect of
Answer Selected Answer:

Lowering interest rates


Correct Answer:

Lowering interest rates

Question 24
4 out of 4 points

The quantity theory of money emphasizes


Answer Selected Answer:

Changes in the money supply


Correct Answer:

Changes in the money supply

Question 25
4 out of 4 points

A collateralized debt obligation (or CDO)


Answer Selected Answer:

Is a financial instrument that obscures the underlying risks of the mortgages that comprise them Is a financial instrument that obscures the underlying risks of the mortgages that comprise them
4 out of 4 points

Correct Answer:

Question 26

M2 includes
Answer Selected Answer:

M1, plus savings and time deposits of small denomination, and money market mutual funds M1, plus savings and time deposits of small denomination, and money market mutual funds
4 out of 4 points

Correct Answer:

Question 27

Home equity loans


Answer Selected Answer:

Allow a home owner to recapture some of the increase in the value of their home without selling the home Allow a home owner to recapture some of the increase in the value of their home without selling the home
0 out of 4 points

Correct Answer:

Question 28

Banks make loans from their


Answer Selected Answer:

Required reserves
Correct Answer:

Excess reserves

Question 29
4 out of 4 points

Commercial banks
Answer Selected Answer:

Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith
Correct Answer:

Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith
0 out of 4 points

Question 30

Corporations raise funds in


Answer Selected Answer:

Both the primary and secondary financial markets


Correct Answer:

The primary financial market

Question 1
0 out of 4 points

The quantity of capital in the U.S. economy has grown at a rate ________ the growth in the labor force.
Answer Selected Answer:

Slower than
Correct Answer:

Faster than

Question 2
4 out of 4 points

In response to an economic recession, monetary theories of the business cycle predict that the Federal Reserve would
Answer Selected Answer:

Increase the supply of money to create an expansion


Correct Answer:

Increase the supply of money to create an expansion

Question 3
4 out of 4 points

What are the two primary determinants of economic growth?


Answer Selected Answer:

The availability of resources and productivity factors


Correct Answer:

The availability of resources and productivity factors

Question 4
4 out of 4 points

When the economy ends an expansion, it enters which phase of the business cycle?
Answer Selected Answer:

Peak
Correct Answer:

Peak

Question 5
0 out of 4 points

For an economy to expand its investment in the production of capital goods, it must
Answer Selected Answer:

Expand its geographic territory


Correct Answer:

Forego some production of consumer goods and services

Question 6
0 out of 4 points

When economic output hits a short-run economic low, the economy is in which phase of the business cycle?
Answer Selected Answer:

Expansion
Correct Answer:

Trough

Question 7
0 out of 4 points

Which of the following is responsible for officially tracking the Index of Leading Economic Indicators?
Answer Selected Answer:

The Bureau of Labor Statistics


Correct Answer:

The Conference Board

Question 8
4 out of 4 points

Which of the following is the most commonly used measurement of economic growth? Changes in
Answer Selected Answer:

Real GDP
Correct Answer:

Real GDP

Question 9
0 out of 4 points

According to Real Business Cycle Theory, the primary factor that increases aggregate supply is
Answer Selected Answer:

Increases in the size of the labor force


Correct Answer:

Technological improvements

Question 10
4 out of 4 points

What is technology?
Answer

Selected Answer:

The means and methods of production


Correct Answer:

The means and methods of production

Question 11
4 out of 4 points

What was the first theory put forth by an economist to explain the phenomena of business cycles?
Answer Selected Answer:

Jevons' sunspot theory


Correct Answer:

Jevons' sunspot theory

Question 12
4 out of 4 points

What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend?
Answer Selected Answer:

Business cycle
Correct Answer:

Business cycle

Question 13
4 out of 4 points

Which of the following lists the four phases of the business cycle in the correct sequence?
Answer Selected Answer:

Expansion, peak, contraction, trough


Correct Answer:

Expansion, peak, contraction, trough

Question 14
4 out of 4 points

How has the increasing importance of the U.S. service sector contributed to the slowdown in economic growth?
Answer Selected Answer:

The productivity of the service sector is hard to accurately measure


Correct Answer:

The productivity of the service sector is hard to accurately measure

Question 15

4 out of 4 points

Human capital refers to


Answer Selected Answer:

Skills and training that increase a worker's productivity


Correct Answer:

Skills and training that increase a worker's productivity

Question 16
4 out of 4 points

A capital gain exists


Answer Selected Answer:

When the price of an asset exceeds the price paid for it


Correct Answer:

When the price of an asset exceeds the price paid for it

Question 17
4 out of 4 points

A stock is
Answer Selected Answer:

A financial instrument that provides ownership rights to shareholders


Correct Answer:

A financial instrument that provides ownership rights to shareholders

Question 18
4 out of 4 points

The basic money supply is


Answer Selected Answer:

Composed of assets that are completely liquid and easily accessible


Correct Answer:

Composed of assets that are completely liquid and easily accessible

Question 19
4 out of 4 points

The interest rate on an adjustable rate mortgage (ARM) is


Answer Selected Answer:

Adjusted periodically based upon current market conditions


Correct Answer:

Adjusted periodically based upon current market conditions

Question 20
4 out of 4 points

The equation of exchange is


Answer Selected Answer:

MV = PQ
Correct Answer:

MV = PQ

Question 21
4 out of 4 points

The Federal Open Market Committee (FOMC) is highly concerned with


Answer Selected Answer:

Interest rates
Correct Answer:

Interest rates

Question 22
4 out of 4 points

The money multiplier is


Answer Selected Answer:

1/r
Correct Answer:

1/r

Question 23
4 out of 4 points

When the Fed increases the money supply, it generally has the effect of
Answer Selected Answer:

Lowering interest rates


Correct Answer:

Lowering interest rates

Question 24
4 out of 4 points

The quantity theory of money emphasizes


Answer Selected Answer:

Changes in the money supply


Correct Answer:

Changes in the money supply

Question 25
4 out of 4 points

A collateralized debt obligation (or CDO)


Answer Selected Answer:

Is a financial instrument that obscures the underlying risks of the mortgages that comprise them Is a financial instrument that obscures the underlying risks of the mortgages that comprise them
4 out of 4 points

Correct Answer:

Question 26

M2 includes
Answer Selected Answer:

M1, plus savings and time deposits of small denomination, and money market mutual funds M1, plus savings and time deposits of small denomination, and money market mutual funds
4 out of 4 points

Correct Answer:

Question 27

Home equity loans


Answer Selected Answer:

Allow a home owner to recapture some of the increase in the value of their home without selling the home Allow a home owner to recapture some of the increase in the value of their home without selling the home
0 out of 4 points

Correct Answer:

Question 28

Banks make loans from their


Answer Selected Answer:

Required reserves
Correct Answer:

Excess reserves

Question 29
4 out of 4 points

Commercial banks
Answer Selected Answer:

Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith
Correct Answer:

Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith
0 out of 4 points

Question 30

Corporations raise funds in


Answer Selected Answer:

Both the primary and secondary financial markets


Correct Answer:

The primary financial market

Question 1
4 out of 4 points Schools in which parents or other groups were permitted to create a new school with state funding and were given control over operations are known as Answer Selected Answer: Charter schools Correct Answer: Charter schools

Question 2
4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling? It will Answer Selected Answer: Decrease Correct Answer: Decrease

Question 3
4 out of 4 points If the earnings expected from a college education increase, it will lead to an increase in Answer Selected Answer: The demand for K-12 education Correct Answer: The demand for K-12 education

Question 4
4 out of 4 points In a purely private K-12 education system, spaces would be allocated based on

Answer Selected Answer: Income Correct Answer: Income

Question 5
4 out of 4 points With positive externalities in consumption, the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal

Question 6
4 out of 4 points A purely private K-12 system will lead to Answer Selected Answer: Increased inequality Correct Answer: Increased inequality

Question 7
4 out of 4 points A decrease in the cost of education will Answer Selected Answer: Increase the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education

Question 8
0 out of 4 points The current K-12 education system can be described as Answer Selected Answer: State owned Correct Answer: Centralized

Question 9
0 out of 4 points Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 5.3 Correct Answer: 3.9

Question 10
4 out of 4 points In the existing public K-12 education system, spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries

Question 11
4 out of 4 points To be socially optimal, education should be provided to the point where Answer

Selected Answer: MSB = MSC Correct Answer: MSB = MSC

Question 12
4 out of 4 points Which of the following will decrease the equilibrium quantity of education in a market? Answer Selected Answer: A decrease in the demand for education Correct Answer: A decrease in the demand for education

Question 13
4 out of 4 points Educated citizens are more likely to be informed voters. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 14
4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Inconsistent Correct Answer: Inconsistent

Question 15
4 out of 4 points The creation of new learning technologies will cause which of the following to decrease? Answer Selected Answer: The cost of education Correct Answer: The cost of education

Sunday, August 4, 2013 6:10:09 PM EDT

Question 1
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the
Answer Selected Answer:

MPB curve
Correct Answer:

MPB curve

Question 2
4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river?
Answer Selected Answer:

Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river
4 out of 4 points

Correct Answer:

Question 3

Costs incurred by the producer to buy or hire resources are called


Answer Selected Answer:

Explicit costs
Correct Answer:

Explicit costs

Question 4
0 out of 4 points

For a tax on pollution to be effective, it must be


Answer Selected Answer:

Placed on the firm polluting


Correct Answer:

Greater than the cost of cleaning-up the pollution

Question 5
0 out of 4 points

Complete elimination of pollution is economically rational when


Answer Selected Answer:

MSC of cleanup < MSB of cleanup

Correct Answer:

For each unit of pollution, the cost of clean-up is less than the benefit from its elimination
4 out of 4 points

Question 6

Which of the following creates a positive externality in production?


Answer Selected Answer:

Reducing the cost of producing of another good


Correct Answer:

Reducing the cost of producing of another good

Question 7
0 out of 4 points

When MPC is less than MSC,


Answer Selected Answer:

The firm will produce less than is socially optimal


Correct Answer:

Firms will tend to produce more than is socially optimal

Question 8
0 out of 4 points

An advantage of direct regulation as a method of controlling pollution is that


Answer Selected Answer:

Emission control standards can be enforced readily


Correct Answer:

It seems straightforward and fair

Question 9
4 out of 4 points

The market output level tends to be socially optimal when


Answer Selected Answer:

All costs and benefits are private and MSB=MSC


Correct Answer:

All costs and benefits are private and MSB=MSC

Question 10
4 out of 4 points

When pollution is not regulated in the market, polluting firms will


Answer Selected Answer:

Over-utilize resources and charge low prices

Correct Answer:

Over-utilize resources and charge low prices

Question 11
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists?
Answer Selected Answer:

Externality in production
Correct Answer:

Externality in production

Question 12
4 out of 4 points

Marginal private cost (MPC) always includes:


Answer Selected Answer:

The extra costs of production of one more unit of a good


Correct Answer:

The extra costs of production of one more unit of a good

Question 13
4 out of 4 points

Costs incurred by the producer for the use of self-owned resources are called
Answer Selected Answer:

Implicit costs
Correct Answer:

Implicit costs

Question 14
4 out of 4 points

Which of the following creates a positive externality in consumption?


Answer Selected Answer:

Vaccinations
Correct Answer:

Vaccinations

Question 15
4 out of 4 points

Another term for implicit cost is


Answer Selected Answer:

Opportunity cost

Correct Answer:

Opportunity cost

Question 16
0 out of 4 points

Economic analysis of crime can


Answer Selected Answer: Correct Answer:

Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal

Question 17
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana?
Answer Selected Answer:

Unemployment
Correct Answer:

Unemployment

Question 18
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as
Answer Selected Answer:

Psychic income
Correct Answer:

Psychic income

Question 19
4 out of 4 points

Aggravated assault is an example of a(n)


Answer Selected Answer:

Violent crime
Correct Answer:

Violent crime

Question 20
4 out of 4 points

From an economic point of view, crime prevention activities should be expanded to the point at which
Answer

Selected Answer:

Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer:

Question 21
4 out of 4 points

If a law is passed making it illegal for unlicensed barbers to cut hair, which of the following will result?
Answer Selected Answer:

Higher priced haircuts


Correct Answer:

Higher priced haircuts

Question 22
4 out of 4 points

An immoral act is
Answer Selected Answer:

Different in different societies


Correct Answer:

Different in different societies

Question 23
4 out of 4 points

The marginal cost of a good is


Answer Selected Answer:

The change in total cost per unit change in output


Correct Answer:

The change in total cost per unit change in output

Question 24
0 out of 4 points

If society receives no additional benefit from increasing crime prevention activities, the MSB of crime prevention
Answer Selected Answer:

Is equal to the MSC of crime prevention


Correct Answer:

Equals 0

Question 25
4 out of 4 points

Arson is an example of a(n)


Answer Selected Answer:

Crime against property


Correct Answer:

Crime against property

Question 26
0 out of 4 points

Some people give up high-paying city jobs to live much simpler, rural lives. Which of the following is a sound economic explanation for this?
Answer Selected Answer:

The fear of crime in the city


Correct Answer:

The very high psychic income they receive from the simple way of life

Question 27
4 out of 4 points

An additional expenditure on crime prevention should be allocated to the activity where


Answer Selected Answer:

MSB is greatest
Correct Answer:

MSB is greatest

Question 28
4 out of 4 points

Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost?
Answer Selected Answer:

Free-riding
Correct Answer:

Free-riding

Question 29
4 out of 4 points

Police officers should be hired up to the point where


Answer Selected Answer:

The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire

Correct Answer:

her

Question 30
4 out of 4 points

Prostitution is an example of a(n)


Answer Selected Answer:

Illegal trafficking of goods and services


Correct Answer:

Illegal trafficking of goods and services

Question 1
4 out of 4 points

If all benefits from consuming a good go to consumers, the demand curve is the same as the
Answer Selected Answer:

MPB curve
Correct Answer:

MPB curve

Question 2
4 out of 4 points

Which of the following approaches would an economist propose to address industrial pollution of a river?
Answer Selected Answer:

Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river
4 out of 4 points

Correct Answer:

Question 3

Costs incurred by the producer to buy or hire resources are called


Answer Selected Answer:

Explicit costs
Correct Answer:

Explicit costs

Question 4
0 out of 4 points

For a tax on pollution to be effective, it must be


Answer Selected Answer:

Placed on the firm polluting


Correct Answer:

Greater than the cost of cleaning-up the pollution

Question 5
0 out of 4 points

Complete elimination of pollution is economically rational when

Answer Selected Answer: Correct Answer:

MSC of cleanup < MSB of cleanup For each unit of pollution, the cost of clean-up is less than the benefit from its elimination
4 out of 4 points

Question 6

Which of the following creates a positive externality in production?


Answer Selected Answer:

Reducing the cost of producing of another good


Correct Answer:

Reducing the cost of producing of another good

Question 7
0 out of 4 points

When MPC is less than MSC,


Answer Selected Answer:

The firm will produce less than is socially optimal


Correct Answer:

Firms will tend to produce more than is socially optimal

Question 8
0 out of 4 points

An advantage of direct regulation as a method of controlling pollution is that


Answer Selected Answer:

Emission control standards can be enforced readily


Correct Answer:

It seems straightforward and fair

Question 9
4 out of 4 points

The market output level tends to be socially optimal when


Answer Selected Answer:

All costs and benefits are private and MSB=MSC


Correct Answer:

All costs and benefits are private and MSB=MSC

Question 10
4 out of 4 points

When pollution is not regulated in the market, polluting firms will


Answer Selected Answer:

Over-utilize resources and charge low prices


Correct Answer:

Over-utilize resources and charge low prices

Question 11
4 out of 4 points

When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists?
Answer Selected Answer:

Externality in production
Correct Answer:

Externality in production

Question 12
4 out of 4 points

Marginal private cost (MPC) always includes:


Answer Selected Answer:

The extra costs of production of one more unit of a good


Correct Answer:

The extra costs of production of one more unit of a good

Question 13
4 out of 4 points

Costs incurred by the producer for the use of self-owned resources are called
Answer Selected Answer:

Implicit costs
Correct Answer:

Implicit costs

Question 14
4 out of 4 points

Which of the following creates a positive externality in consumption?


Answer Selected Answer:

Vaccinations
Correct Answer:

Vaccinations

Question 15
4 out of 4 points

Another term for implicit cost is


Answer Selected Answer:

Opportunity cost
Correct Answer:

Opportunity cost

Question 16
0 out of 4 points

Economic analysis of crime can


Answer Selected Answer: Correct Answer:

Tell us how much it will cost to eliminate crime Determine what the economic impact will be of making certain activities illegal

Question 17
4 out of 4 points

Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana?
Answer Selected Answer:

Unemployment
Correct Answer:

Unemployment

Question 18
4 out of 4 points

When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as
Answer Selected Answer:

Psychic income
Correct Answer:

Psychic income

Question 19
4 out of 4 points

Aggravated assault is an example of a(n)


Answer Selected Answer:

Violent crime
Correct Answer:

Violent crime

Question 20
4 out of 4 points

From an economic point of view, crime prevention activities should be expanded to the point at which
Answer Selected Answer:

Their marginal social benefit no longer exceeds their marginal social cost Their marginal social benefit no longer exceeds their marginal social cost

Correct Answer:

Question 21
4 out of 4 points

If a law is passed making it illegal for unlicensed barbers to cut hair, which of the following will result?
Answer Selected Answer:

Higher priced haircuts


Correct Answer:

Higher priced haircuts

Question 22
4 out of 4 points

An immoral act is
Answer Selected Answer:

Different in different societies


Correct Answer:

Different in different societies

Question 23
4 out of 4 points

The marginal cost of a good is

Answer Selected Answer:

The change in total cost per unit change in output


Correct Answer:

The change in total cost per unit change in output

Question 24
0 out of 4 points

If society receives no additional benefit from increasing crime prevention activities, the MSB of crime prevention
Answer Selected Answer:

Is equal to the MSC of crime prevention


Correct Answer:

Equals 0

Question 25
4 out of 4 points

Arson is an example of a(n)


Answer Selected Answer:

Crime against property


Correct Answer:

Crime against property

Question 26
0 out of 4 points

Some people give up high-paying city jobs to live much simpler, rural lives. Which of the following is a sound economic explanation for this?
Answer Selected Answer:

The fear of crime in the city


Correct Answer:

The very high psychic income they receive from the simple way of life

Question 27
4 out of 4 points

An additional expenditure on crime prevention should be allocated to the activity where


Answer Selected Answer:

MSB is greatest
Correct Answer:

MSB is greatest

Question 28
4 out of 4 points

Which of the following exists when an individual consumes benefits from a public good but does not pay for its cost?
Answer Selected Answer:

Free-riding
Correct Answer:

Free-riding

Question 29
4 out of 4 points

Police officers should be hired up to the point where


Answer Selected Answer:

The benefit of the last officer hired is just equal to what its cost to hire her The benefit of the last officer hired is just equal to what its cost to hire her

Correct Answer:

Question 30
4 out of 4 points

Prostitution is an example of a(n)


Answer Selected Answer:

Illegal trafficking of goods and services


Correct Answer:

Illegal trafficking of goods and services

Question 1
4 out of 4 points

An efficient level of government expenditures is that level at which


Answer Selected Answer:

The net benefits to society are maximized


Correct Answer:

The net benefits to society are maximized

Question 2
4 out of 4 points

The first budget surplus since 1969 occurred in


Answer Selected Answer:

1998
Correct Answer:

1998

Question 3
0 out of 4 points

Characteristics of public goods and services include which of the following?


Answer Selected Answer:

The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units
4 out of 4 points

Correct Answer:

Question 4

A tax that is shifted backward is a tax that falls on


Answer Selected Answer:

The owners of resources in the form of lower resource prices


Correct Answer:

The owners of resources in the form of lower resource prices

Question 5
0 out of 4 points

In the US, major sources of tax revenues are:


Answer Selected Answer: Correct Answer:

Income taxes at the federal level and payroll taxes at the state level

Income taxes at the federal level and income and sales taxes at the state level

Question 6
4 out of 4 points

An efficient level of government expenditures is that level where


Answer Selected Answer:

Marginal benefits are equal to marginal costs


Correct Answer:

Marginal benefits are equal to marginal costs

Question 7
4 out of 4 points

Vertical equity implies that


Answer Selected Answer:

People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Correct Answer:

Question 8
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the
Answer Selected Answer:

Personal income tax


Correct Answer:

Real property tax

Question 9
0 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is
Answer Selected Answer:

Greater than the benefit of the last dollar spent in the private sector
Correct Answer:

Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

At the federal level, the largest revenue generating tax is the


Answer

Selected Answer:

Personal income tax


Correct Answer:

Personal income tax

Question 11
0 out of 4 points

A tax system that will not alter the distribution of income is


Answer Selected Answer:

Regressive
Correct Answer:

Proportional

Question 12
0 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income
Answer Selected Answer:

Falls as income rises


Correct Answer:

Remains the same as income rises

Question 13
0 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income
Answer Selected Answer:

Remains the same as income rises


Correct Answer:

Falls as income rises

Question 14
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be
Answer Selected Answer:

A tax levied on each unit produced greater than marginal external costs
Correct Answer:

A subsidy on each unit consumed equal to marginal external benefits

Question 15
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a


Answer

Selected Answer:

Transfer payment
Correct Answer:

Transfer payment

Question 16
4 out of 4 points

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines
Answer Selected Answer:

Private insurance
Correct Answer:

Private insurance

Question 17
4 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Substitution effect
Correct Answer:

Substitution effect

Question 18
0 out of 4 points

A person with health insurance will tend to


Answer Selected Answer:

Have a lower demand for health care services


Correct Answer:

Demand more health care services than a person without insurance

Question 19
0 out of 4 points

In a fee-for-service health care system, consumers pay the


Answer Selected Answer:

Prearranged, fixed fee for services they receive


Correct Answer:

Full cost of the services they receive

Question 20
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans

Answer Selected Answer:

Require less paper work


Correct Answer:

Typically require less cost sharing

Question 21
4 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to
Answer Selected Answer:

Raise Social Security taxes and/or lower benefits


Correct Answer:

Raise Social Security taxes and/or lower benefits

Question 22
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects?
Answer Selected Answer:

Retirement
Correct Answer:

Wealth substitution

Question 23
0 out of 4 points

The cost of living adjustment (COLA) employed by Social Security is based on the
Answer Selected Answer:

Producer Price Index


Correct Answer:

Consumer Price Index

Question 24
0 out of 4 points

As originally designed, Social Security was to be financed as a


Answer Selected Answer:

Pure income transfer program


Correct Answer:

Fully-funded insurance program

Question 25
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Increased public support for health care


Correct Answer:

Health care inflation

Question 26
0 out of 4 points

How are payments to health care providers determined under a managed care system? By the
Answer Selected Answer:

Provider and the consumer


Correct Answer:

Insurance company and the provider

Question 27
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the
Answer Selected Answer:

Threat of foreign workers entering the U.S. due to NAFTA


Correct Answer:

Population bulge created by the "baby boom" generation

Question 28
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A fee-for-service market principle


Correct Answer:

A prearranged schedule of fixed prices

Question 29
0 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

70

Correct Answer:

67

Question 30
4 out of 4 points

The most significant argument against privatizing Social Security is that


Answer Selected Answer:

Future benefits levels cannot be guaranteed


Correct Answer:

Future benefits levels cannot be guaranteed

Review Test Submission: Week 11 Quiz 10


SKIP TO COURSE MENU SKIP TO TOP FRAME TABS

Course Econ Problems & Issues Test Week 11 Quiz 10 Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 14. The second 15 questions cover the material in Chapter 15. Be sure you are in the correct Chapter when you take the quiz.

