eco study - Assignment Essays

question

in exhibit 2-2, if all the economy's resources are used efficiently to produce good A, then the economy is at point ___

answer

i (on the X axis right beside good A)

question

in exhibit 2-2, if resources are used fully and efficiently, then the economy can produce at point(s)

answer

g, h, or i (on the curve)

question

which of the following points in exhibit 2-2 is Unattainable, given the quantity of resources And level of technology

answer

E (outlier)

question

Macroeconomics is the study of

answer

the behavior of the economy as a whole

question

Which of the following is the fundamental resource that is the basis of Labor

answer

time

question

Which of the following is an example of a positive statement

answer

An increase in the price of gasoline will cause a reduction in the amount purchased

question

Goods and services are scarce because

answer

they are produced using scarce resources

question

households

answer

own and sell resources

question

scarcity

answer

occurs when a resource is not freely available

question

The labor market is an example of a

answer

resource market

question

To say that people make marginal decisions means that

answer

They weigh the additional costs and additional benefits of various activities before they make a decision

question

Microeconomics is the study of

answer

The economic behavior of individual decision makers

question

Which of the following is an example of a normative statement

answer

Women should earn the same income as men

question

The law of comparative advantage says that a person should produce a good if she

answer

Has the lowest opportunity cost of producing that good

question

A country has an absolute advantage in the production of a good if that country

answer

Can produce the good using fewer resources than another country would require

question

A ppf will not shift because of an increase in

answer

unemployment

question

Adam Smith's term, "the invisible hand," refers to

answer

market forces

question

An outward shift of the production possibilities Frontier

answer

reflects economic growth

question

Increases in resources or improvements in technology will cause the production possibilities Frontier to

answer

shift outward

question

Adam Smith believed that peoples pursuit of their own self interests

answer

Tended to promote the general welfare

question

In exhibit 2-5, The opportunity cost of moving from point B to D is

answer

100 socks (250-150)

question

In Exhibit 2-5, if society moves from point c to point d, society

answer

loses 30 mufflers (80-50)

question

A resource is something that

answer

Socially acceptable in exchange for goods and services

question

Which of the following would cause the production possibilities frontier in exhibit 2-6 to shift from AA to BA

answer

A drought that affected food production but had no effect on education

question

The law of comparative advantage says that

answer

the individual with the lowest opportunity cost of producing a particular good should produce it

question

Who is Jeremy Bentham

answer

Father of Utilitarianism

question

Who is Janet Yellen

answer

Chairman of the Federal Reserve Board, and the first woman to be in charge of a major bank

question

In exhibit 4-14, A movement from point M to point N represents

answer

An increase in quantity supplied

question

In exhibit 4-14, A decrease in price from $10 to four dollars leads to

answer

A downward movement along the supply curve

question

An improvement in technology would shift

answer

supply curve rightward

question

An increase in the price of a good normally increases the

answer

demand for its substitutes

question

The law of demand states that

answer

other things remaining constant, quantity demanded varies inversely with price.

question

The law of demand is illustrated by a demand curve that is

answer

downward sloping

question

The difference between normal and inferior goods is that

answer

an increase in income will shift the demand curve for a normal good rightward and the demand curve for an inferior good leftward

question

Two goods are considered substitutes only if a(n)

answer

increase in the price of one leads to an increase in the demand for the other

question

If the price of potato chips increases, other things constant, demand for potato-chip dip will

answer

Decrease because the goods are complements

question

If the price of the good described in exhibit 4-1 is $1.20, then there is a

answer

shortage of 60 units

question

If the price of the good described in exhibit 4-1 is $1.60, then there is a

answer

Surplus of 30 units

question

Jennifer expects the price of CDs to go up by 10% next week. Which of these is most likely to result from such an expectation? As the tax rate on your earned income rises

answer

Jennifers demand for CDs will increase during the week

question

Which of these is likely to increase the supply of tomatoes in the market

answer

A decrease in the cost of fertilizer for tomato plants

question

Figure 4.4 shows the supply curve for a good. According to the figure given below, which of these will result when price increases from P to P1

answer

Quantity supplied will increase

question

If butter and margarine are substitute goods, an increase in the price of butter is most likely to:

answer

shift the demand curve for margarine rightward

question

Which of the following is likely to bring about a movement along the supply curve for oranges

answer

A change in the price of oranges

question

In what way is consumer demand different from consumer wants?

