question
A
answer
The study of how to direct scarce resources in the way that most efficiently achieves a managerial goal:
A. managerial economics
B. monetary policy
C. macroeconmics
D. microeconomics
A. managerial economics
B. monetary policy
C. macroeconmics
D. microeconomics
question
B
answer
In the United States, control of the quantity of money is given to the:
A. President
B. Federal Reserve System
C. Bank of America
D. US Department of Treasury
A. President
B. Federal Reserve System
C. Bank of America
D. US Department of Treasury
question
C
answer
To an economist, the term "inflation" refers to:
A. a rising price level for a specific good
B. a periodic increase in price levels
C. a continually rising price level
D. any price increase
A. a rising price level for a specific good
B. a periodic increase in price levels
C. a continually rising price level
D. any price increase
question
D
answer
"Official" recessions in the United States are declared by:
A. the Federal Reserve
B. skilled economists
C. US Treasury Department
D. the National Bureau of Economic Research
A. the Federal Reserve
B. skilled economists
C. US Treasury Department
D. the National Bureau of Economic Research
question
A
answer
Nominal prices and nominal wages are:
A. not adjusted for inflation
B. adjusted for inflation
C. protected against inflation
D. all of the above
A. not adjusted for inflation
B. adjusted for inflation
C. protected against inflation
D. all of the above
question
B
answer
The CPI is a measure of the overall cost of:
A. all services
B. goods and services bought by a typical consumer
C. only goods bought by wholesalers
D. none of the above
A. all services
B. goods and services bought by a typical consumer
C. only goods bought by wholesalers
D. none of the above
question
C
answer
Which of the following agencies calculates the CPI:
A. the Federal Reserve
B. US Treasury Department
C. the Bureau of Labor Statistics
D. A & D
A. the Federal Reserve
B. US Treasury Department
C. the Bureau of Labor Statistics
D. A & D
question
B
answer
All of the following are components of GDP except:
A. personal consumption expenditures
B. interest rates
C. business investments
D. government spending
E. exports & imports
A. personal consumption expenditures
B. interest rates
C. business investments
D. government spending
E. exports & imports
question
C
answer
Changes in which of the following affect quantity demand?
A. advertising
B. consumer expectations
C. price
D. population
E. all of the above
A. advertising
B. consumer expectations
C. price
D. population
E. all of the above
question
D
answer
Changes in which of the following affect demand?
A. advertising
B. consumer expectations
C. population
D. all of the above
A. advertising
B. consumer expectations
C. population
D. all of the above
question
D
answer
The interest rate the Fed charges on loans it makes to banks is called
A. loan rate
B. risk free rate
C. real rate
D. the discount rate
A. loan rate
B. risk free rate
C. real rate
D. the discount rate
question
A
answer
The Federal Funds rate is the interest rate:
A. banks charge each other for short-term loans of reserves
B. banks charge each other for long-term loans of reserves
C. banks charge consumers for short-term loans of reserves
D. A & C
A. banks charge each other for short-term loans of reserves
B. banks charge each other for long-term loans of reserves
C. banks charge consumers for short-term loans of reserves
D. A & C
question
D
answer
The Federal Reserve is responsible for which of the following?
A. control the supply of money
B. control the value of money
C. regulate the banking system
D. all of the above
A. control the supply of money
B. control the value of money
C. regulate the banking system
D. all of the above
question
D
answer
Generally when calculating profits as total revenue minus total costs, accounting profits are larger than economic profits because economists take into account:
A. explicit costs
B. implicit costs
C. sunken costs
D. A&B
A. explicit costs
B. implicit costs
C. sunken costs
D. A&B
question
B
answer
Scarce resources are ultimately allocated toward the production of goods most wanted by society because:
A. firms want to get rid of inventory as fast as possible
B. firms attempt to maximize profits
C. firms attempt to manipulate supply and demand
D. all of the above
A. firms want to get rid of inventory as fast as possible
B. firms attempt to maximize profits
C. firms attempt to manipulate supply and demand
D. all of the above
question
A
answer
Which of the following are signals to the owners of scarce resources about the best uses of those resources:
a. Profits of businesses
b. Government regulations
c. Economic indicators
d. The accounting cost of those resources
a. Profits of businesses
b. Government regulations
c. Economic indicators
d. The accounting cost of those resources
question
D
answer
Which of the following is an implicit cost of going to college:
a. Tuition
b. Cost of books and supplies
c. Room and board
d. Foregone wages
a. Tuition
b. Cost of books and supplies
c. Room and board
d. Foregone wages
question
B
answer
To an economist, maximizing profit is:
