A monopolist with constant marginal costs faces a demand curve with a constant elasticity of demand lower than -1, and does not practice price discrimination....
For a monopolist who faces a downward-sloping demand curve, marginal revenue is less than price whenever quantity sold is positive.
For a monopolist who faces a downward-sloping demand curve, marginal revenue is less than price whenever quantity sold is positive.
Answer: Tr...
If the interest rate is 10%, a monopolist will choose a markup of price over marginal cost of at least 10%.
If the interest rate is 10%, a monopolist will choose a markup of price over marginal cost of at least 10%.
Answer: Fal...
The market for a good is in equilibrium when the government unexpectedly imposes a quantity tax of $2 per unit. In the short run, the price will rise by $2 per unit so that firms can regain their lost revenue and continue to produce.
The market for a good is in equilibrium when the government unexpectedly imposes a quantity tax of $2 per unit. In the short run, the price will rise...
If there are constant returns to scale in a competitive industry, then the long-run industry supply curve for that industry is horizontal.
If there are constant returns to scale in a competitive industry, then the long-run industry supply curve for that industry is horizontal.
Answer:...
It is possible to have an industry in which all firms make zero economic profits in long-run equilibrium.
It is possible to have an industry in which all firms make zero economic profits in long-run equilibrium.
Answer: Tr...
A competitive firm has a continuous marginal cost curve. It finds that as output increases, its marginal cost curve first rises, then falls, then rises again. If it wants to maximize profits, the firm should never produce at a positive output where price equals marginal cost and marginal cost decreases as output increases.
A competitive firm has a continuous marginal cost curve. It finds that as output increases, its marginal cost curve first rises, then falls, then rises...
Mr. O Carr has the cost function c(y) =y^2 + 64 if his output, y, is positive and c(0). If the price of output is 12, Mr. Carr's profit maximizing output is zero.
Mr. O Carr has the cost function c(y) =y^2 + 64 if his output, y, is positive and c(0). If the price of output is 12, Mr. Carr's profit maximizing output...
A firm faces competitive markets both for its inputs and its outputs. If its long-run supply curve is q = 3p, then it cannot have constant returns to scale.
A firm faces competitive markets both for its inputs and its outputs. If its long-run supply curve is q = 3p, then it cannot have constant returns to...
The area under the marginal cost curve measures total fixed costs.
The area under the marginal cost curve measures total fixed costs.
Answer: Fal...
If a competitive firm uses two inputs and has the production function F(x, y) = x^1/2 + y^1/2 then its marginal cost curve is horizontal.
If a competitive firm uses two inputs and has the production function F(x, y) = x^1/2 + y^1/2 then its marginal cost curve is horizontal.
Answer:...
The average variable cost curve must always be U-shaped.
The average variable cost curve must always be U-shaped.
Answer: Fal...
A firm uses a single variable input x to produce outputs according to the production function f (x) = 300x + 6x^2. This firm has fixed costs of $400. This firm's short-run marginal cost curve lies below its short-run average variable cost curve for all positive values of x.
A firm uses a single variable input x to produce outputs according to the production function f (x) = 300x + 6x^2. This firm has fixed costs of $400....
A competitive, cost-minimizing firm has the production function f (x,y) = x + 2y and uses positive amounts of both inputs. If the price of x doubles and the price of y triples, then the cost of production will more than double.
A competitive, cost-minimizing firm has the production function f (x,y) = x + 2y and uses positive amounts of both inputs. If the price of x doubles...
In the long-run, if there are increasing returns to scale, then the average costs are a decreasing function of output.
In the long-run, if there are increasing returns to scale, then the average costs are a decreasing function of output.
Answer: Tr...
A firm produces one output with one input and has decreasing returns to scale. The price that it pays per unit of input and the price it gets per unit of output are independent of the amount that this firm buys or sells. If the government taxes its net profits at some percentage rate and subsidizes its inputs at the same percentage rate, the firm's profit-maximizing output will not change.
A firm produces one output with one input and has decreasing returns to scale. The price that it pays per unit of input and the price it gets per unit...
If the value of the marginal product of factor x increases as the quantity of x increases, and the value of the marginal product of x is equal to the wage rate, then the profit-maximizing amount of x is being used.
If the value of the marginal product of factor x increases as the quantity of x increases, and the value of the marginal product of x is equal to the...
If there is one input used in production and if there are decreasing returns to scale, then the marginal product for the input will be diminishing.
If there is one input used in production and if there are decreasing returns to scale, then the marginal product for the input will be diminishing.
Answer:...
If the production function is f(x, y) = min(12x, 3y), then there is convexity in production.
If the production function is f(x, y) = min(12x, 3y), then there is convexity in production.
Answer: Tr...
The economist's distinction between the long run and the short run captures the idea that quantities of some factor inputs can be varied in the short run but not in the long run.
The economist's distinction between the long run and the short run captures the idea that quantities of some factor inputs can be varied in the short...
If the demand curve is a linear function of price, then the price elasticity of demand is the same at all prices.
If the demand curve is a linear function of price, then the price elasticity of demand is the same at all prices.
Answer: Fal...
If there is Cobb-Douglas utility, compensating and equivalent variation are the same.
If there is Cobb-Douglas utility, compensating and equivalent variation are the same.
Answer: Fal...
If preferences are homothetic, then the slope of the Engel curve for any good will decrease as income increases.
If preferences are homothetic, then the slope of the Engel curve for any good will decrease as income increases.
Answer: Fal...
Fiery Demon is a rotgut whisky made in Kentucky. Smoothly is an unblended malt whisky imported from Scotland. Ed regards these brands as perfect substitutes. When he goes into a bar, he sometimes buys only Fiery Demon. Other times he buys only Smoothly. This shows that Ed has unstable preferences.
Fiery Demon is a rotgut whisky made in Kentucky. Smoothly is an unblended malt whisky imported from Scotland. Ed regards these brands as perfect substitutes....
The utility function U(x1, x2) = 2lnx1 + 3lnx2, represents Cobb-Douglas preferences.
The utility function U(x1, x2) = 2lnx1 + 3lnx2, represents Cobb-Douglas preferences.
Answer: Tr...
Angela's utility function is U(x1, x2) = (x1 + x2)^3. Her indifference curves are downward sloping parallel straight lines.
Angela's utility function is U(x1, x2) = (x1 + x2)^3. Her indifference curves are downward sloping parallel straight lines.
Answer: Tr...
With quasilinear preferences, the slope of indifference curves is constant along all rays through the origin.
With quasilinear preferences, the slope of indifference curves is constant along all rays through the origin.
Answer: Fal...
