A "spillover" is more commonly referred to as:

Question 1 options:

social costs.

an externality.

private good.

a market transaction.

Question 2(1 point)

If an industry neither produces positive or negative externalities then:

Question 2 options:

all social costs and benefits will be captured in the market.

there is an under-allocation of resources.

there is an over-allocation of resources.

the government must intervene.

Question 3(1 point)

The Lorenz curve is graphed next to a(n) ___________________.

Question 3 options:

downward-sloping 45 degree line

upward-sloping 45 degree line

a horizontal line

a vertical line

Question 4(1 point)

A disproportionate distribution of income in society is called:

Question 4 options:

Poverty

Quintiles

A poverty trap

Inequality

Question 5(1 point)

Apple would likely be more willing to spend money on a research project to reduce the electricity consumption of their computers if:

Question 5 options:

they will enjoy a small temporary advantage over the competition.

they would be able to set price to compensate for development costs.

they could sell the new computers as a monopoly for at least a few years.

they would receive a government bailout if losses could drive it out of business.

Question 6(1 point)

Market-oriented environmental tools ______________________ for firms to take the social costs of pollution into account and ______________________ in reacting to these incentives.

Question 6 options:

draw distinctions; lower the social costs incurred

lack incentives; prohibit firms from having flexibility

create incentives; allow firms some flexibility

specify particular technology; lower the social costs incurred

Question 7(1 point)

If the income level falls for low-income workers, but remains unchanged for high-income workers,

Question 7 options:

then poverty will rise and inequality will fall.

then poverty will fall and inequality will fall.

then poverty will fall and inequality will rise.

then poverty will rise and inequality will rise.

Question 8(1 point)

With an understanding of labor unions, which job field has the highest union participation?

Question 8 options:

telemarketing

police

accountants

customer service

Question 9(1 point)

If the government can successfully increase skills training for low-skilled workers, this will ______________ the supply of low-skilled workers and _____________ the supply of high-skilled workers.

Question 9 options:

increase, decrease

increase, increase

decrease, decrease

decrease, increase

Question 10(1 point)

_____________________ arises when one group receives a higher share of total income or wealth than others.

Question 10 options:

Poverty

Poverty entrapment

Quintiles

Inequality

Question 11(1 point)

Goods provided by the government (public goods) are required for a goods that are:

Question 11 options:

excludable and rivalrous

excludable or rivalrous

nonexcludable and nonrivalrous

nonexcludable or nonrivalrous

Question 12(1 point)

A country is currently creating 40 million tons of toxic waste per year. The table below shows the marginal costs and benefits of reducing the amount of toxic waste to various amounts.

TotalCost (in thousands of dollars)

TotalBenefits (in thousands of dollars)

MarginalCost

Marginal Benefit

TotalBenefitMinus Total Cost

40

million tons

Current situation

Current situation

--

--

--

30

million tons

50

800

50

800

Gain of 750

20

million tons

150

1,300

100

500

Gain of 1,150

10

million tons

500

1,850

350

350

Gain of 1,350

0 tons

1,200

2,000

700

150

Gain of 800

What level of toxic waste should the country reduce to?

Question 12 options:

30 million tons

20 million tons

10 million tons

0 tons

Question 13(1 point)

Which of the following is a qualified shareholder?

Question 13 options:

Buying stock on the New York Stock Exchange

Investing in bonds

Ownership of debt

Investing in treasury notes

Question 14(1 point)

__________________ is a situation where income is above the poverty line, but unable to comfortably afford all basic human needs.

Question 14 options:

Working poor

Poverty trapped

Near-poor

Poverty rate

Question 15(1 point)

Someone that intends to use public goods, but does not want to pay for them, is referred to as a _______________.

Question 15 options:

free rider

consumer

criminal

tax evader

Question 16(1 point)

The government allows inventors to ___________________ .

Question 16 options:

protect their inventions indefinitely

receive a high rate of return

receive a low, unreasonable rate of return

steal ideas from other inventors

Question 17(1 point)

A group of workers that negotiate with employers over wages and working conditions are known as a(n):

Question 17 options:

affirmative union.

collective.

cooperative.

labor union.

Question 18(1 point)

Poverty is measured by the number of people who fall below

Question 18 options:

a certain level of income.

the income needed for a basic standard of living.

the nation's economic poverty line.

all the above are correct.

Question 19(1 point)

The old proverb: "Don't put all your eggs in one basket" is synonymous with which of the following?

Question 19 options:

an average rate of return

predicting value of tangible assets

diversified investments

a flexible rate of return

Question 20(1 point)

In the U.S. over the last 40 years, union membership has ____________________.

Question 20 options:

risen

fallen

stayed the same

been eliminated

Question 21(1 point)

The _________ of an investment is determined by how easy it is to sell an asset at any given time.

Question 21 options:

profitability

expected profitability

liquidity

sustainable outcome

Question 22(1 point)

A critic of labor unions would argue that

Question 22 options:

unions oppose suppression of wages by profit-seeking firms

unions have a tendency to gain as much as possible in the long-term

unions can prohibit economic growth if new technology is blocked

unions have a higher percentage of women members than men

Question 23(1 point)

When union workers negotiate higher wages, how can the firm benefit?

