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s book Unsafe at Any Speed caused Congress to requirea. safety glass in all new cars.b. seat belts in all new cars.c. air bags in all new cars.d. stricter drunk driving laws in all states.ANS: B DIF: 1 REF: 11TOP: Incentives MSC: Interpretive 74. . laws requiring that drivers wear seat belts have resulted ina. a reduction in both driver deaths and pedestrian deaths.。 the oute is the same either way.ANS: C DIF: 3 REF: 11TOP: Marginal cost MSC: Analytical 67. A donut shop sells fresh baked donuts from 5 . until 3 . every day. The shop does not sell dayold donuts, so all unsold donuts are thrown away at 3 . each day. The cost of making and selling a dozen donuts is $。s ine increases from $500 per month to $3,000 per month.b. Morgan gets a raise at her parttime job and is now paid $ per hour instead of $.c. Housing prices in an area increase by 40 percent when a new interstate is built that passes nearby.d. A hard freeze wipes out half of the orange crop in Florida and the price of orange juice doubles.ANS: B DIF: 2 REF: 11TOP: Marginal changes MSC: Applicative 57. Which of the following is the best example of a marginal change?a. The price of housing in Denver increased by 6 percent last year.b. Kim gets a big promotion at work. She also gets a raise from $35,000 per year to $55,000 per year.c. Mark graduates from college and takes a job. His ine increases from $10,000 per year to $35,000 per year.d. A drought hits the upper Midwest and the price of wheat increases from $ per bushel to $ per bushel.ANS: A DIF: 2 REF: 11TOP: Marginal changes MSC: Applicative 58. A marginal change is best illustrated by which of the following?a. Nancy retires and takes a parttime job. She was working 40 hours per week and now works 15 hours per week.b. A large, statesupported university has announced that due to state budget deficits, tuition must rise by 20 percent next year.c. Ryan moved to a new apartment and now pays 40 percent more rent than before.d. Arizona, which usually receives 10 inches of rain per year, received 11 inches last year.ANS: D DIF: 2 REF: 11TOP: Marginal changes MSC: Interpretive 59. Teresa eats three oranges during a particular day. The marginal benefit she enjoys from eating the third orangea. can be thought of as the total benefit Teresa enjoys by eating three oranges minus the total benefit she would have enjoyed by eating just the first two oranges.b. determines Teresa’s willingness to pay for the first, second, and third oranges.c. does not depend on how many oranges Teresa has already eaten.d. All of the above are correct.ANS: A DIF: 3 REF: 11TOP: Marginal changes MSC: Applicative 60. A rational decisionmaker takes an action if and only ifa. the marginal benefit of the action exceeds the marginal cost of the action.b. the marginal cost of the action exceeds the marginal benefit of the action.c. the marginal cost of the action is zero.d. the opportunity cost of the action is zero.ANS: A DIF: 1 REF: 11TOP: Marginal changes MSC: Interpretive 61. After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?a. The marginal benefit of going to Cancun increases.b. The marginal cost of going to Cancun decreases.c. The marginal benefit of going to Ft. Lauderdale decreases.d. The marginal cost of going to Ft. Lauderdale decreases.ANS: D DIF: 3 REF: 11TOP: Marginal changes MSC: Applicative 62. The average cost per seat on the 50passenger FloatingOnAir Bus pany39。s decisions and their behavior.c. changes in benefits or changes in costs influence people39。s members.ANS: D DIF: 2 REF: 11TOP: Equity MSC: Interpretive 28. Senator Smith wants to increase taxes on people with high ines and use the money to help the poor. Senator Jones argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say thata. we should agree with Senator Smith.b. we should agree with Senator Jones.c. a good decision requires that we recognize both viewpoints.d. there are no tradeoffs between equity and efficiency.ANS: C DIF: 2 REF: 11TOP: Efficiency, Equity MSC: Applicative 29. Which of the following words and phrases best captures the notion of equity?a. minimum wasteb. maximum benefitc. samenessd. fairnessANS: D DIF: 1 REF: 11TOP: Equity MSC: Definitional 30. When government policies are enacted,a. equity can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without an equity loss.b. efficiency can usually be enhanced without an equity loss, but equity can never be enhanced without an efficiency loss.c. it is always the case that either efficiency and fairness are both enhanced, or efficiency and equity are both diminished.d. None of the above are correct.ANS: D DIF: 2 REF: 11TOP: Government, Efficiency, Equity MSC: Applicative 31. A likely effect of government policies that redistribute ine and wealth from the wealthy to the poor is that those policiesa. enhance equity.b. reduce efficiency.c. reduce the reward for working hard.d. All of the above are correct.ANS: D DIF: 2 REF: 11 TOP: Government, Efficiency, Equity MSC: Interpretive 32. When the government implements programs such as progressive ine tax rates, which of the following is likely to occur?a. Equity is increased and efficiency is increased.b. Equity is increased and efficiency is decreased.c. Equity is decreased and efficiency is increased.d. Equity is decreased and efficiency is decreased.ANS: B DIF: 2 REF: 11 TOP: Government, Efficiency, Equity MSC: Interpretive 33. As a result of a successful attempt by government to cut the economic pie into more