question
a. the enjoyment and exercise he would have received from bike riding
answer
Ryan spends an hour studying instead of going for a bike ride. Assume studying and bike riding were Ryan's only options for that hour. The opportunity cost to him of studying is
a. the enjoyment and excercise he would have received from bike riding
b. the improvement in his grades from studying for the hour
c. the difference between the improvement in his grades and the enjoyment from bike riding
d. zero since neither activity required Ryan to spend any money
e. the value of the knowledge he gained by studying
a. the enjoyment and excercise he would have received from bike riding
b. the improvement in his grades from studying for the hour
c. the difference between the improvement in his grades and the enjoyment from bike riding
d. zero since neither activity required Ryan to spend any money
e. the value of the knowledge he gained by studying
question
a. a trade-off. Trade
answer
Because of scarcity, every economic decision involves
a. a trade-off. Trade
b. a trade-in
c. an increasing cost
d. a money payment
e. a tax or tariff
a. a trade-off. Trade
b. a trade-in
c. an increasing cost
d. a money payment
e. a tax or tariff
question
c. a result of more efficient resource allocation
answer
The gains from trade are
a. limited to trade between nations with similar levels of wealth
b. always based on different wage rates between nations
c. a result of more efficient resource allocation
d. based on the principle of absolute advantage
e. none of the above
a. limited to trade between nations with similar levels of wealth
b. always based on different wage rates between nations
c. a result of more efficient resource allocation
d. based on the principle of absolute advantage
e. none of the above
question
c. It is possible for one country to have the comparative advantage in all goods
answer
Which of the following is a false statement about absolute and comparative advantage?
a. Comparative advantage is the basis for gains from trade
b. It is possible for one country to have the absolute advantage in all goods
c. It is possible for one country to have the comparative advantage in all goods
d. To find comparative advantage, you need to consider opportunity cost
e. All of these statements are true
a. Comparative advantage is the basis for gains from trade
b. It is possible for one country to have the absolute advantage in all goods
c. It is possible for one country to have the comparative advantage in all goods
d. To find comparative advantage, you need to consider opportunity cost
e. All of these statements are true
question
e. Increasing price of pay-per-view movies on cable TV
answer
Which of the following would not tend to lower the price of VCRs?
a. Decreasing price of DVD players
b. Increasing price of video cassettes
c. Improvement in VCR production technology
d. Reduced price of raw materials used in making VCRs
e. Increasing price of pay-per-view movies on cable TV
a. Decreasing price of DVD players
b. Increasing price of video cassettes
c. Improvement in VCR production technology
d. Reduced price of raw materials used in making VCRs
e. Increasing price of pay-per-view movies on cable TV
question
c. The market price
answer
In a market economy, the allocation of the quantity supplied of any good amount demanders is determined by
a. The needs of the individual
b. The sellers
c. The market price
d. Government regulations
e. A random process
a. The needs of the individual
b. The sellers
c. The market price
d. Government regulations
e. A random process
question
b. Less milk will be used in cheese and more will be used in yogurt
answer
Milk can be used to make yogurt or cheese. Other things equal, if consumers start demanding more yogurt,
a. The price of milk will fall
b. Less milks will be used in cheese and more will be used in yogurt
c. The supply of milk will decrease
d. The price of cheese will fall
e. All of the above
a. The price of milk will fall
b. Less milks will be used in cheese and more will be used in yogurt
c. The supply of milk will decrease
d. The price of cheese will fall
e. All of the above
question
e. Varies from one point to another on a typical demand curve
answer
The price elasticity of demand
a. Is determined by the federal reserve bank at a monthly meeting
b. Only works well in comparative markets
c. Intersects with the price elasticity of supply to determine the market equilibrium
d. Is equal to the slope of the demand curve
e. Varies from one point to another on a typical demand curve
a. Is determined by the federal reserve bank at a monthly meeting
b. Only works well in comparative markets
c. Intersects with the price elasticity of supply to determine the market equilibrium
d. Is equal to the slope of the demand curve
e. Varies from one point to another on a typical demand curve
question
c. The elasticity of demand will be larger if there are good substitutes available
answer
Which of the following statements is true?
