ECN 212 FINAL TEST QUESTIONS AND ANSWERS 2024 WITH COMPLETE SOLUTIONS
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Course
ECN 212
Institution
ECN 212
ECN 212 FINAL TEST QUESTIONS AND ANSWERS 2024 WITH COMPLETE SOLUTIONS
What condition would create less worry about the Social Security system? - Answer- If the amount paid into the social security system by an individual was equal to the amount received by that individual in retirement benefits.
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ECN 212 FINAL TEST QUESTIONS
AND ANSWERS 2024 WITH
COMPLETE SOLUTIONS
What condition would create less worry about the Social Security system? - Answer- If
the amount paid into the social security system by an individual was equal to the
amount received by that individual in retirement benefits.
The greatest share of spending on hospital care and nursing homes goes for the care of
- Answer- The elderly
We hear so much about the depletion of the ozone, the destruction of the rain forest, the
pollution of the oceans and rivers, and the depletion of wildlife because - Answer-
Private individuals and businesses lack incentives to take full account of the
consequences of their actions
An externality exists when - Answer- Some of the costs of producing a product affect
people unable, within a market system, to influence how much of a product should be
produced.
A world-renowned brain surgeon can type twice as fast as her secretarial assistant.
Which of the following best describes the idea of comparative advantage in this
situation? - Answer- The surgeon should spend her time doing brain surgery and allow
her secretary to do the typing because the secretary has a comparative advantage in
typing.
Which of the following statements about international trade restrictions is true? -
Answer- In the majority of cases they harm consumers.
Typically, restrictions to "save domestic jobs" simply redistribute jobs by creating -
Answer- Employment in the protected industry and reducing employment elsewhere.
If the world price of a good is lower than its domestic equilibrium price, the country will -
Answer- Import a quantity of the good equal to the difference between the quantity
demanded domestically and the quantity supplied domestically.
In a market system, incomes are distributed according to the ownership of resources.
Therefore, one of the consequences of a market system is that - Answer- Incomes are
distributed unequally
, An automobile manufacturer uses land, labor, capital, and entrepreneurial ability to
produce cars and trucks. If the price of trucks decrease, the automobile manufacturer
will - Answer- Decrease its use of labor
Suppose two types of drivers apply for a driver's license, young people and old people.
There are only two types of performances, excellent and poor. It has been found that a
higher percentage of young drivers perform poorly than older drivers. The agency
decides to license only older drivers. Economists would refer to this policy as - Answer-
Statistical discrimination
Taxes to pay for social security are levied on - Answer- both employees and employers
The lorenz curve cannot be shown for - Answer- The most equitable distribution of
income
A perfectly competitive firm in the input market is currently hiring 5 untis of labor and
paying a wage rate of $8 per unit of labor. However the firm noticed that when it hired
the 5th unit of labor its marginal revenue product was greater than the wage rate. Using
this information the profit maximizing firm should - Answer- Hire more workers
Proponents of comparable worth justify it on the grounds that - Answer- As a result of
personal prejudices the market is unable to assess marginal products
Which of the following provides the best description of the social security system in the
united states - Answer- A transfer payment that taxes the working population today and
pays benefits for current retirees from the proceeds of that tax
Comparable worth is derived from the view that pay should be based on - Answer- The
characteristics of the job
What is the difference between monopolistic competition and perfect competition -
Answer- Monopolistic competition does not operate at technological and allocative
efficiency in the long run but perfect competition does
Which of the following will NOT result in an outward shift of the production possibilities
curve? - Answer- A decrease in the unemployment rate.
Assume that at the current market price of $4 per unit of a good, you are willing and
able to buy 20 units. Last year at a price of $5 per unit, you purchased 20 units. What
has most likely happened over the last year? - Answer- Demand has decreased
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