15. Which of the following is the best example of an Ordinal Measurement? a. Philip scored a 97 on the exam while Taylor got an 83 b. Joshua would be willing to pay $30,000 for a new car, but only $12,000 for a used one. C. Brady's best class is his economics class; his second best is mathematics d. The longest paper Sarah has ever written was 7000 words for her history course e. None of the above are examples of ordinal measurements 16. Which of the following is the best example of a Horizontal Merger? a. The Carnegie Steel company - which owned the mills where steel was made - increased its market power by acquiring mines where iron ore was extracted. b. Penguin and Smith Schuster-two publishing companies - proposed a merger that would allow them to compete with Amazon c. The Walt Disney Company acquired American Broadcasting Company (ABC) in order to enter the television market d. Walmart became a major retailer by combining its warehouses with its retail stores to cutdown on costs. e. None of the above are examples of a horizontal merger 17. Which of the following is the best example of a Conglomerate Merger? a. The Carnegie Steel company - which owned the mills where steel was made - increased its market power by acquiring mines where iron ore was extracted. b. Penguin and Smith Schuster-two publishing companies - proposed a merger that would allow them to compete with Amazon C. The Walt Disney Company acquired American Broadcasting Company (ABC) in order to enter the television market d. Walmart became a major retailer by combining its warehouses with its retail stores to cutdown on costs. e. None of the above are examples of a conglomerate merger18. Which of the following is the best example of a Vertical Merger? a. The Carnegie Steel company - which owned the mills where steel was made - increased its market power by acquiring mines where iron ore was extracted. b. Penguin and Smith Schuster-two publishing companies - proposed a merger that would allow them to compete with Amazon C. The Walt Disney Company acquired American Broadcasting Company (ABC) in order to enter the television market d. Walmart became a major retailer by combining its warehouses with its retail stores to cutdown on costs. e. None of the above are examples of a vertical merger 19. Which of the following would be considered a violation of the Wheeler Lea Act? a. A labor union consisting of public employees going on strike b. A publishing company acquires the stock of another publishing company in order | to monopolize the market C. A publishing company acquires the assets of another publishing company in orderto monopolize the market d. A soft drink company promised prizes to consumers who purchased bottles with special bottlecaps, but did not release any bottles with special bottlecaps e. None of the above are violations of the Wheeler Lea Act24. Which of the following is an assumption of utility maximization? a. The marginal utilities for the last unit of each good consumed are equal b. The consumer is consuming a combination of goods on the highest indifference curve c. The consumer's marginal rate of substitution is equal to the relative prices of the goods consumed d. The consumer will always consume at least one unit of each good available. e. None of the above are assumptions of utility maximization 25. Which of the following is most likely to occur if the seller of a product has more information about the product than the buyer? a. Consumer surplus will be larger than it otherwise would have been b. The price of the product will be lower than it otherwise would have been c. There will be an underallocation of resources d. Producer surplus will be larger than it otherwise would have been e. None of the above will occur when the seller has more information than the buyer 26. What is the difference between economic profits and accounting profits? Accounting profits do not consider opportunity costs b. Economic profits only look at the actual, monetary costs incurred by the firm. C. A firm may be very profitable economically, but be taking an accounting loss d. Firm's generally don't consider economic profits when making decisions; only accounting profits. e. None of the above are differences between economic profits and accounting profits. 27. Why is it we assume perfectly competitive firms earn zero longrun economic profits? a. Because perfectly competitive firms must set their price equal to marginal costs b. Because all buyers and sellers have perfect information, so they know when they are not getting a fair deal C. Because firms are able to freely enter/exit the market when there are economic profits/losses d. Because the firms are unable to influence the market price to guarantee profit e. All of the above are reasons why perfectly competitive firms earn zero long run economic profits20. Which of the following would be prevented by the Clayton Act? a. A labor union consisting of public employees going on strike b. A publishing company acquires the stock of another publishing company in order to monopolize the market C. A publishing company acquires the assets of another publishing company in orderto monopolize the market d. A soft drink company promised prizes to consumers who purchased bottles with special bottlecaps, but did not release any bottles with special bottlecaps e. None of the above are violations of the Clayton Act 21. Which of the following is an example of a moral hazard? a. The Standard Oil Company would routinely cut prices to drive out competition b. Enron engaged in financial fraud to make themselves look more profitable than they were C. Corporations use inflation as a cover to engage in price gouging behavior The Federal Reserve bailed out banks that took on too much risk during the 2008 crisis e. None of the above are an example of a moral hazard 22. Which of the following is notan assumption we make about consumers in economics? a. Consumers may not use all their income b. Generally, more is preferred to less c. Consumption follows the law of diminishing marginal utility d. Consumers seek to maximize their utility e. All of the above are assumptions we make about consumers in economics 23. Which of the following claims is true about indifference curves? a. They can intersect with one another b. They are usually downward sloping C. They bend outwards d. All of the above are true about indifference curves e. None of the above are true about indifference curves