a. The elasticity of demand for a product cannot change over time
b. Elasticity is useful in theory but cannot be measured in real life
c. The elasticity of demand will be larger if there are good substitutes available
d. If I can't live without the product, my demand will be elastic
e. None of these are true
a. The elasticity of demand for a product cannot change over time
b. Elasticity is useful in theory but cannot be measured in real life
c. The elasticity of demand will be larger if there are good substitutes available
d. If I can't live without the product, my demand will be elastic
e. None of these are true
question
c. $4,500
answer
A firm's total cost is $10,000. It's variable cost is $5,500. What is the firm's fixed cost?
a. $2.22
b. $3,500
c. $4,500
d. $5,500
e. None of the above
a. $2.22
b. $3,500
c. $4,500
d. $5,500
e. None of the above
question
e. It is the added cost that results from producing one more unit of a good
answer
Which of the following is a correct definition of marginal cost (MC)?
a. It is the added cost that results from hiring one more employee
b. It is the increase in the average cost that results from producing one more unit of a good
c. It is the decrease in profits that results from selling another unit of good
d. It is the cost per unit of a good produced (total cost dividend by quantity)
e. It is added cost that results from producing one more unit of good
a. It is the added cost that results from hiring one more employee
b. It is the increase in the average cost that results from producing one more unit of a good
c. It is the decrease in profits that results from selling another unit of good
d. It is the cost per unit of a good produced (total cost dividend by quantity)
e. It is added cost that results from producing one more unit of good
question
b. P<AVC at all levels of output
answer
A firm will shut down if
a. P>AVC at all levels of output
b. P<AVC at all levels of output
c. AVC>AFC at all levels of output
d. TR>TC at all levels of output
e. P<TVC at all levels of output
a. P>AVC at all levels of output
b. P<AVC at all levels of output
c. AVC>AFC at all levels of output
d. TR>TC at all levels of output
e. P<TVC at all levels of output
question
e. Jack buys a good from bill, and this makes Todd worse off. (Todd, because he has nothing to do with jack & bill)
answer
A negative externality exists when
a. Jack buys a good from bill, and this makes bill worse off
b. Jack buys a good from bill, and this makes jack worse off
c. Jack buys a good from bill, and this makes Todd better off
d. Jack buys a good from bill, and this makes both of them worse off
e. Jack buys a good from bill, and this makes Todd worse off (Todd, because he has nothing to do with jack & bill)
a. Jack buys a good from bill, and this makes bill worse off
b. Jack buys a good from bill, and this makes jack worse off
c. Jack buys a good from bill, and this makes Todd better off
d. Jack buys a good from bill, and this makes both of them worse off
e. Jack buys a good from bill, and this makes Todd worse off (Todd, because he has nothing to do with jack & bill)
question
e. The dollar will depreciate
answer
Everything else the same, if the price level in Japan rises relative to the price level in the U.S.,
a. The supply of dollars and the demand for yen in the foreign exchange market will decrease
b. The supply of dollars and the demand for yen in the foreign exchange market will increase
c. The demand for dollars and the supply of yen in the foreign exchange market will decrease
d. The yen will appreciate
e. The dollar will depreciate
a. The supply of dollars and the demand for yen in the foreign exchange market will decrease
b. The supply of dollars and the demand for yen in the foreign exchange market will increase
c. The demand for dollars and the supply of yen in the foreign exchange market will decrease
d. The yen will appreciate
e. The dollar will depreciate
question
d. $9.00 (ATC:TC/doesn't equal unit(TC:600+75=675 doesn't equal unit: 50+25=75) 675/75=9
answer
Hannah runs a manicuring shop. Currently, her shop provides 50 manicures per day, and the shop's daily total cost (TC) is $600. If Hannah decided to provide 25 more manicures per day, the total cost will rise by $75 per day. If Hannah does decide to increase production by this much, what will the shop's daily average total cost (ATC) be?
