Chapter_11_quiz

Suppose that square A represents Households, then

• D is the resource market, C is the goods market, and B are the firms

• D is the goods market, C is the resource market, and B are the firms

• D is the resource market, C are the firms, and B is the goods market

• D are the firms, C is the resource market, and B is the goods market.

Consider Pick and Pay, we can conclude that

• Pick and Pay Hillcrest is a plant, Pick and Pay is a firm, Pick and Pay and Boxer are part of an industry

• Pick and Pay Hillcrest is a firm, Pick and Pay is a plant, Pick and Pay and Boxer are part of an industry

• Pick and Pay Hillcrest is a plant, Pick and Pay is an industry, Pick and Pay and Boxer are plants

What distinguish private goods from public goods?

• Public goods are less expensive than private goods

• Private goods have two properties: rivalry and non-excludability

• Public goods have two properties: rivalry and non-excludability

• Firms cannot find effective ways to exclude others from consuming public goods

You hold a bursary from corporation X, what is the principal agent problem in this case?

• Corporation X wants high marks from you, and you also want high marks

• Corporation X wants high marks from you, but you just want to pass

• Corporation X wants you to pass, but you want high marks

• Corporation X wants you to pass, and also want to pass

Suppose that society is producing at combination D, what is the cost of producing 2 more computers?

• 2 Computers

• 2 Bicycles

• 5 Computers

• 5 Bicycles

Suppose that society is producing at point B, what is the cost of producing one more bicycle?

• 1/2 Bicycle

• 1/2 Computers

• 1 Bicycles

• 1 Computers

In the PPE model, what contributes to economic shrinkage?

• Decrease in the factors of production

• Improvement in technology

• Full employment of resources

• Increase in entrepreneurship activity

Consider a Computer-Bicycle PPF. IF MB > MC for bicycles, what is the optimal action for society?

• Produce one more computer

• Produce one more bicycle

• Keeps computer production fixed

• Keep bicycle production fixed

Consider a pizza-industrial robot PPF. Which statement demonstrate the law of increasing opportunity cost?

• When production of industrial robots increases, society sacrifice more and more pizzas

• When production of industrial robots increases, price of pizzas increases

• When production of industrial robots increases, opportunity cost of pizzas increases

Which one of these statements is not a market failures?

• A business shuts down because of Covid

• A gym goer benefits from other vaccinated gym goers

• A firm dumps its waste products illegally

• There is a shortage of schools in a neighborhood.