If the elasticity of demand curve for buckwheat is -1.25 at all prices higher than the current price, we would expect that when bad weather reduces the size of the buckwheat crop, total revenue of buckwheat producers will fall.
If the elasticity of demand curve for buckwheat is -1.25 at all prices higher than the current price, we would expect that when bad weather reduces...
If the demand function is q = 3m/p, where m is income and p is price, then the absolute value of the price elasticity of demand decreases as price increases.
If the demand function is q = 3m/p, where m is income and p is price, then the absolute value of the price elasticity of demand decreases as price increases.
Answer:...
If there is a price increase for a good that Susan consumes, her compensating variation is the change in her income that allows her to purchase her new optimal bundle at the original prices.
If there is a price increase for a good that Susan consumes, her compensating variation is the change in her income that allows her to purchase her...
Consumer's surplus is another name for excess demand.
Consumer's surplus is another name for excess demand.
Answer: Fal...
If preferences are homothetic and all prices double while income remains constant, then demand for all goods is halved.
If preferences are homothetic and all prices double while income remains constant, then demand for all goods is halved.
Answer: Tr...
If preferences are quasilinear, then for very high incomes the income offer curve is a straight line parallel to one of the axes.
If preferences are quasilinear, then for very high incomes the income offer curve is a straight line parallel to one of the axes.
Answer: Tr...
Charlie's utility function is U(x,y) = xy^2. His marginal rate of substitution between x and y does not change if the amount of both goods doubles.
Charlie's utility function is U(x,y) = xy^2. His marginal rate of substitution between x and y does not change if the amount of both goods doubles.
Answer:...
At a boundary optimum, a consumer's indifference curve must be tangent to her budget line.
At a boundary optimum, a consumer's indifference curve must be tangent to her budget line.
Answer: Fal...
If Melody has more classical records than rock and roll records, she is willing to exchange exactly 1 classical record for 2 rock and roll records, but if she has more rock and roll records than classical records, then she is willing to exchange exactly 1 rock and roll record for 2 classical records. Melody has convex preferences.
If Melody has more classical records than rock and roll records, she is willing to exchange exactly 1 classical record for 2 rock and roll records,...
Nancy's psychology teacher will giver her a course grade that is the maximum of her scores on three midterms examinations. Nancy has convex preferences over the possible combinations of midterm scores.
Nancy's psychology teacher will giver her a course grade that is the maximum of her scores on three midterms examinations. Nancy has convex preferences...
If preferences are transitive, more is always preferred to less.
If preferences are transitive, more is always preferred to less.
Answer: Fal...
A decrease in income pivots the budget line around the bundle initially consumed.
A decrease in income pivots the budget line around the bundle initially consumed.
Answer: Fal...
If all prices are doubled and money is left the same, the budget set does not change because relative prices do not change.
If all prices are doubled and money is left the same, the budget set does not change because relative prices do not change.
Answer: Fal...
An airline has exclusive landing rights at the local airport. The airline flies one flight per day to New York with a plane that has a seating capacity of 100. The cost of flying the plane per day is $4,000 + 10 q, where q is the number of passengers. The number of tickets to New York demanded is q = 165 - 0.5p. If the airline maximizes its monopoly profits, the difference between the marginal cost of flying an extra passenger and the amount of the marginal passenger is willing to pay to fly to New York is:
An airline has exclusive landing rights at the local airport. The airline flies one flight per day to New York with a plane that has a seating capacity...
A monopolistic receives a subsidy from the government for every unit of output that is consume. He has constant marginal costs and the subsidy that he gets per unit of output is greater than his marginal cost of production. But to get the subsidy on a unity of output, somebody has to consume it.
A monopolistic receives a subsidy from the government for every unit of output that is consume. He has constant marginal costs and the subsidy that...
Imagine first a drug dealer working in a competitive market with a constraint marginal cost for producing marijuana of $6/oz. Suppose now that government authorities decided to seize the marijuana production whenever they find it. The production of marijuana is seized with a probability of 50%. If the production is seized, there is no other punishment besides loss of the marijuana. What happens to the new equilibrium prices with the new government's policy?
Imagine first a drug dealer working in a competitive market with a constraint marginal cost for producing marijuana of $6/oz. Suppose now that government...
A competitive firm uses two variable factors to produce its output, with a production function q = min {x,y}. The price factor x is $8 and the price of factor y is $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x. In addition to the costs of inputs, the firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount?
A competitive firm uses two variable factors to produce its output, with a production function q = min {x,y}. The price factor x is $8 and the price...
The production function of a competitive firm is described by the equation q = 4x^1/2y^1/2. The factor prices are Px = $1 and Py = $36 and the firm can hire as much of either factor it wants at these prices. The firm's marginal cost is:
The production function of a competitive firm is described by the equation q = 4x^1/2y^1/2. The factor prices are Px = $1 and Py = $36 and the firm...
The following relationship must hold between the average total cost (ATC) curve and the marginal cost curve (MC):
The following relationship must hold between the average total cost (ATC) curve and the marginal cost curve (MC):
Answer: If ATC is rising, MC must...
As assistant vice president in charge of production for a computer firm, you are asked to calculate the cost of producing 170 computers. The production function is q = min{x, y} where x and y are the amounts of two factors used. The price of x is $18 and the price of y is $10. What is your answer?
As assistant vice president in charge of production for a computer firm, you are asked to calculate the cost of producing 170 computers. The production...
A firm has a fixed costs of $2,000. Its short-run production function is y = 4x^1/2, where x is the amount of variable factor it uses. The price of the variable factor is $1,600 per unit. Where y is the amount of output, the short-run total cost function is
A firm has a fixed costs of $2,000. Its short-run production function is y = 4x^1/2, where x is the amount of variable factor it uses. The price of...
A competitive firm's production function is f (x, y) = 8x^1/2 + 8x^1/2. The price of factor x is $1 and the price factor y is $3. The price of output is $6. What is the profit-maximizing quantity of output?
A competitive firm's production function is f (x, y) = 8x^1/2 + 8x^1/2. The price of factor x is $1 and the price factor y is $3. The price of output...
A profit-maximizing competitive firm uses just one input, x. Its production function is q = 4x^1/2. The price of output is $28 and the factor price is $7. The amount of the factor that the firm demands is:
A profit-maximizing competitive firm uses just one input, x. Its production function is q = 4x^1/2. The price of output is $28 and the factor price...
A firm has a production function f (x, y) = 1.80(x^0.80 + y^0.80)^3 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has:
A firm has a production function f (x, y) = 1.80(x^0.80 + y^0.80)^3 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this...