a. $12.00
b. $3.00
c. $8.00
d. $9.00 ATC:TC/doesn't equal unit(TC:600+75=675 doesn't equal unit:50+25=75)675/75=9
e. $13.50
a. $12.00
b. $3.00
c. $8.00
d. $9.00 ATC:TC/doesn't equal unit(TC:600+75=675 doesn't equal unit:50+25=75)675/75=9
e. $13.50
question
c. The value of watching the television show plus the value of studying for the test
answer
If Ross decides to ride his bike this afternoon, he will miss his favorite television show, and he won't have time to study for his economic test. If Ross doesn't ride his bike, he'll choose to watch the television show instead. (He cannot both watch television and study for the test.) Ross's opportunity cost of riding the bike is
a. The value to Ross of watching the television show
b. The value to Ross of studying for the test
c. The value of watching the television show plus the value of studying for the test
d. The value of watching the television show minus the value of studying for the test
e. The value to Ross of riding his bike minus the value of watching the television show
a. The value to Ross of watching the television show
b. The value to Ross of studying for the test
c. The value of watching the television show plus the value of studying for the test
d. The value of watching the television show minus the value of studying for the test
e. The value to Ross of riding his bike minus the value of watching the television show
question
b. The next best thing you could have done with the time and money spent
answer
The opportunity cost of purchasing an item is
a. The number of hours needed to earn money to buy it
b. The next best thing you could have done with the time and money spent
c. Always less than the dollar value of the item
d. Always equal to the dollar value of the item
e. Just the time required to buy it
a. The number of hours needed to earn money to buy it
b. The next best thing you could have done with the time and money spent
c. Always less than the dollar value of the item
d. Always equal to the dollar value of the item
e. Just the time required to buy it
question
b. Has an absolute advantage over Great Britain in the production of wheat
answer
Alternative outputs from one day of labor
Wheat (in bushels). Textiles (in yards)
United States 12. 3
Great Britain. 3. 12
According to the table above, the United States
a. Has an absolute advantage over Great Britain in the production of textiles
b. Has an absolute advantage over Great Britain in the production of wheat
c. Has a comparative advantage in the production of textiles
d. Should export textiles to Great Britain
e. None of the above
Wheat (in bushels). Textiles (in yards)
United States 12. 3
Great Britain. 3. 12
According to the table above, the United States
a. Has an absolute advantage over Great Britain in the production of textiles
b. Has an absolute advantage over Great Britain in the production of wheat
c. Has a comparative advantage in the production of textiles
d. Should export textiles to Great Britain
e. None of the above
question
e. 1/2 yards of cloth (OC=give up/produce 12/24=1/2)
answer
Perfume (bottles). Cloth (yards)
Nancy 20. 15
Roger. 24. 12
The table above shows how much each of two people can produce in 40 hours. (For example Nancy can produce 20 bottles of perfume in 40 hours.) for Rodger what is the opportunity cost of producing 1 bottle of perfume
a. 3 yards of cloth
b. 2 yards of cloth
c. 1 yard of cloth
d. 1/3 yards of cloth
e. 1/2 yards of cloth (OC=give up/produce 12/24=1/2)
Nancy 20. 15
Roger. 24. 12
The table above shows how much each of two people can produce in 40 hours. (For example Nancy can produce 20 bottles of perfume in 40 hours.) for Rodger what is the opportunity cost of producing 1 bottle of perfume
a. 3 yards of cloth
b. 2 yards of cloth
c. 1 yard of cloth
d. 1/3 yards of cloth
e. 1/2 yards of cloth (OC=give up/produce 12/24=1/2)
question
d. The sashimi demand curved will shift to the right
answer
Most residents of Los Angeles think sushi and sashimi are very similar foods. What effect will an increase in the price of sushi have on the demand curve for sashimi in Los Angeles?
