ECON 1002 Microeconomics Unit 4 Challenges Click below link for Answer https://www.sobtell.com/q/tutorial/default/206916-econ-1002-microeconomics-unit-4-challenges https://www.sobtell.com/q/tutorial/default/206916-econ-1002-microeconomics-unit-4-challenges
Unit 4 Challenges 1 Rent control is a type of __________ that lowers the price of rent below market value. This creates a __________ of affordable apartments, as more people want apartments at this price, and fewer landlords are willing and able to offer them. a.) price floor; producer surplus b.) price ceiling; shortage
c.) price floor; shortage
d.) price ceiling; producer surplus
The minimum wage creates a __________ and is intended to increase the standard of living. But when it's set above equilibrium, the minimum wage can increase _______ by reducing the number of available jobs. a.) price floor; unemployment b.) price floor; consumer surplus
c.) price ceiling; unemployment
d.) price ceiling; consumer surplus
When a tax is imposed, the resulting decrease in consumer and producer surplus is known as a ________. a.)
deadweight loss b.) cost-benefit analysis
c.) price ceiling
d.) price floor
Sometimes when producers are not following specific practices, the government will impose a ______, which will require producers to pay the government and will decrease production of these types of goods. On a graph, this type of intervention would move the ________. a.) supply; demand curve to the left b.) tax; demand curve to the right
c.) supply; supply curve to the right
d.) tax; supply curve to the left
After the tax, what happens to price and quantity?
a.)
Consumers pay a higher price and consume more units. b.) Consumers pay a lower price and consume fewer units.
c.)
Consumers pay a higher price and consume fewer units. d.) Consumers pay a lower price and consume more units. After doing some research, Patricia learned that the governments of some African countries were helping their farmers sell their cotton on the global market. The governments were offering financial assistance to any farmer who could produce over 100 pounds of cotton per year.
What type of government intervention is this, and what would the result be in the global market for cotton? a.) This is a subsidy and supply will shift to the left. b.) This is a tax and supply will shift to the left.
c.) This is a tax and supply will shift to the right.
d.) This is a subsidy and supply will shift to the right.
Vanessa often smoked a couple of cigarettes to ease her stress. However, the tax per box of cigarettes in her state recently went up to $1.00. With this, Vanessa finally resolved to quit smoking for good. Looking at the effect of this tax on the market for cigarettes independent of the health impact, as a consumer, Vanessa would fall into the category of __________, since she could no longer afford to purchase cigarettes. a.) producer surplus b.) unemployment
c.) deadweight loss
d.) tax revenue
To cover security fees and cost for new facilities, PMW Airlines has increased their ticket prices with additional tax charges. This tax on airline tickets reduced _________ since it raised prices and some people would purchase fewer. a.) deadweight loss
b.) inefficiency
c.) producer surplus
d.) consumer surplus
Robert often complained about the price of liquor but still purchased a bottle of wine every week. Which of the following statements is true? a.) The tax would result in a lower revenue for the government. b.) The high taxes failed to modify consumer behavior.
c.) The consumer demand at this price point is relatively elastic.
d.) The government experienced a deadweight loss because of the tax.
According to the Laffer Curve, there is zero revenue collected by the government at tax rates of ___________. a.) 90% and 100%
b.)
0% and 10% c.) 0% and 100%
d.)
35% and 65%
According to this Laffer curve, should the government increase the tax rate from 40% to 60%? a.) Yes, because the tax revenue continues to increase after a tax rate of 40%.
b.)
Yes, because the government will receive a higher tax revenue. c.) No, because the tax revenue is no longer maximized.
d.)
No, because the government should increase the tax rate to 100%.
According to this Laffer curve, at which tax rate will the government maximize its revenue? a.) 35%
b.)
0% c.) 100%
d.)
50% When the S & P 500 rises over a period of time, economists predict that _______. a.) investors are confident in their expectations b.) consumers will start making fewer purchases
c.) the economy may be headed for a contraction
d.) the index will certainly fall soon
Which of the following is an example of a leading indicator? a.) Consumer credit b.) Conference Board Consumer Confidence Index
c.) Unemployment rate
d.) Equity market performance
If the number of building permits for new housing increase, economists predict that __________. a.) jobless claims will increase now and in the future b.) consumer demand for several markets will decrease
c.) demand for loans will decrease
d.) consumer demand for several markets will increase
Which of the following is not true about the indicator consumer credit? a.) It looks at interest rates in various industries for different kinds of loans. b.) It is lagging because it can take people a while to borrow money in response to a changing economy.
c.) It measures small, everyday purchases made by consumers.
d.) It estimates changes in the amount of loans that consumers have.
