Q3W10 - Name Test Form A Economics 1 Quiz 3 February 26,...

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Unformatted text preview: Name Test Form A Economics 1 Quiz 3 February 26, 2010 True-False Questions: Fill in Bubble A for True, Bubble B for False. 1. If the revenue a firm receives for its output exceeds the wages it pays to its workers, the firm can increase its profits by increasing the number of workers it hires. 2. The free rider problem in the provision of a public good is caused by the fact that public goods are nonexcludable. 3. An unemployed worker is said to be voluntarily unemployed if the market wage employed workers receive is less than his or her reservation wage. 4. If the demand curve for a good is price elastic, an inward shift in the supply curve for the good (less supplied at every price) will decrease the total revenue of suppliers. 5. If the supply curve for a good is perfectly inelastic, a per-unit tax levied on buyers of the good will decrease the competitive equilibrium price of the good by the amount of the tax. Multiple Choice Questions 6. Emmas Janitorial Services (EJS) cleans houses. It can hire as many as four workers. If EJS hires one worker, it can clean four houses in a day. With two workers, it can clean six houses. With three workers, it can clean seven houses. With four workers, it can clean eight houses. EJS charges $100 to clean a house. If it must pay its workers $80 per day, how many workers should EJS hire? (a) no workers (b) one worker (c) two workers (d) three workers (e) four workers Economics 1 2 7. The town of Evergreen has 100 plumbers. Ten of the plumbers have a reservation wage of $20 an hour, twenty have a reservation wage of $45 an hour, forty have a reservation wage of $60 an hour, and thirty have a reservation wage of $75 an hour. If the wage for plumbers in Evergreen is $70 an hour, how many plumbers will be willing to work?Evergreen is $70 an hour, how many plumbers will be willing to work?...
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Q3W10 - Name Test Form A Economics 1 Quiz 3 February 26,...

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