Suppose that the production function is f (x, y) = (x^a + y^a)^b, where a and b are positive constants. For what values of a and b is there a diminishing technical rate of substitution?
Suppose that the production function is f (x, y) = (x^a + y^a)^b, where a and b are positive constants. For what values of a and b is there a diminishing...
At a large institution of higher learning, the demand for football tickets at each game is t (p) = 100,000 - 8,000p. If the capacity of the stadium at the university is 60,000 seats, what is the revenue-maximizing price for this university to charge per ticket?
At a large institution of higher learning, the demand for football tickets at each game is t (p) = 100,000 - 8,000p. If the capacity of the stadium...
Ambrose's brother Sebastian has a utility function U (x1, x2) =28x1^1/2 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries. His income is $128, the price of nuts is $2, and the price of berries is $1. How many units of berries will Sebastian demand?
Ambrose's brother Sebastian has a utility function U (x1, x2) =28x1^1/2 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries....
Isabella's utility function is U (x, y) = 4 min{x, y} + y. If we draw her indifference curves with x on the horizontal axis and y on the vertical axis, these indifference curves are:
Isabella's utility function is U (x, y) = 4 min{x, y} + y. If we draw her indifference curves with x on the horizontal axis and y on the vertical axis,...
The inverse demand function for grapes is described by the equation p = 676 - 9p, where p is the price in dollars per crate and q is the number of crates of grapes demanded per week. When p = 28 per crate, what is the price elasticity of demand for grapes?
The inverse demand function for grapes is described by the equation p = 676 - 9p, where p is the price in dollars per crate and q is the number of crates...
Reginald is fond of cigars. His utility function is U (x, c) = x + 10c - 0.5c^2, where c is the number of cigars he smokes per week and x is the money that he spends on the consumption of other goods. Reginald has $200 a week to spend. Cigars used to cost him $1 each, but their price went up to $2 each. This price was as bad for him as losing income of
Reginald is fond of cigars. His utility function is U (x, c) = x + 10c - 0.5c^2, where c is the number of cigars he smokes per week and x is the money...
Katie Kwasi's utility function is U (x1, x2) = 2(lnx1) + x2. Given her current income and the current relative prices, she consumes 10 units of x1 and 15 units of x2. If her income doubles, while prices stay constant, how many units of x1 will she consume after the change in income?
Katie Kwasi's utility function is U (x1, x2) = 2(lnx1) + x2. Given her current income and the current relative prices, she consumes 10 units of x1 and...
Ms. Laura Mussel's preferences between gold and tennis are represented by U (g, t) = gt, where g is the number of rounds of gold and t is the number of tennis matches she plays per week. She has $24 per week to spend on these sports. A round of gold and a tennis match each cost $4. She used to maximize her utility subject to this budget. She decided to limit the time she spends on these sports to 16 hours a week. A round of golf takes 4 hours. A tennis match takes 2 hours. As a result of this additional constraint on her choice
Ms. Laura Mussel's preferences between gold and tennis are represented by U (g, t) = gt, where g is the number of rounds of gold and t is the number...
Mary Granola consumes tomatoes and nectarines. Mary's indifference curves are kinky. When she is consuming more tomatoes than nectarines, she is willing to trade 3 tomatoes for 1 nectarine. When she is consuming more nectarines than tomatoes, she is just willing to trade 4 nectarines for 1 tomato. Let P1, be the price of nectarines, and P2 the price of tomatoes. Mary maximizes her utility subject to the budget constraint. Which statement is true?
Mary Granola consumes tomatoes and nectarines. Mary's indifference curves are kinky. When she is consuming more tomatoes than nectarines, she is willing...
If there are only two goods, if more of good 1 is always preferred to less, and if less of good 2 is always preferred to more, than indifference curves
If there are only two goods, if more of good 1 is always preferred to less, and if less of good 2 is always preferred to more, than indifference curves
Answer:...
If we graph Mary Granola indifference curves with avocados on the horizontal axis and grapefruits on the vertical axis, then whenever she has more grapefruits than avocados, the slope of her indifference curve is -2. Whenever she has more avocados than grapefruits, the slope is -1/2. Mary would be indifferent between a bundle with 23 avocados and 29 grapefruits and another bundle with 31 avocados.
If we graph Mary Granola indifference curves with avocados on the horizontal axis and grapefruits on the vertical axis, then whenever she has more grapefruits...
Ambrose has indifference curves represented by the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his consumption bundle is (9, 19)?
Ambrose has indifference curves represented by the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves....
In Problem 2, Ambrose has indifference curves with the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his consumption bundle is (16, 10)?
In Problem 2, Ambrose has indifference curves with the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves....
The curvature of an economy's production possibilities curve represents:
The curvature of an economy's production possibilities curve represents:
a.an increasing marginal cost of producing both goods.
b.increasing terms...
Which of the following will cause an inward shift of the production possibilities curve of an economy?
Which of the following will cause an inward shift of the production possibilities curve of an economy?
a.A decrease in the demand for goods and...
If prices are held above the equilibrium price:
If prices are held above the equilibrium price:
a.all firms incur losses.
b.there exists a shortage in the market.
c.social surplus is maximized.
d.there...
Without any restrictions in a perfectly competitive market, if there is a sudden rightward shift in the demand for a good:
Without any restrictions in a perfectly competitive market, if there is a sudden rightward shift in the demand for a good:
a.sellers of the good...
When existing firms leave a perfectly competitive market, it causes:
When existing firms leave a perfectly competitive market, it causes:
a.a decrease in the profitability of existing firms.
b.a right shift in the...
When positive economic profits exist in an industry:
When positive economic profits exist in an industry:
a.the market price of the good produced by the industry is less than the marginal cost faced...
The entry of new firms into a perfectly competitive market will cause:
The entry of new firms into a perfectly competitive market will cause:
a.both the equilibrium price and quantity to decrease.
b.both the equilibrium...
If price is greater than the average variable cost, a profit-maximizing firm should:
If price is greater than the average variable cost, a profit-maximizing firm should:
a.expand production until total revenue is equal to total cost.
b.contract...
When two firms in a perfectly competitive market seek to maximize profit in the long run, they eventually end up:
When two firms in a perfectly competitive market seek to maximize profit in the long run, they eventually end up:
a.earning the same level of profits.
b.producing...
A seller is willing to sell 5 units of a good at a minimum price of $1 per unit. The reservation value of the seller in this case is:
A seller is willing to sell 5 units of a good at a minimum price of $1 per unit. The reservation value of the seller in this case is:
a.$6.00
b.$10.00
c.$5.00
d.$1.00
Answer:...