a. There will be a movement down the sashimi demand curve
b. The sashimi demand curve will not be affected
c. There will be a movement up the sashimi demand curve
d. The sashimi demand curve will shift to the right
e. The sashimi demand curve will shift to the left
a. There will be a movement down the sashimi demand curve
b. The sashimi demand curve will not be affected
c. There will be a movement up the sashimi demand curve
d. The sashimi demand curve will shift to the right
e. The sashimi demand curve will shift to the left
question
e. All of the above
answer
Economists can be college professors or business analysts. If there is an increase in businesses' needed for economic analysis,
a. The wage of economists will tend to decrease
b. Colleges will have to pay less money to hire economists as professors
c. More economists will decide to become professors
d. Fewer economists will decide to become business analysts
e. All of the above
a. The wage of economists will tend to decrease
b. Colleges will have to pay less money to hire economists as professors
c. More economists will decide to become professors
d. Fewer economists will decide to become business analysts
e. All of the above
question
b. Resources move higher valued uses in response to changes in price
answer
In a market economy,
a. Resources are distributed equally across the all possible uses
b. Resources move higher valued uses in response to change in price
c. Resource usage is independent of the price
d. Most resources are distributed by the government
e. All of the above
a. Resources are distributed equally across the all possible uses
b. Resources move higher valued uses in response to change in price
c. Resource usage is independent of the price
d. Most resources are distributed by the government
e. All of the above
question
a. 1.0
answer
At a price of $4.50/pound, people buy 55 pounds of chocolate cream candy. At a price of $5.50/pound, people buy 45 pounds of chocolate cream candy. What is the arc elasticity of demand for chocolate cream candy in this price range?
a. 1.0
b. 10.0
c. 0.1
d. 0.67
e. None of the above
a. 1.0
b. 10.0
c. 0.1
d. 0.67
e. None of the above
question
b. 2.5
answer
At a price of $9.50/pound, people buy 45 pounds of lamb. At a price of $10.50/pound, people buy 25 pounds of lamb. What is the arc elasticity of demand for lamb in this price range?
a. 1.0
b. 2.5
c. 0.4
d. 3.0
e. None of the above
a. 1.0
b. 2.5
c. 0.4
d. 3.0
e. None of the above
question
b. declines as output increases.
answer
Average fixed cost
a. Increases as output increases
b. declines as output increases
c. Is always zero
d. Remains constant even if output increases
e. Decreases and then increases as output increases
a. Increases as output increases
b. declines as output increases
c. Is always zero
d. Remains constant even if output increases
e. Decreases and then increases as output increases
question
a. MC = 🔺TC/🔺Q
answer
Which of the following statements is true?
a. MC=🔺TC/🔺Q
b. MC=TFC/Q
c. MC=ATC/Q
d. MC= A/L
e. None of the above
a. MC=🔺TC/🔺Q
b. MC=TFC/Q
c. MC=ATC/Q
d. MC= A/L
e. None of the above
question
d. P=MC
answer
A perfectly competitive firm maximizes it's profits using what rule?
a. P=ATC
b. MR=ATC
c. Q=MC
d. P=MC
e. MR=AVC
a. P=ATC
b. MR=ATC
c. Q=MC
d. P=MC
e. MR=AVC
question
a. Increase entrance fees
answer
It is common knowledge that many U.S. national parks have become overused. One possible solution to this problem is to
a. Increase entrance fees
b. Increase advertising for national parks
c. Reduce the national park service budget
d. Subsidize park admissions
e. All of these are possible solutions
a. Increase entrance fees
b. Increase advertising for national parks
c. Reduce the national park service budget
d. Subsidize park admissions
e. All of these are possible solutions
question
c. An American professor on a tour of Italian museums
answer
Who among the following is most likely to favor an appreciation of the U.S. dollar?
a. A British professor visiting New York
b. An American farmer whose business depends on exports
c. An American professor on a tour of Italian museums
d. Disneyland in Los Angeles, California, a popular destination for foreign tourists
e. A Japanese retailer whose business depends on imports from the U.S.
a. A British professor visiting New York
b. An American farmer whose business depends on exports
c. An American professor on a tour of Italian museums
d. Disneyland in Los Angeles, California, a popular destination for foreign tourists
e. A Japanese retailer whose business depends on imports from the U.S.