answer

Demand takes into account the ability to payment

question

Externalities are defined as

answer

costs or benefits that fall on third parties

question

A tariff is

answer

tax on imports

question

A public good is one that is supplied to

answer

all people, regardless of whether they pay or not

question

Household act as demanders when they demand

answer

Goods and services from firms and the government

question

Which component of US household spending has grown the most over the past 10 years?

answer

Spending on services

question

Which of the following is a defining characteristic of a public good

answer

It is freely available to everyone once it is produced

question

Which of the following best defines supply

answer

The amount of a good that producers are willing and able to sell at each possible price, other things constant

question

A movement along a demand curve can be attributed to a change in:

answer

the quantity demanded of a good.

question

" more elastic" means

answer

More responsive

question

Use the information in Exhibit 5 - 1 to calculate the price elasticity of demand for good A

answer

-1.64

question

Use the information in Exhibit 5 - 1 to calculate the value of price elasticity of demand for good B

answer

-0.64

question

When total utility is falling, marginal utility is

answer

negative

question

Which of the following statements concerning utility is correct

answer

Utility is a subjective measure of satisfaction an individual receives from consuming a good or service.

question

In Exhibit 6 - 1, what is the total utility of three pretzels

answer

question

In Exhibit 6 - 1, what is the marginal utility of the third pretzel

answer

question

In Exhibit 6 - 3, the total utility of consuming three scones is

answer

question

Exhibit 6 - 3, the marginal utility of consuming the second scone is

answer

question

In Exhibit 6 - 3, the marginal utility of consuming the fourth scone is

answer

question

In exhibit 6-3 , The total utility of consuming five scones is

answer

question

In Exhibit 6 - 3, the marginal utility of consuming the first scone is

answer

question

A 10% increase in the price of root beer causes a 5% increase in the quantity demanded of orange soda this means that

answer

Root beer and orange soda are substitutes

question

Which of the following tends to make a demand for a good more elastic

answer

Consumers have a long time to adjust to a price change

question

If a 5% increase in price leads to an 8% decrease in quantity demanded, demand is

answer

elastic

question

Figure 5.8 shows a horizontal line. The curve shown in the figure balloon could represent a:

answer

Perfectly elastic demand or supply

question

The price elasticity of demand helps determine the effective price changes on a firms

answer

Revenues

question

It's an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then the value of price elasticity of demand is

answer

Inelastic

question

Elasticity measures

answer

the responsiveness of decision makers to changes in prices, income, or other variables

question

If Joe says that nothing comes close to a Pepsi, it's demand for Pepsi is likely to be

answer

Relatively price inelastic

question

If marginal utility is positive than total utility is

answer

Increasing

question

Table 6.4 The following table shows the total utility and marginal utility derived from the consumption of palms. The first column of the table represents the number of palms a consumer consumes in a day and the second column of the table represents the total utility derived from that consumption. the marginal utility of the third column is:

answer

6 units

question

Price elasticity of demand is useful because it measures _________ responsiveness to changes in __________

answer

consumers'; price

question

The cross price elasticities of demand between milk and soft drinks is likely to be

answer

Positive because the goods are substitutes

question

Figure 5.6 shows a vertical demand curve. The demand in the figure below is

answer

Perfectly inelastic

question

According to the law of ___________, the marginal utility received from each additional unit of a good consumed declines, other things constant

answer

diminishing marginal utility

question

In exhibit 7-4 , Marginal returns increase with the hiring of up to __________ worker(s)

answer

Four

question

The perfectly competitive firewood market is composed of 1000 identical consumers and 1000 identical firms. Exhibit 8-1 shows cost data for one firm and demand data for one consumer. What is the equilibrium price

answer

$100

question

They perfectly competitive firewood market is composed of thousand identical consumers and thousand identical firms. In exhibit 8-1 shows cost data for one firm and demand data for one consumer what is the profit maximizing quantity for each firm

