University:
Bradley University
Course:
ECO 199 | Foundational Topics in Economics
Academic year:

2023
Views:

251

Pages:

2
Author:

Nesbyenvkk

1. A concert that has plenty of room for everyone to enjoy is what kind of good? (a) Nonrival and nonexcludable (b) Rival and nonexcludable (c) Nonrival and excludable (d) Rival and excludable 2. Which of the following is the most accurate classification of someone in poverty? (a) Someone who is in the bottom 20% of income earners in their country. (b) Someone who is in the bottom 80% of income earners in their country. (c) Someone who is in the top 10% of income earners in their country. (d) Someone who cannot afford a computer and internet on their current salary. (e) Someone who cannot afford to pay rent and eat on their current salary. 3. A person who exhibits the hot hand fallacy: (a) is more likely to take a risky gamble that has a negative expected payoff. (b) is more likely to take a safe option over a gamble that has a higher expected payoff. (c) is more likely to take a gamble after that same gamble has failed recently. (d) is more likely to take a gamble after that same gamble has succeeded recently. 4. The free-rider problem arises (a) When people feel their contribution is so small relative to the total amount needed that it won’t make a difference whether they contribute or not. (b) When people realize they will still receive the benefits of a good whether they pay for it or not. (c) Whenever the government produces a good or service. (d) Whenever there is a surplus of the product in the market. 3 5. Credit card companies give big bonuses and incentives for people to sign up in the hopes that people will either overspend on their credit card and get charged a fee, or forget to pay back credit cards and get charged a high interest rate. This is an example of firms abusing: (a) difficulty with intertemporal decision-making (b) bias in favor of the status quo (c) the role of framing effects (d) the role of priming effects (e) guilt aversion 6. A sneaker store offers a limited time print run of sneakers that they will only offer for a month and then never again. This is attempting to take advantage of (a) Guilt Aversion (b) Inequality Aversion (c) Regret Aversion (d) all of the above 7. Upon graduation, Britney had two job offers. The jobs were identical in every way with two exceptions. One job was located in Ft. Lauderdale, FL and offered an annual salary of $95,000. The other job was located in Tulsa, OK and offered an annual salary of $72,000. All else equal, the salary difference is due to: (a) The firm in Florida had a lower demand for workers than the firm in Oklahoma (b) Compensating Differentials (c) Discrimination (d) Transfer Payments 8. (QUESTION REMOVED) Which of the following refers to the amount of money that must be paid by a consumer before they can receive any benefits with their insurance plan? (a) Copay (b) Deductible (c) Premium (d) Co-insurance Payments 4