QUESTION 29

Why don't business firms typically producepublic goods?

1. a.When a public good is provided to one person, it is automatically made available without charge to other people.
2. b.Public goods are usually poor-quality goods; therefore few people would want to buy them.
3. c.Public goods are usually so costly, that only the wealthy could afford them.
4. d.The more one person has of a public good, the less another person has.

QUESTION 30

Oligopolists haveincentiveto ______.

1. a.compete rather than collude
2. b.accept price as a parameter rather than setting price
3. c.collude but also cheat on the collusive arrangement
4. d.allow free entry, thus increasing the HHI of the industry

QUESTION 31

How does the course distinguish themotivation of the price-makerfrom themotivation of the price-taker?

1. a.The price-maker wants to maximize profit, while the price-taker is concerned with the welfare of consumers.
2. b.The price-maker wants to keep costs at a minimum, while the price-taker looks only at profit.
3. c.The price-maker is prepared to give consumers a break even if it means less profit, while the price-taker is much tougher with consumers.
4. d.There is no difference between the motivation of the price-maker and the motivation of the price-taker.

QUESTION 32

What are examples of an"artificially scarce good" ("club good")?

1. a.whales and dolphins
2. b.cable television and Netflix
3. c.cigarettes and beer
4. d.police and fire protection

QUESTION 33

How doGoogle and Facebookget theirrevenue?

1. a.from government subsidies
2. b.from voluntary contributions.
3. c.by making their product artificially scarce.
4. d.from advertising and selling information about users' characteristics and buying patterns

QUESTION 34

Suppose that a firm "shuts down" in the short run. By shutting down,the firm's loss (negative profit)is equal to ______ cost.

1. a.marginal
2. b.variable
3. c.fixed
4. d.total

QUESTION 35

Which of the following statements istrue?

1. a.Airlines enhance profit by bundling, whereas Microsoft enhances profit by unbundling.
2. b.The market demand for labor has an upward sloping segment (violating the "law of demand").
3. c.It is normal for firms to have negative marginal cost.
4. d.McDonald's is primarily a real-estate company.

QUESTION 36

(1) The monopolist demand curve isabovethe market demand curve.

(2) The monopolistdoes nothave a supply curve.

Which istrue?

1. a.1
2. b.2
3. c.both 1 and 2
4. d.neither 1 nor 2

QUESTION 37

Opsint,Visint, andHumintare ______.

1. a.machine programming languages underlying your IDS courses
2. b.sub-departments of Google's R&D operations
3. c.names of robots that China is exporting
4. d.techniques of industrial espionage

QUESTION 38

Many peoplespend more when using their debit or credit cards than when paying with the cash in their wallets. This is ______ behavior in the form of ______.

1. a.rational, opportunity costs
2. b.irrational, mental accounting
3. c.competitive, sunk costs
4. d.oligopolistic, the law of diminishing returns

QUESTION 39

What is theVMP of a robot in an automobile firm? It is "marginal product of the robot"timesthe ______.

1. a.price of an automobile
2. b.number of automobiles produced
3. c.rental rate of the robot
4. d.number of robots employed

QUESTION 40

An importantthemeof Economics 120 is that _____.

1. a.government rules and regulations make the economy great
2. b.the CEO can do good both for his/her firm and for society
3. c.rational CEOs obey the law to the smallest detail
4. d.business makes decisions based on ethics