answer

Three cords of wood

question

Which of the following is likely to be present in a perfectly competitive market

answer

firms producing identical products

question

A variable cost is one that changes _________

answer

as output changes

question

A constant cost industry is one that

answer

Whose cost curves do not change as new firms into the market

question

Average revenue is

answer

Total revenue divided by the quantity of output

question

Perfectly competitive firms are price takers because

answer

Each firm is too small compared to the market to be able to affect price

question

Resources are efficiently allocated when production occurs at that point at which

answer

Price is equal to marginal cost

question

The price charged by a perfectly competitive firm is determined by

answer

Market demand and market supply

question

Which of the following is true of economic profit

answer

It equals total revenue minus total cost

question

Perfectly competitive firms respond to changing market conditions by varying there

answer

Output

question

The young shelf is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 A year, and take over a store building that he owns and currently rents to his brother for $6,000 A year. His expenses at the sushi bar would be $50,000 for food and $2000 for gas and electricity. What are his implicit cost

answer

$26,000

question

Economic profit is defined as

answer

Total revenue minus implicit and explicit costs

question

A firms accounting profit is equal to __________.

answer

Total revenue minus explicit cost

question

Sally owns a small business that she operates in a small building she owns. Given the information in exhibit 7-1, Sally's accounting profit is

answer

$65,000

question

Sally on the small business that she operates in a small building she owns. Given the information in exhibit 7-1, sally's economic profit is

answer

$24,000

question

Given the information in exhibit 7-2, what is the marginal product of the fourth unit of labor

answer

5 pairs of shoes

question

Given the information in Exhibit 7 - 2, what is the average product of the fourth unit of labor

answer

20 pairs of shoes

question

Given the information in exhibit 7-2, at what point do diminishing marginal returns set in

answer

Between the second and third units of labor

question

Which of the following is not an explicit cost

answer

the value of a firm owner's time

question

Which of the following are implicit cost for a typical firm

answer

Opportunity cost of capital old and used by the firm

question

An implicit cost is

answer

An opportunity cost

question

Explicit costs are

answer

Actual monetary payments for resources purchased

question

What are the young chefs explicit costs

answer

$52,000

question

Given the information in exhibit 7-2, what is the marginal product of the third unit of labor

answer

25 pairs of shoes

question

Given the information in exhibit 7-2, at what point do diminishing marginal returns set in

answer

Between the second and third units of labor

question

Which of the following is not necessarily a characteristic of perfect competition

answer

low prices

question

Productive efficiency occurs in the market win

answer

Goods are produced at the lowest possible average total cost

question

Market structure

answer

Influences the forms of competition among firms

question

Because market price remains constant as a perfectly competitive firm expands output, each firm faces

answer

A horizontal demand curve

question

Which of the following could be true of perfect competition but not of monopoly

answer

A firm can face competition from new entrants in the market in the long run

question

If a monopolistically competitive firm raises its prices it

answer

Loses some, but not all, of its customers

question

A monopolistically competitive firm is producing an output level at which marginal revenue is greater than marginal cost. This firm should _________ quantity and ___________ Price to increase profit or reduce losses

answer

Increases; decrease

question

The automobile, breakfast cereal, and tobacco industries are examples of

answer

oligopoly

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Which of the following is not considered a barrier to entry

answer

Perfect price discrimination

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Exhibit 9-1. According to the information provided in the table above, marginal revenue from the third unit of output is

answer

$20

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According to the information provided in the table above, total revenue from selling the five units is

answer

$100

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Table 9.2. Given the information in the table below, the average revenue earned by the firm from four units of output is

answer

question

A monopolist is said to have market power because:

answer

it faces a downward-sloping demand curve

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For a monopolist, average revenue is

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More than marginal revenue at all output levels

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Gilligan runs the only dry-cleaning business on a desert isle. If the cost of cleaning fluid falls, he can increase profit by

answer

lowering price

question

Figure 9.3. The figure below shows the total cost and total revenue curves for a monopolist. The profit maximizing output for the monopolist is

answer

3 units

question

A monopolist is said to have market power because:

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it faces a downward-sloping demand curve

question

Figure 9.3 which of the following describes a monopolize market structure

answer

A single firm producing a highly differentiated product and serving the entire market

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Which of the following is true of a patent

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It gives a firm a temporary exclusive right to produce a new good