question
a. An increase in price will cause total consumer expenditures on CSUN sweatshirts to fall
answer
If the price elasticity of demand for CSUN sweatshirts is 1.5, then
a. An increase in price will cause total consumer expenditures on CSUN sweatshirts to fall
b. An increase in price will cause total consumer expenditures on CSUN sweatshirts to increase
c. An increase in price will cause total consumer expenditures on CSUN sweatshirts to stay the same
d. A decrease in price will cause total consumer expenditures on CSUN sweatshirts to fall
e. None of the above
a. An increase in price will cause total consumer expenditures on CSUN sweatshirts to fall
b. An increase in price will cause total consumer expenditures on CSUN sweatshirts to increase
c. An increase in price will cause total consumer expenditures on CSUN sweatshirts to stay the same
d. A decrease in price will cause total consumer expenditures on CSUN sweatshirts to fall
e. None of the above
question
c. Total revenue minus the opportunity cost of producing goods and services
answer
Economic profit is equal to
a. Total revenue minus the explicit cost of producing goods and services
b. Total revenue minus the implicit cost of producing goods and services
c. Total revenue minus the opportunity cost of producing goods and services
d. Average revenue minus the average cost of producing the last unit of a good or service
e. Total revenue minus depreciation
a. Total revenue minus the explicit cost of producing goods and services
b. Total revenue minus the implicit cost of producing goods and services
c. Total revenue minus the opportunity cost of producing goods and services
d. Average revenue minus the average cost of producing the last unit of a good or service
e. Total revenue minus depreciation
question
b. $550,000 OC=both explicit and implicit costs OC=500,000+50,000=550,000
answer
Your friend is thinking of opening a video store. She estimates it would cost $500,000 a year to rent the store and buy video stock. She is planning to quit her $50,000 a year job as an accountant to run the store. Her opportunity cost of opening the store is
a. $500,000
b. $550,000 OC=both explicit and implicit costs OC=500,000+50,000=550,000
c. $50,000
d. $450,000
e. $60,000
a. $500,000
b. $550,000 OC=both explicit and implicit costs OC=500,000+50,000=550,000
c. $50,000
d. $450,000
e. $60,000
question
c. Opportunity costs
answer
Comparative advantage is based on
a. Capital costs
b. Labor costs
c. Opportunity costs
d. Dollar price
e. Both labor and capital costs
a. Capital costs
b. Labor costs
c. Opportunity costs
d. Dollar price
e. Both labor and capital costs
question
a. 4 cheese OC:give up/produce OC: 20
answer
Cheese. Bread
England. 40. 20
Spain. 20. 5
The table above shows how much each of two countries can produce in 40 hours. (For example, England can produce 40 units of cheese in 40 hours.) For Spain, what is the opportunity cost of producing 1 unit of bread?
a. 4 cheese OC:give up/produce OC:20 cheeses/5 breads=4 cheeses
b. 2 cheese
c. 1/2 cheese
d. 1 cheese
e. 1/4 cheese
England. 40. 20
Spain. 20. 5
The table above shows how much each of two countries can produce in 40 hours. (For example, England can produce 40 units of cheese in 40 hours.) For Spain, what is the opportunity cost of producing 1 unit of bread?
a. 4 cheese OC:give up/produce OC:20 cheeses/5 breads=4 cheeses
b. 2 cheese
c. 1/2 cheese
d. 1 cheese
e. 1/4 cheese
question
a. Price rises, quantity falls
answer
Americans love to eat peanut butter & jelly sandwiches. If the price of jelly increases (while other things remain constant), what effect will this have on the market for peanut butter?
a. Price rises, quantity falls
b. Price falls, quantity rises
c. Both price and quantity fall
d. Both price and quantity rise
e. Price rises and quantity remains the same
a. Price rises, quantity falls
b. Price falls, quantity rises
c. Both price and quantity fall
d. Both price and quantity rise
e. Price rises and quantity remains the same
question
c. Resource use will be guided by changing relative prices as owners attempt to maximize self-interest
answer
If resources are owned by individuals instead of government,
a. Resources will be used less efficiently
b. Resource use will tend to be unchanging and determined by historical usage patterns
c. Resources use will be guided by changing relative prices as owners attempt to maximize self-interest
d. Market prices will not reflect changing values of different uses of the resources
e. None of the above answers are correct
a. Resources will be used less efficiently
b. Resource use will tend to be unchanging and determined by historical usage patterns
c. Resources use will be guided by changing relative prices as owners attempt to maximize self-interest
d. Market prices will not reflect changing values of different uses of the resources
e. None of the above answers are correct
question
b. 0.5
answer
At a price of $50 for a CD player, firms are willing to produce and sell 2200 CD players. At a price of $70 for a CD player, firms are willing to produce and sell 2600 CD players. What is the price elasticity of supply in this range? (Use arc elasticity)
a. 2
b. 0.5
c. 0.05
d. 20
e. None of the above
a. 2
b. 0.5
c. 0.05
d. 20
e. None of the above
question
a. 1500 (MC:🔺TC/🔺Q MC:(25,000-10,000)/(20-10)=1500
answer
Quantity TC. MC
10. 10,000. X
20. 25,000
The table above shows a firm's total cost and marginal cost for a range of output. What is X equal to?