Question 1
4 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes

Question 2
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 3
4 out of 4 points

A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices

Correct Answer: The consumer in the form of higher prices

Question 4
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a Answer Selected Answer: Transfer payment Correct Answer: Transfer payment

Question 5
4 out of 4 points

An output tax will be shifted completely Answer Selected Answer: Forward if demand is perfectly price inelastic Correct Answer: Forward if demand is perfectly price inelastic

Question 6
4 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance

Question 7
4 out of 4 points

The ability to pay principle of taxation suggests that people with more income should pay more taxes. This means that Answer

Selected Answer: Correct Answer:

Progressive income rates are consistent with the ability to pay principle Progressive income rates are consistent with the ability to pay principle

Question 8
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 9
4 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Public good Correct Answer: Public good

Question 10
4 out of 4 points

At the federal level, the largest revenue generating tax is the Answer Selected Answer: Personal income tax Correct Answer: Personal income tax

Question 11
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: Correct Answer: A subsidy on each unit consumed equal to marginal external benefits

A subsidy on each unit consumed greater than marginal external benefits

Question 12
4 out of 4 points

A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices

Question 13
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: Correct Answer: The values of people as to what constitutes a "fair" distribution of income

The values of people as to what constitutes a "fair" distribution of income

Question 14
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer:

Internal Revenue Service

Question 15
4 out of 4 points

Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States

Question 16
4 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Raise Social Security taxes and/or lower benefits Correct Answer: Raise Social Security taxes and/or lower benefits

Question 17
0 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the Answer Selected Answer: Income effect Correct Answer: Substitution effect

Question 18
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system

Correct Answer: A pay-as-you-go system

Question 19
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 20
4 out of 4 points

How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider

Question 21
0 out of 4 points

Part C of the Medicare program (Medicare + Choice) Answer Selected Answer: Correct Answer: Provides health care plan choices to the beneficiaries of Medicare

Restricts Medicare beneficiaries to a simple fee-for-service health care plan

Question 22
4 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer

Selected Answer: Health care inflation Correct Answer: Health care inflation

Question 23
4 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Question 24
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 25
4 out of 4 points

If a program's benefits are funded by interest earned on accumulated payments, it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A fully funded scheme

Question 26
4 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these

plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing

Question 27
4 out of 4 points

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance

Question 28
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals

Question 29
4 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 30

4 out of 4 points

In a fee-for-service health care system, consumers pay the Answer Selected Answer: Full cost of the services they receive Correct Answer: Full cost of the services they receive

Question 1
4 out of 4 points

An increase in government borrowing will cause which of the following?


Answer Selected Answer:

An increase in the interest rate


Correct Answer:

An increase in the interest rate

Question 2
4 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is
Answer Selected Answer:

Equal to the benefit of the last dollar spent in the private sector
Correct Answer:

Equal to the benefit of the last dollar spent in the private sector

Question 3
4 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because
Answer Selected Answer:

Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance
4 out of 4 points

Correct Answer:

Question 4

Regressive tax rates mean that the ratio of tax collections to income
Answer Selected Answer:

Falls as income rises


Correct Answer:

Falls as income rises

Question 5
0 out of 4 points

The ability to pay principle of taxation suggests that people with more income should pay more taxes. This means that
Answer Selected

Answer:

Regressive income rates may or may not be consistent with the ability to pay principle depending on the rate of regression Progressive income rates are consistent with the ability to pay principle
4 out of 4 points

Correct Answer:

Question 6

Proportional tax rates mean that the ratio of tax collection to income
Answer Selected Answer:

Remains the same as income rises


Correct Answer:

Remains the same as income rises

Question 7
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a


Answer Selected Answer:

Transfer payment
Correct Answer:

Transfer payment

Question 8
4 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the
Answer Selected Answer:

Real property tax


Correct Answer:

Real property tax

Question 9
4 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a


Answer Selected Answer:

Public good
Correct Answer:

Public good

Question 10
4 out of 4 points

An efficient level of government expenditures is that level where


Answer

Selected Answer:

Marginal benefits are equal to marginal costs


Correct Answer:

Marginal benefits are equal to marginal costs

Question 11
4 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be
Answer Selected Answer:

A subsidy on each unit consumed equal to marginal external benefits


Correct Answer:

A subsidy on each unit consumed equal to marginal external benefits

Question 12
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the


Answer Selected Answer:

Internal Revenue Service


Correct Answer:

Internal Revenue Service

Question 13
4 out of 4 points

In the US, major sources of tax revenues are:


Answer Selected Answer:

Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Correct Answer:

Question 14
4 out of 4 points

Which of the following is the major tax source of the federal government?
Answer Selected Answer:

Income taxes
Correct Answer:

Income taxes

Question 15
4 out of 4 points

At the federal level, the largest revenue generating tax is the


Answer Selected Answer:

Personal income tax


Correct Answer:

Personal income tax

Question 16
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system?
Answer Selected Answer:

A pay-as-you-go system
Correct Answer:

A pay-as-you-go system

Question 17
4 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Substitution effect
Correct Answer:

Substitution effect

Question 18
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

67
Correct Answer:

67

Question 19
4 out of 4 points

If people choose to work more hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Income effect
Correct Answer:

Income effect

Question 20
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A prearranged schedule of fixed prices


Correct Answer:

A prearranged schedule of fixed prices

Question 21
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States?
Answer Selected Answer:

Hospitals
Correct Answer:

Hospitals

Question 22
4 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Health care inflation


Correct Answer:

Health care inflation

Question 23
4 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called
Answer Selected Answer:

Social insurance programs


Correct Answer:

Social insurance programs

Question 24
4 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following?
Answer

Selected Answer:

A prospective payment system


Correct Answer:

A prospective payment system

Question 25
4 out of 4 points

The most significant argument against privatizing Social Security is that


Answer Selected Answer:

Future benefits levels cannot be guaranteed


Correct Answer:

Future benefits levels cannot be guaranteed

Question 26
4 out of 4 points

In a fee-for-service health care system, consumers pay the


Answer Selected Answer:

Full cost of the services they receive


Correct Answer:

Full cost of the services they receive

Question 27
4 out of 4 points

As originally designed, Social Security was to be financed as a


Answer Selected Answer:

Fully-funded insurance program


Correct Answer:

Fully-funded insurance program

Question 28
4 out of 4 points

Part C of the Medicare program (Medicare + Choice)


Answer Selected Answer:

Provides health care plan choices to the beneficiaries of Medicare


Correct Answer:

Provides health care plan choices to the beneficiaries of Medicare

Question 29
4 out of 4 points

If I put extra into a savings account so that I can leave assets to my children to compensate them for their payments into the Social Security system, I am exhibiting which of the following effects?

Answer Selected Answer:

Bequest
Correct Answer:

Bequest

Question 30
4 out of 4 points

A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. This is known as
Answer Selected Answer:

Co-insurance
Correct Answer:

Co-insurance

4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States

Question 2
4 out of 4 points According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 3
4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998

Question 4
4 out of 4 points Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 5
4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance

Question 6
4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 7
4 out of 4 points In the US, major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 8
4 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected

Answer: Correct Answer:

The supply of these goods and services is generally not divisible into small units The supply of these goods and services is generally not divisible into small units

Question 9
4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 10
4 out of 4 points Vertical equity implies that Answer Selected Answer: Correct Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Question 11
4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 12
0 out of 4 points

The fears of people concerning the size of government are Answer Selected Answer: Due to low income and low educational levels of many people Correct Answer: Well-founded in some instances and not well-founded in some instances

Question 13
4 out of 4 points Tax equity means that Answer Selected Answer: Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 14
4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service

Question 15
4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes

Question 16

4 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Consumer Price Index Correct Answer: Consumer Price Index

Question 17
4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 18
4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 19
4 out of 4 points If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 20

4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 21
4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals

Question 22
4 out of 4 points The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: an added prescription drug benefit to the Medicare program Correct Answer: an added prescription drug benefit to the Medicare program

Question 23
4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 24

4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 25
4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer Selected Answer: A prospective payment system Correct Answer: A prospective payment system

Question 26
4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 27
4 out of 4 points As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Question 28
4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance

Question 29
4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation

Question 30
4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing

Sunday, September 8, 2013 7:39:38 PM EDT

Question 1
4 out of 4 points

An efficient level of government expenditures is that level at which


Answer Selected Answer:

The net benefits to society are maximized


Correct Answer:

The net benefits to society are maximized

Question 2
4 out of 4 points

The first budget surplus since 1969 occurred in


Answer Selected Answer:

1998
Correct Answer:

1998

Question 3
0 out of 4 points

Characteristics of public goods and services include which of the following?


Answer Selected Answer:

The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units
4 out of 4 points

Correct Answer:

Question 4

A tax that is shifted backward is a tax that falls on


Answer Selected Answer:

The owners of resources in the form of lower resource prices


Correct Answer:

The owners of resources in the form of lower resource prices

Question 5
0 out of 4 points

In the US, major sources of tax revenues are:


Answer Selected Answer: Correct Answer:

Income taxes at the federal level and payroll taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 6
4 out of 4 points

An efficient level of government expenditures is that level where


Answer Selected Answer:

Marginal benefits are equal to marginal costs


Correct Answer:

Marginal benefits are equal to marginal costs

Question 7
4 out of 4 points

Vertical equity implies that


Answer Selected Answer:

People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Correct Answer:

Question 8
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the
Answer Selected Answer:

Personal income tax


Correct Answer:

Real property tax

Question 9
0 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is
Answer Selected Answer:

Greater than the benefit of the last dollar spent in the private sector
Correct Answer:

Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

At the federal level, the largest revenue generating tax is the


Answer Selected Answer:

Personal income tax


Correct Answer:

Personal income tax

Question 11
0 out of 4 points

A tax system that will not alter the distribution of income is


Answer Selected Answer:

Regressive
Correct Answer:

Proportional

Question 12
0 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income
Answer Selected Answer:

Falls as income rises


Correct Answer:

Remains the same as income rises

Question 13
0 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income
Answer Selected Answer:

Remains the same as income rises


Correct Answer:

Falls as income rises

Question 14
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be
Answer Selected Answer:

A tax levied on each unit produced greater than marginal external costs A subsidy on each unit consumed equal to marginal external benefits

Correct Answer:

Question 15
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a


Answer Selected Answer:

Transfer payment
Correct Answer:

Transfer payment

Question 16
4 out of 4 points

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines
Answer Selected Answer:

Private insurance
Correct Answer:

Private insurance

Question 17
4 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Substitution effect
Correct Answer:

Substitution effect

Question 18
0 out of 4 points

A person with health insurance will tend to


Answer Selected Answer:

Have a lower demand for health care services


Correct Answer:

Demand more health care services than a person without insurance

Question 19
0 out of 4 points

In a fee-for-service health care system, consumers pay the


Answer Selected Answer:

Prearranged, fixed fee for services they receive


Correct Answer:

Full cost of the services they receive

Question 20
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans
Answer Selected Answer:

Require less paper work


Correct Answer:

Typically require less cost sharing

Question 21
4 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to
Answer Selected Answer:

Raise Social Security taxes and/or lower benefits


Correct Answer:

Raise Social Security taxes and/or lower benefits

Question 22
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments

when I retire, I am exhibiting which of the following effects?


Answer Selected Answer:

Retirement
Correct Answer:

Wealth substitution

Question 23
0 out of 4 points

The cost of living adjustment (COLA) employed by Social Security is based on the
Answer Selected Answer:

Producer Price Index


Correct Answer:

Consumer Price Index

Question 24
0 out of 4 points

As originally designed, Social Security was to be financed as a


Answer Selected Answer:

Pure income transfer program


Correct Answer:

Fully-funded insurance program

Question 25
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Increased public support for health care


Correct Answer:

Health care inflation

Question 26
0 out of 4 points

How are payments to health care providers determined under a managed care system? By the
Answer Selected Answer:

Provider and the consumer


Correct Answer:

Insurance company and the provider

Question 27
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the
Answer

Selected Answer:

Threat of foreign workers entering the U.S. due to NAFTA


Correct Answer:

Population bulge created by the "baby boom" generation

Question 28
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A fee-for-service market principle


Correct Answer:

A prearranged schedule of fixed prices

Question 29
0 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

70
Correct Answer:

67

Question 30
4 out of 4 points

The most significant argument against privatizing Social Security is that


Answer Selected Answer:

Future benefits levels cannot be guaranteed


Correct Answer:

Future benefits levels cannot be guaranteed

Question 1
0 out of 4 points

An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 2
0 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes

Question 3
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 4
4 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises

Question 5
0 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good [None Given]

Question 6
0 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance [None Given]

Question 7
0 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service

Question 8
0 out of 4 points

Characteristics of public goods and services include which of the following? Answer

Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded Correct Answer: The supply of these goods and services is generally not divisible into small units

Question 9
0 out of 4 points

The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998

Question 10
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service

Question 11
4 out of 4 points

In the US, major sources of tax revenues are: Answer

Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 14
4 out of 4 points

An efficient level of government expenditures is that level at which Answer

Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized

Question 15
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax Correct Answer: Real property tax

Question 16
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices

Question 17
0 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer

Selected Answer: A fee-for-service system Correct Answer: A prospective payment system

Question 18
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 19
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation

Question 20
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States? Answer

Selected Answer: Hospitals Correct Answer: Hospitals

Question 21
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation

Question 22
0 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits

Question 23
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer:

Social Security Correct Answer: Social Security

Question 24
4 out of 4 points

How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider

Question 25
0 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system

Question 26
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care

Correct Answer: Typically require less cost sharing

Question 27
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution

Question 28
0 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs

Question 29
0 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Private insurance program

Correct Answer: Fully-funded insurance program

Question 30
0 out of 4 points

A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance

Sunday, September 8, 2013 11:51:43 AM EDT OK

Question 1
4 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 2
4 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer:

Government purchase of a service Correct Answer: Government purchase of a service

Question 3
4 out of 4 points

Vertical equity implies that Answer

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts

Question 4
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits

Question 5
4 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax

Question 6

0 out of 4 points

Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 7
4 out of 4 points

A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices

Question 8
0 out of 4 points

An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic

Question 9
4 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

In the US, major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 11
4 out of 4 points

An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized

Correct Answer: The net benefits to society are maximized

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
0 out of 4 points

The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002

Question 14
4 out of 4 points

An efficient level of government expenditures is that level where

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 15
4 out of 4 points

A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 16
0 out of 4 points

If a program's benefits are funded by interest earned on accumulated payments, it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme

Question 17
0 out of 4 points

The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program

Question 18
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 19
4 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 20

4 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution

Question 21
4 out of 4 points

Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.9% tax levied on wages and salaries Correct Answer: A 2.9% tax levied on wages and salaries

Question 22
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 23
0 out of 4 points

If people choose to work more hours because the Social Security tax reduces their real wage, their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect

Question 24
4 out of 4 points

The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 25
4 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing

Correct Answer: Typically require less cost sharing

Question 26
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 27
4 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs

Question 28
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer

Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 29
4 out of 4 points

A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 30
4 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States

Question 2
4 out of 4 points According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 3
4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998

Question 4
4 out of 4 points Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 5
4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance

Question 6
4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 7
4 out of 4 points In the US, major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 8
4 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected

Answer: Correct Answer:

The supply of these goods and services is generally not divisible into small units The supply of these goods and services is generally not divisible into small units

Question 9
4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 10
4 out of 4 points Vertical equity implies that Answer Selected Answer: Correct Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Question 11
4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 12
0 out of 4 points

The fears of people concerning the size of government are Answer Selected Answer: Due to low income and low educational levels of many people Correct Answer: Well-founded in some instances and not well-founded in some instances

Question 13
4 out of 4 points Tax equity means that Answer Selected Answer: Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 14
4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service

Question 15
4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes

Question 16

4 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Consumer Price Index Correct Answer: Consumer Price Index

Question 17
4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 18
4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 19
4 out of 4 points If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 20

4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 21
4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals

Question 22
4 out of 4 points The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: an added prescription drug benefit to the Medicare program Correct Answer: an added prescription drug benefit to the Medicare program

Question 23
4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 24

4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 25
4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer Selected Answer: A prospective payment system Correct Answer: A prospective payment system

Question 26
4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 27
4 out of 4 points As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Question 28
4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance

Question 29
4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation

Question 30
4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing

Sunday, September 8, 2013 7:39:38 PM EDT

Question 1
4 out of 4 points

An efficient level of government expenditures is that level at which


Answer Selected Answer:

The net benefits to society are maximized


Correct Answer:

The net benefits to society are maximized

Question 2
4 out of 4 points

The first budget surplus since 1969 occurred in


Answer Selected Answer:

1998
Correct Answer:

1998

Question 3
0 out of 4 points

Characteristics of public goods and services include which of the following?


Answer Selected Answer:

The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units
4 out of 4 points

Correct Answer:

Question 4

A tax that is shifted backward is a tax that falls on


Answer Selected Answer:

The owners of resources in the form of lower resource prices


Correct Answer:

The owners of resources in the form of lower resource prices

Question 5
0 out of 4 points

In the US, major sources of tax revenues are:


Answer Selected Answer: Correct Answer:

Income taxes at the federal level and payroll taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 6
4 out of 4 points

An efficient level of government expenditures is that level where


Answer Selected Answer:

Marginal benefits are equal to marginal costs


Correct Answer:

Marginal benefits are equal to marginal costs

Question 7
4 out of 4 points

Vertical equity implies that


Answer Selected Answer:

People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Correct Answer:

Question 8
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the
Answer Selected Answer:

Personal income tax


Correct Answer:

Real property tax

Question 9
0 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is
Answer Selected Answer:

Greater than the benefit of the last dollar spent in the private sector
Correct Answer:

Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

At the federal level, the largest revenue generating tax is the


Answer Selected Answer:

Personal income tax


Correct Answer:

Personal income tax

Question 11
0 out of 4 points

A tax system that will not alter the distribution of income is


Answer Selected Answer:

Regressive
Correct Answer:

Proportional

Question 12
0 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income
Answer Selected Answer:

Falls as income rises


Correct Answer:

Remains the same as income rises

Question 13
0 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income
Answer Selected Answer:

Remains the same as income rises


Correct Answer:

Falls as income rises

Question 14
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be
Answer Selected Answer:

A tax levied on each unit produced greater than marginal external costs A subsidy on each unit consumed equal to marginal external benefits

Correct Answer:

Question 15
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a


Answer Selected Answer:

Transfer payment
Correct Answer:

Transfer payment

Question 16
4 out of 4 points

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines
Answer Selected Answer:

Private insurance
Correct Answer:

Private insurance

Question 17
4 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Substitution effect
Correct Answer:

Substitution effect

Question 18
0 out of 4 points

A person with health insurance will tend to


Answer Selected Answer:

Have a lower demand for health care services


Correct Answer:

Demand more health care services than a person without insurance

Question 19
0 out of 4 points

In a fee-for-service health care system, consumers pay the


Answer Selected Answer:

Prearranged, fixed fee for services they receive


Correct Answer:

Full cost of the services they receive

Question 20
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans
Answer Selected Answer:

Require less paper work


Correct Answer:

Typically require less cost sharing

Question 21
4 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to
Answer Selected Answer:

Raise Social Security taxes and/or lower benefits


Correct Answer:

Raise Social Security taxes and/or lower benefits

Question 22
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments

when I retire, I am exhibiting which of the following effects?