A. is technologically efficient but might not be economically efficient.
B. maximizing the value of the firm
C. economically efficient but might not be technologically efficient.
D. is economically efficient and technologically efficient.
A. is technologically efficient but might not be economically efficient.
B. maximizing the value of the firm
C. economically efficient but might not be technologically efficient.
D. is economically efficient and technologically efficient.
question
D
answer
Managerial economics:
A. is valualbe to the CFO of Wal Mart
B. The study of how to direct scarce resources in the way that most efficiently achieves a managerial goal
C. is valuable to the coordinator of a shelter for the homeless
D. B&C
A. is valualbe to the CFO of Wal Mart
B. The study of how to direct scarce resources in the way that most efficiently achieves a managerial goal
C. is valuable to the coordinator of a shelter for the homeless
D. B&C
question
D
answer
According to the five forces framework, sustainable industry profits depend upon:
A. the power of input suppliers and buyers
B. industry rivalry and entry conditions
C. substitutes and compliments
D. all of the above
A. the power of input suppliers and buyers
B. industry rivalry and entry conditions
C. substitutes and compliments
D. all of the above
question
T
answer
T/F: Economics exists because of scarcity.
question
T
answer
T/F: The primary inducement for new firms to enter an industry is presence of economic profits.
question
F
answer
T/F: The value of the firm is the present discounted value of all current profits.
question
F
answer
T/F: If the absolute value of the own price elasticity of steak is 0.4, a decrease in price will lead to an increase in total revenue.
question
A
answer
Lemonade, a good with many close substitutes, should have an own price elasticity that is:
A. relatively elastic
B. relatively inelastic
C. unitarily elastic
D. none of the above
A. relatively elastic
B. relatively inelastic
C. unitarily elastic
D. none of the above
question
C
answer
When marginal revenue is zero, demand will be:
A. elastic
B. inelastic
C. unit elastic
D. arc elastic
A. elastic
B. inelastic
C. unit elastic
D. arc elastic
question
B
answer
When the own price elasticity of good X is −3.5, then total revenue can be increased by:
A. keeping the price the same
B. decreasing the price
C. increasing the price
D. none of the above
A. keeping the price the same
B. decreasing the price
C. increasing the price
D. none of the above
question
T
answer
T/F: Demand tends to be more inelastic in the short term than in the long term.
question
T
answer
T/F: When marginal revenue is zero, total revenue is maximized.
question
A
answer
As we move down along a linear demand curve, the price elasticity of demand becomes more:
A. inelastic
B. elastic
C. arc elastic
D. unit elastic
A. inelastic
B. elastic
C. arc elastic
D. unit elastic
question
B
answer
Sunk costs are those costs that:
A. change with output
B. are forever lost after they have been paid
C. will not change no matter the output
D. costs that are tax free
A. change with output
B. are forever lost after they have been paid
C. will not change no matter the output
D. costs that are tax free
question
F
answer
T/F: If the marginal product per dollar spent on capital is less than the marginal product per dollar spent on labor, then in order to minimize costs the firm should use more capital and less labor.
question
F
answer
T/F: An isoquant line represents the combinations of K and L that cost the firm the same amount of money.
question
A
answer
An isoquant defines the combination of inputs that yield the producer:
A. the same level of output
B. a different level of output
C. the optimal level of output
D. the desired level of output
A. the same level of output
B. a different level of output
C. the optimal level of output
D. the desired level of output
question
F
answer
T/F: Costs that are forever lost after they have been paid are fixed costs.
question
C
answer
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capital is rented at $8 per hour. If the marginal product of labor is 50 units of output per hour and the marginal product of capital is 70 units of output per hour, should the firm increase, decrease, or leave unchanged the amount of capital used in its production process?
A. the firm should decrease capital
B. the firm shouldn't do anything
C. the firm should increase capital
D. there isn't enoug information provided to determine what the firm should do
A. the firm should decrease capital
B. the firm shouldn't do anything
C. the firm should increase capital
D. there isn't enoug information provided to determine what the firm should do
question
T
answer
T/F: The costs of production include accounting costs and opportunity costs.
question
C
answer
The marginal rate of technical substitution:
A. is the value of the slope of the isoquant
B. is the value of the slope of the isocost
C. is the absolute value of the slope of the isoquant
D. is the absolute value of the slope of the isocost
A. is the value of the slope of the isoquant
B. is the value of the slope of the isocost
C. is the absolute value of the slope of the isoquant
D. is the absolute value of the slope of the isocost
question
T
answer
T/F: Constant returns to scale exist when long-run average costs remain constant as output is increased.
question
A
answer
Which of the following are of the six principles of effective managerial decision making:
A.
