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Full Download Essentials of Economics 8th Edition Mankiw Test Bank
Full Download Essentials of Economics 8th Edition Mankiw Test Bank
Full Download Essentials of Economics 8th Edition Mankiw Test Bank
https://testbankfan.com/download/essentials-of-economics-8th-edition-mankiw-test-b
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2. The term ______ refers to the size of the economic pie, and the term ______ refers to how the pie is divided.
ANSWER: efficiency; equality
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making
that determine how an economy generally works.
KEYWORDS: BLOOM'S: Knowledge
CUSTOM ID: 002.01 - SAE - MANK08
3. Explain how government policies that redistribute income from the rich to the poor might reduce efficiency.
ANSWER: They reduce the reward for working hard. As a result, people work less and produce fewer
goods and services.
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making
that determine how an economy generally works.
TOPICS: Economic thinking
Equality
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 003.01 - SAE - MANK08
Scenario 1-1
You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for
three hours. If you go to the movies, you will spend $8.00 on a ticket and $4.50 on popcorn. If you choose to study
economics for three hours, you will raise your exam grade by 10 points.
4. Refer to Scenario 1-1. What is your opportunity cost of going to the movies?
ANSWER: $12.50 and 10 points on your exam grade
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.302 - Identify the opportunity cost of an action.
TOPICS: Economic thinking
Opportunity cost
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 004.01 - SAE - MANK08
Scenario 1-2
Suppose that you have a choice between going to the movies with a friend for two hours or working at your job. If you go
to the movies, you will spend $7 on a ticket and $5 on popcorn. If you choose to work, you will earn $10 an hour.
6. Refer to Scenario 1-2. What is your opportunity cost of going to the movies?
ANSWER: $32
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.302 - Identify the opportunity cost of an action.
TOPICS: Economic thinking
Opportunity cost
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 006.01 - SAE - MANK08
8. Debbie quits her job, which pays $30,000 a year, to finish her college degree. Her annual college expenses are $10,000
for tuition, $2,000 for books, and $700 for food. What is her opportunity cost of attending college for the year?
ANSWER: $42,000
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.302 - Identify the opportunity cost of an action.
TOPICS: Economic thinking
Opportunity cost
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 008.01 - SAE - MANK08
9. Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual
school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the
two-year graduate program?
ANSWER: $144,000
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.302 - Identify the opportunity cost of an action.
TOPICS: Economic thinking
Opportunity cost
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 009.01 - SAE - MANK08
Scenario 1-3
It costs a company $35,000 to produce 700 graphing calculators. The company’s cost will be $35,070 if it produces an
additional graphing calculator. The company is currently producing 700 graphing calculators.
11. Refer to Scenario 1-3. What is the company’s average cost?
ANSWER: $50
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.001 - Analyze a firm's costs of production.
TOPICS: Economic thinking
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 011.01 - SAE - MANK08
13. Refer to Scenario 1-3. A customer is willing to pay $60 for the 701th calculator. Should the company produce and
sell it? Explain.
ANSWER: No, because the marginal cost ($70) is less than the marginal benefit ($60).
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.051 - Describe what it means to think at the margin.
TOPICS: Economic thinking
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 013.01 - SAE - MANK08
14. Refer to Scenario 1-3. What is the minimum price the company will charge for the 701th calculator?
ANSWER: $70
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.051 - Describe what it means to think at the margin.
TOPICS: Economic thinking
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 014.01 - SAE - MANK08
By Lincoln Ellsworth
THE AMUNDSEN-ELLSWORTH
POLAR FLIGHT
So long as the human ear can hark back to the breaking of
waves over deep seas; so long as the human eye can follow the
gleam of the Northern Lights over the silent snow fields; then so
long, no doubt, will the lure of the unknown draw restless souls into
those great Arctic wastes.
I sit here about to set down a brief record of our late Polar
experience, and I stop to try to recall when it was that my
imagination was first captured by the lure of the Arctic. I must have
been very young, because I cannot now recall when first it was.
Doubtless somewhere in my ancestry there was a restless wanderer
with an unappeasable desire to attain the furthest north. And, not
attaining it, he passed it on with other sins and virtues to torment his
descendants.
The large blank spaces surrounding the North Pole have been a
challenge to the daring since charts first were made. For nearly four
generations that mysterious plain has been the ultimate quest of
numberless adventurers.
Before this adventure of ours explorers had depended upon
ships and dogs. Andrée and Wellmann planned to reach the Pole
with balloons, but theirs were hardly more than plans. Andrée met
with disaster soon after leaving Spitzbergen. Wellmann’s expedition
never left the ground.
What days they were—those ship and dog days! What small
returns came to those men for their vast spending of energy and toil
and gold! I am filled with admiration for the courage and the
hardihood of the men who cut adrift from civilization and set out with
dogs or on foot over the tractless ice fields of the Far North. All honor
to them! Yet now what utter neglect it seems of the resources of
modern science!
No doubt the men who have been through it best realize what a
hopeless, heart-breaking quest it was. Peary’s land base at Camp
Columbia was only 413 miles from the Pole; yet it took him twenty-
three years to traverse that 413 miles.
At 4:15 p.m. all is ready for the start. The 450 H. P. Rolls-Royce
motors are turned over for warming up. At five o’clock the full horse
power is turned on. We move. The N 25 has Captain Amundsen as
navigator. Riiser-Larsen is his pilot, and Feucht mechanic. I am
navigator of N 24, with Dietrichson for pilot, and Omdal my
mechanic. Six men in all.
The first two hours of our flight, after leaving Amsterdam Islands,
we ran into a heavy bank of fog and rose 1,000 meters to clear it.
This ascent was glorified by as beautiful a natural phenomenon as I
have ever seen. Looking down into the mist, we saw a double halo in
the middle of which the sun cast a perfect shadow of our plane.
Evanescent and phantom-like, these two multicolored halos
beckoned us enticingly into the Unknown. I recalled the ancient
legend which says that the rainbow is a token that man shall not
perish by water. The fog lasted until midway between latitudes
eighty-two and eighty-three. Through rifts in the mist we caught
glimpses of the open sea. This lasted for an hour; then, after another
hour, the ocean showed, strewn with small ice floes, which indicated
the fringe of the Polar pack. Then, to quote Captain Amundsen,
“suddenly the mist disappeared and the entire panorama of Polar ice
stretched away before our eyes—the most spectacular sheet of
snow and ice ever seen by man from an aerial perspective.” From
our altitude we could overlook sixty or seventy miles in any direction.
The far-flung expanse was strikingly beautiful in its simplicity. There
was nothing to break the deadly monotony of snow and ice but a
network of narrow cracks, or “leads,” which scarred this white
surface and was the only indication to an aerial observer of the
ceaseless movement of the Polar pack. We had crossed the
threshold into the Unknown! I was thrilled at the thought that never
before had man lost himself with such speed—75 miles per hour—
into unknown space. The silence of ages was now being broken for
the first time by the roar of our motors. We were but gnats in an
immense void. We had lost all contacts with civilization. Time and
distance suddenly seemed to count for nothing. What lay ahead was
all that mattered now.
On we sped for eight hours, till the sun had shifted from the west
to a point directly ahead of us. By all rights we should now be at the
Pole, for our dead reckoning shows that we have traveled just one
thousand kilometers (six hundred miles), at seventy-five miles per
hour, but shortly after leaving Amsterdam Islands we had run into a
heavy northeast wind, which had been steadily driving us westward.
Our fuel supply was now about half exhausted, and at this juncture,