What does the Consumer Price Index measure? a.) The prices of the stocks of the S & P 500 b.) The market price of all goods and services produced within the U.S. borders
c.) The prices for a "market basket" of goods and services
d.) The price of inputs employed by firms
What does the unemployment rate measure? a.) The percentage of the labor force that does not have a job b.) The debt held by households
c.) The change in price for a market basket of goods
d.) The production levels in our economy
Economists use the Consumer Confidence Index to view __________. a.) production levels by firms b.) the relationship between tax revenue and tax rates
c.) whether interest rates will rise or fall
d.) decisions about household spending and saving
Coincident Indicators __________.
a.) show us where the economy is heading
b.) predict the future of the economy
c.) indicate where the economy is currently
d.) show us where the economy has been
The Consumer Confidence Index is collected by the __________, a.) S & P 500 b.) Conference Board
c.) Federal Bureau of Labor
d.) Federal Reserve
Unit 4 Challenges 2 Which of the following CANNOT be analyzed through process mapping? a.) Financial results b.) Overall improvement
c.) Sustainability
d.) Productivity
Which of the following is true regarding process mapping? a.)
Numbers are used to break processes into steps, which are divided into cost/benefit columns. b.) Rivalry and excludability can be analyzed through process mapping.
c.) Process mapping is utilized in continuous improvement studies.
d.) Only firms are involved in process mapping.
Select the statement which is correct regarding process mapping. a.) Process mapping is used when starting a business to analyze fixed costs. b.) Process mapping is an established procedure started during the Industrial Revolution.
c.) Process mapping allows firms to see where improvements can be made in production.
d.) Process mapping documents a majority of processes in our economy today.
Oliver asks himself if he is willing to spend more money to better train his workers. He finds the answer is "No." Which of the following shapes corresponds with this use in process mapping? a.)
b.)
c.)
d.)
Paula visits several websites and finds that most companies that practice sustainable processes need a more skilled workforce. Which of the following shapes corresponds with this task in process mapping? a.)
b.)
c.)
d.)
Dianna initiates her study by outlining which companies she is going to research and compiles a list of their websites. Which of the following shapes corresponds with this use in process mapping?
a.)
b.)
c.)
d.)
Although the intent of national parks is for them to be enjoyed by all, the entrance fees to the parks make them a __________. a.) common good b.) club good
c.) private good
d.) public good
Infrastructure, such as highways and bridges, are used by everyone. However, the elements and use create damage over time, which make them somewhat rivalrous, making them more of a __________. a.) public good b.) private good
c.) club good
d.) common good
Which of the following is an example of a private good? a.) Camera film for sale b.) A public interactive sculpture that disintegrates over time as it is used and left on display
c.) The pieces of artwork displayed at the art fair
d.) A video projected onto the side of a building
Which of the following examples corresponds to a command economy? a.) The taxpayers and businesses decide what should be produced in their cities. b.) Citizens are to provide their own protection, leading to an increase in small-town militia.
c.) Government-produced movies pit political party heroes against one another.
d.) For-profit schools are run by several competing companies.
Which of the following statements relates to a market economy? a.) Little to no private sector exists. b.) A central authority makes almost all production and distribution decisions.
c.) Economic efficiency is lacking, since government agencies do not have the profit motive that private industries do.
d.) Consumers and producers determine what to produce, how to produce and to whom the output will go.
Which of the following situations is an example of a pure market economy? a.) A country is famous for having the worst cars in the world, produced in a government-run industry. b.) People need to hire bodyguards because there is no police force.
c.)
The government provides free healthcare, but people also have the option of purchasing private insurance if they like. d.) A society is not as productive as it could be due to government intervention in many decisions.