- Identify Goals and Constraints
- Recognize the Nature and importance of profits
- Understand incentives
- Understand Markets
- Recognize the time value of money
- Use Marginal analysis
B.
- Identify Goals and Constraints
- Recognize the Nature and importance of profits
- Understand suppliers
- Understand consumers
- Recognize the time value of money
- Use Marginal analysis
C.
- Identify Goals
- Recognize the Nature and importance of profits
- Understand incentives
- Understand elastic analysis
- Recognize the present value of money
- Use employee analysis
D. Both A & C
A.
- Identify Goals and Constraints
- Recognize the Nature and importance of profits
- Understand incentives
- Understand Markets
- Recognize the time value of money
- Use Marginal analysis
B.
- Identify Goals and Constraints
- Recognize the Nature and importance of profits
- Understand suppliers
- Understand consumers
- Recognize the time value of money
- Use Marginal analysis
C.
- Identify Goals
- Recognize the Nature and importance of profits
- Understand incentives
- Understand elastic analysis
- Recognize the present value of money
- Use employee analysis
D. Both A & C
question
C
answer
Law of demand states:
A. The quantity of a good consumers are willing and able to purchase increases (decreases) as the price increasess (falls)
B. The quantity of a good consumers are willing and able to purchase decreases as the price stays constant
C. The quantity of a good consumers are willing and able to purchase increases (decreases) as the price falls (rises)
D. all of the above
A. The quantity of a good consumers are willing and able to purchase increases (decreases) as the price increasess (falls)
B. The quantity of a good consumers are willing and able to purchase decreases as the price stays constant
C. The quantity of a good consumers are willing and able to purchase increases (decreases) as the price falls (rises)
D. all of the above
question
T
answer
T/F: With normal goods, increases in income causes increase in quantity demanded at each price, shifts demand curve to the right.
question
F
answer
T/F: With inferior goods, decreases in income causes increase in quantity demanded at each price, shifts demand curve to the right
question
T
answer
T/F: Two goods are substitutes if an increase in the price of one causes an increase in the demand for the other.
question
T
answer
T/F: Two goods are complements if an increase in the price of one causes fall in demand of the other.
question
D
answer
__________ provides consumers with information about the underlying existence or quality of a product.
A. persuasive advertising
B. commercial advertising
C. guerilla advertising
D. Informative advertising
A. persuasive advertising
B. commercial advertising
C. guerilla advertising
D. Informative advertising
question
A
answer
________________ alters the underlying tastes of consumers
A. persuasive advertising
B. commercial advertising
C. guerilla advertising
D. Informative advertising
A. persuasive advertising
B. commercial advertising
C. guerilla advertising
D. Informative advertising
question
T
answer
T/F: Increase in the number of People (buyers) increases quantity demanded at each price, shifts demand curve to right.
question
T
answer
T/F: The law of supply states that as the price of a good rises (falls), the quantity of a good rises (falls), holding other factors affecting supply constant.
question
F
answer
T/F: An increase in input prices makes production more profitable at each output price, so firms supply a larger quantity at each price, and the supply curve shifts to the right.
question
C
answer
An increase in the number of sellers increase the quantity supplied at each price, shifts supply curve to _______________________.
A. to the left
B. to the top
C. to the right
D. to the bottom
A. to the left
B. to the top
C. to the right
D. to the bottom
question
T
answer
T/F: Explicit costs are cash expenses, while implicit costs are noncash expenses - otherwise known as opportunity costs.
question
A
answer
Which of the following is not a stage of production?
A. stagnant marginal returns
B. increasing marginal returns
C. decreasing marginal returns
D. negative marginal returns
A. stagnant marginal returns
B. increasing marginal returns
C. decreasing marginal returns
D. negative marginal returns
question
B
answer
A manager can approximate the true elasticity by using which type of Elasticity of Demand?
