10. Which of the following events would NOT shift the labour supply curve? a. changing attitudes towards work b. changes in the number of women willing to work c. immigration of workers d. advances in technology 11. During the 1970s the OPEC crisis caused gasoline prices to increase sharply. Coincidentally, demand for gas-guzzling cars fell. A likely explanation for this response by consumers is that gasoline and cars had a elasticity of demand that was a. income; negative b. income; positive C. cross-price; positive d. cross-price; negative 12. Mike has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $20 per hour. During the summer, Mike drives a shuttle bus around the resort, earning $18 per hour. When is the opportunity cost of Mike's leisure time higher; and how will he respond? a. in the winter; by working more hours b. under no circumstance is his opportunity cost higher; by working the same number of hours. c. under no circumstance is his opportunity cost higher; by dividing his time equally between work and leisure d. in the summer; by working fewer hours Table 4 Qd Px N Py Qs 920 140 500 120 420 900 150 400 100 450 13. Refer to Table 4. The table shows the Qd and Qs of Good X at various prices (Px), incomes (N), and prices of a related Good Y (Py). What is the cross-price elasticity of good X when the price of good Y increases from $100 to $120? a. 3.00 b. 0.11 C. 0.33 d. 9.00 Page 6 of 19 NAME . . 6 5 2 4 114. A binding price ceiling is imposed on the market for strawberries. At the binding price ceiling, what will be the quantity demanded of strawberries? a. greater than the quantity supplied b. artificially restricted by the price ceiling equal to the quantity supplied d. smaller than the quantity supplied 15. It is difficult to prevent people from using public goods once they are produced. What is this called? a. asymmetric information b. adverse selection c. the tragedy of the commons d. the free-rider problem 16. In which of the following markets does AR = MC hold? a. only in imperfect competition b. only in monopoly only in perfect competition d. in perfect competition, imperfect competition, and monopoly 17. Suppose that demand increases and supply decreases, by the same magnitude. How do the equilibrium price and quantity change? a. Equilibrium price increases, but the impact on quantity is ambiguous. b. Equilibrium price increases, but there is no change in equilibrium quantity. c. Equilibrium quantity decreases, but the impact on price is ambiguous. d. Equilibrium quantity increases, but there is no change in equilibrium price. 18. If the total revenue of clothing manufacturers decreases when the price of clothing falls, the price elasticity of demand is a. greater than one b. less than one c. exactly zero d. equal to one Page 7 of 19 ( Give . Jos ek sa, A B LU circle change. TIONS