Answer Selected Answer:

Retirement
Correct Answer:

Wealth substitution

Question 23
0 out of 4 points

The cost of living adjustment (COLA) employed by Social Security is based on the
Answer Selected Answer:

Producer Price Index


Correct Answer:

Consumer Price Index

Question 24
0 out of 4 points

As originally designed, Social Security was to be financed as a


Answer Selected Answer:

Pure income transfer program


Correct Answer:

Fully-funded insurance program

Question 25
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Increased public support for health care


Correct Answer:

Health care inflation

Question 26
0 out of 4 points

How are payments to health care providers determined under a managed care system? By the
Answer Selected Answer:

Provider and the consumer


Correct Answer:

Insurance company and the provider

Question 27
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the
Answer

Selected Answer:

Threat of foreign workers entering the U.S. due to NAFTA


Correct Answer:

Population bulge created by the "baby boom" generation

Question 28
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A fee-for-service market principle


Correct Answer:

A prearranged schedule of fixed prices

Question 29
0 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

70
Correct Answer:

67

Question 30
4 out of 4 points

The most significant argument against privatizing Social Security is that


Answer Selected Answer:

Future benefits levels cannot be guaranteed


Correct Answer:

Future benefits levels cannot be guaranteed

Question 1
0 out of 4 points

An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 2
0 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes

Question 3
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 4
4 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises

Question 5
0 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good [None Given]

Question 6
0 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance [None Given]

Question 7
0 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service

Question 8
0 out of 4 points

Characteristics of public goods and services include which of the following? Answer

Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded Correct Answer: The supply of these goods and services is generally not divisible into small units

Question 9
0 out of 4 points

The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998

Question 10
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service

Question 11
4 out of 4 points

In the US, major sources of tax revenues are: Answer

Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 14
4 out of 4 points

An efficient level of government expenditures is that level at which Answer

Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized

Question 15
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax Correct Answer: Real property tax

Question 16
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices

Question 17
0 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer

Selected Answer: A fee-for-service system Correct Answer: A prospective payment system

Question 18
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 19
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation

Question 20
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States? Answer

Selected Answer: Hospitals Correct Answer: Hospitals

Question 21
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation

Question 22
0 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits

Question 23
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer:

Social Security Correct Answer: Social Security

Question 24
4 out of 4 points

How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider

Question 25
0 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system

Question 26
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care

Correct Answer: Typically require less cost sharing

Question 27
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution

Question 28
0 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs

Question 29
0 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Private insurance program

Correct Answer: Fully-funded insurance program

Question 30
0 out of 4 points

A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance

Sunday, September 8, 2013 11:51:43 AM EDT OK

Question 1
4 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 2
4 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer:

Government purchase of a service Correct Answer: Government purchase of a service

Question 3
4 out of 4 points

Vertical equity implies that Answer

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts

Question 4
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits

Question 5
4 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax

Question 6

0 out of 4 points

Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 7
4 out of 4 points

A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices

Question 8
0 out of 4 points

An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic

Question 9
4 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

In the US, major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 11
4 out of 4 points

An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized

Correct Answer: The net benefits to society are maximized

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
0 out of 4 points

The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002

Question 14
4 out of 4 points

An efficient level of government expenditures is that level where

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 15
4 out of 4 points

A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 16
0 out of 4 points

If a program's benefits are funded by interest earned on accumulated payments, it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme

Question 17
0 out of 4 points

The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program

Question 18
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 19
4 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 20

4 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution

Question 21
4 out of 4 points

Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.9% tax levied on wages and salaries Correct Answer: A 2.9% tax levied on wages and salaries

Question 22
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 23
0 out of 4 points

If people choose to work more hours because the Social Security tax reduces their real wage, their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect

Question 24
4 out of 4 points

The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 25
4 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing

Correct Answer: Typically require less cost sharing

Question 26
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 27
4 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs

Question 28
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer

Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 29
4 out of 4 points

A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 30
4 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 14. The second 15 questions cover the material in Chapter 15. Be sure you are in the correct Chapter when you take the quiz.

Question 1
4 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 2
4 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service

Question 3
4 out of 4 points

Vertical equity implies that Answer

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts

Question 4
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits

Question 5
4 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax

Question 6

0 out of 4 points

Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 7
4 out of 4 points

A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices

Question 8
0 out of 4 points

An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic

Question 9
4 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

In the US, major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 11
4 out of 4 points

An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized

Correct Answer: The net benefits to society are maximized

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
0 out of 4 points

The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002

Question 14
4 out of 4 points

An efficient level of government expenditures is that level where

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 15
4 out of 4 points

A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 16
0 out of 4 points

If a program's benefits are funded by interest earned on accumulated payments, it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme

Question 17
0 out of 4 points

The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program

Question 18
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 19
4 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 20

4 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution

Question 21
4 out of 4 points

Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.9% tax levied on wages and salaries Correct Answer: A 2.9% tax levied on wages and salaries

Question 22
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 23
0 out of 4 points

If people choose to work more hours because the Social Security tax reduces their real wage, their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect

Question 24
4 out of 4 points

The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 25
4 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing

Correct Answer: Typically require less cost sharing

Question 26
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 27
4 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs

Question 28
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer

Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 29
4 out of 4 points

A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 30
4 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Review Test Submission: Week 11 Quiz 10


SKIP TO COURSE MENU SKIP TO TOP FRAME TABS Content

Course Econ Problems & Issues Test Week 11 Quiz 10 Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 14. The second 15 questions cover the material in Chapter 15. Be sure you are in the correct Chapter when you take the quiz.

Question 1
0 out of 4 points

An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 2
0 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes

Question 3
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 4
4 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises

Question 5
0 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good

[None Given]

Question 6
0 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: [None Given]

Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance

Question 7
0 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service

Question 8

0 out of 4 points

Characteristics of public goods and services include which of the following? Answer Selected Answer: Correct Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units

Question 9
0 out of 4 points

The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998

Question 10
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service

Question 11
4 out of 4 points

In the US, major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: Correct Answer: The values of people as to what constitutes a "fair" distribution of income

The values of people as to what constitutes a "fair" distribution of income

Question 13
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 14
4 out of 4 points

An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized

Question 15
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax

Correct Answer: Real property tax

Question 16
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices

Question 17
0 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer Selected Answer: A fee-for-service system Correct Answer: A prospective payment system

Question 18
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 19
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?

Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation

Question 20
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals

Question 21
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation

Question 22
0 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits

Question 23
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 24
4 out of 4 points

How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider

Question 25
0 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system

Question 26
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care Correct Answer: Typically require less cost sharing

Question 27

0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution

Question 28
0 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs

Question 29
0 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Private insurance program Correct Answer: Fully-funded insurance program

Question 30
0 out of 4 points

A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance

Sunday, September 8, 2013 11:51:43 AM EDT OK

Question 1
0 out of 4 points

Which group is responsible for announcing the dates for each phase of a U.S. business cycle? Answer Selected Answer: The Bureau of Labor Statistics Correct Answer: The National Bureau of Economic Research

Question 2
4 out of 4 points

When economic output hits a short-run economic low, the economy is in which phase of the business cycle? Answer Selected Answer: Trough Correct Answer: Trough

Question 3
4 out of 4 points

When the economy ends an expansion, it enters which phase of the business cycle? Answer Selected Answer: Peak Correct Answer: Peak

Question 4

4 out of 4 points

How has the increasing importance of the U.S. service sector contributed to the slowdown in economic growth? Answer Selected Answer: The productivity of the service sector is hard to accurately measure Correct Answer: The productivity of the service sector is hard to accurately measure

Question 5
4 out of 4 points

Which of the following terms is used to describe the purchase of capital? Answer Selected Answer: Investment Correct Answer: Investment

Question 6
4 out of 4 points

Which phase of the business cycle best describes an economy that is experiencing a positive rate of economic growth? Answer Selected Answer: Expansion Correct Answer: Expansion

Question 7
4 out of 4 points

Why does spending on capital tend to increase economic growth more than spending of consumption goods? Because Answer Selected Answer: Capital can be used to produce future goods and services Correct Answer: Capital can be used to produce future goods and services

Question 8
4 out of 4 points

Saving in an economy is important for economic growth because Answer Selected Answer: It is the source of funds for investment Correct Answer: It is the source of funds for investment

Question 9
4 out of 4 points

What is the "crowding out" effect? Answer Selected Answer: Correct Answer: Private investment is reduced because government borrowing diverts dollars away Private investment is reduced because government borrowing diverts dollars away

Question 10
4 out of 4 points

In response to an economic recession, monetary theories of the business cycle predict that the Federal Reserve would Answer Selected Answer: Increase the supply of money to create an expansion Correct Answer: Increase the supply of money to create an expansion

Question 11
4 out of 4 points

What was the first theory put forth by an economist to explain the phenomena of business cycles? Answer Selected Answer: Jevons' sunspot theory Correct Answer: Jevons' sunspot theory

Question 12
4 out of 4 points

The quantity of capital in the U.S. economy has grown at a rate ________ the growth in the labor force. Answer Selected Answer: Faster than Correct Answer: Faster than

Question 13
4 out of 4 points

Which of the following is the most commonly used measurement of economic growth? Changes in Answer Selected Answer: Real GDP Correct Answer: Real GDP

Question 14
4 out of 4 points

What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend? Answer Selected Answer: Business cycle Correct Answer: Business cycle

Question 15
4 out of 4 points

What are the two primary determinants of economic growth? Answer Selected Answer: The availability of resources and productivity factors Correct Answer: The availability of resources and productivity factors

Question 16
4 out of 4 points

When the Fed increases the money supply, it generally has the effect of Answer

Selected Answer: Lowering interest rates Correct Answer: Lowering interest rates

Question 17
4 out of 4 points

The equation of exchange is Answer Selected Answer: MV = PQ Correct Answer: MV = PQ

Question 18
4 out of 4 points

Excess reserves refer to Answer Selected Answer: Reserves over and above the bank's required reserves Correct Answer: Reserves over and above the bank's required reserves

Question 19
4 out of 4 points

Who controls the aggregate volume of demand deposits in the banking system? Answer Selected Answer: The Federal Reserve Board of Governors

Correct Answer: The Federal Reserve Board of Governors

Question 20
4 out of 4 points

The Federal Open Market Committee (FOMC) is highly concerned with Answer Selected Answer: Interest rates Correct Answer: Interest rates

Question 21
4 out of 4 points

Liquidity of an asset increases when Answer Selected Answer: It is easier to convert the asset into cash Correct Answer: It is easier to convert the asset into cash

Question 22
4 out of 4 points

Commercial banks Answer Selected Answer: Correct Answer: Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith Began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith

Question 23
4 out of 4 points

When you compare a dollar's worth of apples to a dollar's worth of oranges, money is serving which function? Answer Selected Answer: A measure of value Correct Answer: A measure of value

Question 24
0 out of 4 points

According to the equation of exchange, Answer Selected Answer: Correct Answer: The right-hand side will equal the left-hand side only if velocity does not change from year to year An increase in the quantity of money will lead to an increase in the price level, other things constant

Question 25
4 out of 4 points

Banks make loans from their Answer Selected Answer: Excess reserves Correct Answer: Excess reserves

Question 26

4 out of 4 points

When you use dollar bills to pay for a purchase at a store, money is serving which function? Answer Selected Answer: A medium of exchange Correct Answer: A medium of exchange

Question 27
4 out of 4 points

The quantity theory of money emphasizes Answer Selected Answer: Changes in the money supply Correct Answer: Changes in the money supply

Question 28
4 out of 4 points

A mortgage backed security is Answer Selected Answer: Correct Answer: A financial instrument that reduces risk by pooling together a large number of mortgages into one asset A financial instrument that reduces risk by pooling together a large number of mortgages into one asset

Question 29

4 out of 4 points

The interest rate on an adjustable rate mortgage (ARM) is Answer Selected Answer: Adjusted periodically based upon current market conditions Correct Answer: Adjusted periodically based upon current market conditions

Question 30
4 out of 4 points

A dividend Answer Selected Answer: Is a distribution of a corporations profits to stockholders Correct Answer: Is a distribution of a corporations profits to stockholders

Question 1
4 out of 4 points Which of the following is charged with enforcing the federal government's antidiscrimination laws? Answer Selected Answer: The EEOC Correct Answer: The EEOC

Question 2
4 out of 4 points Under the JTPA, the federal government gave money to states for programs that provided Answer Selected Answer: Employment training for disadvantaged workers Correct Answer: Employment training for disadvantaged workers

Question 3
4 out of 4 points Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training

Question 4
4 out of 4 points

A number of reasons have been given to explain increasing income inequality in the US over the last few decades. One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector

Question 5
4 out of 4 points Income support programs have Answer Selected Answer: Provided a minimum level of income to millions of people Correct Answer: Provided a minimum level of income to millions of people

Question 6
4 out of 4 points The incidence of poverty is highest among Answer Selected Answer: Families headed by a female Correct Answer: Families headed by a female

Question 7
4 out of 4 points Unlike the old AFDC program of income support, TANF requires recipients to Answer Selected Answer: Work Correct Answer:

Work

Question 8
4 out of 4 points According to recent studies, which of the following programs is most likely to pull the average poor family above the official poverty threshold? Answer Selected Answer: Earned Income Tax Credit (EITC) Correct Answer: Earned Income Tax Credit (EITC)

Question 9
4 out of 4 points Medicare, Medicaid, and Food Stamps are examples of programs that provide Answer Selected Answer: "in-kind" assistance to the poor Correct Answer: "in-kind" assistance to the poor

Question 10
4 out of 4 points An advantage of the negative income tax proposal is that Answer Selected Answer: Correct Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor

Question 11

4 out of 4 points Spending on education, training, and health are examples of Answer Selected Answer: Investments in human capital Correct Answer: Investments in human capital

Question 12
4 out of 4 points Critics have claimed that the EITC Answer Selected Answer: Correct Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility

Question 13
4 out of 4 points The official U.S. poverty definition is an income sufficient to provide Answer Selected Answer: Three times the cost of an economy food budget Correct Answer: Three times the cost of an economy food budget

Question 14
0 out of 4 points An advantage of replacing all income-support programs with a negative income tax is that Answer

Selected Answer: Correct Answer:

It discourages low-income workers from working more Households with income above the poverty threshold pay positive taxes

Question 15
4 out of 4 points Poverty in the US occurs as a result of Answer Selected Answer: Unequal distribution of income Correct Answer: Unequal distribution of income

4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States

Question 2
4 out of 4 points According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 3
4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998

Question 4
4 out of 4 points Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 5
4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance

Question 6
4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 7
4 out of 4 points In the US, major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 8
4 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected

Answer: Correct Answer:

The supply of these goods and services is generally not divisible into small units The supply of these goods and services is generally not divisible into small units

Question 9
4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 10
4 out of 4 points Vertical equity implies that Answer Selected Answer: Correct Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Question 11
4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 12
0 out of 4 points

The fears of people concerning the size of government are Answer Selected Answer: Due to low income and low educational levels of many people Correct Answer: Well-founded in some instances and not well-founded in some instances

Question 13
4 out of 4 points Tax equity means that Answer Selected Answer: Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 14
4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service

Question 15
4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes

Question 16

4 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Consumer Price Index Correct Answer: Consumer Price Index

Question 17
4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 18
4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 19
4 out of 4 points If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 20

4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 21
4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals

Question 22
4 out of 4 points The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: an added prescription drug benefit to the Medicare program Correct Answer: an added prescription drug benefit to the Medicare program

Question 23
4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 24

4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 25
4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer Selected Answer: A prospective payment system Correct Answer: A prospective payment system

Question 26
4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 27
4 out of 4 points As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Question 28
4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance

Question 29
4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation

Question 30
4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing

Sunday, September 8, 2013 7:39:38 PM EDT

Question 1
4 out of 4 points

An efficient level of government expenditures is that level at which


Answer Selected Answer:

The net benefits to society are maximized


Correct Answer:

The net benefits to society are maximized

Question 2
4 out of 4 points

The first budget surplus since 1969 occurred in


Answer Selected Answer:

1998
Correct Answer:

1998

Question 3
0 out of 4 points

Characteristics of public goods and services include which of the following?


Answer Selected Answer:

The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units
4 out of 4 points

Correct Answer:

Question 4

A tax that is shifted backward is a tax that falls on


Answer Selected Answer:

The owners of resources in the form of lower resource prices


Correct Answer:

The owners of resources in the form of lower resource prices

Question 5
0 out of 4 points

In the US, major sources of tax revenues are:


Answer Selected Answer: Correct Answer:

Income taxes at the federal level and payroll taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 6
4 out of 4 points

An efficient level of government expenditures is that level where


Answer Selected Answer:

Marginal benefits are equal to marginal costs


Correct Answer:

Marginal benefits are equal to marginal costs

Question 7
4 out of 4 points

Vertical equity implies that


Answer Selected Answer:

People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Correct Answer:

Question 8
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the
Answer Selected Answer:

Personal income tax


Correct Answer:

Real property tax

Question 9
0 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is
Answer Selected Answer:

Greater than the benefit of the last dollar spent in the private sector
Correct Answer:

Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

At the federal level, the largest revenue generating tax is the


Answer Selected Answer:

Personal income tax


Correct Answer:

Personal income tax

Question 11
0 out of 4 points

A tax system that will not alter the distribution of income is


Answer Selected Answer:

Regressive
Correct Answer:

Proportional

Question 12
0 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income
Answer Selected Answer:

Falls as income rises


Correct Answer:

Remains the same as income rises

Question 13
0 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income
Answer Selected Answer:

Remains the same as income rises


Correct Answer:

Falls as income rises

Question 14
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be
Answer Selected Answer:

A tax levied on each unit produced greater than marginal external costs A subsidy on each unit consumed equal to marginal external benefits

Correct Answer:

Question 15
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a


Answer Selected Answer:

Transfer payment
Correct Answer:

Transfer payment

Question 16
4 out of 4 points

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines
Answer Selected Answer:

Private insurance
Correct Answer:

Private insurance

Question 17
4 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Substitution effect
Correct Answer:

Substitution effect

Question 18
0 out of 4 points

A person with health insurance will tend to


Answer Selected Answer:

Have a lower demand for health care services


Correct Answer:

Demand more health care services than a person without insurance

Question 19
0 out of 4 points

In a fee-for-service health care system, consumers pay the


Answer Selected Answer:

Prearranged, fixed fee for services they receive


Correct Answer:

Full cost of the services they receive

Question 20
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans
Answer Selected Answer:

Require less paper work


Correct Answer:

Typically require less cost sharing

Question 21
4 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to
Answer Selected Answer:

Raise Social Security taxes and/or lower benefits


Correct Answer:

Raise Social Security taxes and/or lower benefits

Question 22
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments

when I retire, I am exhibiting which of the following effects?


Answer Selected Answer:

Retirement
Correct Answer:

Wealth substitution

Question 23
0 out of 4 points

The cost of living adjustment (COLA) employed by Social Security is based on the
Answer Selected Answer:

Producer Price Index


Correct Answer:

Consumer Price Index

Question 24
0 out of 4 points

As originally designed, Social Security was to be financed as a


Answer Selected Answer:

Pure income transfer program


Correct Answer:

Fully-funded insurance program

Question 25
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Increased public support for health care


Correct Answer:

Health care inflation

Question 26
0 out of 4 points

How are payments to health care providers determined under a managed care system? By the
Answer Selected Answer:

Provider and the consumer


Correct Answer:

Insurance company and the provider

Question 27
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the
Answer

Selected Answer:

Threat of foreign workers entering the U.S. due to NAFTA


Correct Answer:

Population bulge created by the "baby boom" generation

Question 28
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A fee-for-service market principle


Correct Answer:

A prearranged schedule of fixed prices

Question 29
0 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

70
Correct Answer:

67

Question 30
4 out of 4 points

The most significant argument against privatizing Social Security is that


Answer Selected Answer:

Future benefits levels cannot be guaranteed


Correct Answer:

Future benefits levels cannot be guaranteed

Question 1
0 out of 4 points

An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 2
0 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes

Question 3
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 4
4 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises

Question 5
0 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good [None Given]

Question 6
0 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance [None Given]

Question 7
0 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service

Question 8
0 out of 4 points

Characteristics of public goods and services include which of the following? Answer

Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded Correct Answer: The supply of these goods and services is generally not divisible into small units

Question 9
0 out of 4 points

The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998

Question 10
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service

Question 11
4 out of 4 points

In the US, major sources of tax revenues are: Answer

Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 14
4 out of 4 points

An efficient level of government expenditures is that level at which Answer

Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized

Question 15
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax Correct Answer: Real property tax

Question 16
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices

Question 17
0 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer

Selected Answer: A fee-for-service system Correct Answer: A prospective payment system

Question 18
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 19
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation

Question 20
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States? Answer

Selected Answer: Hospitals Correct Answer: Hospitals

Question 21
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation

Question 22
0 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits

Question 23
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer:

Social Security Correct Answer: Social Security

Question 24
4 out of 4 points

How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider

Question 25
0 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system

Question 26
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care

Correct Answer: Typically require less cost sharing

Question 27
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution

Question 28
0 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs

Question 29
0 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Private insurance program

Correct Answer: Fully-funded insurance program

Question 30
0 out of 4 points

A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance

Sunday, September 8, 2013 11:51:43 AM EDT OK

Question 1
4 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 2
4 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer:

Government purchase of a service Correct Answer: Government purchase of a service

Question 3
4 out of 4 points

Vertical equity implies that Answer

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts

Question 4
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits

Question 5
4 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax

Question 6

0 out of 4 points

Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 7
4 out of 4 points

A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices

Question 8
0 out of 4 points

An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic

Question 9
4 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

In the US, major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 11
4 out of 4 points

An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized

Correct Answer: The net benefits to society are maximized

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
0 out of 4 points

The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002

Question 14
4 out of 4 points

An efficient level of government expenditures is that level where

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 15
4 out of 4 points

A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 16
0 out of 4 points

If a program's benefits are funded by interest earned on accumulated payments, it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme

Question 17
0 out of 4 points

The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program

Question 18
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 19
4 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 20

4 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution

Question 21
4 out of 4 points

Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.9% tax levied on wages and salaries Correct Answer: A 2.9% tax levied on wages and salaries

Question 22
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 23
0 out of 4 points

If people choose to work more hours because the Social Security tax reduces their real wage, their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect

Question 24
4 out of 4 points

The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 25
4 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing

Correct Answer: Typically require less cost sharing

Question 26
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 27
4 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs

Question 28
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer

Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 29
4 out of 4 points

A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 30
4 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

4 out of 4 points Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States

Question 2
4 out of 4 points According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 3
4 out of 4 points The first budget surplus since 1969 occurred in Answer Selected Answer: 1998 Correct Answer: 1998

Question 4
4 out of 4 points Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 5
4 out of 4 points The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance

Question 6
4 out of 4 points An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 7
4 out of 4 points In the US, major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 8
4 out of 4 points Characteristics of public goods and services include which of the following? Answer Selected

Answer: Correct Answer:

The supply of these goods and services is generally not divisible into small units The supply of these goods and services is generally not divisible into small units

Question 9
4 out of 4 points Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 10
4 out of 4 points Vertical equity implies that Answer Selected Answer: Correct Answer: People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Question 11
4 out of 4 points A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 12
0 out of 4 points

The fears of people concerning the size of government are Answer Selected Answer: Due to low income and low educational levels of many people Correct Answer: Well-founded in some instances and not well-founded in some instances

Question 13
4 out of 4 points Tax equity means that Answer Selected Answer: Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 14
4 out of 4 points A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service

Question 15
4 out of 4 points Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes

Question 16

4 out of 4 points The cost of living adjustment (COLA) employed by Social Security is based on the Answer Selected Answer: Consumer Price Index Correct Answer: Consumer Price Index

Question 17
4 out of 4 points The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 18
4 out of 4 points The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 19
4 out of 4 points If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 20

4 out of 4 points The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 21
4 out of 4 points Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals

Question 22
4 out of 4 points The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: an added prescription drug benefit to the Medicare program Correct Answer: an added prescription drug benefit to the Medicare program

Question 23
4 out of 4 points A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 24

4 out of 4 points Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 25
4 out of 4 points If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer Selected Answer: A prospective payment system Correct Answer: A prospective payment system

Question 26
4 out of 4 points The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 27
4 out of 4 points As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Question 28
4 out of 4 points "An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance

Question 29
4 out of 4 points Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Health care inflation Correct Answer: Health care inflation

Question 30
4 out of 4 points A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing

Sunday, September 8, 2013 7:39:38 PM EDT

Question 1
4 out of 4 points

An efficient level of government expenditures is that level at which


Answer Selected Answer:

The net benefits to society are maximized


Correct Answer:

The net benefits to society are maximized

Question 2
4 out of 4 points

The first budget surplus since 1969 occurred in


Answer Selected Answer:

1998
Correct Answer:

1998

Question 3
0 out of 4 points

Characteristics of public goods and services include which of the following?


