QUESTION 34 The table below shows the quantity demanded and supplied in the labor market for economics professors at the I'MaStateUniversity, where all the professors belong to a union. Annual Salary Quantity of workers demanded Quantity of workers supplied $50,000 95 20 $60,000 80 30 $70,000 65 40 $80,000 50 50 $90,000 35 60 $ 100,000 20 70 If no union existed, the equilibrium salary for economics professors will be O $70,000 O $80,000 O $90,000 O $100,000QUESTION 35 The town of Bookville has a massive public library system. Bookville's municipal government faces a trade off between retaining its current level of library workers and replacing some ofthem with computers. The four options available to the government are given in table below. - Number of worker Number of computers -_ Each computer costs $1,500. After the introduction of a strong union, the annual salary for workers increases to $30,000. In these circumstances, the optimal choice from a cost perspective for the city government is O ChoiceA 0 Choice 3 0 Choice C O Choice D QUESTION 45 Exhibit 31-2 Price and Cost m 0 Quantity Refer to Exhibit 31-2. If the exhibit represents a positive externality situation, the private cost of expanding output from Q1 to Q2 is the area of O Q1ABQ2. O Q1AEQ2. O Q1CBQ2. O ABE.QUESTION 46 Exhibit 31-4 Price, Cost D PA P2 PI Q2 Q1 Quantity Refer to Exhibit 31-4. If a negative externality exists, then the market output by the amount O overproduces; Q1 O underproduces; Q2 O overproduces; Q1 - Q2 O underproduces; Q2 - Q1QUESTION 47 4 poir Exhibit 31-5 Price, Cost D PA P3 P 2 21 Q2 Quantity Refer to Exhibit 31-5. If a positive externality exists, then the external benefits associated with the positive externality equal the distance between points _ and the market output is_ O A and C; Q2 O B and D; Q1 O C and A; Q1 O B and C; Q1 O b and cQUESTION 52 4 poi Exhibit 34-5 Country 1 Country 2 Good A Good B Good A Good B 100 0 75 0 80 10 60 30 60 20 45 60 40 30 30 90 20 40 15 120 0 50 0 150 Refer to Exhibit 34-5. The opportunity cost of one unit of good B is for country 1 and for country 2. O 20A; 15A O 1/20A; 1/15A O 10A; 15A O 1/2A; 1A O 2A; 1/2AQUESTION 53 4 point Exhibit 34-10 Time to Clean House Time to Mow the Lawn 120 minutes we minutes Refer to Exhibit 344 0. Jason's opportunity cost of cleaning the house is O 0.50 mowed lawns. O 1.00 mowed lawns. O 2.00 mowed lawns. O 0.60 mowed lawns. QUESTION 58 Exhibit 34-1 United States \" Refer to Exhibit 341 . The United States is the lower opportunity cost producer of 0 good Y. 0 both goods. O neithergood. 0 good X. QUESTION 58 Exhibit 34-1 United States France Good X Good Y Good X Good Y 60 0 90 0 40 30 60 10 20 60 30 20 0 90 0 30 Refer to Exhibit 34-1. The United States is the lower opportunity cost producer of O good Y. O both goods. O neither good. O good X