need to solve the following problem

21.  The government's use of the judgment by performance criterion:
a.  advocates that competition is fragile and that there must be a large number of small firms selling in the market to ensure competition.
b.  is reflected by the idea that bigness of business does not necessarily imply the absence of market competition.
c.  is criticized because it is difficult to determine the relevant number of competitors (e.g., should a 2-digit or 4-digit code be used?).
d.  is the primary criterion governing U.S. antitrust policy since 1945.

22.  Free - you don't have to answer it.

23.  Regarding mergers:
a.  a conglomerate merger is the combination of two firms in the same industry.
b.  a vertical merger occurs when two companies in the same industry merge.
c.  when a firm merges with the supplier of one of its inputs, a horizontal merger has taken place.
d.  economies of scope can be achieved when one firm has marketing expertise that can be applied to the other firm following the merger.

24.  A horizontal merger:
a.  is the combining of two corporations in the same industry.
b.  is outlawed by the Celler-Kefauver Act of 1950.
c.  does not involve the Herfindahl index.
d.  became nearly impossible to pull off in the late 1990s.


25.  Regarding tariffs and quotas:
a.  domestic producers prefer quotas to tariffs because the quota raises the price of an imported good and tariffs do not.
b.  quotas on imported automobiles cost jobs in the U.S. automobile industry, but result in lower prices for consumers.
c.  a quota is a quantity limitation on an imported good whereas a tariff is a tax on an imported good.
d.  governments prefer quotas to tariffs because quotas provide additional tax revenues to government.

26.  A tariff or quota imposed by the U.S. on imported steel will:
a.  increase the supply of steel and decrease its price in the U.S.
b.  increase the quantity of steel imported in the U.S.
c.  benefit U.S. consumers of steel but hurt U.S. steel producers and steel workers.
d.  increase the demand for U.S.-made steel and increase its price.

27.  An example of the benefit principle of taxation is:
a.  rich taxpayers should pay more than poor taxpayers.
b.  when people pay a gasoline tax used to maintain highways for fuel for their motorboat.
c.  when travelers pay toll to cross a bridge.
d.  when people with no children pay property taxes to support public schools.

28.  A good example of a tax based on the ability to pay is the ___________ tax.
a.  sales
b.  income
c.  airport
d.  Social Security

29.  According to the text, consumers are more likely to seek price controls when:
a.  supply is inelastic.
b.  demand is inelastic.
c.  consumers cannot pay the equilibrium price.
d. suppliers refuse to change the equilibrium price.

30.  Regarding price support programs:
a.  in a land bank program farmers receive payment from government for producing more.
b.  taxpayers would prefer price support achieved through buying up the surplus rather than through providing economic incentives for not producing, because the cost to taxpayers is lower.
c.  price supports cause deadweight loss compared to a competitive situation.
d.  tariffs generally do not accompany price support programs because taxpayers would be willing to subsidize foreign farmers.

31.  In real-world markets:
a.  the degree to which real-world firms maximize profits depends upon the goals of the firm and the incentive structure embodied in the firm's organization.
b.  monitoring problems and costs are not that significant.
c.  there are few self-interested individuals who try to change institutions for their own benefit.
d.  competition is on the basis of price only.

32.  Real-world competition:
a.  is a fight between the forces of monopolization and the forces of competition.
b.  includes individuals who like competition for everybody including themselves.
c.  forces individuals to succumb to a push from the invisible hand.
d.  allows firms to charge rock-bottom prices and keep them there.



33.  If the wage rate in the market increases, then:
a.  the opportunity cost of an hour of leisure decreases.
b.  a greater quantity of labor will be demanded.
c.  a greater quantity of labor will be supplied.
d.  you either know that either demand decreased or supply increased.

34.  Which of the following will likely increase the supply of labor in a nation?
a.  An increase in the value placed on leisure by workers.
b.  An increase in population.
c.  A decrease in labor productivity.
d.  A higher marginal tax rate.

35.  An increase in the demand for labor could be caused by:
a.  a decrease in the productivity of workers.
b.  a decrease in the price of the product.
c.  a decrease in the demand for the product produced by workers.
d.  an increase in the price of a substitute input like capital (machines).