Microeconomics exam 1 - Assignment Essays

question

a market

answer

is an institution that brings together buyers and sellers

question

The demand curve shows the relationship between:

answer

price and quantity demanded

question

When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the:

answer

income effect

question

if two goods are compliments

answer

a decrease in the price of one will increase the demand for the other.

question

an increase in the price of product a will

answer

increase the demand for substitute product B.

question

By an "increase in demand," economists mean that

answer

the quantity demanded at each price in a set of prices is greater.

question

the term quantity demanded

answer

refers to the amount of a product that will be purchased at some specific price.

question

the supply curve shows the relationship between

answer

price and quantity supplied

question

An improvement in production technology will:

answer

shift the supply curve to the right.

question

at the point where the demand and supply curves for a product intersect

answer

the quantity that consumers want to purchase and the amount producers choose to sell are the same

question

If price is above the equilibrium level, competition among sellers to reduce the resulting:

answer

surplus will increase quantity demanded and decrease quantity supplied

question

the price elasticity of demand measures

answer

buyers responsiveness to price changes

question

The basic formula for the price elasticity of demand coefficient is

answer

percentage change in quantity demanded/percentage change in price.

question

the demand for a product is inelastic with respect to price if

answer

consumers are largely unresponsive to a per unit price change

question

which of the following is not characteristic of the demand for a commodity that is elastic

answer

the elasticity coefficient is less than one.

question

a perfectly inelastic demand schedule

answer

can be represented by a line parallel to the vertical axis.

question

If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will:

answer

increase the amount demanded by more than 10 percent

question

in which of the following instances will total revenue decline

answer

price rises and demand is elastic

question

if the university of Chamber Music Society decides to raise ticket prices to provide more funds to finance concerts the society is assuming that the demand for the tickets is

answer

inelastic

question

the elasticity of demand for a product is likely to be greater

answer

the greater the amount of time over which buyers adjust to a price change

question

the main determinant of elasticity of supply is the

answer

amount of time the producers has to adjust inputs in response to a price change

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the utility of a good or service

answer

is the satisfaction or pleasure one gets from consuming it.

question

marginal unity can be

answer

positive, negative, or zero

question

refer to the table the value of y is

answer

question

refer to the table the value for x is

answer

question

refer to the table the value for w is

answer

question

the law of diminishing marginal utility states that

answer

beyond some point additional units of a product will yield less and less extra satisfaction to a consumer

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the first pepsi yields craig 18 units and the second yields him an additional 12 units of utility. His total utility from three pepsis is 38 units of utility the marginal utility of the third pepsi is

answer

8 units of utility

question

marginal utility is the

answer

change in total utility obtained by consuming one more unit of a good.

question

Where total utility is at a maximum, marginal utility is:

answer

zero

question

Refer to the data. If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing:

answer

4 units of j and 5 units of k

question

Refer to the data. What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $52 and the prices of J and K are $8 and $4 respectively?

answer

276 utils

question

refer to the data. if the consumers money income were cut from $52 to $28 and the price of j and k remain at $8 and $4 respectively she would maximize her satisfaction by purchasing

answer

2 units of j and 3 units of k

question

Economic cost can best be defined as

answer

the payment that must be made to obtain and retain the services of a resource

question

which of the following is most likely to be an implicit cost for company x

answer

forgone rent from the building owned and used by comapny x

question

an explicit cost is

answer

a money payment made for resources not owned by the firm itself.

question

to economists the man difference between the short run and long run is that

answer

in the long run all resources are variables, while in the short run at least one resource is fixed

question

average fixed cost

answer

declines continually as output increases

question

refer to the data the marginal product of the fourth worker

answer

is 5

question

refer to the data the average product when two units of labors are hired is

answer

question

refer to the data diminishing returns begin to occur when the hiring of the ________ unit of labor

answer

third

question

refer to the data marginal product becomes negative with the hiring of the __________ unit of labor

answer

seventh

question

Refer to the data. When two workers are employed:

answer

total product is 18.

question

marginal cost is the

answer

change in total cost that results from producing one more unit of output

question

total fixed cost

answer

does not change as total output increases or decreases.

question

economics and diseconomies of scale explain

answer

why the firms long run average total cost curve is u shaped

question

in the long run

answer

all costs are variable costs

question

which of the following is not a source of economies of scale

answer

inelastic resource supply curves

question

an increase in the price of Product a will

answer

increase the demand for substitute product B.