A. own price
B. arc price
C. cross price
D. arc income
A. own price
B. arc price
C. cross price
D. arc income
question
D
answer
Consumer surplus is:
A. difference between the price that you pay in the market and the value that you place on the product
B. the area under the demand curve that lies above the market price at which consumers are willing to pay
C. The area above the supply curve that lies below the market price
D. A&B
A. difference between the price that you pay in the market and the value that you place on the product
B. the area under the demand curve that lies above the market price at which consumers are willing to pay
C. The area above the supply curve that lies below the market price
D. A&B
question
C
answer
Producer surplus occurs in:
A. the area where the supply curve meets the market price
B. the area under the demand curve that lies above the market price at which consumers are willing to pay
C. The area above the supply curve that lies below the market price
D. none of the above
A. the area where the supply curve meets the market price
B. the area under the demand curve that lies above the market price at which consumers are willing to pay
C. The area above the supply curve that lies below the market price
D. none of the above
question
T
answer
T/F: Increases in demand only equilibrium increases equilibrium price and increase equilibrium quantity.
question
F
answer
T/F: Decrease in Demand only equilibrium increases equilibrium price and decreases equilibrium quantity.
question
A
answer
_______________ is the maximum legal price.
A. price ceiling
B. price floor
C. elastic price
D. arc elastic price
A. price ceiling
B. price floor
C. elastic price
D. arc elastic price
question
D
answer
Elasticity:
A. can inform you of the impact that a price change of a good/service will have on revenue
B. can inform you whether or not a good is normal or inferior
C. Measures the responsiveness of a percentage change in one variable resulting from a percentage change in another variable
D. all of the above
A. can inform you of the impact that a price change of a good/service will have on revenue
B. can inform you whether or not a good is normal or inferior
C. Measures the responsiveness of a percentage change in one variable resulting from a percentage change in another variable
D. all of the above
question
A
answer
E > 1
MR > 0
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
MR > 0
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
question
B
answer
E < 1
MR < 0
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
MR < 0
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
question
C
answer
E=1
MR = 0
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
MR = 0
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
question
T
answer
T/F: E > 0 of two goods; then goods are substitutes
question
T
answer
T/F: E < 0 of two goods, then goods are complements
question
T
answer
T/F: E=0 of two goods, then goods are independent
question
D
answer
E > 0
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
question
E
answer
E < 0
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
A. elastic
B. ineasltic
C. unit elastic
D. normal good
E. inferior good
question
B
answer
When demand is elastic:
A. total revenue is maximized
B. A price increase (decrease) leads to a decrease(increase) in total revenue
C. A price increase(decrease) leads to an increase(decrease) in total revenue
D. A price increase(decrease) has no effect on total revenue
A. total revenue is maximized
B. A price increase (decrease) leads to a decrease(increase) in total revenue
C. A price increase(decrease) leads to an increase(decrease) in total revenue
D. A price increase(decrease) has no effect on total revenue
question
C
answer
When demand is inelastic:
A. total revenue is maximized
B. A price increase (decrease) leads to a decrease(increase) in total revenue
C. A price increase(decrease) leads to an increase(decrease) in total revenue
D. A price increase(decrease) has no effect on total revenue
A. total revenue is maximized
B. A price increase (decrease) leads to a decrease(increase) in total revenue
C. A price increase(decrease) leads to an increase(decrease) in total revenue
D. A price increase(decrease) has no effect on total revenue
question
A
answer
When demand is unitary elastic:
A. total revenue is maximized
B. A price increase (decrease) leads to a decrease(increase) in total revenue
C. A price increase(decrease) leads to an increase(decrease) in total revenue
D. A price increase(decrease) has no effect on total revenue
A. total revenue is maximized
B. A price increase (decrease) leads to a decrease(increase) in total revenue
C. A price increase(decrease) leads to an increase(decrease) in total revenue
D. A price increase(decrease) has no effect on total revenue
question
T
answer
T/F: A "real interest rate" is an interest rate that has been adjusted for inflation.
question
A
answer
This policy deals with providing liquidity to a financial system?
