Life Econ Unit 2 Quizzes - Assignment Essays

question

In which of the following market structures is nonprice competition NOT important?

answer

pure competition

question

the price a purely competitive seller can get for its product is determined by

answer

the forces of supply and demand in the market

question

when economies of scale make it more efficient to have one seller, rather than several sellers; in a market

answer

a natural monopoly exists

question

which of the following is NOT a feature used to distinguish among the four market models

answer

whether the firms in the market are proprietorships, partnerships, or corporations

question

which of the following would be willing to operate at a loss over the long run

answer

none of the above

question

which of the following is NOT an example of nonprice competition

answer

buying ads that state the product is priced lower than rivals' products

question

which of the following is NOT a characteristic of a monopolistically competitive market

answer

entry into the market is difficult

question

which of the following statements is FALSE

answer

if firms are in the same industry, they must also be in the same market

question

the "shutdown loss" for a firm is

answer

equal to total fixed cost

question

which of the following statements about oligopoly markets is true

answer

all of the above

question

sellers incur losses over the long run in

answer

none of the market structures

question

if a purely competitive firm is earning an economic profit

answer

its price is greater than its average total cost

question

an individual purely competitive seller can sell

answer

as much or as little of its product as it wishes at the going market price

question

a firm has the greatest control over price in a

answer

monopolized market

question

in the kinked demand curve oligopoly model , a firm that raises its prices will experience

answer

a relatively large decrease in sales as its customers switch to other lower-priced competitor

question

individual sellers cannot earn excess profit over the long run in

answer

pure competition and monopolistic competition

question

market structures are

answer

models of market situations for grouping sellers according to the degree of competition among them

question

A firm has a fixed cost of $1,000, a total cost of $1,050 when one unit of output is produced, and a total variable cost of $80 when two units of output are produced. At one unit of output this firm has a total variable cost of

answer

$50

question

Given the following table, what is the average total cost of producing 30 units of output?

answer

$30.00

question

in the short run, total cost increases:

answer

slowly at first because a few variable factors can increase output significantly when they are combined with a given amount of fixed factors

question

Which of the following statements about technology is true?

answer

Technology is leading the way in advancements in the testing and treating of medical problems.

question

The efficient method of production

answer

is the least-cost method

question

Creative destruction benefits an economy because:

answer

replacing old technology with new technology increases efficiency.

question

When a firm is experiencing constant returns to scale its long-run:

answer

average total cost remains unchanged as the level of output increases.

question

A business could experience diseconomies of scale because of:

answer

all of the above

question

A business incurs:

answer

fixed costs in the short run but not the long run

question

A firm can vary the amounts of all of its factors of production in:

answer

the long run but not the short run

question

The monthly payment that a business makes on a building it has leased for the next five years:

answer

is a fixed cost

question

To an economist, the long run refers to a time period

answer

during which all factors of production are variable in amount

question

Which of the following causes economies of scale?

answer

all of the above

question

When a firm's long-run average total cost does not change as output increases, it is experiencing:

answer

constant returns to scale

question

As output increases over the short run, you would expect total cost to:

answer

increase slowly at first, and then more rapidly as greater levels of output are reached.

question

Given the following table, what is the marginal cost of the third unit of output?

answer

$80.00

question

Total variable costs

answer

increase as output increases, and are zero when no output is produced.

question

A decrease in the demand for cameras using conventional film caused by the development of digital cameras is an example of:

answer

creative destruction

question

Industries are groups of firms that:

answer

produce similar products or use similar processes

question

Producing sectors are:

answer

a broad classification system for grouping goods and services and the firms that produce them.

question

implicit costs are

answer

opportunity costs

question

Given the table below, what is total revenue when three units are sold?

answer

$204

question

Which of the following is an example of an implicit cost?

answer

all of the above are implicit cost

question

total utility is the

answer

satisfaction from the total amount of a good or service consumed.

