The following Questions needed correct answers.
Paragraph Styles 1. Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $500. All five citizens will share an equal portion of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $190 to Clara, $180 to Joe, and $120 to Matt. In a majority vote, this proposal will most likely be Multiple Choice C accepted, all 5 in favor. C accepted, four in favor, one against. C defeated, all 5 against. defeated, 2 in favor, 3 against.10. A price increase from $43 to $49 results in an increase in quantity supplied from 220 units to 240 units. The price elasticity of supply in this price range is Multiple Choice 0.3. C 0.67. 1.5. 3.33. Display Settingsdefeated, 2 in favor, 3 against 2. The price elasticity of demand for widgets is 1.2. Assuming no change in the demand curve for widgets, an increase in sales of 15 percent implies a(n) Multiple Choice 13.8 percent reduction in price. 18 percent reduction in price. 12.5 percent reduction in price. 10.5 percent reduction in price. in formation for four highw.3. Answer the question based on the following information for four highway programs of increasing scope. All figures are in millions of dollars. ProgramTotal CostTotal Benefit A $ 2 $ 9 B 6 16 C 12 21 D 20 23 Based on the data, we can say that the marginal costs of Program B are Multiple Choice $10. $6. $16. $4.Paragraph 4. The supply of product X is perfectly inelastic if the price of X rises by Multiple Choice 2 percent and quantity supplied rises by 3 percent. 10 percent and quantity supplied rises by 10 percent. 6 percent and quantity supplied stays the same. 12 percent and quantity supplied rises by 10 percent.12 percent and quandty supplied 165 5. The elasticity of supply of product X is unitary if the price of X rises by Multiple Choice 2 percent and quantity supplied rises by 3 percent. 10 percent and quantity supplied rises by 10 percent. 6 percent and quantity supplied stays the same. 12 percent and quantity supplied rises by 10 percent.Paragraph Styles 6. Assume that a 9 percent increase in income across the economy produces a 6 percent decrease in the quantity demanded of good X. The coefficient o income elasticity of demand is Multiple Choice positive, and therefore X is a normal good. negative, and therefore X is a normal good. positive, and therefore X is an inferior good. negative, and therefore X is an inferior good. society and are7. Suppose that Mick and Cher are the only two members of society and are willing to pay $10 and $8, respectively, for the third unit of a public good. Also, assume that the marginal cost of the third unit is $17. We can conclude that Multiple Choice the third unit should be produced. 4 units should be produced. C zero units should be produced. the third unit should not be produced.Paragraph Styles Editing P $6.30 O O $5.70- D2 188 212 O- 384 416 8. Refer to the diagram and assume a single good. If the price of the good increased from $5.70 to $6.30 along D1, the price elasticity of demand along this portion of the demand curve would be C 0.8. C 1. 1.2. 2.9. If a firm finds that it can sell $20,000 worth of a product when its price is $6 per unit and $22,000 worth of it when its price is $5, then Multiple Choice the demand for the product is elastic in the $5-$6 price range. "the demand for the product must have increased. elasticity of demand is 0.66. the demand for the product is inelastic in the $5-$6 price range. 042 to $40 results in an increase in quantity