Graphically, producer surplus is the:
Graphically, producer surplus is the:
a.difference between the supply curve and the price a consumer pays.
b.product of price of a good and quantity...
A firm should shut down in the short run if the price is less than the:
A firm should shut down in the short run if the price is less than the:
a.marginal cost.
b.average variable cost.
c.average fixed cost.
d.average...
If the price elasticity of supply of a good is 2, a 200% increase in the price of the good, will change the quantity supplied by:
If the price elasticity of supply of a good is 2, a 200% increase in the price of the good, will change the quantity supplied by:
a.400%.
b.50%.
c.200%.
d.100%.
Answer:...
Willingness to pay:
Willingness to pay:
a.is equal to the price of the lowest-priced goods in a consumption bundle.
b.is the lowest price that a buyer is willing and...
If quantity of milk is measured on the horizontal axis and quantity of juice is measured on the vertical axis, a decrease in the price of milk will cause the budget constraint to:
If quantity of milk is measured on the horizontal axis and quantity of juice is measured on the vertical axis, a decrease in the price of milk will...
A change in the slope of a budget constraint indicates:
A change in the slope of a budget constraint indicates:
a.a change in the consumer's income.
b.a change in the price of either good without a change...
An optimizing consumer makes her purchase decisions based on:
An optimizing consumer makes her purchase decisions based on:
a.the total benefits at various levels of consumption.
b.the benefits from the...
John is a seller in an independent private‐values auction environment where bidders are risk neutral. Which auction yields John the greatest expected revenue?
John is a seller in an independent private‐values auction environment where bidders are risk neutral. Which auction yields John the greatest expected...
A risk‐neutral individual would:
A risk‐neutral individual would:
A. prefer $5 with certainty to a risky prospect with the expected value of $5.
B. prefer a risky prospect...
Which of the following is a means of eliminating the undesirable effects of adverse selection?
Which of the following is a means of eliminating the undesirable effects of adverse selection?
A. A long‐term relationship
B. Writing a contract...
Which of the following phenomena shows that risk aversion is the characteristic of many people?
Which of the following phenomena shows that risk aversion is the characteristic of many people?
A. Gambling
B. Looting
C. Investing in one...
___ occurs when people smoke more after buying life insurance.
_______ occurs when people smoke more after buying life insurance.
A. Adverse selection 4
B. Moral hazard
C. Asymmetric information
D. Cournot...
If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non‐advertising firm will earn $1 million. Which of the following is true?
If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in...
Which of the following conditions are necessary for the existence of a Nash equilibrium?
Which of the following conditions are necessary for the existence of a Nash equilibrium?
A. The existence of dominant strategies for both players.
B....
When firms in an industry are maximizing profits, which of the following is true for perfect competition but not true for monopolistic competition and monopoly?
When firms in an industry are maximizing profits, which of the following is true for perfect competition but not true for monopolistic competition and...
In a competitive industry with identical firms, long run equilibrium is characterized by
In a competitive industry with identical firms, long run equilibrium is characterized by
A. P=AC.
B. P=MC.
C. MR=MC.
D. All of the statements...
Suppose you read in an industry publication that the Rothschild index for the petroleum industry is 0.88. Based on past experience, you know that the price elasticity of demand for the petroleum products sold by your firm is ‐1.5. Based on this information you know that the elasticity of demand for a representative firm in the petroleum industry is
Suppose you read in an industry publication that the Rothschild index for the petroleum industry is 0.88. Based on past experience, you know that the...
Monopolistic competition is characterized by
Monopolistic competition is characterized by
A. employing labor from a perfectly competitive labor market.
B. Rothschild indices that are close...
A local telephone company charges $.10/min. based on a $.08/min. marginal cost of operation. What is the Lerner Index?
A local telephone company charges $.10/min. based on a $.08/min. marginal cost of operation. What is the Lerner Index?
A. 0.2.
B. 0.25.
C....
An industry consists of six firms with annual sales of $300, $500, $400, $700, $600, and $600, respectively. What is the industry's C4?
An industry consists of six firms with annual sales of $300, $500, $400, $700, $600, and $600, respectively. What is the industry's C4?
A....
In perfect competition, which is not true?
In perfect competition, which is not true?
A. Firms produce homogenous goods.
B. There are a large number of firms.
C. Firms are price‐takers.
D....
The long‐run is defined as
The long‐run is defined as
A. the horizon in which the manager can adjust all factors of production.
B. the horizon in which there are only...
If the cross‐price elasticity between good X & Y is positive, we know the goods are:
If the cross‐price elasticity between good X & Y is positive, we know the goods are:
A. inferior goods.
B. complements.
C. inelastic.
D....
You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How much will you have to increase advertising in order to increase demand by 5%?
You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How much will you have to...
Each week Bill buys exactly 7 bottles of cola regardless of its price. Bill's own price elasticity of demand for cola in absolute value is:
Each week Bill buys exactly 7 bottles of cola regardless of its price. Bill's own price elasticity of demand for cola in absolute value is:
A....
When the own price elasticity of good X is ‐3.5 then total revenue can be increased by
When the own price elasticity of good X is ‐3.5 then total revenue can be increased by
A. increasing the price.
B. decreasing the quantity...
Which of the following is not a determinant of supply?
Which of the following is not a determinant of supply?
A. Level of technology.
B. Prices of inputs.
C. average income level.
D. Weather.
Answer:...
When quantity demanded exceeds quantity supplied
When quantity demanded exceeds quantity supplied
A. there exists a surplus of a good.
B. the price tends to fall.
C. the price is below the...
Jane pays the market price of $69 for a new pair of running shoes, even though she would be happy to pay a maximum of $100 for the same pair of shoes. This is an example of the concept of
Jane pays the market price of $69 for a new pair of running shoes, even though she would be happy to pay a maximum of $100 for the same pair of shoes....
Suppose you produce wooden desks, and government legislation protecting the spotted owl has made it more expensive for you to purchase wood. What do you expect to happen to the equilibrium price and quantity of wooden desks?
Suppose you produce wooden desks, and government legislation protecting the spotted owl has made it more expensive for you to purchase wood. What do...
Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive, then:
Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive, then:
A. goods y and x are complements.
B. goods...
If A and B are complements, an increase in the price of good A would:
If A and B are complements, an increase in the price of good A would:
A. have no effect on the quantity demanded of B.
B. lead to an increase...
An increase in the price of steak will probably lead to:
An increase in the price of steak will probably lead to:
A. an increase in demand for chicken.
B. an increase in demand for steak.
C. no change...
The more credibility the Fed has,
The more credibility the Fed has,
A. the lower the sacrifice ratio will be
B. the higher the sacrifice ratio will be
C. the higher the potential...
The greater the Sacrifice Ratio
The greater the Sacrifice Ratio
A. The more costly it is to lower the interest rate
B. The more costly it is to lower the inflation rate
C. The more...
The Phillips curve works well in the long run but not in the short run
The Phillips curve works well in the long run but not in the short run
A. True
B. False
Answer:...