Answer Selected Answer:

The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units
4 out of 4 points

Correct Answer:

Question 4

A tax that is shifted backward is a tax that falls on


Answer Selected Answer:

The owners of resources in the form of lower resource prices


Correct Answer:

The owners of resources in the form of lower resource prices

Question 5
0 out of 4 points

In the US, major sources of tax revenues are:


Answer Selected Answer: Correct Answer:

Income taxes at the federal level and payroll taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 6
4 out of 4 points

An efficient level of government expenditures is that level where


Answer Selected Answer:

Marginal benefits are equal to marginal costs


Correct Answer:

Marginal benefits are equal to marginal costs

Question 7
4 out of 4 points

Vertical equity implies that


Answer Selected Answer:

People in different economic circumstances should pay different amounts People in different economic circumstances should pay different amounts

Correct Answer:

Question 8
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the
Answer Selected Answer:

Personal income tax


Correct Answer:

Real property tax

Question 9
0 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is
Answer Selected Answer:

Greater than the benefit of the last dollar spent in the private sector
Correct Answer:

Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

At the federal level, the largest revenue generating tax is the


Answer Selected Answer:

Personal income tax


Correct Answer:

Personal income tax

Question 11
0 out of 4 points

A tax system that will not alter the distribution of income is


Answer Selected Answer:

Regressive
Correct Answer:

Proportional

Question 12
0 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income
Answer Selected Answer:

Falls as income rises


Correct Answer:

Remains the same as income rises

Question 13
0 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income
Answer Selected Answer:

Remains the same as income rises


Correct Answer:

Falls as income rises

Question 14
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be
Answer Selected Answer:

A tax levied on each unit produced greater than marginal external costs A subsidy on each unit consumed equal to marginal external benefits

Correct Answer:

Question 15
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a


Answer Selected Answer:

Transfer payment
Correct Answer:

Transfer payment

Question 16
4 out of 4 points

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines
Answer Selected Answer:

Private insurance
Correct Answer:

Private insurance

Question 17
4 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the
Answer Selected Answer:

Substitution effect
Correct Answer:

Substitution effect

Question 18
0 out of 4 points

A person with health insurance will tend to


Answer Selected Answer:

Have a lower demand for health care services


Correct Answer:

Demand more health care services than a person without insurance

Question 19
0 out of 4 points

In a fee-for-service health care system, consumers pay the


Answer Selected Answer:

Prearranged, fixed fee for services they receive


Correct Answer:

Full cost of the services they receive

Question 20
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans
Answer Selected Answer:

Require less paper work


Correct Answer:

Typically require less cost sharing

Question 21
4 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to
Answer Selected Answer:

Raise Social Security taxes and/or lower benefits


Correct Answer:

Raise Social Security taxes and/or lower benefits

Question 22
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments

when I retire, I am exhibiting which of the following effects?


Answer Selected Answer:

Retirement
Correct Answer:

Wealth substitution

Question 23
0 out of 4 points

The cost of living adjustment (COLA) employed by Social Security is based on the
Answer Selected Answer:

Producer Price Index


Correct Answer:

Consumer Price Index

Question 24
0 out of 4 points

As originally designed, Social Security was to be financed as a


Answer Selected Answer:

Pure income transfer program


Correct Answer:

Fully-funded insurance program

Question 25
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?
Answer Selected Answer:

Increased public support for health care


Correct Answer:

Health care inflation

Question 26
0 out of 4 points

How are payments to health care providers determined under a managed care system? By the
Answer Selected Answer:

Provider and the consumer


Correct Answer:

Insurance company and the provider

Question 27
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the
Answer

Selected Answer:

Threat of foreign workers entering the U.S. due to NAFTA


Correct Answer:

Population bulge created by the "baby boom" generation

Question 28
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on
Answer Selected Answer:

A fee-for-service market principle


Correct Answer:

A prearranged schedule of fixed prices

Question 29
0 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of
Answer Selected Answer:

70
Correct Answer:

67

Question 30
4 out of 4 points

The most significant argument against privatizing Social Security is that


Answer Selected Answer:

Future benefits levels cannot be guaranteed


Correct Answer:

Future benefits levels cannot be guaranteed

Question 1
0 out of 4 points

An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 2
0 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes

Question 3
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 4
4 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises

Question 5
0 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good [None Given]

Question 6
0 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance [None Given]

Question 7
0 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service

Question 8
0 out of 4 points

Characteristics of public goods and services include which of the following? Answer

Selected Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded Correct Answer: The supply of these goods and services is generally not divisible into small units

Question 9
0 out of 4 points

The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998

Question 10
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service

Question 11
4 out of 4 points

In the US, major sources of tax revenues are: Answer

Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 14
4 out of 4 points

An efficient level of government expenditures is that level at which Answer

Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized

Question 15
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax Correct Answer: Real property tax

Question 16
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices

Question 17
0 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer

Selected Answer: A fee-for-service system Correct Answer: A prospective payment system

Question 18
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 19
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation

Question 20
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States? Answer

Selected Answer: Hospitals Correct Answer: Hospitals

Question 21
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation

Question 22
0 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits

Question 23
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer:

Social Security Correct Answer: Social Security

Question 24
4 out of 4 points

How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider

Question 25
0 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system

Question 26
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care

Correct Answer: Typically require less cost sharing

Question 27
0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution

Question 28
0 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs

Question 29
0 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Private insurance program

Correct Answer: Fully-funded insurance program

Question 30
0 out of 4 points

A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance

Sunday, September 8, 2013 11:51:43 AM EDT OK

Question 1
4 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 2
4 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer:

Government purchase of a service Correct Answer: Government purchase of a service

Question 3
4 out of 4 points

Vertical equity implies that Answer

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts

Question 4
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits

Question 5
4 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax

Question 6

0 out of 4 points

Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 7
4 out of 4 points

A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices

Question 8
0 out of 4 points

An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic

Question 9
4 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

In the US, major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 11
4 out of 4 points

An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized

Correct Answer: The net benefits to society are maximized

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
0 out of 4 points

The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002

Question 14
4 out of 4 points

An efficient level of government expenditures is that level where

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 15
4 out of 4 points

A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 16
0 out of 4 points

If a program's benefits are funded by interest earned on accumulated payments, it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme

Question 17
0 out of 4 points

The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program

Question 18
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 19
4 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 20

4 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution

Question 21
4 out of 4 points

Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.9% tax levied on wages and salaries Correct Answer: A 2.9% tax levied on wages and salaries

Question 22
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 23
0 out of 4 points

If people choose to work more hours because the Social Security tax reduces their real wage, their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect

Question 24
4 out of 4 points

The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 25
4 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing

Correct Answer: Typically require less cost sharing

Question 26
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 27
4 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs

Question 28
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer

Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 29
4 out of 4 points

A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 30
4 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution, the firm will treat pollution, rather than pay the tax, as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer:

Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer:

The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer:

Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction, the costs are Answer Selected Answer: Psychic costs Correct Answer:

Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer:

Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer:

Determine what the economic impact will be of making certain activities illegal Saturday, July 27, 2013 6:12:22 PM EDT

Question 1 4 out of 4 points 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? Answer Selected Answer: Both supply and demand increased Correct Answer: Both supply and demand increased Question 2 4 out of 4 points If a consumer always eats cheese with macaroni, then for that consumer macaroni and cheese are examples of: Answer Selected Answer: Complements Correct Answer: Complements Question 3 4 out of 4 points If an increase in the price of cookies leads to a decrease in the demand for ice cream, then ice cream and cookies must be Answer Selected Answer: Complements Correct Answer: Complements

Question 4

4 out of 4 points Two goods are said to be substitutes in consumption if Answer Selected Answer: An increase in the price of one leads to an increase in the demand for the other Correct Answer: An increase in the price of one leads to an increase in the demand for the other Question 5 4 out of 4 points As the baby boom generation continues to age, what will happen to the equilibrium price and quantity of homes in retirement communities? Answer Selected Answer: Price will increase, quantity will increase Correct Answer: Price will increase, quantity will increase Question 6 4 out of 4 points 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) Answer Selected Answer: Normal good Correct Answer: Normal good Question 7 4 out of 4 points Since 1990, foreign investment in China has Answer Selected Answer: Increased significantly Correct Answer: Increased significantly

Question 8 4 out of 4 points

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 be Answer Selected Answer: Inferior goods Correct Answer: Inferior goods Question 9 4 out of 4 points China can be best described as a Answer Selected Answer: Transitional economy Correct Answer: Transitional economy Question 10 4 out of 4 points If an increase in the price of bicycles leads to an increase in the demand for bus transportation, the bicycles and bus rides must be Answer Selected Answer: Substitutes Correct Answer: Substitutes Question 11 4 out of 4 points As consumer incomes rise, the demand curve for Good X shifts to the right. Given this, Good X must be Answer Selected Answer: A normal good Correct Answer: A normal good Question 12 4 out of 4 points

Which of the following will cause demand to rise? Answer Selected Answer: A decrease in the price of a complementary good Correct Answer: A decrease in the price of a complementary good Question 13 4 out of 4 points The Law of Demand suggests that Answer Selected Answer: The lower the price of a product, the more consumers will wish to purchase, other things equal Correct Answer: The lower the price of a product, the more consumers will wish to purchase, other things equal Question 14 4 out of 4 points The economy of the Peoples Republic of China operated as a command economy Answer Selected Answer: from 1949 until 1978 Correct Answer: from 1949 until 1978 Question 15 4 out of 4 points The Law of Demand states that price and Answer Selected Answer: Quantity demanded are negatively related Correct Answer: Quantity demanded are negatively related

Question 16 4 out of 4 points A maximum allowable price for a good or service is a

Answer Selected Answer: Price ceiling Correct Answer: Price ceiling Question 17 4 out of 4 points 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? Answer Selected Answer: The demand curve for labor has a negative slope resulting from declining marginal product Correct Answer: The demand curve for labor has a negative slope resulting from declining marginal product Question 18 0 out of 4 points Which effect dominates if a workers supply curve for labor is negatively sloped? Answer Selected Answer: Substitution Correct Answer: Income Question 19 0 out of 4 points 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? Answer Selected Answer: 5 Correct Answer: 2 Question 20 0 out of 4 points

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? Answer Selected Answer: 2 Correct Answer: 5

Question 21 0 out of 4 points A change in the hours of work that occurs in response to a wage change, other things equal, is known as the Answer Selected Answer: Supply of labor Correct Answer: Substitution effect Question 22 0 out of 4 points To be effective, a price ceiling must be set Answer Selected Answer: By the market Correct Answer: Below equilibrium Question 23 4 out of 4 points As of summer 2009, the U.S. federal minimum wage is set at what rate per hour? Answer Selected Answer: $7.25 Correct Answer: $7.25

Question 24 4 out of 4 points Price floors are often instituted for which of the following purposes? Answer

Selected Answer: To increase the income of sellers Correct Answer: To increase the income of sellers Question 25 4 out of 4 points Rent control laws will _____________ the search costs of potential renters. Answer Selected Answer: Increase Correct Answer: Increase Question 26 4 out of 4 points As the price of rental housing falls, which of the following occurs? Answer Selected Answer: The quantity demanded of housing increases Correct Answer: The quantity demanded of housing increases Question 27 4 out of 4 points One of the earliest known rent control laws was instituted in which city and when? Answer Selected Answer: Paris in the 1700s Correct Answer: Paris in the 1700s

Question 28 4 out of 4 points The marginal product of labor is the additional Answer

Selected Answer: Output produced as a result of hiring an additional worker Correct Answer: Output produced as a result of hiring an additional worker

Question 29 4 out of 4 points In a market economy, if the market supply of a product decreases relative to its demand, the products price will Answer Selected Answer: Rise Correct Answer: Rise Question 30 4 out of 4 points Which of the following represents the demand curve for labor for a firm? Answer Selected Answer: The MRP curve Correct Answer: The MRP curve

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Econ Problems & Issues Week 3 Quiz 2 7/19/13 7:57 PM 7/19/13 9:14 PM Completed 88 out of 120 points 1 hour, 16 minutes out of 2 hours. This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take choice questions. The first 15 Chapter 2. The second 15 Chapter 3. Be sure you are in the the quiz.

Question 1
4 out of 4 points

If an increase in the price of bicycles leads to an increase in the demand for bus transportation, the bicycles and bus rides must be Answer Selected Answer: Substitutes Correct Answer: Substitutes

Question 2
4 out of 4 points

As the baby boom generation continues to age, what will happen to the equilibrium price and quantity of homes in retirement communities? Answer Selected Answer: Price will increase, quantity will increase Correct Answer: Price will increase, quantity will increase

Question 3
0 out of 4 points

The Law of Demand states that price and Answer Selected Answer: Demand are negatively related Correct Answer: Quantity demanded are negatively related

Question 4
4 out of 4 points

The economy of the Peoples Republic of China operated as a command economy Answer Selected Answer: from 1949 until 1978 Correct Answer: from 1949 until 1978

Question 5
4 out of 4 points

China can be best described as a Answer Selected Answer: Transitional economy Correct Answer: Transitional economy

Question 6
4 out of 4 points

If a consumer always eats cheese with macaroni, then for that consumer macaroni and cheese are examples of: Answer Selected Answer: Complements Correct Answer: Complements

Question 7
4 out of 4 points

If an increase in the price of cookies leads to a decrease in the demand for ice cream, then ice cream and cookies must be Answer Selected Answer: Complements Correct Answer: Complements

Question 8
4 out of 4 points

Since 1990, foreign investment in China has Answer Selected Answer: Increased significantly Correct Answer: Increased significantly

Question 9
4 out of 4 points

The Law of Demand suggests that

Answer Selected Answer: Correct Answer: The lower the price of a product, the more consumers will wish to purchase, other things equal The lower the price of a product, the more consumers will wish to purchase, other things equal

Question 10
0 out of 4 points

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.? Answer Selected Answer: Correct Answer: An increase in the demand for domestic cars

A fall in the price of imported cars and increase in the price of domestics

Question 11
0 out of 4 points

Which of the following will cause demand to rise? Answer Selected Answer: A decrease in price Correct Answer: A decrease in the price of a complementary good

Question 12
0 out of 4 points

A technological advance in the production of computers will have what effect on the equilibrium price and quantity in the computer market? Answer Selected Answer: Price will increase, quantity will increase Correct Answer: Price will decrease, quantity will increase

Question 13
0 out of 4 points

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? Answer Selected Answer: Supply increased while demand remained unchanged Correct Answer: Both supply and demand increased

Question 14
4 out of 4 points

China's growth has been a result of Answer Selected Answer: Trade surpluses Correct Answer: Trade surpluses

Question 15
4 out of 4 points

As consumer incomes rise, the demand curve for Good X shifts to the right. Given this, Good X must be Answer

Selected Answer: A normal good Correct Answer: A normal good

Question 16
4 out of 4 points

One of the earliest known rent control laws was instituted in which city and when? Answer Selected Answer: Paris in the 1700s Correct Answer: Paris in the 1700s

Question 17
0 out of 4 points

Research suggests that as the minimum wage is increased by 10%, the associated increase in the teenage unemployment rate is nearly Answer Selected Answer: 10 percent Correct Answer: 1 percent

Question 18
4 out of 4 points

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 will Answer Selected Answer: Decline

Correct Answer: Decline

Question 19
4 out of 4 points

The additional revenue that accrues to a firm when an additional worker is hired is Answer Selected Answer: The marginal revenue product of labor Correct Answer: The marginal revenue product of labor

Question 20
4 out of 4 points

Which of the following groups most suffers the costs of minimum wage laws? Answer Selected Answer: Teenagers Correct Answer: Teenagers

Question 21
4 out of 4 points

The marginal product of labor is the additional Answer Selected Answer: Output produced as a result of hiring an additional worker Correct Answer: Output produced as a result of hiring an additional worker

Question 22

4 out of 4 points

The additional revenue a firm receives as a result of selling an additional unit of output is called Answer Selected Answer: Marginal revenue Correct Answer: Marginal revenue

Question 23
4 out of 4 points

As of summer 2009, the U.S. federal minimum wage is set at what rate per hour? Answer Selected Answer: $7.25 Correct Answer: $7.25

Question 24
4 out of 4 points

Rent control laws will _____________ the search costs of potential renters. Answer Selected Answer: Increase Correct Answer: Increase

Question 25
4 out of 4 points

Owners of rent controlled property may attempt to increase profits by Answer Selected Answer: Taking under-the-table payments Correct Answer: Taking under-the-table payments

Question 26
0 out of 4 points

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? Answer Selected Answer: 5 Correct Answer: 2

Question 27
4 out of 4 points

Price floors are often instituted for which of the following purposes? Answer Selected Answer: To increase the income of sellers Correct Answer: To increase the income of sellers

Question 28
4 out of 4 points

In a market economy, if the market supply of a product decreases relative to its demand, the product's price will Answer

Selected Answer: Rise Correct Answer: Rise

Question 29
4 out of 4 points

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? Answer Selected Answer: Substitution Correct Answer: Substitution

Question 30
0 out of 4 points

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? Answer Selected Answer: 10 Correct Answer: 5 Friday, July 19, 2013 9:14:16 PM EDT OK

Question 1
4 out of 4 points Schools in which parents or other groups were permitted to create a new school with state funding and were given control over operations are known as Answer Selected Answer: Charter schools Correct Answer: Charter schools

Question 2
4 out of 4 points What happens to the marginal benefit of education as a child gets more schooling? It will Answer Selected Answer: Decrease Correct Answer: Decrease

Question 3
4 out of 4 points If the earnings expected from a college education increase, it will lead to an increase in Answer Selected Answer: The demand for K-12 education Correct Answer: The demand for K-12 education

Question 4
4 out of 4 points In a purely private K-12 education system, spaces would be allocated based on

Answer Selected Answer: Income Correct Answer: Income

Question 5
4 out of 4 points With positive externalities in consumption, the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal

Question 6
4 out of 4 points A purely private K-12 system will lead to Answer Selected Answer: Increased inequality Correct Answer: Increased inequality

Question 7
4 out of 4 points A decrease in the cost of education will Answer Selected Answer: Increase the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education

Question 8
0 out of 4 points The current K-12 education system can be described as Answer Selected Answer: State owned Correct Answer: Centralized

Question 9
0 out of 4 points Approximately what percent of its GDP does the United States spend on education? Answer Selected Answer: 5.3 Correct Answer: 3.9

Question 10
4 out of 4 points In the existing public K-12 education system, spaces are allocated based on Answer Selected Answer: Geographic boundaries Correct Answer: Geographic boundaries

Question 11
4 out of 4 points To be socially optimal, education should be provided to the point where Answer

Selected Answer: MSB = MSC Correct Answer: MSB = MSC

Question 12
4 out of 4 points Which of the following will decrease the equilibrium quantity of education in a market? Answer Selected Answer: A decrease in the demand for education Correct Answer: A decrease in the demand for education

Question 13
4 out of 4 points Educated citizens are more likely to be informed voters. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 14
4 out of 4 points The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Inconsistent Correct Answer: Inconsistent

Question 15
4 out of 4 points The creation of new learning technologies will cause which of the following to decrease? Answer Selected Answer: The cost of education Correct Answer: The cost of education

Sunday, August 4, 2013 6:10:09 PM EDT

This quiz consist of 15 multiple choice questions and covers the material in Chapter 6. Be sure you are in Chapter 6 when you take the quiz. Question 1
0 out of 4 points

A decrease in the cost of education will


Answer Selected Answer:

Decrease the equilibrium quantity of education


Correct Answer:

Increase the equilibrium quantity of education

Question 2
0 out of 4 points

In the existing public K-12 education system, spaces are allocated based on
Answer Selected Answer:

Income
Correct Answer:

Geographic boundaries

Question 3
4 out of 4 points

The creation of new learning technologies will cause which of the following to decrease?
Answer Selected Answer:

The cost of education


Correct Answer:

The cost of education

Question 4
4 out of 4 points

I benefit because you become more educated. This is an example of a


Answer Selected Answer:

Positive externality in consumption


Correct Answer:

Positive externality in consumption

Question 5
0 out of 4 points

Which of the following happens as tuition increases?