A. credit policy
B. fiscal policy
C. inflation policy
D. financial policy
A. credit policy
B. fiscal policy
C. inflation policy
D. financial policy
question
B
answer
This policy is the responsibility of congress and the president:
A. credit policy
B. fiscal policy
C. inflation policy
D. financial policy
A. credit policy
B. fiscal policy
C. inflation policy
D. financial policy
question
C
answer
Generally speaking, if the economy is in an expansionary phase of the business cycle, which of the following is more likely to occur:
A. falling inflation
B. change in fiscal policy
C. rising inflation
D. businesses will fail
A. falling inflation
B. change in fiscal policy
C. rising inflation
D. businesses will fail
question
B
answer
The higher the interest rate:
a. The greater the present value of a future amount
b . The smaller the present value of a future amount
c. The greater the level of inflation
d. None of the statements associated with this question are correct
a. The greater the present value of a future amount
b . The smaller the present value of a future amount
c. The greater the level of inflation
d. None of the statements associated with this question are correct
question
A
answer
Accounting profits are:
a . Total revenue minus total cost
b. Total cost minus total revenue
c. Marginal revenue minus total cost
d. Total revenue minus marginal cost
a . Total revenue minus total cost
b. Total cost minus total revenue
c. Marginal revenue minus total cost
d. Total revenue minus marginal cost
question
C
answer
Economic profits are:
a. Total revenue minus total cost
b. Marginal revenue minus marginal cost
c . Total revenue minus total opportunity cost
d. Total profits of the economy as a whole
a. Total revenue minus total cost
b. Marginal revenue minus marginal cost
c . Total revenue minus total opportunity cost
d. Total profits of the economy as a whole
question
D
answer
The primary inducement for new firms to enter an industry is:
a. Increased technology
b. Availability of labor
c. Low capital costs
d . Presence of economic profits
a. Increased technology
b. Availability of labor
c. Low capital costs
d . Presence of economic profits
question
B
answer
As more firms enter an industry
a. Accounting profits increase
b . Economic profits decrease
c. Prices rise
d. None of the statements associated with this question are correct
a. Accounting profits increase
b . Economic profits decrease
c. Prices rise
d. None of the statements associated with this question are correct
question
A
answer
The opportunity cost of receiving ten dollars in the future as opposed to getting that ten dollars today is:
a . The foregone interest that could be earned if you had the money today
b. The taxes paid on any earnings
c. The value of $10 relative to the total income of that person
d. The value of $10 relative to the total income of all persons
a . The foregone interest that could be earned if you had the money today
b. The taxes paid on any earnings
c. The value of $10 relative to the total income of that person
d. The value of $10 relative to the total income of all persons
question
D
answer
To make the best predictions about the decisions made by a firm, we should take account of a firm's
A) implicit costs.
B) accounting costs.
C) explicit costs.
D) opportunity costs
A) implicit costs.
B) accounting costs.
C) explicit costs.
D) opportunity costs
question
B
answer
Typically a firm's opportunity costs are
A) only its implicit costs.
B) the sum of its explicit costs and its implicit costs.
C) neither its explicit costs nor its implicit costs.
D) only its explicit costs
A) only its implicit costs.
B) the sum of its explicit costs and its implicit costs.
C) neither its explicit costs nor its implicit costs.
D) only its explicit costs
question
D
answer
An implicit cost is an opportunity cost that
A) is actually part of the firm's normal profit.
B) is measured by the amount of cash the firm actually
pays out.
C) is adjusted for the rate of inflation.
D) requires no actual payment of cash.
A) is actually part of the firm's normal profit.
B) is measured by the amount of cash the firm actually
pays out.
C) is adjusted for the rate of inflation.
D) requires no actual payment of cash.
question
C
answer
Among the opportunity costs of a firm are all of the following EXCEPT:
A) the owner's forgone wage.
B) explicit costs of inputs such as labor.
C) economic profits.
D) normal profits.
A) the owner's forgone wage.
B) explicit costs of inputs such as labor.
C) economic profits.
D) normal profits.
question
D
answer
A firm that is maximizing its profits
A) is technologically efficient but might not be economically efficient.
B) might be neither economically efficient nor technologically efficient.
C) is economically efficient but might not be technologically efficient.
D) is economically efficient and technologically efficient.
A) is technologically efficient but might not be economically efficient.
B) might be neither economically efficient nor technologically efficient.
C) is economically efficient but might not be technologically efficient.
D) is economically efficient and technologically efficient.
question
A
answer
Renee earned a salary of $60,000 in 2001 and $69771.0 in 2006. The consumer price index was 176.0for 2001 and 229.0 for 2006. By correcting for inflation Renee's 2006 salary in 2001 dollars is
A. 53,623.10
B. 50,324.15
C. 43,250.20
D. 52, 632.10
A. 53,623.10
B. 50,324.15
C. 43,250.20
D. 52, 632.10
question
B
answer
The manager of Automated Products is contemplating the purchase of a new machine that will cost $ 63252.0 and has a useful life of 2years. The machine will yield (year-end) cost reductions to Automated Products of $40,000 in year 1 and $50,000 in year 2 What is the (NPV) present value of the cost savings of the machine if the interest rate is 5 percent?
A. 32,523
B. 20,195
C. 20,458
D. 25,145
A. 32,523
B. 20,195
C. 20,458
D. 25,145
question
C
answer
Suppose the interest rate is 0.10 and the firm is expected to grow at a rate of 0.049 for the foreseeable future. The firm's current profits are $50,000,000 .
What is the value of the firm immediately after it pays a dividend equal to its current profits?
A. 1,774,632,148.95
B. 1,489,752,321.15
C. 1,028,431,372.50
D. 2,254,154,876.20
What is the value of the firm immediately after it pays a dividend equal to its current profits?