The Phillips Curve represents the relation between inflation and unemployment.
The Phillips Curve represents the relation between inflation and unemployment.
A. True
B. False
Answer:...
The intersection between the AD and IA curves shows the level of _ and where the goods market is in equilibrium.
The intersection between the AD and IA curves shows the level of _ and where the goods market is in equilibrium.
A. income; interest rate
B. interest...
The long-run supply of goods and services is determined by level of structural unemployment.
The long-run supply of goods and services is determined by level of structural unemployment.
A. True
B. False
Answer:...
The AD curve is constructed through the IS-MP diagram by changing the ______.
The AD curve is constructed through the IS-MP diagram by changing the ______.
A. interest rate level
B. income level
C. inflation level
D. monetary...
Inflation has NO DIRECT impact on the IS curve.
Inflation has NO DIRECT impact on the IS curve.
A. True
B. False
Answer:...
According to the case, during periods of monetary restraint, short-term rates are typically higher than long-term rates.
According to the case, during periods of monetary restraint, short-term rates are typically higher than long-term rates.
A. True
B. False
Answer:...
Who advocated a looser monetary policy?
Who advocated a looser monetary policy?
A. Paul Volcker
B. G. William Miller
Answer:...
What was the major cause of the surge in inflation and inflationary expectations during 1979?
What was the major cause of the surge in inflation and inflationary expectations during 1979?
A. The pre-announced OPEC price increases of 14.5%
B....
The first and foremost mission given to Paul Volcker was to:
The first and foremost mission given to Paul Volcker was to:
A. Increase inflation rates
B. Decrease inflation rates
C. Decrease unemployment
D....
From 1979 to 1987, Paul Volcker
From 1979 to 1987, Paul Volcker
A. Was the chairman of the Fed
B. Was the Secretary of the Treasury
C. Was the prime minister of England
D. Was the...
Monetary policy can affect output in both the short run and the long run.
Monetary policy can affect output in both the short run and the long run.
A. True
B. False
Answer:...
How should the quantity theory of money "MV=YP" read ?
How should the quantity theory of money "MV=YP" read ?
A. Money supply equals money demand
B. Money supply times velocity of money equals real GDP
C....
When held by the Fed, a $20 bill is part of the money supply
When held by the Fed, a $20 bill is part of the money supply
A. True
B. False
Answer:...
Others being equal, when the Fed tightens its monetary policy, how does the MP curve change?
Others being equal, when the Fed tightens its monetary policy, how does the MP curve change?
A. Shifts upwards because Fed changes its monetary policy
B....
Others being equal, when realized inflation goes up, how does the MP curve change?
Others being equal, when realized inflation goes up, how does the MP curve change?
A. Shifts upwards because Fed follows the MP rule
B. Shifts downwards...
What does the Taylor Rule tell us?
What does the Taylor Rule tell us?
A. The actual interest rate
B. The predicted interest rate given Fed's past actions
C. The predicted CPI
D. The...
The nominal interest rate is equal to the real interest rate plus expected inflation.
The nominal interest rate is equal to the real interest rate plus expected inflation.
A. True
B. False
Answer:...
Which of the following is NOT related to limitations of the CPI?
Which of the following is NOT related to limitations of the CPI?
A. The gas-mileage of passenger cars improved in the past decades
B. The widespread...
Which of the following is TRUE about the CPI?
Which of the following is TRUE about the CPI?
A. It is scaled by real GDP
B. It is designed to reflect the "true cost of living".
C. Its value is...
The IS curve is constructed through which of the following?
The IS curve is constructed through which of the following?
A) excessive national saving and imports
B) net capital outflow and excessive national...
Which of the following represents the equilibrium condition in goods market?
Which of the following represents the equilibrium condition in goods market?
A) NS = Y - C - G
B) NX = CF
C) Y = C + G + NX
D) none of the above
Answer:...
The exchange rate adjusts until:
The exchange rate adjusts until:
A) capital inflows = capital outflows
B) exports = imports
C) net exports = net capital outflow
D) none of the above
Answer:...
How does an increase in domestic interest rate affect the CFD curve?
How does an increase in domestic interest rate affect the CFD curve?
A) the CFD curve shifts to the right
B) the CFD curve shifts to the left
C)...
The CFD curve is downward sloping because
The CFD curve is downward sloping because
A) the lower our interest rate is, the more attractive foreign assets become
B) the lower our interest...
Which of the following is NOT in the final calculation of national saving?
Which of the following is NOT in the final calculation of national saving?
A) Y
B) NT
C) C
D) G
Answer:...
Which of the following does NOT affect the optimal investment (all changes are immediately effective)?
Which of the following does NOT affect the optimal investment (all changes are immediately effective)?
A) depreciation rate decreases and maintenance...
How would the user cost of capital and the optimal future capital level change if uncertainty level increases?
How would the user cost of capital and the optimal future capital level change if uncertainty level increases?
A) both increase
B) both decrease
C)...
Which of the following reflects labor market frictions?
Which of the following reflects labor market frictions?
A) a person is fired by an employer but finds a new job the next day
B) an employer...
What is TRUE about the labor supply in the definition of potential (full-employment) output?
What is TRUE about the labor supply in the definition of potential (full-employment) output?
A) it is the labor supply when non-structural...
The idea that saving equals investment in the Solow model means that a steady state can be reached only when
The idea that saving equals investment in the Solow model means that a steady state can be reached only when
A) s = k.
B) s = n + d.
C) y(k) = (n...
The per-worker production function in the Solow model assumes
The per-worker production function in the Solow model assumes
A) constant returns to scale and increasing marginal productivity of capital.
B) constant...
What two factors should a firm equate in deciding how many workers to employ?
What two factors should a firm equate in deciding how many workers to employ?
A) The marginal product of labor and the marginal product of capital
B)...
The marginal product of capital is the
The marginal product of capital is the
A) capital needed to produce one more unit of output.
B) additional output from a one-unit increase...
The value of real GDP in the current year equals
The value of real GDP in the current year equals
A) the value of current-year output in prices of the base year.
B) the value of current-year output...
The fundamental identity of national income accounting is
The fundamental identity of national income accounting is
A) total production = total income - total expenditure
B) total production = total income...
