question
The law of diminishing marginal utility suggests that the total utility that a consumer derives from a product will increase slower and slower as more of the product is consumed
True/False
True/False
answer
True
question
An increase in the price of a product normally enables a consumer to reach a higher indifference curve
True/False
True/False
answer
False
question
Indifference curves are convex to the origin due to diminishing marginal rates of substitution
True/False
True/False
answer
True
question
The income and substitution effects will both induce the consumer to buy more of a normal good when its price decreases
True/False
True/False
answer
True
question
The consumer will select that point on the budget line which puts the consumer on the highest attainable indifference curve
True/False
True/False
answer
True
question
If a firm increases all its inputs by 10 percent and its output increases by 15 percent, the firm is experiencing diseconomies of scale
True/False
True/False
answer
False
question
When total product is increasing at a decreasing rate, marginal product is positive, but falling
True/False
True/False
answer
True
question
Normal profit is an implicit cost
True/False
True/False
answer
False
question
The short-run marginal-cost curve is upward-sloping because of the law of diminishing marginal returns
True/False
True/False
answer
True
question
Economic profits are usually larger than accounting profits.
True/False
True/False
answer
False
question
When the total product is at its maximum level, the marginal product is zero
True/False
True/False
answer
True
question
The satisfaction or pleasure one gets from consuming a good or service is called
Price, Utility, Income, Profits
Price, Utility, Income, Profits
answer
Utility
question
The table below shows a consumer's utility schedule.
Picture 13
Refer to the above table. Marginal utility begins to diminish with the consumption of the:
Fifth, Fourth, Third, Second Unit
Picture 13
Refer to the above table. Marginal utility begins to diminish with the consumption of the:
Fifth, Fourth, Third, Second Unit
answer
Fourth
question
When the price of a product falls for a normal good, the:
Income and substitution effects will encourage consumers to purchase more of the product
Income and substitution effects will encourage consumers to purchase less of the product
Substitution effect will encourage consumers to purchase less of the product and the income effect will encourage them to purchase more
Substitution effect will encourage consumers to purchase more of the product and the income effect will encourage them to purchase less
Income and substitution effects will encourage consumers to purchase more of the product
Income and substitution effects will encourage consumers to purchase less of the product
Substitution effect will encourage consumers to purchase less of the product and the income effect will encourage them to purchase more
Substitution effect will encourage consumers to purchase more of the product and the income effect will encourage them to purchase less
answer
Income and substitution effects will encourage consumers to purchase more of the product
question
An increase in the productivity of labor over time will:
Decrease the value of time
Increase the value of time
Decrease the demand for labor-saving devices
Decrease the demand for consumer goods and services
Decrease the value of time
Increase the value of time
Decrease the demand for labor-saving devices
Decrease the demand for consumer goods and services
answer
Increase the value of time
question
Picture 16
Picture 16
The graph above shows part of a consumer's indifference map for units of coffee and tea, where I1 and I2 represent indifference curves. Which of the following statements is correct?
The consumer prefers E to F
The consumer prefers C to A
The consumer likes B and D equally well
The consumer likes D better than E
Picture 16
The graph above shows part of a consumer's indifference map for units of coffee and tea, where I1 and I2 represent indifference curves. Which of the following statements is correct?
The consumer prefers E to F
The consumer prefers C to A
The consumer likes B and D equally well
The consumer likes D better than E
answer
The consumer prefers C to A
question
A natural monopoly is characterized by:
Collusion with other competitors to divide up the market
A decreasing average-cost curve extending beyond the market's size
A firm protected from competition by a government regulation
A firm having control over the entire supply of a basic input in the production process
Collusion with other competitors to divide up the market
A decreasing average-cost curve extending beyond the market's size
A firm protected from competition by a government regulation
A firm having control over the entire supply of a basic input in the production process
answer
A decreasing average-cost curve extending beyond the market's size
question
When the total product curve is falling, the
Marginal product of labor is zero
Marginal product of labor is negative
Average product of labor is increasing
Average product of labor must be negative
Marginal product of labor is zero
Marginal product of labor is negative
Average product of labor is increasing
Average product of labor must be negative
answer
Marginal product of labor is negative
question
A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct?
There are increasing returns to scale
The long-run average total cost curve is flat
The law of diminishing returns is proven wrong
The example is for the short run rather than the long run
There are increasing returns to scale
The long-run average total cost curve is flat
The law of diminishing returns is proven wrong
The example is for the short run rather than the long run
answer
The long-run average total cost curve is flat
question
If the long-run average total cost curve for a firm is horizontal in the relevant range of production, then it indicates that there:
Is a minimum efficient scale
Are constant returns to scale
Are diseconomies of scale
Are economies of scale
Is a minimum efficient scale
Are constant returns to scale
Are diseconomies of scale
Are economies of scale
answer
Are constant returns to scale
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