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A firm __________ is likely to be an oligopolist

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That produces a significant share of market output before low average costs can be achieved

question

Affirm experiences economies of scale if

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Average cost decline as output increases

question

A monopolistically competitive firm is producing at an output level where marginal revenue is greater than marginal cost. This firm should _________ quantity and ________ Price to increase profit or reduce losses.

answer

Increase, decrease

question

The rise in demand for restaurant meals is likely to ________ in the long run

answer

Increase the number of restaurants in the industry

question

It is harder to explain the behavior of firms in an oligopoly then and other market structures because

answer

Firms base their decisions on what their rivals do

question

Monopolistically competitive firms _________

answer

Are Price makers

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Which of the following is most likely produced in and monopolistically competitive market

answer

Fast food

question

Which of the following characteristics distinguishes oligopoly from other market structures

answer

interdependence among firms in the industry

question

Through collective-bargaining, the

answer

Contracts are worked out between representatives of the union and employer representatives

question

Truck drivers usually earn more than secretaries because

answer

truckers face greater risks

question

Which of the following factors is the most significant in determining the pattern of international trade

answer

Comparative advantage

question

Which of the following groups is a crafter union

answer

Writers

question

In the United States, dumping

answer

Is prohibited by the trade agreements act of 1979

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One of the main motives for the United States to negotiate a free trade agreement with Mexico was to

answer

Encourage Mexico's recent drive to achieve a more market oriented economy

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The United States is a major exporter of

answer

Corn

question

Retaliation of trade restrictions can

answer

Set off still greater trade restrictions leading to an out right trade war

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The terms of trade refers to

answer

The world price of a good determined by the world so far and demand for the good

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Some countries export products at prices below the cost of production or the price charged and the domestic market. This practice is called

answer

Dumping

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Featherbedding by unions is an attempt to

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Increase the demand for union labor

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The source of gains from trade is

answer

comparative advantage

question

The world trade organization

answer

Became, in 1995, The institutionalized a more comprehensive successor to the GATT General agreement on tariffs and trade

question

Which of the following factors is most significant in determining the pattern of international trade

answer

Comparative advantage

question

If leisure is a normal good, then a decrease in income __________ the time allocated to __________.

answer

decreases: leisure

question

Abby maximize utility by allocating time among leisure, market work, and non-market work so that the

answer

Marginal utility per hour of each is equal

question

People who gain greater enjoyment from leisure activities

answer

Allocate more time to leisure

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Which of the following is true of international trade

answer

It allows a country to specialize in the production of certain goods and services

question

In the labor negotiation, a mediator

answer

is an impartial observer.

question

The labor union is a group of

answer

Employees who join together to improve their working conditions

question

When industrial unions negotiate with an entire industry, which gains come at the cost of

answer

Reduced total employment

1 of 153

question

in exhibit 2-2, if all the economy's resources are used efficiently to produce good A, then the economy is at point ___

answer

i (on the X axis right beside good A)

question

in exhibit 2-2, if resources are used fully and efficiently, then the economy can produce at point(s)

answer

g, h, or i (on the curve)

question

which of the following points in exhibit 2-2 is Unattainable, given the quantity of resources And level of technology

answer

E (outlier)

question

Macroeconomics is the study of

answer

the behavior of the economy as a whole

question

Which of the following is the fundamental resource that is the basis of Labor

answer

time

question

Which of the following is an example of a positive statement

answer

An increase in the price of gasoline will cause a reduction in the amount purchased

question

Goods and services are scarce because

answer

they are produced using scarce resources

question

households

answer

own and sell resources

question

scarcity

answer

occurs when a resource is not freely available

question

The labor market is an example of a

answer

resource market

question

To say that people make marginal decisions means that

answer

They weigh the additional costs and additional benefits of various activities before they make a decision

question

Microeconomics is the study of

answer

The economic behavior of individual decision makers

question

Which of the following is an example of a normative statement

answer

Women should earn the same income as men

question

The law of comparative advantage says that a person should produce a good if she

answer

Has the lowest opportunity cost of producing that good

question

A country has an absolute advantage in the production of a good if that country

answer

Can produce the good using fewer resources than another country would require

question

A ppf will not shift because of an increase in

answer

unemployment

question

Adam Smith's term, "the invisible hand," refers to

answer

market forces

question

An outward shift of the production possibilities Frontier

answer

reflects economic growth

question

Increases in resources or improvements in technology will cause the production possibilities Frontier to

