Question Question 1 0 out of 2 points Suppose that every customer in a market wa

04 Jun Question Question 1 0 out of 2 points Suppose that every customer in a market wa

Question
Question 1

0 out of 2 points

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

Answers:

the superstar phenomenon.

human capital.

efficiency wages.

signaling.

Question 2

0 out of 2 points

The larger the number of firms in an oligopoly, the

Answers: lower the price and the smaller the output of the industry.

higher the price and the greater the output of the industry.

lower the price and the greater the output of the industry.

higher the price and the smaller the output of the industry.

Question 3

2 out of 2 points

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

Answers: True

False

Question 4

2 out of 2 points

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

Answers: True

False

Question 5

2 out of 2 points

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

Answers: game theory strategy.

dominant strategy.

prisoner’s dilemma strategy.

oligopoly strategy.

Question 6

2 out of 2 points

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

Answers: True

False

Question 7

0 out of 2 points

Hidden characteristics typically lead to

Answers: efficient outcomes.

adverse selection.

hidden actions.

moral hazard.

Question 8

0 out of 2 points

Hidden actions typically lead to

Answers: efficient outcomes.

adverse selection.

hidden characteristics

moral hazard.

Question 9

2 out of 2 points

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

Answers: True

False

Question 10

2 out of 2 points

The slope of the budget constraint will change whenever the

Answers:

income of the consumer changes.

slope of the consumer’s indifference curve changes.

preferences of the consumer changes.

price of one of the two goods changes.

Question 11

2 out of 2 points

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

Answers: True

False

Question 12

0 out of 2 points

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

Answers: True

False

Question 13

2 out of 2 points

Human capital is

Answers: machinery and equipment designed by humans.

the premium wages earned by highly-skilled workers.

labor resources earned by firms.

training.

Question 14

2 out of 2 points

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

Answers: True

False

Question 15

2 out of 2 points

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

Answers: True

False

Question 16

2 out of 2 points

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

Answers:

import tariffs

predatory pricing

resale price maintenance

tying

Question 17

0 out of 2 points

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

Answers:

The goods offered for sale are identical.

There is free entry and exit

There are many sellers.

There are many buyers.

Question 18

0 out of 2 points

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

Answers: increases.

decreases.

first increases, then decreases.

first decreases, then increases.

Question 19

0 out of 2 points