An example of market failure is __________. a.) a price floor creates a surplus in the market b.) a chemical company overproduces its product, regardless of externalities
c.) the government has to take over certain companies that are failing due to high costs and low sales
d.) a cigarette company pays for advertising for its product
Which of the following is true regarding government intervention to correct market failure? a.) The government never provides public goods to correct market failure. b.) The political process makes it easy for the government to correct market failures.
c.) It is easy to assign a dollar value to negative externalities.
d.) Government intervention often is worse than market failure.
All of the following are examples of government regulation to correct a market failure EXCEPT __________. a.) the corporate income tax b.) emissions testing on cars
c.) selling pollution credits to chemical companies
d.) placing a tax on cigarettes
The phenomenon that may compel some people to prolong or postpone their job search because they can collect unemployment benefits for a longer time is an example of __________. a.) market failure b.) externalities
c.) moral hazard
d.) principal-agent problems
The bribery of corrupt government officials is an example of __________. a.) principal-agent problems b.) negative externalities
c.) information asymmetry
d.) regulatory intervention
The lack of knowledge regarding relief efforts in a certain region is a type of market failure known as __________. a.) principal-agent problems b.) information asymmetry
c.)
negative externalities d.) regulatory intervention
Analysis of the amount of money the average person spends to vacation in a national park times the number of citizens can be found using which of the following methods? a.) Cost-benefit analysis b.) Healthcare costs
c.) Contingent valuation
d.) Hedonic pricing
Considering how much money will be involved in cleaning up a polluted site as well as what it will take for a business to comply with government regulations is an aspect of which of the following methods? a.) Contingent valuation b.) Healthcare costs
c.) Cost-benefit analysis
d.) Hedonic pricing
The decrease in drugs used to treat asthma, cancer and other illnesses due to air-borne pollution is an example of ___________. a.) contingent valuation b.) hedonic pricing
c.) healthcare costs
d.) cost-benefit analysis
Amy recently graduated from college and has not been able to find a job in her chosen field of fashion design yet. Her type of unemployment is __________. a.) frictional unemployment b.) cyclical unemployment
c.) structural unemployment
d.) classical unemployment
The local art critic for the newspaper in the city was let go as the newspaper cut about half of its staff in order to avoid closing completely. The paper had been suffering revenue short-falls related to increased Internet competition. The critic's type of unemployment is __________. a.) structural unemployment b.) cyclical unemployment
c.) frictional unemployment
d.) classical unemployment
Sally was recently laid off from the travel agency where she worked. Due to the sluggish economy, people were no longer taking vacations.
Her type of unemployment is __________. a.) classical unemployment b.) structural unemployment
c.) cyclical unemployment
d.) frictional unemployment
Which of the following statements regarding climate change is FALSE? a.) Economists believe that the long term effects of anthropomorphic climate change remain uncertain. b.) Industrial pollution is a factor in the creation of anthropomorphic climate change.
c.) Weather volatility has had an impact on the cost of insurance.
d.) Climate change has resulted in decreased weather volatility.
What is the negative effect that natural disasters have had on the insurance market? a.) The government has stepped in and taken over the insurance market. b.) More small firms have entered the market, driving prices down.
c.) Advertising costs have increased due to fewer weather related disasters.
d.) An increase in costs of cleanup and payout to insurers has led to volatility in the market.
Lauren realized that the choices she made as a businesswoman in the present will influence people in the future, and are therefore forms of ____________.
a.) insurance availability
b.) pollution
c.) weather volatility
d.) intergenerational decisions
Until recently, CEOs and management teams at large in U.S. companies have focused solely on __________. a.) keeping up with climate controls put in place by their European counterparts b.) keeping unions happy and providing a good standard of living for all workers
c.) meeting the social and environmental obligations set forth by the government
d.) profit and investment returns
Which of the following statements regarding businesses and environmental impact is true? a.) Many investors are mainly interested in profitability rather than environmental impact. b.) No more activism is needed to bring about change in regards to business and environmental impact.
c.) CEOs have a fiduciary duty to use business practices that will impact the environment the least.
d.) One example of a worldwide attempt to set standards regarding climate change is the White House Climate Change website.
Which of the following roles corresponds with an investor? a.) Has a fiduciary responsibility b.) Maintain high quarterly performance for the company
c.) Views stock performance as indicative of success for their financial commitment
d.) Depends on the Board of Directors for support