ST) The opportunity cost of any action is A) the highest-valued alternative given up. the ears the action cost B) the benefit from the action minus the cost of the action D) all the possible alternatives iven up 52 The mean household income is Al the most common household income the name that separates households into two equal groups the pe a ce of total income received by the richest 20 percent of households Dithe average household income 3) A sales tax imposed on sellers shifts the supply curve leftward for the taxed good because the Altax shifts the demand curve leftward B) tax is actually shifted entirely onto the buyer who can afford only a smaller supply higher price causes entry into the market. D) tax is paid by the seller to the government and is therefore, like a cost of production 54) Which of the following is a positive statement? A) A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice 3) The United States should fight inflation even if it raises unemployment C) What to do with Social Security is the most important economic issue today Di Because they decrease productivity, labor unions should be eliminated 55) Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of A) dumping B) increasing its gains from trade. C) avoiding import quotas. D) engaging in learning-by-doing 56) In the long run equilibrium, perfectly competitive firms produce the level of output such that A) marginal cost is minimized. B) average total cost is minimized. C) marginal cost equals the price D) Both answers B and Care correct 57) If it is impossible or very costly to prevent someone from benefiting from a good even if the person does not pay for it, the good is A) nonrival B) rival C) nonexcludable. D) pure 58) "As the price of gasoline increases, fewer people buy cars that are gas guzzlers. A graph showing this relationship would have A) a negative slope. B) a positive relationship C) a horizontal line D) a direct relationship 59) If marginal utility is positive but diminishing, then total utility must be as consumption of the good increases A) positive and rising at an increasing rate B) decreasing C) positive and rising at any rate D) positive and rising at a decreasing rate 60) Compared to a similar perfectly competitive industry, a single-price monopoly A) is more efficient because there is no wasteful competition B) produces more output. C) creates a deadweight loss and decreases consumer surplus. D) creates a deadweight loss and decreases economic profit. 61) An electrician quits her current job, which pays $40,000 per year. She can take a job with another form for $45.000 per year or work for herself The opportunity cost of working for herself is A) 10,000 545.000 D) SS 000 62) In the figure above, an increase in z leads to a A) movement up along one of the lines showing the relationship between x and y. B) rightward shift of the line showing the relationship between x and y. C) movement down along one of the lines showing the relationship between x and y. D) leftward shift of the line showing the relationship between r and y. 63) For a common resource, the equilibrium with no government intervention is such that _ is less than A) total social benefit: total social cost B) marginal social benefit, marginal social cost C) marginal private benefit; marginal social benefit D) marginal private cost; marginal social benefit 64) The principal-agent problem suggests that A) principals and agents always have the same goals. B) principals and agents will never have the same goals. C) principals and agents are more likely to have the same goals if the principal gives the agent flexibility to make his own decisions D) principals and agents are more likely to have the same goals if the agent's pay is tied to satisfying the principal's goals. 65) Suppose we are considering the relationship between two variables y and xy is measured on the y-axis and xis measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is positive and is less than 1. This slope means that a change in x is associated with A) a bigger change in y. B) no change in y C) an equal change in y D) a smaller change in y. 66) When the price is less than the equilibrium price A) the price will be forced higher B) there will be a shortage C) some consumers will be willing to pay a price higher than the prevailing price. D) All of the above answers are correct