A. 1,774,632,148.95
B. 1,489,752,321.15
C. 1,028,431,372.50
D. 2,254,154,876.20
question
D
answer
An engineering firm recently conducted a study to determine its benefit and cost structure.
The results of the study are as follow
B(Y) = 102.0Y - 3Y2
C(Y) = 2Y2
Find the maximum level of net benefits
A. 530.80
B. 500.40
C. 475.60
D. 520.20
The results of the study are as follow
B(Y) = 102.0Y - 3Y2
C(Y) = 2Y2
Find the maximum level of net benefits
A. 530.80
B. 500.40
C. 475.60
D. 520.20
question
A
answer
Bob spends $35,000 per year on painting supplies and storage space. He recently received two job offers from a famous marketing firm—one offer was for $100,000 per year, and the other was for $70,000. However, he turned both jobs down to continue a painting career. If Bob sells 91.0 paintings per year at a price of $10,000 each
What are his accounting profits?
A. 875,000
B. 910,000
C. 840,000
D. 775.000
What are his accounting profits?
A. 875,000
B. 910,000
C. 840,000
D. 775.000
question
B
answer
Bob spends $35,000 per year on painting supplies and storage space. He recently received two job offers from a famous marketing firm—one offer was for $100,000 per year, and the other was for $70,000. However, he turned both jobs down to continue a painting career. If Bob sells 86.0 paintings per year at a price of $10,000 each
What are his economic profits?
A. 860.000
B. 725,000
C. 825.000
D. 100,000
What are his economic profits?
A. 860.000
B. 725,000
C. 825.000
D. 100,000
question
C
answer
The Supply for product X is given by Qxs = -144.0 + 5Px
How much surplus do producers receive when Qx=229.0
A. 5423.20
B. 2290
C. 5244.10
D. none of the above
How much surplus do producers receive when Qx=229.0
A. 5423.20
B. 2290
C. 5244.10
D. none of the above
question
C
answer
The demand curve for product X is given by QXd = 297.0 - 1.0PX.
How much consumer surplus do consumer receive when Px=$ 38.0
A. 3241.30
B. 3641.20
C. 33540.5
D. none of the above
How much consumer surplus do consumer receive when Px=$ 38.0
A. 3241.30
B. 3641.20
C. 33540.5
D. none of the above
question
A
answer
The demand curve for a product is given by Qd=1321.0 - 1.0Px - 0.84Pz
Where Pz=288.0
What is the own price elasticity of demand when Px=152.0
If negative input the negative sign
A. -0.16
B. -.25
C. .16
D. none of the above
Where Pz=288.0
What is the own price elasticity of demand when Px=152.0
If negative input the negative sign
A. -0.16
B. -.25
C. .16
D. none of the above
question
B
answer
The South Beach Cafe recently reduced appetizer prices from $15.0 to $12.0 for afternoon "early bird" customers and enjoyed
a resulting increase in sales from 274.0 to 644.0 orders per day. Beverage sales also increased from 258.0 to 616.0 units per day.
Calculate the arc cross price elasticity of demand between beverage sales and appetizer prices.
A. 3.69
B. -3.69
C. 2.51
D. -2.51
a resulting increase in sales from 274.0 to 644.0 orders per day. Beverage sales also increased from 258.0 to 616.0 units per day.
Calculate the arc cross price elasticity of demand between beverage sales and appetizer prices.
A. 3.69
B. -3.69
C. 2.51
D. -2.51
question
C
answer
The daily demand for Invigorated PED shoes is estimated to be
Qx=1057.0-3.0PX+5.0PY-0.08M+2.0AX
Suppose good X sells at $22.0 a pair, good Y sells at $53.0, the company utilizes 58.0 units of advertising, and average consumer income is $14246.0. Calculate the own price elasticity of demand.
A. -0.32
B. -0.21
C. -0.28
D. -0.26
Qx=1057.0-3.0PX+5.0PY-0.08M+2.0AX
Suppose good X sells at $22.0 a pair, good Y sells at $53.0, the company utilizes 58.0 units of advertising, and average consumer income is $14246.0. Calculate the own price elasticity of demand.
A. -0.32
B. -0.21
C. -0.28
D. -0.26
question
B
answer
The daily demand for Invigorated PED shoes is estimated to be
Qx=913.0-2.0PX+3.0PY-0.02M+2.0AX
Suppose good X sells at $28.0 a pair, good Y sells at $29.0, the company utilizes 44.0 units of advertising, and average consumer income is $13663.0. Calculate the cross-price elasticity of demand .
