Econ QUIZ 9 - QUIZ 9 VERSION 1 1) If the last hour of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
QUIZ 9 VERSION 1 1) If the last hour of labour, hired for $18, produces 8 units of output selling for $10 per unit, that labour-hour adds ________ to the firm's profit and so ________ labour should be hired. A) $0; no B) $64; more C) $62; less D) $-64; less E) $62; more 2) In a perfectly competitive labour market, a profit-maximizing firm will employ labour until the A) VMPL = the product's price. B) MP = MR C) wage = VMPL . D) wage = the product's price. E) wage = MP . 3) Persons working in relatively risky situations generally A) work in competitive labour markets. B) do not concern economists as these situations are uncommon. C) earn higher wages due to the reduced supply of risk taking individuals. D) earn lower wages because of the scarcity of these jobs. E) earn higher wages due to the greater relative demand for these individuals. 4) If the interest rate is 5 percent, the present value of $100 to be received at the end of two years is A) $87.70. B) $90.70. C) $95.23. D) $97.00. E) $110.00. 5) A public good is a good that is A) nonrival but excludable. B) produced by the government. C) nonexcludable but rival. D) nonexcludable and nonrival. . E) excludable and rival. 6) An example of a public good is A) a city bus. B) an airplane. C) a municipal swimming pool. D) a school bus. E) a lighthouse. 7) Competitive markets are unlikely to produce an efficient amount of a public good because A) of the cost of the public good. B) they lack expertise dealing with the public. C) social benefits exceed social costs. D) there is insufficient demand. E) there is no way to prevent a person not willing to pay for the good from receiving benefits from the good. 8) The fact that it is difficult to prevent people from using public goods once they are produced is known as A) the free-to-a-good-home problem. B) the free-lunch problem. C) the free-trade problem. . D) the free-willy problem. E) the free-rider problem.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The free-rider problem means that A) government will not be able to produce an efficient amount of a public good. B) the private market will produce the efficient amounts of a public good. C) there will be no more fireworks displays. D) it is impossible or impractical to make people pay for a public good. E) too many people will over consume a public good. 10)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

Econ QUIZ 9 - QUIZ 9 VERSION 1 1) If the last hour of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online