Answer Selected Answer:

The demand for education decreases


Correct Answer:

The years of education demanded fall

Question 6
4 out of 4 points

In a purely private K-12 education system, spaces would be allocated based on


Answer Selected Answer:

Income
Correct Answer:

Income

Question 7
4 out of 4 points

To be socially optimal, education should be provided to the point where


Answer Selected Answer:

MSB = MSC
Correct Answer:

MSB = MSC

Question 8
4 out of 4 points

Schools in which parents or other groups were permitted to create a new school with state funding and were given control over operations are known as
Answer Selected Answer:

Charter schools
Correct Answer:

Charter schools

Question 9
4 out of 4 points

An increase in the marginal benefit of education will cause which of the following?
Answer Selected Answer:

The demand curve for education shifts right


Correct Answer:

The demand curve for education shifts right

Question 10
0 out of 4 points

About how much does the United States spend on education, per pupil?
Answer Selected Answer:

$8,000
Correct Answer:

$9,000

Question 11
0 out of 4 points

Education is said to be which of the following?


Answer Selected Answer:

Individually consumed
Correct Answer:

A semi-private good

Question 12
0 out of 4 points

Educated citizens are more likely to be informed voters. This is an example of a


Answer Selected Answer:

Positive externality in production


Correct Answer:

Positive externality in consumption

Question 13
0 out of 4 points

With positive externalities in consumption, the market equilibrium quantity will be


Answer Selected Answer:

Greater than socially optimal


Correct Answer:

Less than socially optimal

Question 14
0 out of 4 points

A purely private K-12 system will lead to


Answer Selected Answer:

Decreased racial segregation


Correct Answer:

Increased inequality

Question 15
0 out of 4 points

If the earnings expected from a college education increase, it will lead to an increase in
Answer Selected Answer:

The teacher salaries


Correct Answer:

The demand for K-12 education

Review Test Submission: Week 5 Quiz


Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 6. Be sure you are in Chapter 6 when you take the quiz.

Question 1
4 out of 4 points

Which of the following will decrease the equilibrium quantity of education in a market? Answer Selected Answer: A decrease in the demand for education Correct Answer: A decrease in the demand for education

Question 2
4 out of 4 points

In a purely private K-12 education system, spaces would be allocated based on Answer Selected Answer: Income Correct Answer: Income

Question 3
4 out of 4 points

Educated citizens are more likely to be informed voters. This is an example of a Answer Selected Answer: Positive externality in consumption

Correct Answer: Positive externality in consumption

Question 4
4 out of 4 points

A purely private K-12 system will lead to Answer Selected Answer: Increased inequality Correct Answer: Increased inequality

Question 5
4 out of 4 points

About how much does the United States spend on education, per pupil? Answer Selected Answer: $9,000 Correct Answer: $9,000

Question 6
0 out of 4 points

The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Positive Correct Answer: Inconsistent

Question 7
4 out of 4 points

Which of the following happens as tuition increases? Answer Selected Answer: The years of education demanded fall Correct Answer:

The years of education demanded fall

Question 8
0 out of 4 points

Students learn about health and nutrition in school. This provides a Answer Selected Answer: Positive externality in production Correct Answer: Positive externality in consumption

Question 9
4 out of 4 points

I benefit because you become more educated. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 10
4 out of 4 points

The supply of private education is represented by Answer Selected Answer: The MPC curve Correct Answer: The MPC curve

Question 11
0 out of 4 points

What is the relationship between school funding and student achievement? Answer Selected Answer: Mixed Correct Answer: Positive

Question 12
4 out of 4 points

A decrease in the cost of education will Answer Selected Answer: Increase the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education

Question 13
4 out of 4 points

An increase in the marginal benefit of education will cause which of the following? Answer Selected Answer: The demand curve for education shifts right Correct Answer: The demand curve for education shifts right

Question 14
4 out of 4 points

Education is said to be which of the following? Answer Selected Answer: A semi-private good Correct Answer: A semi-private good

Question 15
4 out of 4 points

With positive externalities in consumption, the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal
Sunday, August 4, 2013 1:57:24 PM EDT

OK

Instructions This quiz consist of 30 multiple questions cover the material in questions cover the material in correct Chapter when you take

choice questions. The first 15 Chapter 4. The second 15 Chapter 5. Be sure you are in the the quiz.

Question 1
4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Wastes are dumped into the environment at a higher rate than wastes are recycled

Question 2
0 out of 4 points As additional units of pollution control are added, at some point each additional unit adds Answer Selected Answer: Less than the previous unit to total costs Correct Answer: Less than the previous unit to total benefits

Question 3
4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Answer Selected Answer: Externality in production Correct Answer:

Externality in production

Question 4
0 out of 4 points Costs incurred by the producer for the use of self-owned resources are called Answer Selected Answer: Explicit costs Correct Answer: Implicit costs

Question 5
0 out of 4 points Which of the following creates a positive externality in consumption? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Vaccinations

Question 6
4 out of 4 points Pollution rights markets Answer Selected Answer: Have been used to reduce sulfur dioxide emissions Correct Answer: Have been used to reduce sulfur dioxide emissions

Question 7
4 out of 4 points

Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good

Question 8
4 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination For each unit of pollution, the cost of clean-up is less than the benefit from its elimination

Question 9
4 out of 4 points The term "marginal social benefit" means Answer Selected Answer: Correct Answer: The change in total social benefits per unit change in the amount of the activity The change in total social benefits per unit change in the amount of the activity

Question 10
4 out of 4 points When MPC is less than MSC, Answer Selected Answer:

Firms will tend to produce more than is socially optimal Correct Answer: Firms will tend to produce more than is socially optimal

Question 11
0 out of 4 points Human production processes do not include which of the following services? Answer Selected Answer: Recycling of waste materials, such as chemical wastes Correct Answer: Technological advances in production

Question 12
4 out of 4 points Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer: The environment is collectively consumed

Question 13
4 out of 4 points If a pollution tax is placed on a firm emitting pollution, the firm will treat pollution, rather than pay the tax, as long as the tax is Answer Selected Answer: Above its MPC of pollution control Correct Answer: Above its MPC of pollution control

Question 14

4 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Charge each polluter a fixed amount for each unit of pollutant dumped into the river

Question 15
4 out of 4 points For a tax on pollution to be effective, it must be Answer Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution

Question 16
4 out of 4 points Job training programs, remedial education courses, and recreational activities might lead to reduced crime rates in depressed areas by Answer Selected Answer: Increasing the opportunity costs of committing crimes Correct Answer: Increasing the opportunity costs of committing crimes

Question 17
4 out of 4 points Police officers should be hired up to the point where

Answer Selected Answer: Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her

The benefit of the last officer hired is just equal to what its cost to hire her

Question 18
4 out of 4 points Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense

Question 19
4 out of 4 points If a law is passed making it illegal for unlicensed barbers to cut hair, which of the following will result? Answer Selected Answer: Higher priced haircuts Correct Answer: Higher priced haircuts

Question 20
4 out of 4 points When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income

Correct Answer: Psychic income

Question 21
4 out of 4 points Aggravated assault is an example of a(n) Answer Selected Answer: Violent crime Correct Answer: Violent crime

Question 22
4 out of 4 points Economics explains the decision to participate in criminal activities most often in the case of Answer Selected Answer: Trafficking in illegal substances Correct Answer: Trafficking in illegal substances

Question 23
4 out of 4 points Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment

Question 24

4 out of 4 points Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system

Question 25
4 out of 4 points If you are willing to take a pay cut to live near a ski resort, the ski resort provides you with Answer Selected Answer: Psychic benefits Correct Answer: Psychic benefits

Question 26
4 out of 4 points Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer: Crime against property

Question 27
4 out of 4 points In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds

of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime

Question 28
4 out of 4 points An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies

Question 29
4 out of 4 points If society receives no additional benefit from increasing crime prevention activities, the MSB of crime prevention Answer Selected Answer: Equals 0 Correct Answer: Equals 0

Question 30
4 out of 4 points An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSB is greatest Correct Answer: MSB is greatest

Sunday, July 28, 2013 6:19:25 PM EDT

Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution, the firm will treat pollution, rather than pay the tax, as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer:

Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer:

The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer:

Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction, the costs are Answer Selected Answer: Psychic costs Correct Answer:

Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer:

Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer:

Determine what the economic impact will be of making certain activities illegal Saturday, July 27, 2013 6:12:22 PM EDT

Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution, the firm will treat pollution, rather than pay the tax, as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer:

Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer:

The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer:

Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction, the costs are Answer Selected Answer: Psychic costs Correct Answer:

Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer:

Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer:

Determine what the economic impact will be of making certain activities illegal Saturday, July 27, 2013 6:12:22 PM EDT

4 out of 4 points

Income support programs have Answer Selected Answer: Provided a minimum level of income to millions of people Correct Answer: Provided a minimum level of income to millions of people

Question 2
4 out of 4 points

In 1996, the Personal Responsibility and Work Opportunity Act established which of the following programs? Answer Selected Answer: Temporary Assistance for Needy Families (TANF) Correct Answer: Temporary Assistance for Needy Families (TANF)

Question 3
4 out of 4 points

A number of reasons have been given to explain increasing income inequality in the US over the last few decades. One of these is Answer Selected Answer: The decline of the US manufacturing sector Correct Answer: The decline of the US manufacturing sector

Question 4
4 out of 4 points

The Supplemental Social Insurance (SSI) program is not available to Answer Selected Answer: Households comprised of illegal residents Correct Answer: Households comprised of illegal residents

Question 5
4 out of 4 points

Most federal assistance to the poor is in the form of Answer Selected Answer: Cash payments Correct Answer: Cash payments

Question 6
4 out of 4 points

Discrimination is indicated when Answer Selected Answer: People having equal productivity receive unequal pay Correct Answer: People having equal productivity receive unequal pay

Question 7
4 out of 4 points

An advantage of replacing all income-support programs with a negative income tax is that Answer Selected Answer: Households with income above the poverty threshold pay positive taxes Correct Answer: Households with income above the poverty threshold pay positive taxes

Question 8
4 out of 4 points

An advantage of the negative income tax proposal is that Answer Selected Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor Correct Answer: Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor

Question 9
4 out of 4 points

The major piece of legislation that makes it illegal to discriminate in the labor market on the basis of race, gender, or religion is the Answer

Selected Answer: Civil Rights Act of 1964 Correct Answer: Civil Rights Act of 1964

Question 10
4 out of 4 points

Critics have claimed that the EITC Answer Selected Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility Correct Answer: Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility

Question 11
4 out of 4 points

According to recent studies, which of the following programs is most likely to pull the average poor family above the official poverty threshold? Answer Selected Answer: Earned Income Tax Credit (EITC) Correct Answer: Earned Income Tax Credit (EITC)

Question 12
4 out of 4 points

Skill levels vary among individuals because of Answer Selected Answer: Differences in education and training Correct Answer: Differences in education and training

Question 13
4 out of 4 points

Which of the following is charged with enforcing the federal government's antidiscrimination laws? Answer Selected Answer: The EEOC Correct Answer: The EEOC

Question 14
4 out of 4 points

Ending discrimination against minority groups in educational processes and in employment situations would cause GDP to Answer Selected Answer: Rise because of an increase in the quality and productivity of the labor force Correct Answer: Rise because of an increase in the quality and productivity of the labor force

Question 15
4 out of 4 points

A government transfer payment is a payment Answer Selected Answer: To a person NOT in return for goods or services Correct Answer: To a person NOT in return for goods or services Monday, August 12, 2013 3:10:59 PM EDT

This quiz consist of 15 multiple choice questions and covers the material in Chapter 6. Be sure you are in Chapter 6 when you take the quiz. Question 1
4 out of 4 points

Students learn about health and nutrition in school. This provides a


Answer Selected Answer:

Positive externality in consumption


Correct Answer:

Positive externality in consumption

Question 2
4 out of 4 points

The current K-12 education system can be described as


Answer Selected Answer:

Centralized
Correct Answer:

Centralized

Question 3
4 out of 4 points

What happens to the marginal benefit of education as a child gets more schooling? It will
Answer Selected Answer:

Decrease
Correct Answer:

Decrease

Question 4
4 out of 4 points

In 2003, approximately what percent of school aged children attended public schools?
Answer Selected Answer:

90%
Correct Answer:

90%

Question 5
4 out of 4 points

Education is said to be which of the following?


Answer Selected Answer:

A semi-private good
Correct Answer:

A semi-private good

Question 6
4 out of 4 points

About how much does the United States spend on education, per pupil?
Answer Selected Answer:

$9,000
Correct Answer:

$9,000

Question 7
4 out of 4 points

In the existing public K-12 education system, spaces are allocated based on
Answer Selected Answer:

Geographic boundaries
Correct Answer:

Geographic boundaries

Question 8
4 out of 4 points

A program to provide public funding for students in poor performing public schools to attend other schools is known as
Answer Selected Answer:

A voucher program
Correct Answer:

A voucher program

Question 9
4 out of 4 points

The supply of private education is represented by


Answer Selected Answer:

The MPC curve


Correct Answer:

The MPC curve

Question 10
4 out of 4 points

I benefit because you become more educated. This is an example of a


Answer Selected Answer:

Positive externality in consumption


Correct Answer:

Positive externality in consumption

Question 11
4 out of 4 points

The empirical evidence of the effectiveness of voucher programs is best described as


Answer Selected Answer:

Inconsistent
Correct Answer:

Inconsistent

Question 12
4 out of 4 points

What is the relationship between school funding and student achievement?


Answer Selected Answer:

Positive
Correct Answer:

Positive

Question 13
4 out of 4 points

Approximately what percent of its GDP does the United States spend on education?
Answer Selected Answer:

3.9
Correct Answer:

3.9

Question 14
4 out of 4 points

Educated citizens are more likely to be informed voters. This is an example of a


Answer Selected Answer:

Positive externality in consumption


Correct Answer:

Positive externality in consumption

Question 15
4 out of 4 points

An increase in the demand for education will


Answer Selected Answer:

Increase the equilibrium quantity of education


Correct Answer:

Increase the equilibrium quantity of education

Review Test Submission: Week 5 Quiz


Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 6. Be sure you are in Chapter 6 when you take the quiz.

Question 1
4 out of 4 points

Which of the following will decrease the equilibrium quantity of education in a market? Answer Selected Answer: A decrease in the demand for education Correct Answer: A decrease in the demand for education

Question 2
4 out of 4 points

In a purely private K-12 education system, spaces would be allocated based on Answer Selected Answer: Income Correct Answer: Income

Question 3
4 out of 4 points

Educated citizens are more likely to be informed voters. This is an example of a Answer Selected Answer: Positive externality in consumption

Correct Answer: Positive externality in consumption

Question 4
4 out of 4 points

A purely private K-12 system will lead to Answer Selected Answer: Increased inequality Correct Answer: Increased inequality

Question 5
4 out of 4 points

About how much does the United States spend on education, per pupil? Answer Selected Answer: $9,000 Correct Answer: $9,000

Question 6
0 out of 4 points

The empirical evidence of the effectiveness of voucher programs is best described as Answer Selected Answer: Positive Correct Answer: Inconsistent

Question 7
4 out of 4 points

Which of the following happens as tuition increases? Answer Selected Answer: The years of education demanded fall Correct Answer:

The years of education demanded fall

Question 8
0 out of 4 points

Students learn about health and nutrition in school. This provides a Answer Selected Answer: Positive externality in production Correct Answer: Positive externality in consumption

Question 9
4 out of 4 points

I benefit because you become more educated. This is an example of a Answer Selected Answer: Positive externality in consumption Correct Answer: Positive externality in consumption

Question 10
4 out of 4 points

The supply of private education is represented by Answer Selected Answer: The MPC curve Correct Answer: The MPC curve

Question 11
0 out of 4 points

What is the relationship between school funding and student achievement? Answer Selected Answer: Mixed Correct Answer: Positive

Question 12
4 out of 4 points

A decrease in the cost of education will Answer Selected Answer: Increase the equilibrium quantity of education Correct Answer: Increase the equilibrium quantity of education

Question 13
4 out of 4 points

An increase in the marginal benefit of education will cause which of the following? Answer Selected Answer: The demand curve for education shifts right Correct Answer: The demand curve for education shifts right

Question 14
4 out of 4 points

Education is said to be which of the following? Answer Selected Answer: A semi-private good Correct Answer: A semi-private good

Question 15
4 out of 4 points

With positive externalities in consumption, the market equilibrium quantity will be Answer Selected Answer: Less than socially optimal Correct Answer: Less than socially optimal
Sunday, August 4, 2013 1:57:24 PM EDT

OK

Every high-level computer programming language contains a while statement. Answer True False It is the programmers responsibility to initialize all variables that must start with a specific value. Answer True False

A(n) ____ is very similar to a counter that you use to count loop iterations, except that you usually add a value other than one to this type of variable. Answer transaction total validator accumulator The ____ loop provides three actions in one compact statement. Answer
for while do until repeat

Loops are frequently used to ____; that is, to make sure it is meaningful and useful. Answer validate data restructure data simulate data corroborate data A mistake programmers often make with loops is that they ____. Answer

initialize the loop control variable prior to entering the loop body increment the loop control variable inside of the loop body include statements inside the loop that belong outside the loop enclose the inner loop entirely within the outer loop in a nested loop The amount by which a for loop control variable changes is often called a(n) ____ value. Answer group key step sentinel You usually use the for loop with ____ loops. Answer indefinite definite inner outer ____ a data item means you override incorrect data by setting the variable to a specific value. Answer Flexing Tracing Forcing Blanking Business reports that list only totals, with no individual item details, are called ____. Answer detail reports summary reports transaction reports control-break reports The last step in a while loop is usually to ____. Answer compare the loop control variable to a constant value initialize the loop control variable increment the loop control variable

execute the body of the loop A(n) ____ loop executes a predetermined number of times. Answer terminal definite indefinite infinite

A(n) ____ is any numeric variable you use to count the number of times an event has occurred. Answer accumulator key index counter Many loop control variable values are altered by ____, or adding to them. Answer incrementing decrementing accumulating deprecating Programmers use the term ____ to describe programs that are well designed and easy to understand and maintain. Answer industrial intractable well-behaved elegant
What is a step value? The amount by which a for loop control variable changes is often called a step value. The step value can be positive or negative; that is, it can increment or decrement. What is an advantage of using fewer instructions?

Using fewer instructions not only results in less time required for design and coding, but in less compile time and reduced errors. How might user data be validated? Loops are used in many applications - for example, to accumulate totals in business reports. Loops are also used to ensure that user data entries are valid by continuously reprompting the user. What is an accumulator? To create the sales report, you must output the address and price for each property sold and add its value to an accumulator. An accumulator is a variable that you use to gather or accumulate values. An accumulator is very similar to a counter that you use to count loop iterations.

What are common mistakes made by programmers in coding loops? The mistakes programmers most often make with loops are: Neglecting to initialize the loop control variable Neglecting to alter the loop control variable Using the wrong comparison with the loop control variable Including statements inside the loop that belong outside the loop

1 out of 1 points Every high-level computer programming language contains a while statement. Answer Selected Answer: True Correct Answer: True

Question 2
1 out of 1 points It is the programmers responsibility to initialize all variables that must start with a specific value. Answer Selected Answer: True Correct Answer: True

Question 3
1 out of 1 points A(n) ____ is very similar to a counter that you use to count loop iterations, except that you usually add a value other than one to this type of variable. Answer Selected Answer: accumulator Correct Answer: accumulator

Question 4
1 out of 1 points The ____ loop provides three actions in one compact statement. Answer Selected Answer:
for

Correct Answer:
for

Question 5
1 out of 1 points Loops are frequently used to ____; that is, to make sure it is meaningful and useful. Answer Selected Answer: validate data Correct Answer: validate data

Question 6
1 out of 1 points A mistake programmers often make with loops is that they ____. Answer Selected Answer: include statements inside the loop that belong outside the loop

Correct Answer: include statements inside the loop that belong outside the loop

Question 7
1 out of 1 points The amount by which a for loop control variable changes is often called a(n) ____ value. Answer Selected Answer: step Correct Answer: step

Question 8
1 out of 1 points You usually use the for loop with ____ loops. Answer Selected Answer: definite Correct Answer: definite

Question 9
1 out of 1 points ____ a data item means you override incorrect data by setting the variable to a specific value. Answer Selected Answer: Forcing Correct Answer: Forcing

Question 10
1 out of 1 points

Business reports that list only totals, with no individual item details, are called ____. Answer Selected Answer: summary reports Correct Answer: summary reports

Question 11
1 out of 1 points The last step in a while loop is usually to ____. Answer Selected Answer: increment the loop control variable Correct Answer: increment the loop control variable

Question 12
1 out of 1 points A(n) ____ loop executes a predetermined number of times. Answer Selected Answer: definite Correct Answer: definite

Question 13
1 out of 1 points A(n) ____ is any numeric variable you use to count the number of times an event has occurred. Answer Selected Answer: counter Correct Answer: counter

Question 14
1 out of 1 points Many loop control variable values are altered by ____, or adding to them. Answer Selected Answer: incrementing Correct Answer: incrementing

Question 15
1 out of 1 points Programmers use the term ____ to describe programs that are well designed and easy to understand and maintain. Answer Selected Answer: elegant Correct Answer: elegant

Question 16
Needs Grading What is a step value? Answer Selected The amount by which a for loop control variable changes is often called a Answer: step value. The step value can be positive or negative; that is, it can increment or decrement. Correct Answer: The amount by which a for loop control variable changes is often called a step value. The step value can be positive or negative; that is, it can increment or decrement. Response Feedback: [None Given]

Question 17

Needs Grading What is an advantage of using fewer instructions? Answer Selected Using fewer instructions not only results in less time required for design Answer: and coding, but in less compile time and reduced errors. Correct Answer: Using fewer instructions not only results in less time required for design and coding, but in less compile time and reduced errors. Response Feedback: [None Given]

Question 18
Needs Grading How might user data be validated? Answer Selected Loops are used in many applications - for example, to accumulate totals in Answer: business reports. Loops are also used to ensure that user data entries are valid by continuously reprompting the user. Correct Answer: When you ask a user to enter data into a computer program, you have no assurance that the data the user enters will be accurate. Loops are frequently used to validate data; that is, to make sure it falls within an acceptable range. For example, suppose part of a program you are writing asks a user to enter a number that represents his or her birth month. If the user types a number lower than 1 or greater than 12, you must take some sort of action. For example: You could display an error message and stop the program. You could choose to assign a default value for the month, for example 1, before proceeding. You could reprompt the user for valid input. Response Feedback: [None Given]

Question 19
Needs Grading What is an accumulator? Answer

Selected Answer:

To create the sales report, you must output the address and price for each property sold and add its value to an accumulator. An accumulator is a variable that you use to gather or accumulate values. An accumulator is very similar to a counter that you use to count loop iterations. An accumulator is a variable that you use to gather or accumulate values. An accumulator is very similar to a counter that you use to count loop iterations. However, usually you add just one to a counter, whereas you add some other value to an accumulator. [None Given]

Correct Answer:

Response Feedback:

Question 20
Needs Grading What are common mistakes made by programmers in coding loops? Answer Selected Answer: The mistakes programmers most often make with loops are: Neglecting to initialize the loop control variable Neglecting to alter the loop control variable Using the wrong comparison with the loop control variable Including statements inside the loop that belong outside the loop Correct Answer: Neglecting to initialize the loop control variable Neglecting to alter the loop control variable Using the wrong comparison with the loop control variable Including statements inside the loop that belong outside the loop

Question 1
0 out of 1 points Many newer programming languages such as C++, Java, and C# use the bracket notation for arrays. Answer Selected Answer: False Correct Answer: True

Question 2
1 out of 1 points Named ____ hold values that do not change during a programs execution. Answer Selected Answer: constants Correct Answer: constants

Question 3
1 out of 1 points The number of elements in an array is called the ____ of the array. Answer Selected Answer: size Correct Answer: size

Question 4
1 out of 1 points Array elements all have the same ____ in common. Answer Selected Answer: data type Correct Answer: data type

Question 5
1 out of 1 points All array elements have the same group ____. Answer Selected Answer: name Correct Answer: name

Question 6
1 out of 1 points In every programming language, when you access data stored in an array, it is important to use a ____ containing a value that accesses memory occupied by the array. Answer Selected Answer: subscript Correct Answer: subscript

Question 7
1 out of 1 points If you declare a variable to be Boolean, you can set its value to ____. Answer Selected Answer: true or false Correct Answer: true or false

Question 8
1 out of 1 points Parallel arrays are most useful when value pairs have a(n) ____ relationship. Answer Selected Answer: indirect

Correct Answer: indirect

Question 9
1 out of 1 points An array can be used to replace ____. Answer Selected Answer: nested decisions Correct Answer: nested decisions

Question 10
Needs Grading What is an advantage of using an array to match a value in a range of values? Answer Selected When you need to compare a value to a range of values in an array, you can Answer: store either the low- or high-end value of each range for comparison. To perform a range check, make comparisons with either the lowest or highest value in each range of values you are using. Common errors that occur when programmers perform range checks include asking unnecessary and previously answered questions.

