1. Almost all variation in living standards is attributable to differences in countries'

a.population growth

rates.

b.productivity

.c.systems of public education

.d.taxes.

2 It costs a meat-processing company $50,000 to produce 5,000 pounds of steak. The company's cost will be $50,009 if it produces an additional pound of steak. If the company produces 5,001 pounds of steak then

a.its average cost is greater than its marginal cost.

b.its average cost and its marginal cost are equal.

c.its average cost is less than its marginal cost.

d.there is insufficient information to compute average and marginal costs

3 The marginal benefit Kyra gets from eating a second sandwich is

a.the total benefit Kyra gets from eating two sandwiches minus the total benefit she gets from eating one sandwich

.b.the same as the total benefit she gets from eating two sandwiches.

c.less than the marginal cost of eating the second sandwich since she chose to eat the second sandwich

.d.the total benefit Kyra gets from eating three sandwiches minus the total benefit she gets from eating two sandwiches.

4 Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight. The marginal cost per room per night

a.is $40.

b.is $80

.c.is $120.

d.cannot be determined from the information given

5 An example of an externality is the impact of

a.bad weather on the income of farmers

.b.the personal income tax on a person's ability to purchase goods and services

.c.pollution from a factory on the health of people in the vicinity of the factory

d.increases in health care costs on the health of individuals in society.

6 After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?

a.The marginal benefit of going to Cancun increases

.b.The marginal cost of going to Cancun decreases

.c.The marginal benefit of going to Ft. Lauderdale decreases.

d.The marginal cost of going to Ft. Lauderdale decreases

7 Ramona decides to spend two hours taking a nap rather than attending her classes. Her opportunity cost of napping is

a.the value of the knowledge she would have received had she attended class.

b.the $24 she could have earned if she had worked at her job for those two hours

.c.the value of her nap minus the value of attending class.

d.nothing, since she valued sleep more than attendance at class

8 During the 1990s, the United Kingdom experienced low levels of inflation while Turkey experienced high levels of inflation. A likely explanation of these facts is that

a.the United Kingdom has a better education system than Turkey.

b.the rate of growth of the quantity of money was slower in the United Kingdom than in Turkey.

c.workers in Turkey are more productive than workers in the United Kingdom.

d.there are more instances of market power in Turkey than in the United Kingdom.

9 Olivia was accepted by Northwestern and by another university. She is trying to decide where to go. Which of the following should influence her decision?

a.how much she spent applying to Northwestern, and the difference between living expenses at Northwestern and the other university

b.how much she spent applying to Northwestern, but not the difference between living expenses at Northwestern and the other university

c.the difference between living expenses at Northwestern and her second choice, but not how much she spent applying to Northwestern

d.neither how much she spent applying to Northwestern nor the difference between living expenses at Northwestern and her second choice

10 In a particular country in 1998, the average worker needed to work 40 hours to produce 100 units of output. In that same country in 2008, the average worker needed to work 36 hours to produce 72 units of output. In that country, the productivity of the average worker

a.decreased between 1998 and 2008, so we would expect the standard of living to have decreased accordingly.

b.increased between 1998 and 2008, so we would expect the standard of living to have increased accordingly.

c.decreased between 1998 and 2008, so we would expect inflation to have decreased accordingly.

d.increased between 1998 and 2008, so we would expect inflation to have increased accordingly.

11 In the short run, which of the following isnotcorrect?

a.Increasing the money supply increases the demand for goods and services

.b.Increasing the money supply encourages firms to hire more workers.

c.Lowering the money supply leads to a higher level of unemployment.

d.Policies that encourage higher employment will also induce a lower rate of inflation

13 Which of the following is a principle concerning how people interact?

a.Markets are usually a good way to organize economic activity.

b.Rational people think at the margin

.c.People respond to incentives.

d.All of the above are correct

14 Which of the following statements about markets is most accurate?

a.Markets are usually a good way to organize economic activity

.b.Markets are usually inferior to central planning as a way to organize economic activity.

c.Markets fail and are therefore not an acceptable way to organize economic activity.

d.Markets are a good way to organize economic activity in developed nations, but not in less developed nations.

15 The opportunity cost of working one hour is the sum of the values you would have received from all other activities you could have done in that hour.

a. True

b. False

16 Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial

a.only if it allows us to obtain things that we couldn't make for ourselves

.b.because it allows specialization, which increases total output

.c.to us if we can gain and the others involved in the trade lose

.d.in only a limited number of circumstances because others are typically self-interested.

17 In the short run, which of the following rates of growth in the money supply is likely to lead to the lowest level of unemployment in the economy?

a.3 percent per year

b.5 percent per year

c.7 percent per year

d.9 percent per year

18 Economists use the wordequalityto describe a situation in which

a.each member of society has the same income

.b.each member of society has access to abundant quantities of goods and services, regardless of his or her income.

c.society is getting the maximum benefits from its scarce resources.

d.society's resources are used efficiently

19 The tradeoff between inflation and unemployment

a.implies that policies designed to reduce unemployment also reduce inflation

.b.was eliminated by improved economic policies in the 1900s

.c.is a long-run tradeoff, persisting for decades, according to most economists.

d.None of the above are correct.

help me this question please.