Which of the following is NOT a consumption good?
Which of the following is NOT a consumption good?
A) candy bars
B) private passenger cars
C) clothes
D) houses
Answer:...
Empirical data suggests that CF determines NX.
Empirical data suggests that CF determines NX.
A. True
B. False
Answer:...
Fixing exchange rates, tariffs for imported goods cause the NXD curve to
Fixing exchange rates, tariffs for imported goods cause the NXD curve to
A. Shift to the right
B. Shift to the left
C. Stay the same
D. Undetermined
Answer:...
The NXD curve allows us to see exactly how imports are affected by a change in exchange rate
The NXD curve allows us to see exactly how imports are affected by a change in exchange rate
A. True
B. False
Answer:...
What is a popular yet unusual real exchange rate measure?
What is a popular yet unusual real exchange rate measure?
A. Big Bang
B. Big Mac
C. Mc Double
D. Big N' Tasty
Answer:...
The exchange rates you see at airports are
The exchange rates you see at airports are
A. Real exchange rates
B. Informative about foreign goods
C. Mostly irrelevant to this course
D. None...
The CFD curve would not be shifted by foreign interest rate changes
The CFD curve would not be shifted by foreign interest rate changes
A. True
B. False
Answer:...
Changes in domestic interest rates are represented on the CFD curve by:
Changes in domestic interest rates are represented on the CFD curve by:
A. Points on the curve
B. movements of the curve
C. movements along the curve
D....
If domestic assets are more attractive relatively to foreign assets, we will expect to see a negative net capital outflow.
If domestic assets are more attractive relatively to foreign assets, we will expect to see a negative net capital outflow.
A. True
B. False
Answer:...
CF and NX are always exactly matching.
CF and NX are always exactly matching.
A. True
B. False
Answer:...
What is the definition of net capital outflow (CF)?
What is the definition of net capital outflow (CF)?
A. Purchase of goods from ROW - Sale of goods to ROW
B. Purchase of financial assets from ROW...
In this course, we assume that changes in taxes have no effect on national saving.
In this course, we assume that changes in taxes have no effect on national saving.
A. False
B. True
Answer:...
What is the equation for national saving?
What is the equation for national saving?
A. NS = Y - NT - G
B. NS = Y - C - G
C. NS = S + D
D. None of the above
Answer:...
Saving by households is given by:
Saving by households is given by:
A. S = Y - NT
B. S = Y - C
C. S = Y - NT - C
D. None of the above
Answer:...
Which agents are EXCLUDED from national saving calculation?
Which agents are EXCLUDED from national saving calculation?
A. Firms and Households
B. Firms and the Government
C. The Government and the Rest of...
How does the investment demand curve change when only MPK goes up?
How does the investment demand curve change when only MPK goes up?
A. Shift to the left
B. Shift to the right
C. Shift downwards
D. No change
Answer:...
How does the investment demand curve change when the maintenance rate increases?
How does the investment demand curve change when the maintenance rate increases?
A. Shift to the left
B. Shift to the right
C. Shift upwards
D. No...
What is represented by the horizontal axis of the investment demand curve diagram?
What is represented by the horizontal axis of the investment demand curve diagram?
A. Investment demand
B. Real Interest rate
C. User cost of capital
D....
Which of the following is NOT in the user cost of capital equation?
Which of the following is NOT in the user cost of capital equation?
A. Depreciation rate
B. Maintenance rate
C. Real interest rate
D. Nominal interest...
What is a key property of MPK with regard to investment decisions?
What is a key property of MPK with regard to investment decisions?
A. It is increasing in the labor input.
B. It has the constant returns to scale...
What is the criterion for an individual to be categorized as "Not in the labor force"?
What is the criterion for an individual to be categorized as "Not in the labor force"?
A. Individual who worked at least one paid hour in the previous...
What is the criterion for an individual to be categorized as "Not in the labor force"?
What is the criterion for an individual to be categorized as "Not in the labor force"?
A. Individual who worked at least one paid hour in the previous...
What does "HWI" stand for?
What does "HWI" stand for?
A. House Work Instruction
B. Help Wanted Index
C. Ham Wraps Index
D. Honest Worker Index
Answer:...
What is a plausible explanation for the existence of "Sticky Wages"?
What is a plausible explanation for the existence of "Sticky Wages"?
A. Employers care too much about workers' happiness.
B. Workers would go on...
The following is a common concept used in our discussions of the Solow Growth Model and of labor markets.
The following is a common concept used in our discussions of the Solow Growth Model and of labor markets.
A. Short Run
B. Steady State
C. Population...
Which of the following is a CORRECT description of neoclassical economists?
Which of the following is a CORRECT description of neoclassical economists?
A. They believe labor markets are fairly inefficient.
B. They believe...
Historically, structurally unemployed workers are:
Historically, structurally unemployed workers are:
A. Workers that design structures
B. Skilled workers
C. Unskilled workers
D. None of the above
Answer:...
Which of the following is TRUE for structural unemployment?
Which of the following is TRUE for structural unemployment?
A. It disappears in the long run.
B. It results from a mismatch of worker skills and...
How is consumption per capita (c) affected in the short run by an increase in the saving rate (s).
How is consumption per capita (c) affected in the short run by an increase in the saving rate (s).
A. increases
B. decreases
C. no change
D. undetermined
Answer:...
How is GDP per capita (y) affected in the short run when the productivity (A) increases?
How is GDP per capita (y) affected in the short run when the productivity (A) increases?
A. increases
B. decreases
C. not affected
D. unable to determine
Answer:...
How is GDP per capita (y) affected in the long run when the population growth rate (n) increases?
How is GDP per capita (y) affected in the long run when the population growth rate (n) increases?
A. increases
B. decreases
C. not affected
D. unable...
How is the saving per capita curve affected by a depreciation rate (d) increase?
How is the saving per capita curve affected by a depreciation rate (d) increase?
A. increase
B. decrease
C. not affected
D. unable to determine
Answer:...
How is the maintenance investment line affected when depreciation rate (d) increases?
How is the maintenance investment line affected when depreciation rate (d) increases?
A. becomes more steep
B. becomes less steep
C. not affected
D....
In the Solow growth model, the economy is sometimes NOT at the steady state in the time period(s) denoted:
In the Solow growth model, the economy is sometimes NOT at the steady state in the time period(s) denoted:
A. "initial"
B. "short run"
C. "long run"
D....