question

Given the table below, diminishing marginal utility sets in with the:

answer

4th unit consumed

question

The table below shows the marginal utilities from consuming one through four hamburgers. What is the total utility from consuming three hamburgers?

answer

42 points

question

To maximize net benefit to society from an activity, its:

answer

social marginal benefits must equal its social marginal costs.

question

An externality is the

answer

effect of an action on people or things that were not involved in the action.

question

The primary opportunity cost of voting is:

answer

time

question

In the United States, the mechanism for making collective choices is:

answer

voting

question

The largest source of personal income in the U.S. is:

answer

wages, salaries, and other labor income.

question

The largest transfer program in the U.S. is:

answer

Social Security.

question

The majority of household income is used for

answer

spending

question

In economics, it is usually assumed that the fundamental objective of a business firm is to maximize:

answer

profit or minimize loss.

question

A problem in evaluating profit-maximizing efforts by a firm is that

answer

the firm may be following strategies that do not appear to be aimed at maximizing profit now, but that lead to higher profit in the future.

question

Maximizing economic well-being requires that:

answer

the benefits and costs of different courses of action be weighed.

question

To maximize satisfaction from earning income or from consuming goods and services, you must:

answer

balance the advantages and disadvantages of alternative earning or spending strategies and choose the one that appears to be the best.

question

In any given year, the largest share of business receipts typically goes to:

answer

corporations

question

A sole proprietorship can raise money for business expansion by

answer

borrowing from private sources, such as banks.

question

A machine tool company that owns a supermarket chain, and a petroleum refining company that owns an oil exploration company are examples of, respectively, a:

answer

conglomerate and vertical merger.

question

If a concert ticket costs ten times as much as a movie ticket, maximizing satisfaction from attending the concert requires that the additional utility from the concert be:

answer

at least ten times as great as the additional utility from attending the movie.

question

To maximize utility from the purchase of expensive candy that costs twice as much as cheap candy, the added satisfaction from the expensive candy should be:

answer

at least twice as great as the added satisfaction from the cheap candy.

question

When a partnership goes into default:

answer

each of the general partners is responsible for payment of the entire debt.

question

Which of the following statements about a sole proprietorship is FALSE?

answer

A sole proprietor can raise money by borrowing from financial institutions, issuing stocks, and issuing bonds.

question

Last year Mr. Mooka spent $5,000 to acquire 100 shares of stock in a dairy business that later declared bankruptcy. The dairy business' creditors can sue Mr. Mooka for

answer

$0.

question

Of the following groups, the highest average household income occurs in households headed by a:

answer

person with a college degree.

question

Of the following, the lowest average household income would likely be found in households headed by a:

answer

person 65 years of age or older.

question

If a firm sells 10,000 units of output at a price of $100 each, and has costs of $1,200,000, then its

answer

loss equals $200,000.

question

Which of the following statements is true?

answer

It is generally assumed that profit maximization is the basic goal of a firm, but other short-term objectives may exist as well.

question

According to public choice theory

answer

individuals try to maximize their own well-being when making collective choices.

question

In the United States, the mechanism for making collective choices is

answer

voting

question

Marginal cost for a person consuming a good or service is the

answer

change in total cost from consuming an additional unit of the good or service.

question

Given the table below, diminishing marginal utility sets in with the:

answer

4th unit consumed

question

Marginal utility diminishes after a certain point due to

answer

the fulfilling of the need or desire for the good or service as additional units are consumed.

question

To maximize net benefit to society from an activity, its

answer

social marginal benefits must equal its social marginal costs.

question

The net benefit to society from an action is maximized where the action's

answer

total social benefit exceeds total social cost by the greatest amount.

question

John passes up an offer for a job paying $50,000 a year and, instead, starts his own business. His new business brings in $160,000 in sales during the first year, and his total costs for items such as materials, labor, equipment, shipping, and insurance come to $65,000. John's normal profit during the first year is

answer

$50,000.

question

The economic cost of production is equal to

answer

explicit costs plus normal profit.

question

At a price of $25.00, 8 units of a good are sold, and at a price of $24.00, 9 units are sold. The marginal revenue from the ninth unit is

answer

$16.00.

