Question 28

Scenario 18-7 Suppose the following events occur in the market for university economics professors. Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor. Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college and university.

Refer to Scenario 18-7. As a result of these two events, holding all else constant, the equilibrium quantity of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium quantity.

Question 29

Harold owns a cranberry bog in which he grows cranberries. Harold's farm is a perfectly competitive, profit-maximizing firm. The labor market is also perfectly competitive. As such, Harold much decide

(i)	how many cranberries to sell.
(ii)	what price to charge for his cranberries.
(iii)	how many workers to hire.
(iv)	what wages to pay his workers.

Group of answer choices

(i) and (ii) only

(i) and (iii) only

(i) and (iv) only

(iii), and (iv) only

(i), (ii), (iii), and (iv)

Question 30

Which of the following statements is false?

Group of answer choices

If a negative externality exists, the market output is greater than the socially optimal output.

If a positive externality exists, the market output is less than the socially optimal output.

If there are no external costs or benefits, then it follows that marginal private costs equal marginal social costs and marginal private benefits equal marginal social benefits.

When a positive externality exists, marginal social benefits are greater than marginal private benefits.

none of the above

Question 31

The primary difference between private goods and public goods is that

Group of answer choices

private goods are consumed by private individuals whereas public goods are not consumed by private individuals.

private goods often yield externalities but public goods do not.

property rights can be assigned to public goods but not to private goods.

public goods are nonrivalrous in consumption whereas private goods are rivalrous in consumption.

Question 32

John owns a number of hot dog stands in New York City. He hires workers to sell hot dogs at his stands. Which of the following events will lead to an increase in John's demand for hot dog vendors?

Group of answer choices

Hollywood glamorization of a new movie about a hot dog vendor leads hundreds of high-school students in New York City to apply for a job at John's.

The price of hot dogs falls.

The hot dog vendor wages decrease.

The demand curve for hot dogs shifts to the right.

Question 35

Table 32 The following table shows the distribution of income in Widgetapolis.

Quintile	Annual Family Income
Top Quintile (20%)	$110,000 and above
Second Quintile (20%)	$82,000 to $109,999
Third Quintile (20%)	$60,000 to $81,999
FourthQuintile (20%)	$39,000 to $59,999
BottomQuintile (20%)	Under $39,000

Refer to Table 32. Sixty percent of all families have incomes below what level?

Group of answer choices

$39,000

$60,000

$82,000

$110,000

Question 34

Table 22

Days of Labor	Units of Output
0	0
1	10
2	18
3	25
4	31
5	36
6	40

Refer to Table 22. Suppose that the firm pays its workers $45 per day. Each unit of output sells for $10. To maximize profit, how many days of labor should the firm hire?

Group of answer choices

2

3

4

5

6