Take Home Test
Principles of Microeconomics
Take Home Test #4F - Chapters 28, 29, 5 & 32 (Miller Spring 2006)
Choose the one alternative that best completes the statement or answers the question.
1) All economic systems must answer which questions?
A) Who get the goods, how do they get them, and why do they get them.
B) Who get the goods, how do they get them, and what do they get them for.
C) How are goods and services distributed, who gets the goods and services produced, what goods and services will be produced.
D) How are goods and services produced, who gets the goods and services produced, what goods and services will be produced.
E) What goods are produced, how are they produced, and to whom does the government distribute the goods, …show more content…
E) All of the above statements are correct.
28) The marginal benefit of pollution reduction
A) increases as pollution reduction increases because people want an even cleaner environment as the environment gets cleaner.
B) increases as pollution reduction increases because increases in pollution reduction generate more increases in pollution reduction.
C) is constant as pollution reduction increases because pollution reduction is valued for its own sake and not for the benefit it provides.
D) decreases as pollution reduction increases because of the law of increasing marginal opportunity costs.
E) decreases as pollution reduction increases because of the law of diminishing marginal returns.
29) If a community is assigned property rights over air quality and the environment, a steel mill in the community that generates air pollution: A) will bribe government officials so it can pollute. B) will sue for the right to produce steel. C) will voluntarily cease to pollute because they recognize that it is not good. D) must shut down. E) can contract to pay the community to allow some level of air …show more content…
B) is more elastic that its demand curve for labor.
C) lies below the firm's demand curve for labor.
D) is equal to the firm's demand curve for the product that labor can produce.
E) is the same as its demand curve for labor.
48) We assume that when a firm hires additional workers the marginal physical product of labor will
A) increase because more workers can always get more work done.
B) decrease because the new workers are likely to be less able than the previously hired ones.
C) not change because of the ceteris paribus assumption.
D) increase because large firms are more efficient.
E) decrease because each worker now has less capital and other resources to work with.
49) A firm's marginal factor cost describes
A) the increase in the firm's total revenue as one more unit of output is sold.
B) the change in total fixed cost which results from hiring one more unit of input.
C) the change in total variable cost which results from the production of an extra unit of
Take Home Test #4F - Chapters 28, 29, 5 & 32 (Miller Spring 2006)
Choose the one alternative that best completes the statement or answers the question.
1) All economic systems must answer which questions?
A) Who get the goods, how do they get them, and why do they get them.
B) Who get the goods, how do they get them, and what do they get them for.
C) How are goods and services distributed, who gets the goods and services produced, what goods and services will be produced.
D) How are goods and services produced, who gets the goods and services produced, what goods and services will be produced.
E) What goods are produced, how are they produced, and to whom does the government distribute the goods, …show more content…
E) All of the above statements are correct.
28) The marginal benefit of pollution reduction
A) increases as pollution reduction increases because people want an even cleaner environment as the environment gets cleaner.
B) increases as pollution reduction increases because increases in pollution reduction generate more increases in pollution reduction.
C) is constant as pollution reduction increases because pollution reduction is valued for its own sake and not for the benefit it provides.
D) decreases as pollution reduction increases because of the law of increasing marginal opportunity costs.
E) decreases as pollution reduction increases because of the law of diminishing marginal returns.
29) If a community is assigned property rights over air quality and the environment, a steel mill in the community that generates air pollution: A) will bribe government officials so it can pollute. B) will sue for the right to produce steel. C) will voluntarily cease to pollute because they recognize that it is not good. D) must shut down. E) can contract to pay the community to allow some level of air …show more content…
B) is more elastic that its demand curve for labor.
C) lies below the firm's demand curve for labor.
D) is equal to the firm's demand curve for the product that labor can produce.
E) is the same as its demand curve for labor.
48) We assume that when a firm hires additional workers the marginal physical product of labor will
A) increase because more workers can always get more work done.
B) decrease because the new workers are likely to be less able than the previously hired ones.
C) not change because of the ceteris paribus assumption.
D) increase because large firms are more efficient.
E) decrease because each worker now has less capital and other resources to work with.
49) A firm's marginal factor cost describes
A) the increase in the firm's total revenue as one more unit of output is sold.
B) the change in total fixed cost which results from hiring one more unit of input.
C) the change in total variable cost which results from the production of an extra unit of