1 of 76

question

In which of the following market structures is nonprice competition NOT important?

answer

pure competition

question

the price a purely competitive seller can get for its product is determined by

answer

the forces of supply and demand in the market

question

when economies of scale make it more efficient to have one seller, rather than several sellers; in a market

answer

a natural monopoly exists

question

which of the following is NOT a feature used to distinguish among the four market models

answer

whether the firms in the market are proprietorships, partnerships, or corporations

question

which of the following would be willing to operate at a loss over the long run

answer

none of the above

question

which of the following is NOT an example of nonprice competition

answer

buying ads that state the product is priced lower than rivals' products

question

which of the following is NOT a characteristic of a monopolistically competitive market

answer

entry into the market is difficult

question

which of the following statements is FALSE

answer

if firms are in the same industry, they must also be in the same market

question

the "shutdown loss" for a firm is

answer

equal to total fixed cost

question

which of the following statements about oligopoly markets is true

answer

all of the above

question

sellers incur losses over the long run in

answer

none of the market structures

question

if a purely competitive firm is earning an economic profit

answer

its price is greater than its average total cost

question

an individual purely competitive seller can sell

answer

as much or as little of its product as it wishes at the going market price

question

a firm has the greatest control over price in a

answer

monopolized market

question

in the kinked demand curve oligopoly model , a firm that raises its prices will experience

answer

a relatively large decrease in sales as its customers switch to other lower-priced competitor

question

individual sellers cannot earn excess profit over the long run in

answer

pure competition and monopolistic competition

question

market structures are

answer

models of market situations for grouping sellers according to the degree of competition among them

question

answer

$50

question

Given the following table, what is the average total cost of producing 30 units of output?

answer

$30.00

question

in the short run, total cost increases:

answer

slowly at first because a few variable factors can increase output significantly when they are combined with a given amount of fixed factors

question

Which of the following statements about technology is true?

answer

Technology is leading the way in advancements in the testing and treating of medical problems.

question

The efficient method of production

answer

is the least-cost method

question

Creative destruction benefits an economy because:

answer

replacing old technology with new technology increases efficiency.

question

When a firm is experiencing constant returns to scale its long-run:

answer

average total cost remains unchanged as the level of output increases.

question

A business could experience diseconomies of scale because of:

answer

all of the above

question

A business incurs:

answer

fixed costs in the short run but not the long run

question

A firm can vary the amounts of all of its factors of production in:

answer

the long run but not the short run

question

The monthly payment that a business makes on a building it has leased for the next five years:

answer

is a fixed cost

question

To an economist, the long run refers to a time period

answer

during which all factors of production are variable in amount

question

Which of the following causes economies of scale?

answer

all of the above

question

When a firm's long-run average total cost does not change as output increases, it is experiencing:

answer

constant returns to scale

question

As output increases over the short run, you would expect total cost to:

answer

increase slowly at first, and then more rapidly as greater levels of output are reached.

question

Given the following table, what is the marginal cost of the third unit of output?

answer

$80.00

question

Total variable costs

answer

increase as output increases, and are zero when no output is produced.

question

A decrease in the demand for cameras using conventional film caused by the development of digital cameras is an example of:

answer

creative destruction

question

Industries are groups of firms that:

answer

produce similar products or use similar processes

question

Producing sectors are:

answer

a broad classification system for grouping goods and services and the firms that produce them.

question

implicit costs are

answer

opportunity costs

question

Given the table below, what is total revenue when three units are sold?

answer

$204

question

Which of the following is an example of an implicit cost?

answer

all of the above are implicit cost

question

total utility is the

answer

satisfaction from the total amount of a good or service consumed.