Question 23 options:

They can charge higher prices.

Workers will be more productive.

Workers will be less productive.

Labor costs will decline.

Question 24(1 point)

If a firm creates too much of a positive externality with the development of new technology,

Question 24 options:

they have less incentive to innovate to the extent that the whole of society desires.

they will have more incentive to innovate to the extent that the whole of society desires.

they will invest significantly more in its research and development activities.

they will demand more financial capital investment to expand its R&D activities.

Question 25(1 point)

How can the cost of capital impact investment?

Question 25 options:

at a high cost, firms demand a large quantity with high returns.

at a low cost, firms demand a large quantity with high returns.

financial capital at a high cost means more projects are likely to pay a much higher return rate.

at a low cost, the firm receives only small private benefits from investing in R&D.

Question 26(1 point)

_________________________ means taking income from those with higher incomes and providing income to those with lower incomes.

Question 26 options:

Safety net

Redistribution

Estate tax

Minimum wage

Question 27(1 point)

A highly innovative firm with lots of competition will have:

Question 27 options:

a permanent edge over its competitors.

some time before competitors catch up to its innovations.

a lack of ability to earn reasonable profits.

no incentive to innovate.

Question 28(1 point)

Which of the following is a legal claim of partial ownership in a corporation?

Question 28 options:

entitlement to bond interest

ownership of a treasury bond

entitlement to dividends

ownership of stock

Question 29(1 point)

What are the defining characteristics of a public good?

Question 29 options:

nonrivalry

nonexcludable

the good is a separate and identifiable item

the good is both a and b

Question 30(1 point)

Someone earning just enough money to be barely above the poverty line is referred to as:

Question 30 options:

near-poor

working poor

trapped

middle income

Question 31(1 point)

Which is an example of a third-party benefiting from a market transaction?

Question 31 options:

Higher levels of pollution from a new manufacturing facility.

Dumping excess waste into a local body of water.

A city building a brand new public park.

Higher taxes on pollution.

Question 32(1 point)

Taking money from high-earners as reallocating the money to ones with lower income is:

Question 32 options:

a safety net.

redistribution.

minimum wage law.

an estate tax.

Question 33(1 point)

A pollution tax applies to:

Question 33 options:

pollution control technologies.

every economy in the world.

the quantity of pollution that a firm emits.

low-income market-orientated industries.

Question 34(1 point)

Which of the following is an example of economic output that can injure the environment?

Question 34 options:

gold mine discharging arsenic into a natural lake it's using for a tailings pond

paper mill discharging raw chemical waste into a river

excessive clear cutting of wood resources by logging companies

radio-active waste leaking into a river, and all of the above

Question 35(1 point)

Buying a stock at a lower price and subsequently selling at a higher price is called:

Question 35 options:

A dividend

Capital gains

Interest payments

Rate of return

Question 36(1 point)

Labor unions can:

Question 36 options:

be a primary line of defense against suppressed wage levels.

be controversial in a for-profit market driven economy.

bring better economic gains for their memberships.

protect workers' pensions and all of the above.

Question 37(1 point)

A higher pollution tax:

Question 37 options:

ensures firms have pollution charge credits for all reduced emissions.

provides incentive for firms to maintain regulation emission levels.

creates more incentive for firms to reduce their emissions.

ensures firms must pay the pollution charge for all reduced emissions.

Question 38(1 point)

If a firm fails when conducting research and development:

Question 38 options:

the firm could go out of business.

they will always spend more on future R&D.

it will not hinder future technological change.

it was a complete waste of money.

Question 39(1 point)

What is the coefficient that measures the area between the line of equality and the Lorenz curve?

Question 39 options:

elasticity of demand

Gini

income elasticity

cross-price elasticity

Question 40(1 point)

What is an example of a negative externality for a beehive?

Question 40 options:

A neighbor getting stung by the bees.

The bees helping pollinate nearby crops.

The honey from the hive.

The cost to purchase the hive.

Question 41(1 point)

Suppose that new high-technology farming equipment is developed. These new machines are substitutes for low-income workers such as farm laborers, but they are complements for high- income workers such as farm technicians and farm owners. This new technology will shift the demand curve for low-income workers to the_______________while shifting the demand curve for high-income workers to the _________________________.

Question 41 options:

left, left

left, right

right, left

right, right

Question 42(1 point)

A direct way to improve opportunities or outcomes of minority groups or women is called:

Question 42 options:

Meritorious action

Affirmative action

Anti-discrimination action

Coordinated action

Question 43(1 point)

A Lorenz curve graphs the _________________________ received by everyone up to a certain quintile.

Question 43 options:

unequal distribution over time

normative shares of income

cumulative shares of income

total shares of income

Question 44(1 point)

Structuring anti-poverty programs in a way that unintentionally decreases the incentive to earn more income can contribute to __________________.

Question 44 options:

an income inequality

a poverty line

a poverty trap

a safety net

Question 45(1 point)

Saved

Since the 1960s, the earnings gap between men and women has:

Question 45 options:

narrowed.

risen.

been eliminated.

not changed,