question

a leftward shift of a product supply curve might be caused by

answer

some firms leaving an industry

1 of 50

question

a market

answer

is an institution that brings together buyers and sellers

question

The demand curve shows the relationship between:

answer

price and quantity demanded

question

When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the:

answer

income effect

question

if two goods are compliments

answer

a decrease in the price of one will increase the demand for the other.

question

an increase in the price of product a will

answer

increase the demand for substitute product B.

question

By an "increase in demand," economists mean that

answer

the quantity demanded at each price in a set of prices is greater.

question

the term quantity demanded

answer

refers to the amount of a product that will be purchased at some specific price.

question

the supply curve shows the relationship between

answer

price and quantity supplied

question

An improvement in production technology will:

answer

shift the supply curve to the right.

question

at the point where the demand and supply curves for a product intersect

answer

the quantity that consumers want to purchase and the amount producers choose to sell are the same

question

If price is above the equilibrium level, competition among sellers to reduce the resulting:

answer

surplus will increase quantity demanded and decrease quantity supplied

question

the price elasticity of demand measures

answer

buyers responsiveness to price changes

question

The basic formula for the price elasticity of demand coefficient is

answer

percentage change in quantity demanded/percentage change in price.

question

the demand for a product is inelastic with respect to price if

answer

consumers are largely unresponsive to a per unit price change

question

which of the following is not characteristic of the demand for a commodity that is elastic

answer

the elasticity coefficient is less than one.

question

a perfectly inelastic demand schedule

answer

can be represented by a line parallel to the vertical axis.

question

If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will:

answer

increase the amount demanded by more than 10 percent

question

in which of the following instances will total revenue decline

answer

price rises and demand is elastic

question

if the university of Chamber Music Society decides to raise ticket prices to provide more funds to finance concerts the society is assuming that the demand for the tickets is

answer

inelastic

question

the elasticity of demand for a product is likely to be greater

answer

the greater the amount of time over which buyers adjust to a price change

question

the main determinant of elasticity of supply is the

answer

amount of time the producers has to adjust inputs in response to a price change

question

the utility of a good or service

answer

is the satisfaction or pleasure one gets from consuming it.

question

marginal unity can be

answer

positive, negative, or zero

question

refer to the table the value of y is

answer

question

refer to the table the value for x is

answer

question

refer to the table the value for w is

answer

question

the law of diminishing marginal utility states that

answer

beyond some point additional units of a product will yield less and less extra satisfaction to a consumer

question

answer

8 units of utility

question

marginal utility is the

answer

change in total utility obtained by consuming one more unit of a good.

question

Where total utility is at a maximum, marginal utility is:

answer

zero

question

Refer to the data. If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing:

answer

4 units of j and 5 units of k

question

Refer to the data. What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $52 and the prices of J and K are $8 and $4 respectively?

answer

276 utils

question

refer to the data. if the consumers money income were cut from $52 to $28 and the price of j and k remain at $8 and $4 respectively she would maximize her satisfaction by purchasing

answer

2 units of j and 3 units of k

question

Economic cost can best be defined as

answer

the payment that must be made to obtain and retain the services of a resource

question

which of the following is most likely to be an implicit cost for company x

answer

forgone rent from the building owned and used by comapny x

question

an explicit cost is

answer

a money payment made for resources not owned by the firm itself.

question

to economists the man difference between the short run and long run is that

answer

in the long run all resources are variables, while in the short run at least one resource is fixed

question

average fixed cost

answer

declines continually as output increases

question

refer to the data the marginal product of the fourth worker

answer

is 5

question

refer to the data the average product when two units of labors are hired is

answer

question

refer to the data diminishing returns begin to occur when the hiring of the ________ unit of labor

answer

third

question

refer to the data marginal product becomes negative with the hiring of the __________ unit of labor

answer

seventh

question

Refer to the data. When two workers are employed:

answer

total product is 18.

question

marginal cost is the

answer

change in total cost that results from producing one more unit of output

question

total fixed cost

answer

does not change as total output increases or decreases.

question

economics and diseconomies of scale explain

answer

why the firms long run average total cost curve is u shaped

question

in the long run

answer

all costs are variable costs

question

which of the following is not a source of economies of scale

answer

inelastic resource supply curves

question

an increase in the price of Product a will

answer

increase the demand for substitute product B.

question

a leftward shift of a product supply curve might be caused by

answer

some firms leaving an industry

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