1.Why are high-rise buildings typically constructed in cities...

1.Why are high-rise buildings typically constructed in cities rather than in rural areas?

Land and capital are substituted for labor.

Land and labor are substituted for capital.

Labor and capital are substituted for land, which is very expensive.

Labor and capital are substituted for land because they are inexpensive.

2.Suppose that the marginal product of labor falls from 21 units of output to 0 as the amount of labor employed increases by 1. Which of the following is TRUE?

Total product cannot be increased further with additional workers.

Total revenue is at a minimum, and the additional worker should be laid off.

The coefficient of price elasticity of demand is 1.

The marginal revenue product is at a maximum.

3.Some movie complexes have machines that sell movie tickets. When this occurs, the movie complex is substituting __________ for __________.

land; labor

labor; capital

labor; technology

capital; labor

4.Investment in human capital __________.

benefits only the recipients and their immediate families

is not an effective method of income redistribution

is a form of income redistribution with the goal of equality of opportunity

is a form of income redistribution with the goal of equality of results

5.If paying living expenses for a foster child in New York City makes the Iowan Reynolds family feel better, the child and the family have __________.

interdependent utility functions

egalitarian philosophy and goals

independent utility functions

regional interdependencies

6.Lorena and her family live in a subsidized apartment that is part of the U.S. government's Section 8 housing program, a plan to help low- and moderate-income families. This type of aid is called __________.

a transfer payment

hardship welfare

an in-kind transfer

a government gratuity

7.What is the term for the transfer of governmental activities to the nongovernmental sector?

privatization

asset depletion

logrolling

incentivizing

8.What does the median voter theorem explain?

why most government programs benefit the middle class

which government programs benefit the extremes of society

how income can be redistributed from the rich to the poor

why voter turnout is low, even in areas of well-educated voters

9.In many industrialized areas of the world, privatization has been the norm for about 30 years. In which of the following areas is this NOT the case?

Latin America

France

China

the United Kingdom

10.Proposals that abolish existing programs or reduce public spending __________.

are generally unpopular yet often adopted

are generally popular yet rarely adopted

have a low probability of being adopted

have a high probability of being adopted