answer

shift outward

question

Adam Smith believed that peoples pursuit of their own self interests

answer

Tended to promote the general welfare

question

In exhibit 2-5, The opportunity cost of moving from point B to D is

answer

100 socks (250-150)

question

In Exhibit 2-5, if society moves from point c to point d, society

answer

loses 30 mufflers (80-50)

question

A resource is something that

answer

Socially acceptable in exchange for goods and services

question

Which of the following would cause the production possibilities frontier in exhibit 2-6 to shift from AA to BA

answer

A drought that affected food production but had no effect on education

question

The law of comparative advantage says that

answer

the individual with the lowest opportunity cost of producing a particular good should produce it

question

Who is Jeremy Bentham

answer

Father of Utilitarianism

question

Who is Janet Yellen

answer

Chairman of the Federal Reserve Board, and the first woman to be in charge of a major bank

question

In exhibit 4-14, A movement from point M to point N represents

answer

An increase in quantity supplied

question

In exhibit 4-14, A decrease in price from $10 to four dollars leads to

answer

A downward movement along the supply curve

question

An improvement in technology would shift

answer

supply curve rightward

question

An increase in the price of a good normally increases the

answer

demand for its substitutes

question

The law of demand states that

answer

other things remaining constant, quantity demanded varies inversely with price.

question

The law of demand is illustrated by a demand curve that is

answer

downward sloping

question

The difference between normal and inferior goods is that

answer

an increase in income will shift the demand curve for a normal good rightward and the demand curve for an inferior good leftward

question

Two goods are considered substitutes only if a(n)

answer

increase in the price of one leads to an increase in the demand for the other

question

If the price of potato chips increases, other things constant, demand for potato-chip dip will

answer

Decrease because the goods are complements

question

If the price of the good described in exhibit 4-1 is $1.20, then there is a

answer

shortage of 60 units

question

If the price of the good described in exhibit 4-1 is $1.60, then there is a

answer

Surplus of 30 units

question

Jennifer expects the price of CDs to go up by 10% next week. Which of these is most likely to result from such an expectation? As the tax rate on your earned income rises

answer

Jennifers demand for CDs will increase during the week

question

Which of these is likely to increase the supply of tomatoes in the market

answer

A decrease in the cost of fertilizer for tomato plants

question

Figure 4.4 shows the supply curve for a good. According to the figure given below, which of these will result when price increases from P to P1

answer

Quantity supplied will increase

question

If butter and margarine are substitute goods, an increase in the price of butter is most likely to:

answer

shift the demand curve for margarine rightward

question

Which of the following is likely to bring about a movement along the supply curve for oranges

answer

A change in the price of oranges

question

In what way is consumer demand different from consumer wants?

answer

Demand takes into account the ability to payment

question

Externalities are defined as

answer

costs or benefits that fall on third parties

question

A tariff is

answer

tax on imports

question

A public good is one that is supplied to

answer

all people, regardless of whether they pay or not

question

Household act as demanders when they demand

answer

Goods and services from firms and the government

question

Which component of US household spending has grown the most over the past 10 years?

answer

Spending on services

question

Which of the following is a defining characteristic of a public good

answer

It is freely available to everyone once it is produced

question

Which of the following best defines supply

answer

The amount of a good that producers are willing and able to sell at each possible price, other things constant

question

A movement along a demand curve can be attributed to a change in:

answer

the quantity demanded of a good.

question

" more elastic" means

answer

More responsive

question

Use the information in Exhibit 5 - 1 to calculate the price elasticity of demand for good A

answer

-1.64

question

Use the information in Exhibit 5 - 1 to calculate the value of price elasticity of demand for good B

answer

-0.64

question

When total utility is falling, marginal utility is

answer

negative

question

Which of the following statements concerning utility is correct

answer

Utility is a subjective measure of satisfaction an individual receives from consuming a good or service.