question

Given the table below, diminishing marginal utility sets in with the:

answer

4th unit consumed

question

The table below shows the marginal utilities from consuming one through four hamburgers. What is the total utility from consuming three hamburgers?

answer

42 points

question

To maximize net benefit to society from an activity, its:

answer

social marginal benefits must equal its social marginal costs.

question

An externality is the

answer

effect of an action on people or things that were not involved in the action.

question

The primary opportunity cost of voting is:

answer

time

question

In the United States, the mechanism for making collective choices is:

answer

voting

question

The largest source of personal income in the U.S. is:

answer

wages, salaries, and other labor income.

question

The largest transfer program in the U.S. is:

answer

Social Security.

question

The majority of household income is used for

answer

spending

question

In economics, it is usually assumed that the fundamental objective of a business firm is to maximize:

answer

profit or minimize loss.

question

A problem in evaluating profit-maximizing efforts by a firm is that

answer

the firm may be following strategies that do not appear to be aimed at maximizing profit now, but that lead to higher profit in the future.

question

Maximizing economic well-being requires that:

answer

the benefits and costs of different courses of action be weighed.

question

To maximize satisfaction from earning income or from consuming goods and services, you must:

answer

balance the advantages and disadvantages of alternative earning or spending strategies and choose the one that appears to be the best.

question

In any given year, the largest share of business receipts typically goes to:

answer

corporations

question

A sole proprietorship can raise money for business expansion by

answer

borrowing from private sources, such as banks.

question

A machine tool company that owns a supermarket chain, and a petroleum refining company that owns an oil exploration company are examples of, respectively, a:

answer

conglomerate and vertical merger.

question

If a concert ticket costs ten times as much as a movie ticket, maximizing satisfaction from attending the concert requires that the additional utility from the concert be:

answer

at least ten times as great as the additional utility from attending the movie.

question

To maximize utility from the purchase of expensive candy that costs twice as much as cheap candy, the added satisfaction from the expensive candy should be:

answer

at least twice as great as the added satisfaction from the cheap candy.

question

When a partnership goes into default:

answer

each of the general partners is responsible for payment of the entire debt.

question

Which of the following statements about a sole proprietorship is FALSE?

answer

A sole proprietor can raise money by borrowing from financial institutions, issuing stocks, and issuing bonds.

question

Last year Mr. Mooka spent $5,000 to acquire 100 shares of stock in a dairy business that later declared bankruptcy. The dairy business' creditors can sue Mr. Mooka for

answer

$0.

question

Of the following groups, the highest average household income occurs in households headed by a:

answer

person with a college degree.

question

Of the following, the lowest average household income would likely be found in households headed by a:

answer

person 65 years of age or older.

question

If a firm sells 10,000 units of output at a price of $100 each, and has costs of $1,200,000, then its

answer

loss equals $200,000.

question

Which of the following statements is true?

answer

It is generally assumed that profit maximization is the basic goal of a firm, but other short-term objectives may exist as well.

question

According to public choice theory

answer

individuals try to maximize their own well-being when making collective choices.

question

In the United States, the mechanism for making collective choices is

answer

voting

question

Marginal cost for a person consuming a good or service is the

answer

change in total cost from consuming an additional unit of the good or service.

question

Given the table below, diminishing marginal utility sets in with the:

answer

4th unit consumed

question

Marginal utility diminishes after a certain point due to

answer

the fulfilling of the need or desire for the good or service as additional units are consumed.

question

To maximize net benefit to society from an activity, its

answer

social marginal benefits must equal its social marginal costs.

question

The net benefit to society from an action is maximized where the action's

answer

total social benefit exceeds total social cost by the greatest amount.

question

answer

$50,000.

question

The economic cost of production is equal to

answer

explicit costs plus normal profit.

question

At a price of $25.00, 8 units of a good are sold, and at a price of $24.00, 9 units are sold. The marginal revenue from the ninth unit is

answer

$16.00.

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