Correct Answer:

When using an array to store range limits, you use a loop to make a series of comparisons that would otherwise require many separate decisions. The program that determines customer discount rates is written using fewer instructions than would be required if you did not use an array, and modifications to your method will be easier to make in the future.

Response [None Given] Feedback:

Question 11
Needs Grading

What happens when a beginning programmer forgets that array subscripts start with 0? Answer Selected A common error by beginning programmers is to forget that array Answer: subscripts start with 0. If you assume that an arrays rst subscript is 1, you will always be off by one in your array manipulation.

Correct Answer:

A common error by beginning programmers is to forget that array subscripts start with 0. If you assume that an arrays first subscript is 1, you will always be off by one in your array manipulation. [None Given]

Response Feedback:

Question 12
1 out of 1 points You can easily merge files even if each file contains a different record layout. Answer Selected Answer: False Correct Answer: False

Question 13
1 out of 1 points When you copy data from a file on a storage device into RAM, you ____ from the file. Answer Selected Answer: read Correct Answer: read

Question 14
1 out of 1 points ____ involves combining two or more files while maintaining the sequential order. Answer Selected Answer:

Merging files Correct Answer: Merging files

Question 15
1 out of 1 points ____ is processing that involves performing the same tasks with many records, one after the other. Answer Selected Answer: Batch processing Correct Answer: Batch processing

Question 16
1 out of 1 points When you write a program that stores a value in a variable, you are using ____ storage. Answer Selected Answer: temporary Correct Answer: temporary

Question 17
1 out of 1 points ____ is not lost when a computer loses power. Answer Selected Answer: Permanent storage Correct Answer: Permanent storage

Question 18
Needs Grading

Explain the difference in how programmers use the words print, write, and display. Answer Selected Logically, the verbs print, write, and display means the same thing all Answer: produce output. However, in conversation, programmers usually reserve the word print for situations in which they mean produce hard copy output. Programmers are more likely to use write when talking about sending records to a data le, and display when sending records to a monitor. In some programming languages, there is no difference in the verb you use for output, no matter what type of hardware you use; you simply assign different output devices (such as printers, monitors, and disk drives) as needed to programmer-named objects that represent them.

Correct Answer:

Logically, the verbs print, write, and display mean the same thing all produce output. However, in conversation, programmers usually reserve the word print for situations in which they mean produce hard copy output. Programmers are more likely to use write when talking about sending records to a data file, and display when sending records to a monitor. In some programming languages, there is no difference in the verb you use for output, no matter what type of hardware you use; you simply assign different output devices (such as printers, monitors, and disk drives) as needed to programmer-named objects that represent them.

Response [None Given] Feedback:

Question 19
Needs Grading Discuss text files and binary files. Answer Selected Text files, which contain data that can be read in a text editor because the Answer: data has been encoded using a scheme such as ASCII or Unicode. Text les might include facts and gures used by business programs, such as a payroll le that contains employee numbers, names, and salaries. Th e programs in this chapter will use text les. Binary files, which contain data that has not been encoded as text. Examples include images and music.

Correct Answer:

Text files contain data that can be read in a text editor because the data has

been encoded using a scheme such as ASCII or Unicode. Text files might include facts and figures used by business programs, such as a payroll file that contains employee numbers, names, and salaries. Binary files contain data that has not been encoded as text. Examples include images and music. Response Feedback:

[None Given]

Question 20
Needs Grading How do you merge two alphabetically ordered input files into a new output file when you wish the output file to be in alphabetical order? Answer Selected Before you can easily merge les, two conditions must be met: Answer: o Each le must contain the same record layout. o Each le used in the merge must be sorted in the same order (ascending or descending) based on the same eld. For example, suppose your business has two locations, one on the East Coast and one on the West Coast, and each location maintains a customer le in alphabetical order by customer name. Each le contains elds for name and customer balance. You can call the elds in the East Coast le eastName and eastBalance, and the elds in the West Coast le westName and westBalance. You want to merge the two les, creating one combined le containing records for all customers.

Correct Answer:

Because the two input files contain records stored in alphabetical order, and you want the new file to store records in alphabetical order, you first output the input record that has the lower alphabetical value in the name field.

Response [None Given] Feedback: Tuesday, August 6, 2013 7:38:15 PM EDT

Review Test Submission: Week 7 Quiz 6


SKIP TO COURSE MENU SKIP TO TOP FRAME TABS

Content

Course Econ Problems & Issues Test Week 7 Quiz 6 Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 8. The second 15 questions cover the material in Chapter 9. Be sure you are in the correct Chapter when you take the quiz.

Question 1
0 out of 4 points

Concentration ratios are used to measure the Answer Selected Answer: Potential monopoly power of a firm Correct Answer: Potential monopoly power within an industry

Question 2
0 out of 4 points

The government's regulation of pollution Answer Selected Answer: Is justified by concentration ratios Correct Answer: Is justified by poorly defined property rights

Question 3
4 out of 4 points

A pure monopoly industry has a 4-firm concentration ratio equal to Answer Selected Answer: 1.0

Correct Answer: 1.0

Question 4
0 out of 4 points

Monopolization of a previously competitive market leads to Answer Selected Answer: Correct Answer: Reduced production and product quality and increased costs and prices

Increased production, product quality and prices

Question 5
0 out of 4 points

If a firm sells 100 units of output at a price of $5 and each unit costs $3 to produce, the firm's total revenue equals Answer Selected Answer: $300 Correct Answer: $500

Question 6
0 out of 4 points

To maximize profits, a monopolist produces the output level at which Answer Selected Answer: Its total receipts are greatest Correct Answer: Its marginal cost equals its marginal revenue

Question 7
4 out of 4 points

A guarantee that allows the purchase of shares of stock at a fixed price is a(n) Answer Selected Answer:

Stock option Correct Answer: Stock option

Question 8
0 out of 4 points

Monopoly refers to Answer Selected Answer: A large firm Correct Answer: A single seller of a product for which there are no good substitutes

Question 9
0 out of 4 points

Profit equals Answer Selected Answer: Marginal cost minus marginal revenue Correct Answer: Total revenue minus total cost

Question 10
4 out of 4 points

A major objective of firms in all types of market structures is Answer Selected Answer: Profit maximization Correct Answer: Profit maximization

Question 11
0 out of 4 points

A monopoly is not efficient because Answer Selected Answer: Monopoly is illegal

Correct Answer: Price exceeds marginal cost

Question 12
0 out of 4 points

For a firm, at the output level at which marginal revenue equals marginal cost, Answer Selected Answer: Output is maximized Correct Answer: Profits are highest

Question 13
0 out of 4 points

The dead-weight welfare loss due to monopoly is Answer Selected Answer: Unable to be determined in a complex economy such as our own Correct Answer: About 1% of GDP per year

Question 14
4 out of 4 points

Which of the following is a private barrier to entry? Answer Selected Answer: Ownership of raw materials Correct Answer: Ownership of raw materials

Question 15
0 out of 4 points

With a natural monopoly, Answer Selected Answer: Government regulation ensures that consumer's interests will be served

Correct Answer:

The long-run average cost curve of the firm declines over the range of production

Question 16
0 out of 4 points

A monopsony exists whenever there Answer Selected Answer: Is only one seller in a market Correct Answer: Is only one buyer in a market

Question 17
0 out of 4 points

In a resource market, Answer Selected Answer: Resourceful buyers find goods that are otherwise unavailable Correct Answer: Buyers and sellers exchange factors of production

Question 18
4 out of 4 points

Professional baseball enjoys an exemption from ________ laws that make cartels illegal in most other industries. Answer Selected Answer: Antitrust Correct Answer: Antitrust

Question 19
0 out of 4 points

Today, the primary source of revenue for most major league clubs is Answer Selected Answer:

Merchandising Correct Answer: Broadcast rights

Question 20
0 out of 4 points

Which of the following is a work stoppage initiated by management? Answer Selected Answer: Strike Correct Answer: Lockout

Question 21
0 out of 4 points

In a product market with a cartel, prices will be _____ and output will be _____ than in a competitive market. Answer Selected Answer: Lower; higher Correct Answer: Higher; lower

Question 22
0 out of 4 points

The relatively high salaries paid to professional athletes reflect Answer Selected Answer: Their contribution to society's general well-being Correct Answer: Their contribution to team revenue

Question 23
0 out of 4 points

In a monopsony, the difference between the marginal revenue product of labor and the wage rate is known as Answer

Selected Answer: Cartel profit Correct Answer: Monopsonistic profit

Question 24
4 out of 4 points

If a cartel discovers that its marginal cost is greater than marginal revenue, the cartel should Answer Selected Answer: Reduce production Correct Answer: Reduce production

Question 25
0 out of 4 points

Over the past twenty years, free agency in professional sports has Answer Selected Answer: Correct Answer: Reduced the monopsonistic power of leagues and caused salaries to rise

Had little effect on the sports industry

Question 26
0 out of 4 points

To maximize joint profits, a cartel will produce output up to the point where Answer Selected Answer: TR = MC Correct Answer: MR = MC

Question 27
0 out of 4 points

The difference between a worker's contribution to the firm's receipts and the wage is

Answer Selected Answer: Cartel profit Correct Answer: Monopsony profit

Question 28
4 out of 4 points

Which of the following conditions can give rise to a monopsony employer? Answer Selected Answer: Immobile workers with highly specialized skills Correct Answer: Immobile workers with highly specialized skills

Question 29
0 out of 4 points

The additional cost incurred as a result of hiring an additional worker is the firm's Answer Selected Answer: Labor cost Correct Answer: Marginal cost of labor

Question 30
0 out of 4 points

Under which of the following conditions will a monopsony hire an additional worker? When Answer Selected Answer: MRP = D Correct Answer: MCL < MRP
Sunday, August 18, 2013 6:50:27 PM EDT OK

Attempt Score Grade not available. Time Elapsed 44 minutes out of 1 hour. Instructions

Question 1
1 out of 1 points In every popular computer coding scheme, A is numerically one greater than B. Answer Selected Answer: False Correct Answer: False

Question 2
1 out of 1 points To correctly swap two values, you create a(n) ____ variable to hold one of the values. Answer Selected Answer: temporary Correct Answer: temporary

Question 3
1 out of 1 points When computers sort data, they always use ____ values when making comparisons between values. Answer Selected Answer: numeric Correct Answer: numeric

Question 4
1 out of 1 points When you create a ____ report, the records must have been sorted in order by a key field. Answer

Selected Answer: control break Correct Answer: control break

Question 5
1 out of 1 points ____ are arrays that have more than one dimension. Answer Selected Answer: Multidimensional arrays Correct Answer: Multidimensional arrays

Question 6
1 out of 1 points When you use an index, you can store records on a ____ storage device. Answer Selected Answer: random-access Correct Answer: random-access

Question 7
Needs Grading Describe why you access a two-dimensional array value using two subscripts. Answer Selected Each element in a two dimensional array requires two subscripts to Answer: reference it. One subscript to determine the row and a second to determine the column. You access a two-dimensional array value using two subscripts, in which the rst subscript represents the row and the second one represents the column.

Correct Answer:

You access a two-dimensional array value using two subscripts, in which the

first subscript represents the row and the second one represents the column. Response Feedback:

[None Given]

Question 8
Needs Grading Describe the brackets that you use when declaring one-dimensional and two-dimensional arrays. Answer Selected When you declare a one-dimensional array, you type a set of square Answer: brackets after the array type and name. To declare a two-dimensional array, many languages require you to type two sets of brackets after the array type and name. For each element in the array, the rst square bracket holds the number of rows, and the second one holds the number of columns. In other words, the two dimensions represent the array s height and its width.

Correct Answer:

When you declare a one-dimensional array, you type a set of square brackets after the array type and name. To declare a two-dimensional array, many languages require you to type two sets of brackets after the array type and name. [None Given]

Response Feedback:

Question 9
Needs Grading Discuss how you declare one-dimensional and two-dimensional arrays. Answer Selected When you declare a one-dimensional array, you type a set of square Answer: brackets after the array type and name. To declare a two-dimensional array, many languages require you to type two sets of brackets after the array type and name. For each element in the array, the rst square bracket holds the number of rows, and the second one holds the number of columns. In other words, the two dimensions represent the arrays height and its width.

Correct Answer:

When you declare a one-dimensional array, you type a set of square brackets after the array type and name. To declare a two-dimensional array, many languages require you to type two sets of brackets after the array type and name. For each element in the array, the first square bracket holds the number of rows, and the second one holds the number of columns. In other words, the two dimensions represent the arrays height and its width. [None Given]

Response Feedback:

Question 10
1 out of 1 points A method could be called using any numeric value as an argument, whether it is a variable, a named constant, or a literal constant. Answer Selected Answer: True Correct Answer: True

Question 11
1 out of 1 points A calling method sends a(n) ____ to a called method. Answer Selected Answer: argument Correct Answer: argument

Question 12
1 out of 1 points ____ is the ability of a method to act appropriately depending on the context. Answer Selected Answer: Polymorphism Correct Answer:

Polymorphism

Question 13
1 out of 1 points Variables and constants are ____ within, or local to, only the method in which they are declared. Answer Selected Answer: in scope Correct Answer: in scope

Question 14
1 out of 1 points You can think of the ____ in a method declaration as a funnel into the method. Answer Selected Answer: parentheses Correct Answer: parentheses

Question 15
1 out of 1 points Every time you call a method, the address to which the program should return at the completion of the method is stored in a memory location called the ____. Answer Selected Answer: stack Correct Answer: stack

Question 16
1 out of 1 points ____ occurs when a method is defined in terms of itself.

Answer Selected Answer: Recursion Correct Answer: Recursion

Question 17
Needs Grading List the four things that you need to know when you want to use a method. Answer Selected When you want to use a method, you should know four things: Answer: o What the method does in general, but not necessarily how it carries out tasks internally o The methods name o The methods required parameters, if any o The methods return type, so that you can use any returned value appropriately

Correct Answer: When you want to use a method, you should know four things: What the method does in general, but not necessarily how it carries out tasks internally The methods name The methods required parameters, if any The methods return type, so that you can use any returned value appropriately Response Feedback:

[None Given]

Question 18
Needs Grading Discuss the cumulative summing relationship. Answer

Selected Answer:

When thinking about cumulative summing relationships, remember that the sum of all the integers up to and including any number is that number plus the sum of the integers for the next lowest number. In other words, consider the following:
o o o o o

The sum of the digits from 1, up to and including 1, is simply 1. The sum of the digits from 1 through 2 is the previous sum, plus 2. The sum of the digits from 1 through 3 is the previous sum, plus 3. The sum of the digits 1 through 4 is the previous sum, plus 4. And so on.

Correct Answer:

When thinking about cumulative summing relationships, remember that the sum of all the integers up to and including any number is that number plus the sum of the integers for the next lowest number. In other words, consider the following: The sum of the digits from 1, up to and including 1, is simply 1. The sum of the digits from 1 through 2 is the previous sum, plus 2. The sum of the digits from 1 through 3 is the previous sum, plus 3. The sum of the digits 1 through 4 is the previous sum, plus 4. And so on. [None Given]

Response Feedback:

Question 19
Needs Grading Describe what a methods return statement can return. Answer Selected A return statementA modules return statement marks the end of the Answer: module and identies the point at which control returns to the program or module that called the module. A method must include a method header (also called the declaration or denition) and a method statement. The last statement in the body is a return
body

Correct

Answer:

A methods return statement can return one value at most. The value can be a simple data type or it can be a more complex typefor example, a structure or an object. [None Given]

Response Feedback:

Question 20
Needs Grading Describe how you create and use a method with multiple parameters. Answer Selected A method can require more than one parameter. You create and use a Answer: method with multiple parameters by doing the following:
o o

You list the arguments within the method call, separated by commas. You list a data type and local identier for each parameter within the method headers parentheses, separating each declaration with a comma.

Correct Answer:

A method can require more than one parameter. You create and use a method with multiple parameters by doing the following: You list the arguments within the method call, separated by commas. You list a data type and local identifier for each parameter within the method headers parentheses, separating each declaration with a comma.

Response Feedback:

[None Given]

Tuesday, August 13, 2013 8:28:21 PM EDT

Review Test Submission: Week 8 Quiz 7


Attempt 48 out of 60 points Score Time 50 minutes out of 3 hours. Elapsed Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 10. Be sure you are in Chapter 10 when you take the quiz.

Question 1
4 out of 4 points Most __________ have been banned under the World Trade Organization. Answer Selected Answer: Quotas Correct Answer: Quotas

Question 2
0 out of 4 points What do you call an alliance of nations that share common external tariffs? A(n) Answer Selected Answer: International trade consortium Correct Answer: Customs union

Question 3
4 out of 4 points What do you call it when producers sell abroad at a price below their cost of production or their domestic price? Answer Selected Answer: Dumping

Correct Answer: Dumping

Question 4
4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro

Question 5
4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit

Question 6
4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation

Question 7
0 out of 4 points

Which of the following is a likely result of a country engaging in free trade? Answer Selected Answer: Jobs are lost in the export sector Correct Answer: The price of imports falls

Question 8
4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve

Question 9
4 out of 4 points Economists generally agree that international trade restrictions Answer Selected Answer: Correct Answer: Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods

Question 10
4 out of 4 points A country has a comparative advantage in the production of any good that it can produce Answer Selected Answer: With a smaller sacrifice of some alternative good or service than can other

countries Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries

Question 11
4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage

Question 12
4 out of 4 points Which organization is charged with settlement of international trade disputes? Answer Selected Answer: The WTO Correct Answer: The WTO

Question 13
4 out of 4 points The fundamental reason countries engage in trade is that Answer Selected Answer: It enables each country to improve its standard of living Correct Answer: It enables each country to improve its standard of living

Question 14
4 out of 4 points In a free market, who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers

Question 15
0 out of 4 points A tariff leads to a leftward shift of the _______curve, resulting in ______ prices and __________ imports. Answer Selected Answer: Supply; lower; lower Correct Answer: Supply; higher; lower

Sunday, August 25, 2013 8:10:37 PM EDT

Question 1
0 out of 4 points

Free trade can result in what impact on an economy?


Answer Selected Answer:

Free trade always harms an economy


Correct Answer:

A net increase or decrease in overall employment

Question 2
4 out of 4 points

With international trade, which of the following curves for an economy will shift outward?
Answer

Selected Answer:

Consumption possibilities
Correct Answer:

Consumption possibilities

Question 3
0 out of 4 points

Outsourcing is the practice of


Answer Selected Answer:

Manufacturing product in another country by opening a factory in that nation Purchasing customer services from suppliers in another country where the costs of these services are lower than domestic suppliers
4 out of 4 points

Correct Answer:

Question 4

Economists generally agree that international trade restrictions


Answer Selected Answer:

Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods
0 out of 4 points

Correct Answer:

Question 5

The largest part of U.S. demand for foreign currencies arises from
Answer Selected Answer:

Gifts that persons in the U.S. sent abroad


Correct Answer:

Imports of merchandise

Question 6
4 out of 4 points

In a free market, who benefits from voluntary exchange?


