15)The theory of international trade presented in Chapter 9 ofthe Mankiw text, shows that a tariff can reduce efficiency byreducing domestic consumption, but increase efficiency byincreasing domestic production.
True
False
16)
Table 5-1
Income | Quantity of Good X
Purchased | Quantity of Good Y
Purchased |
| $30,000 | 2 | 20 |
| $40,000 | 5 | 10 |
| | |
Refer to Table 5-1. Good Y is
an inferior good.
not related to income.
a normal good.
price inelastic.
22) all points on the production possibility frontier:
will lead to overproduction and eventually a recession.
have both full and efficient employment of all resources,including labor
are fair and equitable
have all workers with jobs, but they may be employed in thewrong job
27) In Chapter 2 of his text, N.G. Mankiw states that nearly alleconomists agree that a ceiling on rents reduces the quality andquantity of housing available.
True
False
39)
Table 7-1
| BUYER | WILLINGNESS TO PAY |
| MIKE | $50.00 |
| SANDY | $30.00 |
| JONATHAN | $20.00 |
| HALEY | $10.00 |
| |
Refer to Table 7-1. If the table represents thewillingness to pay of four buyers and the price of the product is$18, then their total consumer surplus is
$72.
$46.
$42.
$38.
