Question 1 Matt is shopping for a new soccer ball. He can find one $20 at the convenience store right next to his downtown rental home. However, if he drives for half an hour (one-way) to the commissary on base, he can purchase the same soccer ball for $12. However, the commissary is only open during regular business hours. Matt works a full-time job (regular business hours with no lunch break) at the local VA for $15 an hour. Because Matt has already used up all his paid annual leave, he would need to request leave without pay if he were to leave his job during the day. Suppose we can ignore the cost of gasoline and the depreciation of his car. Matt's opportunity cost of time for shopping at the commissary during regular business hours would then be at least $15. True False Question 2 Matt is shopping for a new soccer ball. He can find one $20 at the convenience store right next to his downtown rental home. However, if he drives for half an hour (one-way) to the commissary on base, he can purchase the same soccer ball for $12. However, the commissary is only open during regular business hours. Matt works a full-time job (regular business hours with no lunch break) at the local VA for $15 an hour. Because Matt has already used up all his paid annual leave, he would need to request leave without pay if he were to leave his job during the day. Based on the information given above, Matt's most rational choice is to buy the soccer ball from the commissary. Tru False Question 3 The effect of minimum wage policy on employment in the hospitality industry would NOT be considered a topic of study in microeconomics. True False Question 4 The statement 'Local governments should increase unemployment benefits during economic downturns" is a positive statement. Tru Fals Question 5 Which one of the following is NOT correct? A. Trade is usually good for nations. C. Trade allows for specialization. B. Trade is based on absolute advantage. D. Trade may allow nations (or individuals) to consume outside of their individual production possibility frontiers. Question 6 Which of the following would cause a shift in the supply curve for computers? A. A change in the price of computers. C. A change in the price of office desks. B.At change in the consumers' income, given the computers are normal goods. D. A change in the technology of production used to make computers. Question 7 Suppose in the coffee bean market that the wages of harvest workers increase. As a result, we would expect the new equilibrium price for coffee beans to_ while the equilibrium quantity to A. decrease; increase. C. increase; increase. B. decrease; decrease. D. increase; decrease. Question 8 From 2016 to 2019 the equilibrium price for mobile devices stayed the same, while the equilibrium quantity increased. From this, you can conclude that between 2016 and 2019, the supply curve shifted to the while the demand curve shifted to the in the market for mobile devices. A. left; right. C. right; right. B. left; left. D. right; left Question S A 0.25 price elasticity of demand indicates a demand. A. elastic. B. inelastic. Question 10 Below are the supply and demand curves for an infrared temporal thermometer. Market for Infrared tempo Using the mid point method, between point A and B the price elasticity of demand is without the negative sign). (round answer to 2 decimal points and just report the absolute valueQuestion 1 1 Which of the following represents the market with the most clastic demand? A. Charmin (a popular brand household toilet paper). B. Household toilet paper. C. Toilet paper D. Paper product for personal hygiene. Question 12 The income elasticity of frozen TV dinners is calculated to be negative. Based on this information, what kind of good is a frozen TV dinner? A. normal B. substitute C. inferior D. complement Question 13 If a 10% increase in the monthly gym membership fee results in a 20% decrease in total revenues from sales of gym memberships, we know that the demand for gym memberships is: A. clastic . inclastic . perfectly inclastic D. unit clastic Question 14 A positive coefficient of the cross-price elasticity of demand indicates that the two goods in question are: A. complements B. normal C. inferior D. substitutes. Question 15 If the Smith's willingness to pay (WTP) for a new home in their neighborhood is $850,00, then if they purchased a house for $880,000 this would generate a consumer surplus of $30,000. True False Question 16 When demand is inclastic, it is harder for consumers to leave the market. So when a per-unit tax is implemented and raises prices, the market will experiences a larger DWL than would be seen if the demand more clastic. True False Question 17 The free downtown parking garage has a 100 car capacity. In the off-peak tourist season, only a few people use this free downtown parking garage. During the off-peak season, this free parking garage would and not rival in consumption. Thus, it would be a _ good. A. excludable; private B. not excludable; public. C. excludable; public D. not excludable; private Question 18 The free downtown parking garage has a 100 car capacity. During the peak tourist season, large numbers of people (in the hundreds) would like to use the free down-town parking garage. In this scenario, the free parking garage now has the characteristics of_ _in consumption and is considered a A. non rival. common resource. . excludable, club good. C. rival, common resource. D. rival, club good. Question 19 In the harbor, each of the 300 fishermen has a maximum willingness to pay for a lighthouse of $10 per week. If the weekly cost for operating the lighthouse is $280, the provision of a lighthouse, as a in the harbor would _ _a cost-benefit analysis. A. public good; pass B. common resource, fail C. public good; fail D. common resource; pass. Question 2 When studying a market with significant negative externalities, we would expect to see an equilibrium quantity that is too large when compared to the market's social optimum quantity. True False