Answer Selected Answer:

Both buyers and sellers


Correct Answer:

Both buyers and sellers

Question 7

4 out of 4 points

Most __________ have been banned under the World Trade Organization.
Answer Selected Answer:

Quotas
Correct Answer:

Quotas

Question 8
4 out of 4 points

A tariff leads to a leftward shift of the _______curve, resulting in ______ prices and __________ imports.
Answer Selected Answer:

Supply; higher; lower


Correct Answer:

Supply; higher; lower

Question 9
4 out of 4 points

Which of the following best describes NAFTA? It is a(n)


Answer Selected Answer:

Free trade area


Correct Answer:

Free trade area

Question 10
4 out of 4 points

Which of the following is a likely result of a country engaging in free trade?


Answer Selected Answer:

The price of imports falls


Correct Answer:

The price of imports falls

Question 11
4 out of 4 points

What are taxes placed on imports called?


Answer Selected Answer:

Tariffs
Correct Answer:

Tariffs

Question 12

4 out of 4 points

The price of one nation's currency in terms of another is called


Answer Selected Answer:

The exchange rate


Correct Answer:

The exchange rate

Question 13
4 out of 4 points

The primary factor affecting the demand for any nation's currency is
Answer Selected Answer:

The demand for the products produced by that nation


Correct Answer:

The demand for the products produced by that nation

Question 14
4 out of 4 points

A new industry producing cutting-edge products should


Answer Selected Answer:

Be protected from international competition, according to the infant industry argument Be protected from international competition, according to the infant industry argument
4 out of 4 points

Correct Answer:

Question 15

A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n)
Answer Selected Answer:

Comparative advantage
Correct Answer:

Comparative advantage

0 out of 4 points A new industry producing cutting-edge products should Answer Selected

Answer: Correct Answer:

Be protected from international competition, according to the key industry argument Be protected from international competition, according to the infant industry argument

Question 2
4 out of 4 points Which of the following will occur when a tariff is placed on imported sugar? Answer Selected Answer: The price of imported and domestic sugar will rise Correct Answer: The price of imported and domestic sugar will rise

Question 3
4 out of 4 points The fundamental reason countries engage in trade is that Answer Selected Answer: It enables each country to improve its standard of living Correct Answer: It enables each country to improve its standard of living

Question 4
4 out of 4 points What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs

Question 5
4 out of 4 points Environmental damage must be addressed in international trade agreements when a country's actions create Answer Selected Answer: Negative externalities Correct Answer: Negative externalities

Question 6
4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit

Question 7
4 out of 4 points What do you call an alliance of nations that share common external tariffs? A(n) Answer Selected Answer: Customs union Correct Answer: Customs union

Question 8
4 out of 4 points A country has a comparative advantage in the production of any good that it can produce Answer

Selected Answer: Correct Answer:

With a smaller sacrifice of some alternative good or service than can other countries With a smaller sacrifice of some alternative good or service than can other countries

Question 9
4 out of 4 points In a free market, who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers

Question 10
4 out of 4 points Most __________ have been banned under the World Trade Organization. Answer Selected Answer: Quotas Correct Answer: Quotas

Question 11
4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro

Question 12
4 out of 4 points With international trade, which of the following curves for an economy will shift outward? Answer Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities

Question 13
0 out of 4 points When a quota is enforced on an imported good, the supply curve for that good Answer Selected Answer: Shifts to the left Correct Answer: Becomes vertical at the quota limit

Question 14
4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage

Question 15
4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used?

Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve

Question 1
4 out of 4 points

The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation

Question 2
4 out of 4 points

When a quota is enforced on an imported good, the supply curve for that good Answer Selected Answer: Becomes vertical at the quota limit Correct Answer: Becomes vertical at the quota limit

Question 3
4 out of 4 points

A country has a comparative advantage in the production of any good that it can produce

Answer Selected Answer: With a smaller sacrifice of some alternative good or service than can other countries Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries

Question 4
4 out of 4 points

What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs

Question 5
4 out of 4 points

What do you call it when producers sell abroad at a price below their cost of production or their domestic price? Answer Selected Answer: Dumping Correct Answer: Dumping

Question 6

4 out of 4 points

Protecting an industry that is vital to national security from international competition is Answer Selected Answer: The key industry argument Correct Answer: The key industry argument

Question 7
4 out of 4 points

Free trade can result in what impact on an economy? Answer Selected Answer: A net increase or decrease in overall employment Correct Answer: A net increase or decrease in overall employment

Question 8
4 out of 4 points

Which organization is charged with settlement of international trade disputes? Answer Selected Answer: The WTO Correct Answer: The WTO

Question 9

4 out of 4 points

A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage

Question 10
4 out of 4 points

With international trade, which of the following curves for an economy will shift outward? Answer Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities

Question 11
4 out of 4 points

The European Union is an example of a(n) Answer Selected Answer: Customs union Correct Answer: Customs union

Question 12
4 out of 4 points

Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve

Question 13
4 out of 4 points

An exchange rate is Answer Selected Answer: The price of one country's currency in terms of the monetary units of another country Correct Answer: The price of one country's currency in terms of the monetary units of another country

Question 14
4 out of 4 points

The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro

Correct Answer: Euro

Question 15
4 out of 4 points

Which of the following best describes NAFTA? It is a(n) Answer Selected Answer: Free trade area Correct Answer: Free trade area

Wednesday, August 28, 2013 9:39:40 PM EDT OK


Instructions

This quiz consist of 15 multiple choice questions and covers the material in Chapter 10. Be sure you are in Chapter 10 when you take the quiz.
4 out of 4 points

Question 1
In a free market, who benefits from voluntary exchange?
Answer Selected Answer:

Both buyers and sellers


Correct Answer:

Both buyers and sellers

Question 2
4 out of 4 points

What are taxes placed on imports called?

Answer Selected Answer:

Tariffs
Correct Answer:

Tariffs

Question 3
4 out of 4 points

The multi-national currency adopted by members of the European Union is called the
Answer Selected Answer:

Euro
Correct Answer:

Euro

Question 4
4 out of 4 points

A tariff leads to a leftward shift of the _______curve, resulting in ______ prices and __________ imports.
Answer Selected Answer:

Supply; higher; lower


Correct Answer:

Supply; higher; lower

Question 5
4 out of 4 points

Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used?
Answer

Selected Answer:

Consumption possibilities curve


Correct Answer:

Consumption possibilities curve

Question 6
4 out of 4 points

An exchange rate is
Answer Selected Answer:

The price of one country's currency in terms of the monetary units of another country
Correct Answer:

The price of one country's currency in terms of the monetary units of another country

Question 7
4 out of 4 points

When a quota is enforced on an imported good, the supply curve for that good
Answer Selected Answer:

Becomes vertical at the quota limit


Correct Answer:

Becomes vertical at the quota limit

Question 8
4 out of 4 points

Economists generally agree that international trade restrictions


Answer Selected Answer:

Generate significant costs to consumers in the form of higher prices and reduced

quantity of goods
Correct Answer:

Generate significant costs to consumers in the form of higher prices and reduced quantity of goods

Question 9
4 out of 4 points

A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n)
Answer Selected Answer:

Comparative advantage
Correct Answer:

Comparative advantage

Question 10
4 out of 4 points

Protecting an industry that is vital to national security from international competition is


Answer Selected Answer:

The key industry argument


Correct Answer:

The key industry argument

Question 11
4 out of 4 points

Which of the following is a likely result of a country engaging in free trade?


Answer Selected Answer:

The price of imports falls

Correct Answer:

The price of imports falls

Question 12
4 out of 4 points

A new industry producing cutting-edge products should


Answer Selected Answer:

Be protected from international competition, according to the infant industry argument


Correct Answer:

Be protected from international competition, according to the infant industry argument

Question 13
4 out of 4 points

The European Union is an example of a(n)


Answer Selected Answer:

Customs union
Correct Answer:

Customs union

Question 14
4 out of 4 points

The exchange rate ceiling on the dollar price of the pound will result in
Answer Selected Answer:

A balance of payments deficit


Correct Answer:

A balance of payments deficit

Question 15
4 out of 4 points

The primary factor affecting the demand for any nation's currency is
Answer Selected Answer:

The demand for the products produced by that nation


Correct Answer:

The demand for the products produced by that nation

Review Test Submission: Week 8 Quiz 7

Question 1
4 out of 4 points Which of the following is a likely result of a country engaging in free trade? Answer Selected Answer: The price of imports falls Correct Answer: The price of imports falls

Question 2
4 out of 4 points A new industry producing cutting-edge products should Answer Selected Answer: Correct Answer: Be protected from international competition, according to the infant industry argument Be protected from international competition, according to the infant

industry argument

Question 3
4 out of 4 points What do you call an alliance of nations that share common external tariffs? A(n) Answer Selected Answer: Customs union Correct Answer: Customs union

Question 4
4 out of 4 points Free trade can result in what impact on an economy? Answer Selected Answer: A net increase or decrease in overall employment Correct Answer: A net increase or decrease in overall employment

Question 5
4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro

Question 6
4 out of 4 points

The largest part of U.S. demand for foreign currencies arises from Answer Selected Answer: Imports of merchandise Correct Answer: Imports of merchandise

Question 7
4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation

Question 8
4 out of 4 points Most __________ have been banned under the World Trade Organization. Answer Selected Answer: Quotas Correct Answer: Quotas

Question 9
4 out of 4 points When a quota is enforced on an imported good, the supply curve for that good Answer Selected Answer: Becomes vertical at the quota limit Correct Answer: Becomes vertical at the quota limit

Question 10
4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage

Question 11
4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit

Question 12
4 out of 4 points The European Union is an example of a(n) Answer Selected Answer: Customs union Correct Answer: Customs union

Question 13
4 out of 4 points Which of the following best describes NAFTA? It is a(n) Answer

Selected Answer: Free trade area Correct Answer: Free trade area

Question 14
4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve

Question 15
4 out of 4 points The largest part of the U.S. supply of foreign currency arises from Answer Selected Answer: Exports of merchandise Correct Answer: Exports of merchandise

Review Test Submission: Week 8 Quiz 7


SKIP TO COURSE MENU SKIP TO TOP FRAME TABS

Course Econ Problems & Issues Test Week 8 Quiz 7 Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 10. Be sure you are in Chapter 10 when you take the quiz.

Question 1
4 out of 4 points

The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation

Question 2
4 out of 4 points

When a quota is enforced on an imported good, the supply curve for that good Answer Selected Answer: Becomes vertical at the quota limit Correct Answer: Becomes vertical at the quota limit

Question 3
4 out of 4 points

A country has a comparative advantage in the production of any good that it can produce Answer Selected Answer: Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries With a smaller sacrifice of some alternative good or service than can other countries

Question 4
4 out of 4 points

What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs

Question 5
4 out of 4 points

What do you call it when producers sell abroad at a price below their cost of production or their domestic price? Answer Selected Answer: Dumping Correct Answer: Dumping

Question 6
4 out of 4 points

Protecting an industry that is vital to national security from international competition is Answer Selected Answer: The key industry argument Correct Answer: The key industry argument

Question 7
4 out of 4 points

Free trade can result in what impact on an economy? Answer Selected Answer: A net increase or decrease in overall employment Correct Answer: A net increase or decrease in overall employment

Question 8
4 out of 4 points

Which organization is charged with settlement of international trade disputes? Answer Selected Answer: The WTO Correct Answer: The WTO

Question 9
4 out of 4 points

A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage

Question 10
4 out of 4 points

With international trade, which of the following curves for an economy will shift outward? Answer Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities

Question 11
4 out of 4 points

The European Union is an example of a(n) Answer Selected Answer: Customs union Correct Answer: Customs union

Question 12
4 out of 4 points

Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve

Question 13
4 out of 4 points

An exchange rate is Answer Selected Answer: Correct Answer: The price of one country's currency in terms of the monetary units of another country The price of one country's currency in terms of the monetary units of another country

Question 14
4 out of 4 points

The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro

Question 15
4 out of 4 points

Which of the following best describes NAFTA? It is a(n) Answer Selected Answer: Free trade area Correct Answer:

Free trade area


Wednesday, August 28, 2013 9:39:40 PM EDT OK

Review Test Submission: Week 8 Quiz 7


Attempt 48 out of 60 points Score 50 minutes out of 3 hours. Time Elapsed Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 10. Be sure you are in Chapter 10 when you take the quiz.

Question 1
4 out of 4 points Most __________ have been banned under the World Trade Organization. Answer Selected Answer: Quotas Correct Answer: Quotas

Question 2
0 out of 4 points What do you call an alliance of nations that share common external tariffs? A(n) Answer Selected Answer: International trade consortium Correct Answer: Customs union

Question 3
4 out of 4 points What do you call it when producers sell abroad at a price below their cost of production or their domestic price? Answer

Selected Answer: Dumping Correct Answer: Dumping

Question 4
4 out of 4 points The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro

Question 5
4 out of 4 points The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit

Question 6
4 out of 4 points The primary factor affecting the demand for any nation's currency is Answer Selected Answer: The demand for the products produced by that nation Correct Answer: The demand for the products produced by that nation

Question 7

0 out of 4 points Which of the following is a likely result of a country engaging in free trade? Answer Selected Answer: Jobs are lost in the export sector Correct Answer: The price of imports falls

Question 8
4 out of 4 points Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve

Question 9
4 out of 4 points Economists generally agree that international trade restrictions Answer Selected Answer: Correct Answer: Generate significant costs to consumers in the form of higher prices and reduced quantity of goods Generate significant costs to consumers in the form of higher prices and reduced quantity of goods

Question 10
4 out of 4 points A country has a comparative advantage in the production of any good that it can produce Answer

Selected Answer: Correct Answer:

With a smaller sacrifice of some alternative good or service than can other countries With a smaller sacrifice of some alternative good or service than can other countries

Question 11
4 out of 4 points A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage

Question 12
4 out of 4 points Which organization is charged with settlement of international trade disputes? Answer Selected Answer: The WTO Correct Answer: The WTO

Question 13
4 out of 4 points The fundamental reason countries engage in trade is that Answer Selected Answer: It enables each country to improve its standard of living Correct Answer:

It enables each country to improve its standard of living

Question 14
4 out of 4 points In a free market, who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers

Question 15
0 out of 4 points A tariff leads to a leftward shift of the _______curve, resulting in ______ prices and __________ imports. Answer Selected Answer: Supply; lower; lower Correct Answer: Supply; higher; lower

Sunday, August 25, 2013 8:10:37 PM EDT

Course Econ Problems & Issues Test Week 9 Quiz 8


Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 11. The second 15 questions cover the material in Chapter 12. Be sure you are in the correct Chapter when you take the quiz.

Question 1
0 out of 4 points

What are the two primary determinants of economic growth? Answer Selected Answer: The quantity of capital and the quantity of money Correct Answer: The availability of resources and productivity factors

Question 2
0 out of 4 points

Saving in an economy is important for economic growth because Answer Selected Answer: One person's saving is another person's consumption Correct Answer: It is the source of funds for investment

Question 3
0 out of 4 points

Which of the following is the most commonly used measurement of economic growth? Changes in Answer Selected Answer: The federal government debt Correct Answer: Real GDP

Question 4

0 out of 4 points

How has the increasing importance of the U.S. service sector contributed to the slowdown in economic growth? Answer Selected Answer: Correct Answer: The productivity of the service sector is hard to accurately measure

Most investment takes place in the goods producing sector of the economy

Question 5
4 out of 4 points

Human capital refers to Answer Selected Answer: Skills and training that increase a worker's productivity Correct Answer: Skills and training that increase a worker's productivity

Question 6
0 out of 4 points

What was the first theory put forth by an economist to explain the phenomena of business cycles? Answer Selected Answer: Real business cycle theories Correct Answer: Jevons' sunspot theory

Question 7
4 out of 4 points

A decline in the level of economic activity occurs during which phase of the business cycle? Answer Selected Answer: Contraction Correct Answer: Contraction

Question 8
0 out of 4 points

Which phase of the business cycle best describes an economy that is experiencing a positive rate of economic growth? Answer Selected Answer: Contraction Correct Answer: Expansion

Question 9
4 out of 4 points

Which theories concerning the business cycle focus on factors outside of the economy? Answer Selected Answer: Exogenous theories Correct Answer: Exogenous theories

Question 10
0 out of 4 points

What is technology? Answer Selected Answer: The mix of labor and capital used in production Correct Answer: The means and methods of production

Question 11
0 out of 4 points

Which of the following focuses primarily on aggregate supply variables? Answer Selected Answer: Monetary theories Correct Answer: Real business cycle theories

Question 12
0 out of 4 points

The most commonly used tool to forecast future changes in economic activity is the Answer Selected Answer: Correct Answer: Leading economic indicators index

[None Given]

Question 13
0 out of 4 points

Which of the following is responsible for officially tracking the Index of Leading Economic Indicators? Answer Selected Answer: Correct Answer: The Conference Board

[None Given]

Question 14
0 out of 4 points

In response to an economic recession, monetary theories of the business cycle predict that the Federal Reserve would Answer Selected Answer: Increase the demand for money to bring about economic growth Correct Answer: Increase the supply of money to create an expansion

Question 15
0 out of 4 points

Which of the following lists the four phases of the business cycle in the correct sequence? Answer Selected Answer: Expansion, peak, contraction, depression Correct Answer: Expansion, peak, contraction, trough

Question 16
0 out of 4 points

M2 includes Answer Selected Answer: Correct Answer: M1 plus savings and time deposits of large denomination (over $100,000) M1, plus savings and time deposits of small denomination, and money market mutual funds

Question 17
4 out of 4 points

Investment banks Answer Selected Answer: Correct Answer: Work with corporations to finance their operations through primary financial markets Work with corporations to finance their operations through primary financial markets

Question 18
4 out of 4 points

When the Fed increases the money supply, it generally has the effect of Answer Selected Answer: Lowering interest rates Correct Answer: Lowering interest rates

Question 19
0 out of 4 points

A key assumption in the quantity theory of money is that Answer Selected Answer: Correct Answer: [None Given]

The velocity of money is constant

Question 20
0 out of 4 points

The interest rate on an adjustable rate mortgage (ARM) is Answer Selected Answer: Set to rise at the end of every year for the life of the mortgage Correct Answer: Adjusted periodically based upon current market conditions

Question 21
0 out of 4 points

The quantity theory of money emphasizes Answer Selected Answer: Government spending policies Correct Answer: Changes in the money supply

Question 22
0 out of 4 points

If you keep some cash in a safe place so that you have it to use later, money is serving which function? Answer Selected Answer: A measure of value Correct Answer: A store of value

Question 23
0 out of 4 points

A capital gain exists Answer Selected Answer: When the price of an asset goes up

Correct Answer: When the price of an asset exceeds the price paid for it

Question 24
0 out of 4 points

The money multiplier is Answer Selected Answer: R/E Correct Answer: 1/r

Question 25
4 out of 4 points

Money is "liquid" because Answer Selected Answer: It does not have to be sold to buy goods and services Correct Answer: It does not have to be sold to buy goods and services

Question 26
0 out of 4 points

Liquidity of an asset increases when Answer Selected Answer: The assets value is below its original price Correct Answer: It is easier to convert the asset into cash

Question 27
4 out of 4 points

A stock is Answer Selected Answer: A financial instrument that provides ownership rights to shareholders

Correct Answer: A financial instrument that provides ownership rights to shareholders

Question 28
0 out of 4 points

To reduce inflationary pressures, the Federal Reserve authorities should Answer Selected Answer: Correct Answer: Sell government securities, lower reserve requirements, and lower the discount rate Sell government securities, raise reserve requirements, and raise the discount rate

Question 29
0 out of 4 points

A collateralized debt obligation (or CDO) Answer Selected Answer: Correct Answer: Is sold in the primary financial market Is a financial instrument that obscures the underlying risks of the mortgages that comprise them

Question 30
0 out of 4 points

Who controls the aggregate volume of demand deposits in the banking system? Answer Selected Answer: Congress Correct Answer: The Federal Reserve Board of Governors
Saturday, August 31, 2013 9:39:15 PM EDT OK

Review Test Submission: Week 10 Quiz 9

SKIP TO COURSE MENU SKIP TO TOP FRAME TABS Course Econ Problems & Issues Test Week 10 Quiz 9
Instructions This quiz consist of 15 multiple choice questions and covers the material in Chapter 13. Be sure you are in Chapter 13 when you take the quiz.

Question 1
0 out of 4 points

If the economy is initially at full employment, an increase in aggregate demand will result in Answer Selected Answer: Profit-push inflation Correct Answer: Demand-pull inflation

Question 2
0 out of 4 points

A trade deficit will occur in an economy Answer Selected Answer: When the value of exports exceeds the value of imports Correct Answer: When the value of exports is less than the value of imports

Question 3
0 out of 4 points

If inflation is not observable in the form of rising prices, it is called

Answer Selected Answer: Dynamic Correct Answer: Suppressed

Question 4
4 out of 4 points

If inflation causes the demand for houses to increase more rapidly than the demand for other goods, the economy has experienced which effect of inflation? Answer Selected Answer: Efficiency Correct Answer: Efficiency

Question 5
0 out of 4 points

Aggregate supply can be increased by Answer Selected Answer: Increases in government spending Correct Answer: Policies to induce more saving

Question 6
0 out of 4 points

Technological change in an industry that historically required specific labor skills will lead to Answer Selected Answer: Cyclical unemployment Correct Answer: Structural unemployment

Question 7

0 out of 4 points

Leakages in the circular flow consist of Answer Selected Answer: Government spending, investment, and exports Correct Answer: Savings, taxes, and imports

Question 8
0 out of 4 points

Which price index is also known as the cost-of-living index? Answer Selected Answer: Implicit price deflator Correct Answer: Consumer price index

Question 9
0 out of 4 points

The determinants of aggregate supply are Answer Selected Answer: Real income Correct Answer: Resources, prices, and technology

Question 10
0 out of 4 points

Unemployment rates tend to rise when Answer Selected Answer: Correct Answer: There is a recession

[None Given]

Question 11
0 out of 4 points

People who are in the process of changing jobs are classified in the category of Answer Selected Answer: Cyclical unemployment Correct Answer: Frictional unemployment

Question 12
0 out of 4 points

In an economy like that of the US, due to a variety of institutional and social factors, wages tend to be Answer Selected Answer: Highly rigid Correct Answer: Sticky

Question 13
0 out of 4 points

People who are unemployed due to a downturn in economic activity are classified in the category of Answer Selected Answer: Frictional unemployment Correct Answer: Cyclical unemployment

Question 14
4 out of 4 points

If inflation stimulates production and employment, the economy experiences which of the following effects of inflation? Answer Selected Answer: Output Correct Answer: Output

Question 15

0 out of 4 points

A person is considered unemployed if the person is Answer Selected Answer: Correct Answer: Seeking a job requiring greater qualifications than the person possesses and no one is willing to hire the person for such a job Qualified for a job, willing to work, but unable to find work for over 30 days

Saturday, August 31, 2013 9:02:19 PM EDT OK

Review Test Submission: Week 11 Quiz 10


SKIP TO COURSE MENU SKIP TO TOP FRAME TABS Content

Course Econ Problems & Issues Test Week 11 Quiz 10 Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 14. The second 15 questions cover the material in Chapter 15. Be sure you are in the correct Chapter when you take the quiz.

