question
Which statement is correct?
answer
dead weight loss is a measure of market inefficiency
question
If the quantity supplied exceeds the quantity demanded in a market, the the result is which of the following?
answer
each of these are true
question
if total utility is failing, marginal utility is
answer
negative
question
Suppose that Merve the marginal utility of 50$ per serving caviar is 100 and the marginal utility of 1$ per serving popcorn is 10. For his snack Merv should buy?
answer
the popcorn whether he has the 50$ or not.
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marginal utility is best computed as the ratio of
answer
the change in total utility to change in quantity consumed
question
If Mr. Smith thinks the last dollar spent on shirts yields less satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should
answer
increase his spending on cola and decrease his spending on shirts
question
If Janes marginal benefit as a consumer in the jeans market is larger than the price of a pair of jeans
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Jane can benefit by purchasing more jeans
question
If I buy 3 cups of coffee, paying 1$ for each cup, and I would have been willing to pay up to $3 for the first cup, up to $2 for the second cup, an up to $1 for the third cup, then my consumer surplus is
answer
$3
question
Suppose a consumer is spending all of his income on two goods, A and B, in a manner where MUa=15 and MUb=75, and the Pa=$3 and the Pb=15$, then the consumer:
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is maximizing their utility
question
According to the income effect, when the price of automobiles rises, people buy fewer automobiles because
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the purchasing power of their income is reduced
question
which of the following is not an explicit cost
answer
the firms owners time
question
when total revenue minus total cost is equal to zero, the firm is
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earning a normal profit
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normal profit is a term for
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the minimum profit to keep a firm in operation
question
which of the following is an example of a fixed input
answer
the acreage of a farmers land, machinery, the size of a firms plant
question
A farm is able to produce 5000 bushels of peaches per season on 100 acres. Assume it adds one more acre and is able to produce 6000 bushels per season. The marginal product of the additional acre of land for this farm is
answer
1000
question
a farm can produce 10,000 bushels of wheat per year with 5 workers and 13000 bushels with 6 workers. The marginal product of the sixth worker for this farm is
answer
3000
question
when a total output curve is falling, its corresponding marginal product curve is
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falling
question
Shows the change in the short run production of pizzas as more workers are hired. The table shows the marginal product of the labor input is decreasing with the hiring of the third worker. A possible reason for this diminishing marginal product is
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decreases in labor productivity
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Suppose a firm has an output of 10,000 cans and a toal fixed cost of 2000. At an output of 5000the difference between the total cost and the total variable cost is
answer
2000
question
Marginal cost is best defined as
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the amount added to total cost when one more unit of output is produced
question
If both the marginal cost and the average variable cost curves are U shaped. At the minimum point on the average variable cost curve, the marginal cost must be
answer
equal to the average variable cost
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