59.) The stop signs and speed limits in a city street are examples of

government intervention.

positive externality

public policy

negative externality

private initiative

49.) Which of the following statements is true

I. The Lorenz curve graph is used to represent income distribution in the United States.

II. The Giny coefficient measures the level of income distribution in the United States

III. Education, geographic mobility and resource endowment are some of the factors that affect income distribution.

a. I only

b. II only

c. III only

d. I and II

e. I, II and III

50.

As the wage of a worker increases, the opportunity cost of his/her leisure time increases as well. This is an example of

substitution effect.

income effect.

normative effect.

complimentary effect.

inferior effect

26.)Mary enjoys her first bite of apple pie after dinner more than the last bite before she says she cannot eat any more, even though there is no difference in the quality of the pie between the two bites. This illustrates:

total surplus.

utility.

consumer surplus.

diminishing marginal utility.

Satisfaction

27.

If the government establishes a tax on movie tickets,

both the demand and supply of movie tickets will increase.

the demand for movie tickets will stay the same and the supply will decrease.

both demand and supply for movie tickets remain the same.

the demand for movie tickets increases and the supply decreases

the demand for movie tickets will increase and the supply will remain the same.