Economics 2 Quiz 23.24

The table that presents the product price and the amounts of a product that firms are willing and able to produce at various prices over a fixed time period is known as the:

• a. supply matrix
• b. supply curve
• c. demand curve
• d. supply schedule
• e. supply set

Sugar price supports in the United States...

• a. are a rent seeking policy
• b. protect domestic sugar producers
• c. provide a benefit to a small number of U.S. sugar producers
• d. increase the price of sugar to U.S. consumers
• e. do all of the above

Suppose there is $2 trillion in currency in an economy. Banks are able to lend 90% of their reserves. Households hold 15% of the currency. Given these conditions, what is the money supply of this economy?

• a. $1.7 trillion
• b. $2.3 trillion
• c. $16.7 trillion
• d. $17.3 trillion
• e. $19.22 trillion

Under which market structure do many firms produce differentiated products?

• a. natural monopoly
• b. perfect competition
• c. monopolistic competition
• d. oligopoly
• e. monopoly caused by ownership of key resources

Butterball and Jennie-O are two brands of turkey that many consumers buy for Thanksgiving dinner. These products are:

• a. luxuries
• b. complements
• c. superior goods
• d. substitutes
• e. resources

Which of the following is an example of a government-created market inefficiency?

• a. an equilibrium price
• b. the establishment of a legal system protecting property rights
• c. pork barrel politics
• d. intermediary
• e. Federal Reserve

Based on the information in Table A below, the average total cost of producing 80 units is:

• a. $2920
• b. $2520
• c. $26
• d. $18.75
• e. $36.50

A market failure does not occur when:

• a. entrepreneurs create a new innovation they alone have the ability to sell
• b. competitive markets fail to produce socially desirable outcomes
• c. consumers benefit from goods or services that they do not pay for
• d. it is impossible to establish private property rights for important goods and services
• e. too little of a good is provided by the free market

Robinson can produce 18 coconuts or 6 fish during the day. Crusoe can produce 20 coconuts or 8 fish during the day. Their workdays are of the same length, and each uses only their own labor. We can say that:

• a. Robinson has the comparative advantage in fish and Crusoe in coconuts
• b. Robinson has the comparative advantage in coconuts and Crusoe in fish
• c. Robinson has the comparative advantage in both fish and coconuts
• d. Crusoe has the comparative advantage in both fish and coconuts
• e. neither has a comparative advantage in either good

Robinson can produce 18 coconuts or 6 fish during the day. Crusoe can produce 20 coconuts or 8 fish during the day. Their workdays are of the same length, and each uses only their own labor. We can say that:

• a. Robinson has the comparative advantage in fish and Crusoe in coconuts
• b. Robinson has the comparative advantage in coconuts and Crusoe in fish
• c. Robinson has the comparative advantage in both fish and coconuts
• d. Crusoe has the comparative advantage in both fish and coconuts
• e. neither has a comparative advantage in either good