The intersection between the saving per capita curve and the maintenance investment line represents the steady state because
The intersection between the saving per capita curve and the maintenance investment line represents the steady state because
A. Saving per capita...
The GDP per capita curve in the Solow Growth model represents
The GDP per capita curve in the Solow Growth model represents
A. The level of income per capita
B. The level of labor income per capita
C. The level...
The saving per capita curve in the Solow Growth model represents
The saving per capita curve in the Solow Growth model represents
A. The amount of saving per capita by households
B. The amount of saving per capita...
The maintenance investment line in the Solow Growth model represents
The maintenance investment line in the Solow Growth model represents
A. Amount of investment per capita required for the steady state capital per...
In the Solow Growth Model, the steady state level of capital per capita represents:
In the Solow Growth Model, the steady state level of capital per capita represents:
A. The level of capital per capita where capita per capita is...
What does the "A" in the production function capture?
What does the "A" in the production function capture?
A. Automation
B. Amplitude
C. Efficiency
D. Productivity
Answer:...
In the Pizza Parlor example, returns to capital are
In the Pizza Parlor example, returns to capital are
A. Increasing
B. Decreasing
C. Constant
D. Negative
Answer:...
In the Pizza Parlor example, returns to labor are
In the Pizza Parlor example, returns to labor are
A. Decreasing
B. Increasing
C. Constant
D. Negative
Answer:...
Which of the following is approximately the labor share of income?
Which of the following is approximately the labor share of income?
A. 1/2
B. 1/3
C. 2/3
D. 1/4
Answer:...
What are the two inputs that go into the production function?
What are the two inputs that go into the production function?
A. Labor and Households
B. Capital and Shareholders
C. Consumption Goods and Investment...
The base year of the real GDP is:
The base year of the real GDP is:
A. Is always the year of the prices used in the measure but not of quantities
B. Is always the year of the quantities...
An advantage of Real GDP over Nominal GDP is that the former is:
An advantage of Real GDP over Nominal GDP is that the former is:
A. Less affected by price changes over the years
B. More affected by price changes...
One of the reasons for the Capital Account and the Current Account to be related is:
One of the reasons for the Capital Account and the Current Account to be related is:
A. In general, foreign countries do not use US Dollars.
B. Exports...
A government deficit occurs when:
A government deficit occurs when:
A. G - NT > 0
B. NX < 0
C. S < C
D. Y = C + G + I + NX
E. I = 0
Answer:...
The arrows in the CFI diagram represent?
The arrows in the CFI diagram represent?
A) Flows of payments
B) Flows of Goods
C. Flows of services
D. Flows of labor
E. Flows of physical capital
Answer:...
Which of the following is a consequence of rent controls established to keep housing affordable for the poor?
Which of the following is a consequence of rent controls established to keep housing affordable for the poor?
A. Less rental housing is available...
If government set a maximum price of $45 in the above market:
If government set a maximum price of $45 in the above market:
A. a shortage of 21 units would arise.
B. a surplus of 21 units would arise.
C....
If government set a minimum price of $50 in the above market, a:
If government set a minimum price of $50 in the above market, a:
A. shortage of 21 units would occur.
B. shortage of 125 units would occur.
C....
In the above market, economists would call a government-set maximum price of $40 a:
In the above market, economists would call a government-set maximum price of $40 a:
A. price ceiling.
B. price floor.
C. equilibrium price.
D....
In the above market, economists would call a government-set minimum price of $50 a:
In the above market, economists would call a government-set minimum price of $50 a:
A. price ceiling.
B. price floor.
C. equilibrium...
Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information we can conclude that:
Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this...
Over time, the equilibrium price of a gigabyte of computer memory has fallen while the equilibrium quantity purchased has increased. Based on this we can conclude that:
Over time, the equilibrium price of a gigabyte of computer memory has fallen while the equilibrium quantity purchased has increased. Based on this we...
Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good will:
Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good will:
A. increase...
With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will:
With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will:
A. increase equilibrium price...
With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will:
With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will:
A. increase equilibrium...
One can say with certainty that equilibrium quantity will increase when supply:
One can say with certainty that equilibrium quantity will increase when supply:
A. and demand both decrease.
B. increases and demand decreases.
C....
Since their introduction, prices of DVD players have fallen and the quantity purchased has increased. This statement:
Since their introduction, prices of DVD players have fallen and the quantity purchased has increased. This statement:
A. suggests that the...
Suppose that in 2007 Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008, 600,000 Mustangs were sold at an average price of $19,500 per car. These statements:
Suppose that in 2007 Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008, 600,000 Mustangs were sold at an average price of $19,500...
One can say with certainty that equilibrium price will decline when supply:
One can say with certainty that equilibrium price will decline when supply:
A. and demand both decrease.
B. increases and demand decreases.
C....
An unusually large crop of coffee beans might:
An unusually large crop of coffee beans might:
A. increase the supply of coffee.
B. increase the price of coffee.
C. decrease the quantity...
which shows demand and supply conditions in the competitive market for product X. If supply is S1 and demand D0, then
which shows demand and supply conditions in the competitive market for product X. If supply is S1 and demand D0, then
A. at any price above...
Which shows demand and supply conditions in the competitive market for product X. Given D0, if the supply curve moved from S0 to S1, then:
Which shows demand and supply conditions in the competitive market for product X. Given D0, if the supply curve moved from S0 to S1, then:
A....
Which shows demand and supply conditions in the competitive market for product X. If the initial demand and supply curves are D0 and S0, equilibrium price and quantity will be:
Which shows demand and supply conditions in the competitive market for product X. If the initial demand and supply curves are D0 and S0, equilibrium...
In which of the following instances will the effect on equilibrium price be dependent on the magnitude of the shifts in supply and demand?
In which of the following instances will the effect on equilibrium price be dependent on the magnitude of the shifts in supply and demand?
A....
Which of the following statements is correct?
Which of the following statements is correct?
A. If demand increases and supply decreases, equilibrium price will fall.
B. If supply increases...
Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?
Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?
A. an increase in supply.
B....
At the current price there is a shortage of a product. We would expect price to:
At the current price there is a shortage of a product. We would expect price to:
A. increase, quantity demanded to increase, and quantity supplied...
At the point where the demand and supply curves intersect:
At the point where the demand and supply curves intersect:
A. the buying and selling decisions of consumers and producers are inconsistent...
If there is a shortage of product X:
If there is a shortage of product X:
A. fewer resources will be allocated to the production of this good.
B. the price of the product will...
At the equilibrium price:
At the equilibrium price:
A. quantity supplied may exceed quantity demanded or vice versa.
B. there are no pressures on price to either rise...
If a product is in surplus supply, its price:
If a product is in surplus supply, its price:
A. is below the equilibrium level.
B. is above the equilibrium level.
C. will rise in the near...
Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect:
Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect:
A....