question

In Exhibit 6 - 1, what is the total utility of three pretzels

answer

question

In Exhibit 6 - 1, what is the marginal utility of the third pretzel

answer

question

In Exhibit 6 - 3, the total utility of consuming three scones is

answer

question

Exhibit 6 - 3, the marginal utility of consuming the second scone is

answer

question

In Exhibit 6 - 3, the marginal utility of consuming the fourth scone is

answer

question

In exhibit 6-3 , The total utility of consuming five scones is

answer

question

In Exhibit 6 - 3, the marginal utility of consuming the first scone is

answer

question

A 10% increase in the price of root beer causes a 5% increase in the quantity demanded of orange soda this means that

answer

Root beer and orange soda are substitutes

question

Which of the following tends to make a demand for a good more elastic

answer

Consumers have a long time to adjust to a price change

question

If a 5% increase in price leads to an 8% decrease in quantity demanded, demand is

answer

elastic

question

Figure 5.8 shows a horizontal line. The curve shown in the figure balloon could represent a:

answer

Perfectly elastic demand or supply

question

The price elasticity of demand helps determine the effective price changes on a firms

answer

Revenues

question

It's an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then the value of price elasticity of demand is

answer

Inelastic

question

Elasticity measures

answer

the responsiveness of decision makers to changes in prices, income, or other variables

question

If Joe says that nothing comes close to a Pepsi, it's demand for Pepsi is likely to be

answer

Relatively price inelastic

question

If marginal utility is positive than total utility is

answer

Increasing

question

answer

6 units

question

Price elasticity of demand is useful because it measures _________ responsiveness to changes in __________

answer

consumers'; price

question

The cross price elasticities of demand between milk and soft drinks is likely to be

answer

Positive because the goods are substitutes

question

Figure 5.6 shows a vertical demand curve. The demand in the figure below is

answer

Perfectly inelastic

question

According to the law of ___________, the marginal utility received from each additional unit of a good consumed declines, other things constant

answer

diminishing marginal utility

question

In exhibit 7-4 , Marginal returns increase with the hiring of up to __________ worker(s)

answer

Four

question

answer

$100

question

answer

Three cords of wood

question

Which of the following is likely to be present in a perfectly competitive market

answer

firms producing identical products

question

A variable cost is one that changes _________

answer

as output changes

question

A constant cost industry is one that

answer

Whose cost curves do not change as new firms into the market

question

Average revenue is

answer

Total revenue divided by the quantity of output

question

Perfectly competitive firms are price takers because

answer

Each firm is too small compared to the market to be able to affect price

question

Resources are efficiently allocated when production occurs at that point at which

answer

Price is equal to marginal cost

question

The price charged by a perfectly competitive firm is determined by

answer

Market demand and market supply

question

Which of the following is true of economic profit

answer

It equals total revenue minus total cost

question

Perfectly competitive firms respond to changing market conditions by varying there

answer

Output

question

answer

$26,000

question

Economic profit is defined as

answer

Total revenue minus implicit and explicit costs

question

A firms accounting profit is equal to __________.

answer

Total revenue minus explicit cost

question

Sally owns a small business that she operates in a small building she owns. Given the information in exhibit 7-1, Sally's accounting profit is

answer

$65,000

question

Sally on the small business that she operates in a small building she owns. Given the information in exhibit 7-1, sally's economic profit is

answer

$24,000

question

Given the information in exhibit 7-2, what is the marginal product of the fourth unit of labor

answer

5 pairs of shoes

question

Given the information in Exhibit 7 - 2, what is the average product of the fourth unit of labor

answer

20 pairs of shoes

question

Given the information in exhibit 7-2, at what point do diminishing marginal returns set in

answer

Between the second and third units of labor

question

Which of the following is not an explicit cost

answer

the value of a firm owner's time

question

Which of the following are implicit cost for a typical firm

answer

Opportunity cost of capital old and used by the firm

question

An implicit cost is

answer

An opportunity cost

question

Explicit costs are

answer

Actual monetary payments for resources purchased

question

What are the young chefs explicit costs

answer

$52,000

question

Given the information in exhibit 7-2, what is the marginal product of the third unit of labor

answer

25 pairs of shoes

question

Given the information in exhibit 7-2, at what point do diminishing marginal returns set in

