Question

Which economist proposed a theory of government failure?

Question 18 options:

a)	Elinor Ostrom

b)	George Stigler

c)	Arthur Pigou

d)	Ronald Coase

Which event would cause the budget line to shift outward?

Question 19 options:

a)	An increase in the price of one of the goods.

b)	A decrease in income.

c)	A decrease in the price of one of the goods.

d)	An increase in income.

Jaslyn saw a dress she liked in her favorite department store a month ago. At that time the dress was on sale for 50% off. Jaslyn did not buy the dress at that time, but she bought it when the store had a “Buy One, Get One Free!” sale. Jaslyn's behavior can be explained by:

Question 20 options:

a)	overconfidence.

b)	a sunk cost fallacy.

c)

altruism.

d)	a framing bias.

If many firms enter the computer software industry and consequently bid up the price of programmers, then:

Question 24 options:

a)	there will be a downward shift of the SRATC curve.

b)	the average fixed cost curve will slope upward.

c)	the long-run industry supply curve will slope upward.

d)	the long-run industry supply curve will slope downward.

Answer 1

1.
d)Ronald Coase
He was the first to propose government failure
2.
d)An increase in income.
Changes in income shift the budget line.
3.
d)a framing bias.
A framing bias represents a congnitive bias in which people react according to the presentation.
4.
c)the long-run industry supply curve will slope upward.
If many firms enter the computer software industry and consequently bid up the price of programmers, then the long-run industry supply curve will slope upward.