An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the:
An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the:
A. demand curve for cigarettes rightward.
B. demand...
Other things equal, if the price of a key resource used to produce product X falls, the:
Other things equal, if the price of a key resource used to produce product X falls, the:
A. product supply curve of X will shift to the right.
B....
The location of the supply curve of a product depends on:
The location of the supply curve of a product depends on:
A. the technology used to produce it.
B. the prices of resources used in its production.
C....
An improvement in production technology will:
An improvement in production technology will:
A. increase equilibrium price.
B. shift the supply curve to the left.
C. shift the supply curve...
A leftward shift of a product supply curve might be caused by:
A leftward shift of a product supply curve might be caused by:
A. an improvement in the relevant technique of production.
B. a decline in the prices...
Increasing marginal cost of production explains:
Increasing marginal cost of production explains:
A. the law of demand.
B. the income effect.
C. why the supply curve is upsloping.
D. why the...
A firm's supply curve is upsloping because:
A firm's supply curve is upsloping because:
A. the expansion of production necessitates the use of qualitatively inferior inputs.
B. mass production...
Refer to the above diagram. An increase in quantity supplied is depicted by a:
Refer to the above diagram. An increase in quantity supplied is depicted by a:
A. move from point y to point x.
B. shift from S1 to S2.
C....
Refer to the above diagram. A decrease in supply is depicted by a:
Refer to the above diagram. A decrease in supply is depicted by a:
A. move from point x to point y.
B. shift from S1 to S2.
C. shift from S2...
In which of the following statements are the terms "demand" and "quantity demanded" used correctly?
In which of the following statements are the terms "demand" and "quantity demanded" used correctly?
A. When the price of ice cream rose, the...
In moving along a stable demand curve which of the following is not held constant?
In moving along a stable demand curve which of the following is not held constant?
A. the price of the product for which the demand curve is...
Refer to the above diagram. A decrease in quantity demanded is depicted by a:
Refer to the above diagram. A decrease in quantity demanded is depicted by a:
A. move from point x to point y.
B. shift from D1 to D2.
C. shift...
Refer to the above diagram. A decrease in demand is depicted by a:
Refer to the above diagram. A decrease in demand is depicted by a:
A. move from point x to point y.
B. shift from D1 to D2.
C. shift from D2...
Which of the following would mostly likely increase the demand for gasoline?
Which of the following would mostly likely increase the demand for gasoline?
A. the expectation by consumers that gasoline prices will be higher...
An inferior good is:
An inferior good is:
A. one whose demand curve will shift rightward as incomes rise.
B. one whose price and quantity demanded vary directly.
C....
Suppose that a group of male pied flycatchers migrated from a region where there were no collared flycatchers to a region where both species were present. Assuming events like this are very rare, which of the following scenarios is least likely?
Suppose that a group of male pied flycatchers migrated from a region where there were no collared flycatchers to a region where both species were present....
Plant species A has a diploid number of 12. Plant species B has a diploid number of 16. A new species, C, arises as an allopolyploid from A and B. The diploid number for species C would probably be
Plant species A has a diploid number of 12. Plant species B has a diploid number of 16. A new species, C, arises as an allopolyploid from A and B. The...
Which of the following factors would not contribute to allopatric speciation?
Which of the following factors would not contribute to allopatric speciation?
A) A population becomes geographically isolated from the parent...
Bird guides once listed the myrtle warbler and Audubon's warbler as distinct species. Recently, these birds have been classified as eastern and western forms of a single species, the yellow-rumped warbler. Which of the following pieces of evidence, if true, would be cause for this reclassification?
Bird guides once listed the myrtle warbler and Audubon's warbler as distinct species. Recently, these birds have been classified as eastern and western...
According to the punctuated equilibria model,
According to the punctuated equilibria model,
A) natural selection is unimportant as a mechanism of evolution.
B) given enough time, most existing...
Males of different species of the fruit fly Drosophila that live in the same parts of the Hawaiian Islands have different elaborate courtship rituals. These rituals involve fighting other males and making stylized movements that attract females. What type of reproductive isolation does this represent?
Males of different species of the fruit fly Drosophila that live in the same parts of the Hawaiian Islands have different elaborate courtship rituals....
The largest unit within which gene flow can readily occur is a
The largest unit within which gene flow can readily occur is a
A) population.
B) species.
C) genus.
D) hybrid.
E) phylum.
Answer:...
On the Bahamian island of Andros, mosquitofish populations live in various, now-isolated, freshwater ponds that were once united. Currently, some predator-rich ponds have mosquitofish that can swim in short, fast bursts; other predator-poor ponds have mosquitofish that can swim continuously for a long time. When placed together in the same body of water, the two kinds of female mosquitofish exhibit exclusive breeding preferences.
On the Bahamian island of Andros, mosquitofish populations live in various, now-isolated, freshwater ponds that were once united. Currently, some predator-rich...
On the volcanic, equatorial West African island of Sao Tomé, two species of fruit fly exist. Drosophila yakuba inhabits the island's lowlands, and is also found on the African mainland, located about 200 miles away. At higher elevations, and only on Sao Tomé, is found the very closely related Drosophila santomea. The two species can hybridize, though male hybrids are sterile. A hybrid zone exists at middle elevations, though hybrids there are greatly outnumbered by D. santomea. Studies of the two species' nuclear genomes reveal that D. yakuba on the island is more closely related to mainland D. yakuba than to D. santomea (2n = 4 in both species). Sao Tomé rose from the Atlantic Ocean about 14 million years ago.
On the volcanic, equatorial West African island of Sao Tomé, two species of fruit fly exist. Drosophila yakuba inhabits the island's lowlands, and is...
In order for speciation to occur, what must be true?
In order for speciation to occur, what must be true?
A) The number of chromosomes in the gene pool must change.
B) Changes to centromere location...
Which of the following statements about speciation is correct?
Which of the following statements about speciation is correct?
A) The goal of natural selection is speciation.
B) When reunited, two allopatric...
Speciation Speciation A) occurs at such a slow pace that no one has ever observed the emergence of new species. B) occurs only by the accumulation of genetic change over vast expanses of time. C) must begin with the geographic isolation of a small, frontier population. D) and microevolution are synonymous. E) can involve changes to a single gene.
Speciation
A) occurs at such a slow pace that no one has ever observed the emergence of new species.
B) occurs only by the accumulation of...
According to the concept of punctuated equilibrium,
According to the concept of punctuated equilibrium,
A) natural selection is unimportant as a mechanism of evolution.
B) given enough time,...
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