answer

Between the second and third units of labor

question

Which of the following is not necessarily a characteristic of perfect competition

answer

low prices

question

Productive efficiency occurs in the market win

answer

Goods are produced at the lowest possible average total cost

question

Market structure

answer

Influences the forms of competition among firms

question

Because market price remains constant as a perfectly competitive firm expands output, each firm faces

answer

A horizontal demand curve

question

Which of the following could be true of perfect competition but not of monopoly

answer

A firm can face competition from new entrants in the market in the long run

question

If a monopolistically competitive firm raises its prices it

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Loses some, but not all, of its customers

question

answer

Increases; decrease

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The automobile, breakfast cereal, and tobacco industries are examples of

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oligopoly

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Which of the following is not considered a barrier to entry

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Perfect price discrimination

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Exhibit 9-1. According to the information provided in the table above, marginal revenue from the third unit of output is

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$20

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According to the information provided in the table above, total revenue from selling the five units is

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$100

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Table 9.2. Given the information in the table below, the average revenue earned by the firm from four units of output is

answer

question

A monopolist is said to have market power because:

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it faces a downward-sloping demand curve

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For a monopolist, average revenue is

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More than marginal revenue at all output levels

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Gilligan runs the only dry-cleaning business on a desert isle. If the cost of cleaning fluid falls, he can increase profit by

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lowering price

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Figure 9.3. The figure below shows the total cost and total revenue curves for a monopolist. The profit maximizing output for the monopolist is

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3 units

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A monopolist is said to have market power because:

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it faces a downward-sloping demand curve

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Figure 9.3 which of the following describes a monopolize market structure

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A single firm producing a highly differentiated product and serving the entire market

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Which of the following is true of a patent

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It gives a firm a temporary exclusive right to produce a new good

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A firm __________ is likely to be an oligopolist

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That produces a significant share of market output before low average costs can be achieved

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Affirm experiences economies of scale if

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Average cost decline as output increases

question

answer

Increase, decrease

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The rise in demand for restaurant meals is likely to ________ in the long run

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Increase the number of restaurants in the industry

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It is harder to explain the behavior of firms in an oligopoly then and other market structures because

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Firms base their decisions on what their rivals do

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Monopolistically competitive firms _________

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Are Price makers

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Which of the following is most likely produced in and monopolistically competitive market

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Fast food

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Which of the following characteristics distinguishes oligopoly from other market structures

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interdependence among firms in the industry

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Through collective-bargaining, the

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Contracts are worked out between representatives of the union and employer representatives

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Truck drivers usually earn more than secretaries because

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truckers face greater risks

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Which of the following factors is the most significant in determining the pattern of international trade

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Comparative advantage

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Which of the following groups is a crafter union

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Writers

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In the United States, dumping

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Is prohibited by the trade agreements act of 1979

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One of the main motives for the United States to negotiate a free trade agreement with Mexico was to

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Encourage Mexico's recent drive to achieve a more market oriented economy

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The United States is a major exporter of

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Corn

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Retaliation of trade restrictions can

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Set off still greater trade restrictions leading to an out right trade war

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The terms of trade refers to

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The world price of a good determined by the world so far and demand for the good

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Some countries export products at prices below the cost of production or the price charged and the domestic market. This practice is called

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Dumping

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Featherbedding by unions is an attempt to

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Increase the demand for union labor

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The source of gains from trade is

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comparative advantage

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The world trade organization

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Became, in 1995, The institutionalized a more comprehensive successor to the GATT General agreement on tariffs and trade

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Which of the following factors is most significant in determining the pattern of international trade

answer

Comparative advantage

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If leisure is a normal good, then a decrease in income __________ the time allocated to __________.

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decreases: leisure

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Abby maximize utility by allocating time among leisure, market work, and non-market work so that the

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Marginal utility per hour of each is equal

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People who gain greater enjoyment from leisure activities

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Allocate more time to leisure

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Which of the following is true of international trade

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It allows a country to specialize in the production of certain goods and services

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In the labor negotiation, a mediator

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is an impartial observer.

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The labor union is a group of

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Employees who join together to improve their working conditions

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When industrial unions negotiate with an entire industry, which gains come at the cost of

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Reduced total employment

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