Question 1
0 out of 4 points

An efficient level of government expenditures is that level where Answer Selected Answer: Marginal benefits are greater than marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 2
0 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Property taxes Correct Answer: Income taxes

Question 3
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 4
4 out of 4 points

Proportional tax rates mean that the ratio of tax collection to income Answer Selected Answer: Remains the same as income rises Correct Answer: Remains the same as income rises

Question 5
0 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Correct Answer: Public good

[None Given]

Question 6
0 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: [None Given]

Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance

Question 7
0 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a good Correct Answer: Government purchase of a service

Question 8

0 out of 4 points

Characteristics of public goods and services include which of the following? Answer Selected Answer: Correct Answer: The demand for these goods and services is divisible on the basis of individual quantity demanded The supply of these goods and services is generally not divisible into small units

Question 9
0 out of 4 points

The first budget surplus since 1969 occurred in Answer Selected Answer: 1995 Correct Answer: 1998

Question 10
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer: Internal Revenue Service

Question 11
4 out of 4 points

In the US, major sources of tax revenues are: Answer Selected Answer: Correct Answer: Income taxes at the federal level and income and sales taxes at the state level Income taxes at the federal level and income and sales taxes at the state level

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: Correct Answer: The values of people as to what constitutes a "fair" distribution of income

The values of people as to what constitutes a "fair" distribution of income

Question 13
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 14
4 out of 4 points

An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized Correct Answer: The net benefits to society are maximized

Question 15
0 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Cigarette tax

Correct Answer: Real property tax

Question 16
0 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: The ability to pay principle Correct Answer: A prearranged schedule of fixed prices

Question 17
0 out of 4 points

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following? Answer Selected Answer: A fee-for-service system Correct Answer: A prospective payment system

Question 18
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 19
0 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years?

Answer Selected Answer: Increased public support for health care Correct Answer: Health care inflation

Question 20
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals

Question 21
0 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Generosity of current Social Security benefits Correct Answer: Population bulge created by the "baby boom" generation

Question 22
0 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Privatize the Social Security Administration Correct Answer: Raise Social Security taxes and/or lower benefits

Question 23
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 24
4 out of 4 points

How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider

Question 25
0 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A pay-as-you-go system

Question 26
0 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Provide a greater quantity of health care Correct Answer: Typically require less cost sharing

Question 27

0 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Bequest Correct Answer: Wealth substitution

Question 28
0 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Private insurance programs Correct Answer: Social insurance programs

Question 29
0 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Private insurance program Correct Answer: Fully-funded insurance program

Question 30
0 out of 4 points

A patient may be required to pay a percentage of the cost of their health care above the fixed fee they pay. This is known as Answer Selected Answer: Fee-for-service Correct Answer: Co-insurance

Sunday, September 8, 2013 11:51:43 AM EDT OK

Review Test Submission: Week 11 Quiz 10


SKIP TO COURSE MENU SKIP TO TOP FRAME TABS

Course Econ Problems & Issues Test Week 11 Quiz 10 Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 14. The second 15 questions cover the material in Chapter 15. Be sure you are in the correct Chapter when you take the quiz.

Question 1
4 out of 4 points

Which of the following is the major tax source of the federal government? Answer Selected Answer: Income taxes Correct Answer: Income taxes

Question 2
4 out of 4 points

An increase in government borrowing will cause which of the following? Answer Selected Answer: An increase in the interest rate Correct Answer: An increase in the interest rate

Question 3
4 out of 4 points

A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices

Correct Answer: The consumer in the form of higher prices

Question 4
4 out of 4 points

A cash payment from the government to an individual, based on need, is an example of a Answer Selected Answer: Transfer payment Correct Answer: Transfer payment

Question 5
4 out of 4 points

An output tax will be shifted completely Answer Selected Answer: Forward if demand is perfectly price inelastic Correct Answer: Forward if demand is perfectly price inelastic

Question 6
4 out of 4 points

The gasoline tax is often used to illustrate the benefits received principle of taxation because Answer Selected Answer: Correct Answer: Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance Those who pay the tax receive benefits, since the revenues are used for road and highway construction and maintenance

Question 7
4 out of 4 points

The ability to pay principle of taxation suggests that people with more income should pay more taxes. This means that Answer

Selected Answer: Correct Answer:

Progressive income rates are consistent with the ability to pay principle Progressive income rates are consistent with the ability to pay principle

Question 8
4 out of 4 points

Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A tax levied on each unit produced equal to marginal external costs Correct Answer: A tax levied on each unit produced equal to marginal external costs

Question 9
4 out of 4 points

A national crime lab used to prevent criminal activity nationwide is an example of a Answer Selected Answer: Public good Correct Answer: Public good

Question 10
4 out of 4 points

At the federal level, the largest revenue generating tax is the Answer Selected Answer: Personal income tax Correct Answer: Personal income tax

Question 11
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: Correct Answer: A subsidy on each unit consumed equal to marginal external benefits

A subsidy on each unit consumed greater than marginal external benefits

Question 12
4 out of 4 points

A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices

Question 13
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: Correct Answer: The values of people as to what constitutes a "fair" distribution of income

The values of people as to what constitutes a "fair" distribution of income

Question 14
4 out of 4 points

Enforcement and collection of personal income taxes is the responsibility of the Answer Selected Answer: Internal Revenue Service Correct Answer:

Internal Revenue Service

Question 15
4 out of 4 points

Which of the following countries has the lowest taxes collected (as a percent of GDP)? Answer Selected Answer: The United States Correct Answer: The United States

Question 16
4 out of 4 points

The most simple and direct way to postpone the looming Social Security financial crisis is to Answer Selected Answer: Raise Social Security taxes and/or lower benefits Correct Answer: Raise Social Security taxes and/or lower benefits

Question 17
0 out of 4 points

If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the Answer Selected Answer: Income effect Correct Answer: Substitution effect

Question 18
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system

Correct Answer: A pay-as-you-go system

Question 19
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 20
4 out of 4 points

How are payments to health care providers determined under a managed care system? By the Answer Selected Answer: Insurance company and the provider Correct Answer: Insurance company and the provider

Question 21
0 out of 4 points

Part C of the Medicare program (Medicare + Choice) Answer Selected Answer: Correct Answer: Provides health care plan choices to the beneficiaries of Medicare

Restricts Medicare beneficiaries to a simple fee-for-service health care plan

Question 22
4 out of 4 points

Which of the following factors has contributed most to the tremendous increase in health care expenditures experience in the U.S. during the past fifty years? Answer

Selected Answer: Health care inflation Correct Answer: Health care inflation

Question 23
4 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Question 24
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 25
4 out of 4 points

If a program's benefits are funded by interest earned on accumulated payments, it is which type of system? Answer Selected Answer: A fully funded scheme Correct Answer: A fully funded scheme

Question 26
4 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these

plans Answer Selected Answer: Typically require less cost sharing Correct Answer: Typically require less cost sharing

Question 27
4 out of 4 points

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines Answer Selected Answer: Private insurance Correct Answer: Private insurance

Question 28
4 out of 4 points

Which of the following receives the largest share of expenditures made on health care in the United States? Answer Selected Answer: Hospitals Correct Answer: Hospitals

Question 29
4 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 30

4 out of 4 points

In a fee-for-service health care system, consumers pay the Answer Selected Answer: Full cost of the services they receive Correct Answer: Full cost of the services they receive

0 out of 4 points

A new industry producing cutting-edge products should Answer Selected Answer: Correct Answer: Be protected from international competition, according to the key industry argument Be protected from international competition, according to the infant industry argument

Question 2
4 out of 4 points

Which of the following will occur when a tariff is placed on imported sugar? Answer Selected Answer: The price of imported and domestic sugar will rise Correct Answer: The price of imported and domestic sugar will rise

Question 3
4 out of 4 points

The fundamental reason countries engage in trade is that Answer Selected Answer: It enables each country to improve its standard of living Correct Answer: It enables each country to improve its standard of living

Question 4
4 out of 4 points

What are taxes placed on imports called? Answer Selected Answer: Tariffs Correct Answer: Tariffs

Question 5
4 out of 4 points

Environmental damage must be addressed in international trade agreements when a country's actions create Answer Selected Answer: Negative externalities Correct Answer: Negative externalities

Question 6
4 out of 4 points

The exchange rate ceiling on the dollar price of the pound will result in Answer Selected Answer: A balance of payments deficit Correct Answer: A balance of payments deficit

Question 7
4 out of 4 points

What do you call an alliance of nations that share common external tariffs? A(n) Answer

Selected Answer: Customs union Correct Answer: Customs union

Question 8
4 out of 4 points

A country has a comparative advantage in the production of any good that it can produce Answer Selected Answer: Correct Answer: With a smaller sacrifice of some alternative good or service than can other countries With a smaller sacrifice of some alternative good or service than can other countries

Question 9
4 out of 4 points

In a free market, who benefits from voluntary exchange? Answer Selected Answer: Both buyers and sellers Correct Answer: Both buyers and sellers

Question 10
4 out of 4 points

Most __________ have been banned under the World Trade Organization. Answer Selected Answer:

Quotas Correct Answer: Quotas

Question 11
4 out of 4 points

The multi-national currency adopted by members of the European Union is called the Answer Selected Answer: Euro Correct Answer: Euro

Question 12
4 out of 4 points

With international trade, which of the following curves for an economy will shift outward? Answer Selected Answer: Consumption possibilities Correct Answer: Consumption possibilities

Question 13
0 out of 4 points

When a quota is enforced on an imported good, the supply curve for that good Answer Selected Answer: Shifts to the left Correct Answer:

Becomes vertical at the quota limit

Question 14
4 out of 4 points

A nation that enjoys a lower opportunity cost in the production of goods, relative to another nation, is said to have a(n) Answer Selected Answer: Comparative advantage Correct Answer: Comparative advantage

Question 15
4 out of 4 points

Which of the following curves represents the maximum combination of goods and services that can be consumed in an economy when all its resources are efficiently used? Answer Selected Answer: Consumption possibilities curve Correct Answer: Consumption possibilities curve

Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 14. The second 15 questions cover the material in Chapter 15. Be sure you are in the correct Chapter when you take the quiz.

Question 1
4 out of 4 points

Regressive tax rates mean that the ratio of tax collections to income Answer Selected Answer: Falls as income rises Correct Answer: Falls as income rises

Question 2
4 out of 4 points

A payment from the government to a federal employee is a Answer Selected Answer: Government purchase of a service Correct Answer: Government purchase of a service

Question 3
4 out of 4 points

Vertical equity implies that Answer

Selected Answer: People in different economic circumstances should pay different amounts Correct Answer: People in different economic circumstances should pay different amounts

Question 4
0 out of 4 points

Assuming positive externalities in consumption, the type of government action that could bring about an efficient level of production would be Answer Selected Answer: A subsidy on each unit consumed greater than marginal external benefits Correct Answer: A subsidy on each unit consumed equal to marginal external benefits

Question 5
4 out of 4 points

The single most important source of tax revenue for the local governments in the United States is the Answer Selected Answer: Real property tax Correct Answer: Real property tax

Question 6

0 out of 4 points

Tax equity means that Answer Selected Answer: The distribution of income after taxes should be equal Correct Answer: People in the same economic circumstances should pay equal taxes, and people in different economic circumstances should pay unequal taxes

Question 7
4 out of 4 points

A tax that is shifted backward is a tax that falls on Answer Selected Answer: The owners of resources in the form of lower resource prices Correct Answer: The owners of resources in the form of lower resource prices

Question 8
0 out of 4 points

An output tax will be shifted completely Answer Selected Answer: Forward if demand is price elastic Correct Answer: Forward if demand is perfectly price inelastic

Question 9
4 out of 4 points

According to the equimarginal principle, the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is Answer Selected Answer: Equal to the benefit of the last dollar spent in the private sector Correct Answer: Equal to the benefit of the last dollar spent in the private sector

Question 10
4 out of 4 points

In the US, major sources of tax revenues are: Answer Selected Answer: Income taxes at the federal level and income and sales taxes at the state level Correct Answer: Income taxes at the federal level and income and sales taxes at the state level

Question 11
4 out of 4 points

An efficient level of government expenditures is that level at which Answer Selected Answer: The net benefits to society are maximized

Correct Answer: The net benefits to society are maximized

Question 12
4 out of 4 points

Shifting income from those who are relatively productive to those who are relatively unproductive, say through taxes and subsidies, must be based on Answer Selected Answer: The values of people as to what constitutes a "fair" distribution of income Correct Answer: The values of people as to what constitutes a "fair" distribution of income

Question 13
0 out of 4 points

The federal government ended its most recent period of budget surpluses and returned to deficits in Answer Selected Answer: 2001 Correct Answer: 2002

Question 14
4 out of 4 points

An efficient level of government expenditures is that level where

Answer Selected Answer: Marginal benefits are equal to marginal costs Correct Answer: Marginal benefits are equal to marginal costs

Question 15
4 out of 4 points

A tax that is shifted forward is a tax that falls on Answer Selected Answer: The consumer in the form of higher prices Correct Answer: The consumer in the form of higher prices

Question 16
0 out of 4 points

If a program's benefits are funded by interest earned on accumulated payments, it is which type of system? Answer Selected Answer: An endowed system Correct Answer: A fully funded scheme

Question 17
0 out of 4 points

The Medicare Modernization Act, passed in 2003, established Answer Selected Answer: restricted the benefits that high income Medicare recipients can receive Correct Answer: an added prescription drug benefit to the Medicare program

Question 18
4 out of 4 points

The largest social insurance program in the United States is Answer Selected Answer: Social Security Correct Answer: Social Security

Question 19
4 out of 4 points

The most significant factor that threatens the financial stability of the Social Security system is the Answer Selected Answer: Population bulge created by the "baby boom" generation Correct Answer: Population bulge created by the "baby boom" generation

Question 20

4 out of 4 points

If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects? Answer Selected Answer: Wealth substitution Correct Answer: Wealth substitution

Question 21
4 out of 4 points

Part A of the Medicare program (Hospital Insurance) is financed primarily by Answer Selected Answer: A 2.9% tax levied on wages and salaries Correct Answer: A 2.9% tax levied on wages and salaries

Question 22
4 out of 4 points

If a program's benefits are funded out of current payments, it is which type of system? Answer Selected Answer: A pay-as-you-go system Correct Answer: A pay-as-you-go system

Question 23
0 out of 4 points

If people choose to work more hours because the Social Security tax reduces their real wage, their behavior is dominated by the Answer Selected Answer: Substitution effect Correct Answer: Income effect

Question 24
4 out of 4 points

The Medicare program Answer Selected Answer: Affects persons 65 and older, regardless of income Correct Answer: Affects persons 65 and older, regardless of income

Question 25
4 out of 4 points

A potential benefit of managed care plans to Medicare enrollees is that these plans Answer Selected Answer: Typically require less cost sharing

Correct Answer: Typically require less cost sharing

Question 26
4 out of 4 points

Most of today's college student population will be eligible to receive full Social Security retirement benefits when they reach the age of Answer Selected Answer: 67 Correct Answer: 67

Question 27
4 out of 4 points

Government programs that guarantee citizens financial benefits for events beyond their personal control and that are financed through tax revenues are called Answer Selected Answer: Social insurance programs Correct Answer: Social insurance programs

Question 28
4 out of 4 points

The payment and delivery of health care service under a managed care system is based on Answer

Selected Answer: A prearranged schedule of fixed prices Correct Answer: A prearranged schedule of fixed prices

Question 29
4 out of 4 points

A person with health insurance will tend to Answer Selected Answer: Demand more health care services than a person without insurance Correct Answer: Demand more health care services than a person without insurance

Question 30
4 out of 4 points

As originally designed, Social Security was to be financed as a Answer Selected Answer: Fully-funded insurance program Correct Answer: Fully-funded insurance program

Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution, the firm will treat pollution, rather than pay the tax, as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer:

Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer:

The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer:

Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction, the costs are Answer Selected Answer: Psychic costs Correct Answer:

Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer:

Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer:

Determine what the economic impact will be of making certain activities illegal Saturday, July 27, 2013 6:12:22 PM EDT

Question 1 0 out of 4 points Incorrect When a benefit of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Externality in consumption Correct Answer: Positive externality Question 2 0 out of 4 points Incorrect If a pollution tax is placed on a firm emitting pollution, the firm will treat pollution, rather than pay the tax, as long as the tax is Answer Selected Answer: Below the MSC of pollution control Correct Answer: Above its MPC of pollution control Question 3 4 out of 4 points Correct The optimal level of pollution control occurs when Answer Selected Answer: MSB of control equals MSC Correct Answer: MSB of control equals MSC Question 4 0 out of 4 points Incorrect Marginal private cost (MPC) always includes: Answer Selected Answer: The price of a good in the market Correct Answer: The extra costs of production of one more unit of a good Question 5 0 out of 4 points Incorrect The efficient level of pollution is zero only if the Answer Selected Answer: MPC of pollution control equals MSC Correct Answer:

Marginal cost of pollution control is zero Question 6 4 out of 4 points Correct Which of the following creates a positive externality in production? Answer Selected Answer: Reducing the cost of producing of another good Correct Answer: Reducing the cost of producing of another good Question 7 4 out of 4 points Correct Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 8 4 out of 4 points Correct When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 9 4 out of 4 points Correct When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? Answer Selected Answer: Negative externality Correct Answer: Negative externality Question 10 4 out of 4 points Correct Which of the following is a factor leading to pollution? Answer Selected Answer: The environment is collectively consumed Correct Answer:

The environment is collectively consumed Question 11 0 out of 4 points Incorrect If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPC curve Correct Answer: MPB curve Question 12 0 out of 4 points Incorrect Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Command and control pollution regulation Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river Question 13 0 out of 4 points Incorrect The term "marginal social benefit" means Answer Selected Answer: Benefits that are just above the margin of being zero Correct Answer: The change in total social benefits per unit change in the amount of the activity Question 14 0 out of 4 points Incorrect Which of the following creates a negative externality in consumption? Answer Selected Answer: Polluting a river Correct Answer: Playing loud music Question 15 4 out of 4 points Correct Another term for implicit cost is Answer Selected Answer: Opportunity cost Correct Answer:

Opportunity cost Question 16 0 out of 4 points Incorrect An additional expenditure on crime prevention should be allocated to the activity where Answer Selected Answer: MSC is lowest Correct Answer: MSB is greatest Question 17 4 out of 4 points Correct An immoral act is Answer Selected Answer: Different in different societies Correct Answer: Different in different societies Question 18 4 out of 4 points Correct A group project has been assigned and most of the work ends up being produced by only one or two of the group's members. This is an example of Answer Selected Answer: The free-rider problem Correct Answer: The free-rider problem Question 19 4 out of 4 points Correct Government can effectively remedy the free-rider problem by Answer Selected Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Correct Answer: Requiring all who receive the benefits of a public good or service to pay appropriate taxes for it Question 20 4 out of 4 points Correct When an individual incurs costs in the form of negative personal satisfaction, the costs are Answer Selected Answer: Psychic costs Correct Answer:

Psychic costs Question 21 4 out of 4 points Correct In any city with a given crime prevention budget, additional suppression of prostitution Answer Selected Answer: Will usually be achieved at the expense of an increase in other kinds of crime Correct Answer: Will usually be achieved at the expense of an increase in other kinds of crime Question 22 4 out of 4 points Correct Which of the following decreases a person's implicit cost of engaging in the illegal production of marijuana? Answer Selected Answer: Unemployment Correct Answer: Unemployment Question 23 0 out of 4 points Incorrect The marginal cost of a good is Answer Selected Answer: The total cost of the good divided by output Correct Answer: The change in total cost per unit change in output Question 24 0 out of 4 points Incorrect Aggravated assault is an example of a(n) Answer Selected Answer: "other" crime Correct Answer: Violent crime Question 25 4 out of 4 points Correct Arson is an example of a(n) Answer Selected Answer: Crime against property Correct Answer:

Crime against property Question 26 4 out of 4 points Correct Which of the following goods or services is a public good? Answer Selected Answer: National defense Correct Answer: National defense Question 27 4 out of 4 points Correct Illegal acts are Answer Selected Answer: Designated as such by the criminal justice system Correct Answer: Designated as such by the criminal justice system Question 28 0 out of 4 points Incorrect Police officers should be hired up to the point where Answer Selected Answer: The benefit of the last officer hired exceeds the cost Correct Answer: The benefit of the last officer hired is just equal to what its cost to hire her Question 29 4 out of 4 points Correct When an individual receives benefits from a business endeavor in the form of personal satisfaction, the benefits are known as Answer Selected Answer: Psychic income Correct Answer: Psychic income Question 30 0 out of 4 points Incorrect Economic analysis of crime can Answer Selected Answer: Tell us how much it will cost to eliminate crime Correct Answer:

Determine what the economic impact will be of making certain activities illegal Saturday, July 27, 2013 6:12:22 PM EDT