A. 0.15
B. 0.11
C. 1.32
D. 1.11
Qx=913.0-2.0PX+3.0PY-0.02M+2.0AX
Suppose good X sells at $28.0 a pair, good Y sells at $29.0, the company utilizes 44.0 units of advertising, and average consumer income is $13663.0. Calculate the cross-price elasticity of demand .
A. 0.15
B. 0.11
C. 1.32
D. 1.11
question
C
answer
Suppose that at the equilibrium price and quantity, the marginal revenue is -$38.0 and the price elasticity of demand for a linear demand function is -0.65 Then we know that the equilibrium price is:
A. 57.20
B. 72.30
C. 70.57
D. 64.42
A. 57.20
B. 72.30
C. 70.57
D. 64.42
question
A
answer
The South Beach Cafe recently reduced appetizer prices from $15.0 to $9.0 for afternoon "early bird" customers and enjoyed
a resulting increase in sales from 104.0 to 171.0 orders per day. Beverage sales also increased from 407.0 to 884.0 units per day.
Calculate the arc price elasticity of demand for appetizers.
A. 1
B. 3
C. 1.67
D. 0
a resulting increase in sales from 104.0 to 171.0 orders per day. Beverage sales also increased from 407.0 to 884.0 units per day.
Calculate the arc price elasticity of demand for appetizers.
A. 1
B. 3
C. 1.67
D. 0
question
C
answer
Ironside Industries, Inc., is a leading manufacturer of tufted carpeting under the Ironside brand. Demand for Ironside's products is closely tied to the overall pace of building and remodeling activity and, therefore, is highly sensitive to changes in national income. The carpet manufacturing industry is highly competitive, so Ironside's demand is also very price-sensitive. During the past year, Ironside sold 21.0 million square yards (units) of carpeting at an average wholesale price of $15.50 per unit.
This year, household income is expected to surge from $54373.0 to $60042.0 per year in a booming economic recovery.
Without any price change, Ironside's marketing director expects current-year sales to soar to 49.0 million units because of rising income. Calculate the implied income arc elasticity of demand.
A. 7.52
B. 7.41
C. 8.07
D. 7.63
This year, household income is expected to surge from $54373.0 to $60042.0 per year in a booming economic recovery.
Without any price change, Ironside's marketing director expects current-year sales to soar to 49.0 million units because of rising income. Calculate the implied income arc elasticity of demand.
A. 7.52
B. 7.41
C. 8.07
D. 7.63
question
A
answer
Suppose the production function is given by Q = 5.0K + 7.0L. What is the average product of capital when 11.0 units of capital and 10.0 units of labor are employed?
D
A. 11.36
B. 12.41
C. 10.25
D. 11.87
D
A. 11.36
B. 12.41
C. 10.25
D. 11.87
question
C
answer
For the cost function C(Q) = 629.0 + 22.0Q + 10.0Q2, the marginal cost of producing 4.0 units of output is:
A. 22
B. 100
C. 102
D. 62
A. 22
B. 100
C. 102
D. 62
question
D
answer
Enchantment Cosmetics, Inc., offers a line of cosmetic and perfume products marketed through leading department stores. Product Manager Erica Kane recently raised the suggested retail price on a popular line of mascara products from $6.0 to $20.0 following increases in the costs of labor and materials. Unfortunately, sales dropped sharply from 24819.0 to 11924.0 units per month. Calculate the arc price elasticity implied by the initial response to the Enchantment price increase.
A. -0.55
B. 0.55
C. -0.24
D. -0.65
A. -0.55
B. 0.55
C. -0.24
D. -0.65
question
B
answer
You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w = $29.0, r = $133.0 and MPL = 8.0, What is the value of MPK that would minimize Cost?
A. 34.21
B. 36.69
C. 42.10
D. 29.50
A. 34.21
B. 36.69
C. 42.10
D. 29.50
question
B
answer
Suppose you are a manager of a factory. You purchase 7.0 new machines at 1094777.0 dollars each. If you can resell 3.0 of the machines for $486885.0 and 2.0 of the machines for $785368.0, what are the sunk costs of purchasing the machines?
