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11. According to the table above. A) 26.4%of all blacks are poor.. B) 26.4% of t

ID: 1188241 • Letter: 1

Question


11.          According to the table above.

                A)            26.4%of all blacks are poor..

                B)            26.4% of the poor are black.

                C)            26.4%of the population is both poor and black.

                D)            both A and B are true.

12.          If two jobs require the same amount of skills and experience, the job that pays the most is most    likely to be the one that is

                A)            unpleasant.          

B)            safe.                      

C)            easy.                      

D)            fun

13.          National parks are:

                A)            public goods.                                       

B)            natural monopolies.

                C)            common resources.                            

D)            all of the above.

14.          Economists view pollution as a textbook example of

                A)            public goods                                        

B)            externalities                         

                C)            increasing returns to scale                 

D)            the evils of monopoly.

15.          The labor market is most likely to cure which of the following types of discrimination?

                A)            employer discrimination.                                  

                B)            discrimination by customers.           

                C)            discrimination caused by government mandates.                                       

                D)            all of the above.

16.          Use of income transfers, generates equity at the cost of efficiency, in part because

                A)            low income households do not pay enough taxes.

                B)            government policy makers must choose funding the various programs.

                C)            it only effects taxpayers but not recipients of transfer payments.

                D)            income transfers weaken the incentive to work.

17.          Unlike the case with public goods, when someone consumes a common pooled resource, he/she:

                A)            engages in rivalrous consumption.

                B)            diminishes the benefits received by other consumers.

                C)            tends to over consume it from the standpoint of society.

                D)            all of the above.

Use the following information to answer questions 18 and 19.

Suppose that Bob's Burger Box is maximizing profit hiring workers at $6.00 per hour. Bob sells burgers in a competitive market for $2 each. He currently employs 18 people.

18.          The value of the marginal product of the 18th worker is:

                A)            $12.00                                                  

B)            $0.33                     

C)            $3.00.                                                    

D)            $6.00.

19.          The marginal product of the 18th worker is:

                A)            1                                                             

B)            2                             

C)            3                                                             

D)            4

Explanation / Answer

11) B)            26.4% of the poor are black.

12) A) Unpleasant

13) C) Common Resources

14) B)            externalities   

15) B)            discrimination by customers.   

16) D)            income transfers weaken the incentive to work.

17) A)            engages in rivalrous consumption.

18) D)            $6.00.

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