a. 1500 (MC:🔺TC/🔺Q MC:(25,000-10,000)/(20-10)=1500
b. 1000
c. 35,000
d. 1750
e. 15,000
10. 10,000. X
20. 25,000
The table above shows a firm's total cost and marginal cost for a range of output. What is X equal to?
a. 1500 (MC:🔺TC/🔺Q MC:(25,000-10,000)/(20-10)=1500
b. 1000
c. 35,000
d. 1750
e. 15,000
question
c. $216,000 ATC:TC/doesn't equal units 18=TC/12,000 TC=18x12,000 TC=216,000
answer
Acme, Inc. is currently producing 12,000 gadgets per year. Acme's average total cost (ATC) is $18 per year. What is Acme's total cost (TC) per year?
a. $667
b. $108,000
c. $216,000 ATC:TC/doesn't equal units 18=TC/12,000 TC=18x12,000 TC= 216,000
d. $500
e. $1500
a. $667
b. $108,000
c. $216,000 ATC:TC/doesn't equal units 18=TC/12,000 TC=18x12,000 TC= 216,000
d. $500
e. $1500
question
b. Higher, lower
answer
As compared to monopoly, a perfectly competitive market typically produces a(n)______ quantity at a(n) ______ price.
a. Higher, higher
b. Higher, lower
c. Lower, higher
d. Lower, lower
e. Identical, lower
a. Higher, higher
b. Higher, lower
c. Lower, higher
d. Lower, lower
e. Identical, lower
question
d. The rubber used to make tires could be used to make something else
answer
Which of the following would not be a negative production externality associated with tire production?
a. Smoke from the tire factory worsens the city's air quality
b. Toxins from the tire-making process seep into the area's ground water
c. Neighbors experience the bad smells that come from the tire factory
d. The rubber used to make tires could be used to make something else
e. All of these are negative production externalities
a. Smoke from the tire factory worsens the city's air quality
b. Toxins from the tire-making process seep into the area's ground water
c. Neighbors experience the bad smells that come from the tire factory
d. The rubber used to make tires could be used to make something else
e. All of these are negative production externalities
question
d. the demand for dollars in the foreign exchange market will increase
answer
Everything else the same, if income in Japan rises while income in the U.S. remains unchanged,
a. the supply of dollars in the foreign exchange market will increase
b. the demand for yen in the foreign exchange market will decrease
c. the supply of yen in the foreign exchange market will decrease
d. the demand for dollars in the foreign exchange market will increase
e. the demand for dollars in the foreign exchange market will decrease
a. the supply of dollars in the foreign exchange market will increase
b. the demand for yen in the foreign exchange market will decrease
c. the supply of yen in the foreign exchange market will decrease
d. the demand for dollars in the foreign exchange market will increase
e. the demand for dollars in the foreign exchange market will decrease
question
d. $30,000 accounting profit:total revenue-explicit cost AP:530,000-500,000=30,000 (salary is not include when it says accounting profit. Only explicit costs are included
answer
Your friend is thinking of opening a video store. She estimates it would cost $500,000 a year to rent the store and buy video stock. She is planning to quit her $50,000 a year job as an accountant to run the store. If there are no other costs of operation and the store's revenue is $530,000, the accounting profits will be
a. $50,000
b. $20,000
c. -$20,000
d. $30,000 accounting profits:total revenue-explicit cost AP:530,000-500,000=30,000(salary is not include when it says accounting profit. Only explicit costs are included.)
e. $530,000
a. $50,000
b. $20,000
c. -$20,000
d. $30,000 accounting profits:total revenue-explicit cost AP:530,000-500,000=30,000(salary is not include when it says accounting profit. Only explicit costs are included.)
