chapter 9 economic question answer
poorva
chapter20.docx1. The top 20% of households in the US were responsible for what percentage of money income in 2017? (state your answer as a percentage; for example, 0.45 = 45, 0.007 = 0.7)
2. The bottom 20% of households in the US were responsible for what percentage of money income in 2017? (state your answer as a percentage; for example, 0.45 = 45, 0.007 = 0.7)
3. The top 40% of households in the US were responsible for what percentage of money income in 2017? (state your answer as a percentage; for example, 0.45 = 45, 0.007 = 0.7)
4. Income is composed of
A
earned income, money stored as gold, and taxes
B
earned income, property income, and transfer payments
C
earned income, foreign currency holdings, and bonds
D
transfer payments, earned income, and baseball tickets
5. In 2017, US total personal income was
A
$10.4 billion
B
$3.2 billion
C
$2.85 billion
D
$16.4 billion
6. Transfer payments accounted for what percentage of total personal income in 2017?
A
63%
B
19%
C
17%
D
37%
7. Which region of the US had the highest median income in 2017?
A
Midwest
B
Northeast
C
South
D
West
8. Which age group had the lowest median income in 2017?
A
15-24 years
B
25-34 years
C
35-44 years
D
45-54 years
E
55-64 years
9. The trend of female-to-male earnings ratio is
A
rising
B
falling
10. Suppose incomes for 5 different segments of the population are 1, 2, 4, 40, and 53, respectively. Use the online calculator at shlegeris.com/gini to find the Gini coefficient, and enter your answer here.
11. Which of the following is not an assumption of the theory of perfect competition?
A
There are many sellers and many buyers, none of which is large in relation to total sales or purchases.
B
Buyers and sellers have all relevant information with respect to prices, product quality, and sources of supply.
C
Each firm produces and sells a differentiated product.
D
There is easy entry and exit.
12. Perfectly competitive firms are price takers for all of the following reasons except that
A
each firm is quite small relative to the total market supply.
B
barriers to exit force firms to sell at the market price.
C
the product is homogeneous.
D
buyers and sellers have all the necessary information about prices, etc.
13. The demand curve for a perfectly competitive firm
A
is downward sloping.
B
is upward sloping.
C
is perfectly horizontal.
D
is perfectly vertical.
E
may be downward or upward sloping, depending upon the type of product offered for sale.
14. The profit-maximizing perfectly competitive firm will seek to produce output such that
A
average variable cost is at a minimum.
B
average total cost is at a minimum.
C
average fixed cost is at a minimum.
D
marginal cost equals marginal revenue.
15. For a perfectly competitive firm,
A
the marginal revenue curve and the demand curve are the same.
B
the marginal revenue curve and the marginal cost curve are the same.
C
the supply curve and the marginal revenue curve are the same.
D
the demand curve and the marginal cost curve are the same.
E
none of the above
16. Refer to the exhibit. The dollar amounts that go in blanks A and B are, respectively,
A
$1 and $14.
B. $14 and $14.
C
$0.139 and $0.137.
D
$14 and $7.
17. If MR > MC, then
A
the firm is producing too much of the good to be maximizing profits.
B
the firm can increase its profits or minimize its losses by increasing output.
C
profits will be at their maximum.
D
the firm is necessarily incurring losses.
18. True or false: the demand curve for a perfectly competitive firm is downward sloping.
A
True
B
False
19. For a perfectly competitive firm,
A
P=MR
B
P>MR
C
P<MR
D
none of the above
A
the change in total revenue divided by the change in quantity.
B
the change in price divided by total cost.
C
half of the tax rate.
D
incalculable.
