Exam 03

Instructions
The final exam is here.

This assessment is worth 33 points.

  1. One defence of industrial concentration is the contention that:   (1 point)

    a.  
    b.  
    c.  
    d.  

  2. A vertical merger involves a combining of one or more firms:   (1 point)

    a.  
    b.  
    c.  
    d.  

  3. Social regulation differs from industrial regulation:   (1 point)

    a.  
    b.  
    c.  
    d.  

  4. Industrial policy:   (1 point)

    a.  
    b.  
    c.  
    d.  

  5. The "hub and spoke" system which has emerged within the airline industry has:   (1 point)

    a.  
    b.  
    c.  
    d.  

  6. We say that the demand for labor is a "derived demand" because:   (1 point)

    a.  
    b.  
    c.  
    d.  

  7. If two resources are highly substitutable for one another:   (1 point)

    a.  
    b.  
    c.  
    d.  

  8. The demand curve for labor would shift leftward as the result of:   (1 point)

    a.  
    b.  
    c.  
    d.  

  9. A change in the price of an input will usually:   (1 point)

    a.  
    b.  
    c.  
    d.  

  10. Suppose a technological improvement increases the productivity of a firm's capital and, simultaneously, its workers' union negotiates a wage increase. We can predict that:   (1 point)

    a.  
    b.  
    c.  
    d.  

  11. The concept of investment in human capital indicates that:   (1 point)

    a.  
    b.  
    c.  
    d.  

  12. Data on education and earnings reveal:   (1 point)

    a.  
    b.  
    c.  
    d.  

  13. One of the potential negative side-effects of pay in the form of sales commissions is:   (1 point)

    a.  
    b.  
    c.  
    d.  

  14. Economic discrimination:   (1 point)

    a.  
    b.  
    c.  
    d.  

  15. An implication of the taste-for-discrimination model is that:   (1 point)

    a.  
    b.  
    c.  
    d.  

  16. Statistical discrimintion refers to:   (1 point)

    a.  
    b.  
    c.  
    d.  

  17. Economic or pure rent is:   (1 point)

    a.  
    b.  
    c.  
    d.  

  18. Other things equal, interest rates are:   (1 point)

    a.  
    b.  
    c.  
    d.  

  19. The "pure rate of interest" refers to the:   (1 point)

    a.  
    b.  
    c.  
    d.  

  20. A major purpose of usury laws is to make more funds available to low-income borrowers. Economic analysis suggests that usury laws:   (1 point)

    a.  
    b.  
    c.  
    d.  

  21. Economic profit might result from:   (1 point)

    a.  
    b.  
    c.  
    d.  

  22. A normal profit is:   (1 point)

    a.  
    b.  
    c.  
    d.  

  23. The entrepreneur:   (1 point)

    a.  
    b.  
    c.  
    d.  

  24. People's incomes are relatively low when they are young, reach a peak in middle age, and then decline. This statement helps explain:   (1 point)

    a.  
    b.  
    c.  
    d.  
    e.  

  25. If discrimination based on gender and race was eliminated, we would expect the:   (1 point)

    a.  
    b.  
    c.  
    d.  

  26. The Lorenz curve:   (1 point)

    a.  
    b.  
    c.  
    d.  

  27. The leak in the leaky-bucket analogy refers to:   (1 point)

    a.  
    b.  
    c.  
    d.  

  28. A basic problem associated with negative income tax (NIT) plans is that:   (1 point)

    a.  
    b.  
    c.  
    d.  

  29. Buyers will opt out of markets in which:   (1 point)

    a.  
    b.  
    c.  
    d.  

  30. Sellers will opt out of markets in which:   (1 point)

    a.  
    b.  
    c.  
    d.  

  31. As it applies to insurance, the moral hazard problem is the tendency for:   (1 point)

    a.  
    b.  
    c.  
    d.  

  32. As it applies to insurance, the adverse selection problem is the tendency for:   (1 point)

    a.  
    b.  
    c.  
    d.  

  33. Government can promote workplace safety by:   (1 point)

    a.  
    b.  
    c.  
    d.  



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