e. $530,000
question
Opportunity cost
answer
The term which means whatever must be given up to obtain an item is
question
Short run
answer
A period of time during which at least one production input is fixed while others are variable.
question
b. Dealer income from the sale of cocaine would fall 10%
answer
Demand for cocaine is unit elastic, price of cocaine were to rise 10%
a. Quantity consumed would fall 10%
b. Dealer income from the sale of cocaine would fall 10%
c. Both are false
a. Quantity consumed would fall 10%
b. Dealer income from the sale of cocaine would fall 10%
c. Both are false
question
a. Total revenue minus the explicit cost of producing goods and services
answer
Accounting profit is equal to
a. Total revenue minus the explicit cost of producing goods and services
b. Total revenue minus the opportunity cost of producing goods and service
c. Average revenue minus the average cost of products the last unit of a good or service
d. Marginal revenue minus marginal cost
e. Total revenue minus depreciation
a. Total revenue minus the explicit cost of producing goods and services
b. Total revenue minus the opportunity cost of producing goods and service
c. Average revenue minus the average cost of products the last unit of a good or service
d. Marginal revenue minus marginal cost
e. Total revenue minus depreciation
question
b. Less tuna will be canned and more will be used in tuna sushi
answer
Fresh tuna can be canned or used to make sushi. Other things equal, if consumers start demanding more sushi?
a. The price of tuna will fall
b. Less tuna will be canned and more will be used in tuna sushi
c. The supply of fresh tuna will decrease
d. The price of tuna sushi will fall
e. None of the above
a. The price of tuna will fall
b. Less tuna will be canned and more will be used in tuna sushi
c. The supply of fresh tuna will decrease
d. The price of tuna sushi will fall
e. None of the above
question
a. 11
answer
The table shows a firms cost for range quantity. Find the value of x?
Q. TC. ATC. MC
100. 500 5
X
120. 720. 6
a. 11 (720-500)/(120-100)=220/20=11
b. 20
c. 220
d. 1
e. None of the above
Q. TC. ATC. MC
100. 500 5
X
120. 720. 6
a. 11 (720-500)/(120-100)=220/20=11
b. 20
c. 220
d. 1
e. None of the above
question
e. All of the above
answer
Compared to perfect competition, monopoly in the long run?
a. Restricts outputs
b. Changes a higher price
c. Produces at greater than the minimum average total cost
d. Is able to make greater profits
e. All of the above
a. Restricts outputs
b. Changes a higher price
c. Produces at greater than the minimum average total cost
d. Is able to make greater profits
e. All of the above
question
c. $7 (15-8)=7
answer
A foot-Loofah is worth $15 to Edna. But she buys one on sale at Bath and body works for just $8 what is the consumer surplus that results from Edna's purchase?
a. $8
b. $15
c. $7 (15-8)=7
d. $23
e. Cannot be determined from the information given
a. $8
b. $15
c. $7 (15-8)=7
d. $23
e. Cannot be determined from the information given
question
d. 2.67 pounds (4/1.50)=2.67
answer
If purchases power parity exists and the exchange rate is 1.50 U.S. dollars per British pound, then a latte that has a price of $4 in northridge California, has a price of ____ in London, England?
a. 8 pounds
b. 4 pounds
c. 6 pounds
d. 2.67 pounds (4/1.50)=2.67
e. 0.38 pounds
a. 8 pounds
b. 4 pounds
c. 6 pounds
d. 2.67 pounds (4/1.50)=2.67
e. 0.38 pounds
question
b. What you must give up to get it
answer
In economics, the cost of something is?
a. The out-of-pocket expense of obtaining it
b. What you must give up to get it
c. Always measured in units of time
d. Always higher than people think
a. The out-of-pocket expense of obtaining it
b. What you must give up to get it
c. Always measured in units of time
d. Always higher than people think
question
e. Jewelry
answer
Which of the following goods will have the most elastic demand at any time?
a. Cigarettes
b. Elasticity
c. Gasoline
d. Water
e. Jewelry
a. Cigarettes
b. Elasticity
c. Gasoline
d. Water
e. Jewelry
question
Gasoline, cigarettes, liquor
answer
Inelastic goods are
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