A. 4,832,048
B. 4,632,048
C. 10,947,700
D. 4.868,885
A. 4,832,048
B. 4,632,048
C. 10,947,700
D. 4.868,885
question
B
answer
DynaLinear, Ltd., produces digital-to-analog converters for compact disk players used by radio stations and audio enthusiasts. It is contemplating an expansion into the moderately-priced home audio market by producing a CD player that would sell at a price of $386.0. The production of each CD player would require $93.0 in materials, and 4.0 hours of labor at the rate of $22.0 per hour for wages and fringe benefits plus variable overhead tied to labor. Energy, supervisory and other variable overhead costs would amount to $66.0 per unit. The accounting department has derived an allocated fixed overhead charge of $23.0 per CD player (at a projected volume of 16615.0 units) to account for the expected increase in fixed costs. Round all calculations to 2 decimals. Find the DOL
A. 2.1
B. 1.2
C. -1.2
D. 3.5
A. 2.1
B. 1.2
C. -1.2
D. 3.5
question
A
answer
6.0 students are considering operating a fruit smoothie stand during their summer break. This is an alternative to summer employment with a local firm, where they would each earn $8887.0 over the three-month summer period. A fully equipped facility can be leased at a cost of $9879.0 for the summer. Additional projected costs are $2043.0 for insurance and $2.0 per unit for materials and supplies. Their fruit smoothies would be priced at $5.0 per unit.
What is the economic cost if Q = 1693.0?
A. 68630
B. 72420
C. 65210
D. 47630
What is the economic cost if Q = 1693.0?
A. 68630
B. 72420
C. 65210
D. 47630
question
C
answer
3 students are considering operating a fruit smoothie stand during their summer break. This is an alternative to summer employment with a local firm, where they would each earn $7779.0 over the three-month summer period. A fully equipped facility can be leased at a cost of $9304.0 for the summer. Additional projected costs are $1074.0 for insurance and $2.2 per unit for materials and supplies. Their fruit smoothies would be priced at $6.2 per unit.
What is the accounting cost if Q = 1522.0?
A. 14235.4
B. 7779.3
C. 13726.4
D. none of the above
What is the accounting cost if Q = 1522.0?
A. 14235.4
B. 7779.3
C. 13726.4
D. none of the above
question
B
answer
You are the manager of a firm that sells its product in a competitive market at a price of $67.0. Your firm's cost function is C = 28.0 + 1.0Q2.
The profit-maximizing output for your firm is:
A. 31.4
B. 33.5
C. 24.10
D. 41.30
The profit-maximizing output for your firm is:
A. 31.4
B. 33.5
C. 24.10
D. 41.30
question
C
answer
The accountants hired by Davis Golf Course have determined total fixed cost to be $75,000, total variable cost to be $130,000, and total revenue to be $145,000. Because of this information, in the short run, Davis Golf Course should:
A. shut down operations in order to avoid future losses
B. hire more employees to increase production
C. stay open because shutting down would be more expensive.
D. remain calm and take no action
A. shut down operations in order to avoid future losses
B. hire more employees to increase production
C. stay open because shutting down would be more expensive.
D. remain calm and take no action
question
C
answer
If the interest rate is 0.1, what is the present value of $10 received one year from now?
A. 8.52
B. 9.10
C. 9.09
D. 10.25
A. 8.52
B. 9.10
C. 9.09
D. 10.25
question
A
answer
Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If aM is negative, then good x is
A. an inferior good
B. a normal good
C. a substitute good
D. a compliment good
A. an inferior good
B. a normal good
C. a substitute good
D. a compliment good
question
B
answer
You are the manager of a firm that receives revenues of $50677.0 per year from product X and $89265.0 per year from product Y. The own price elasticity of demand for product X is -2.5 , and the cross-price elasticity of demand between product Y and X is 2.1. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2.0 percent?
A. 2228
B. 2228.28
C. 4156
D. 2153
A. 2228
B. 2228.28
C. 4156
D. 2153
question
A
answer
6.0 students are considering operating a fruit smoothie stand during their summer break. This is an alternative to summer employment with a local firm, where they would each earn $7681.0 over the three-month summer period. A fully equipped facility can be leased at a cost of $9232.0 for the summer. Additional projected costs are $1258.0 for insurance and $2.9 per unit for materials and supplies. Their fruit smoothies would be priced at $6.8 per unit.
What is the economic breakeven number of units for this operation?
A. 14506.67
B. 21543.41
C. 32145.20
D. 15203.15
What is the economic breakeven number of units for this operation?
A. 14506.67
B. 21543.41
C. 32145.20
D. 15203.15
question
C
answer
You are the manager of a firm that sells its product in a competitive market at a price of $1894.0. Your firm's cost function is C = 198.0 + 4.0Q2.
Calculate your firm's maximizing profit
A. 245036.15
B. 204532.40
C. 224004.25
D. none of the above
Calculate your firm's maximizing profit
A. 245036.15
B. 204532.40
C. 224004.25
D. none of the above
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