question
Your first preference is to spend Saturday studying for an upcoming test, while your second choice is to spend Saturday with your friends. Choosing to study means the lost opportunity of time with your friends.Which of the six core principles of the economic way of thinking does this illustrate?
answer
All Choices Involve Costs
question
Producing at a point above the total physical product curve is __________.
answer
impossible
question
Sleek Hair Accessories has produced 35,000 hair bands that cost the company $0.03 each to make. They recently sold 35,000 of the hair bands to a local drug store at $0.11 each. Their opportunity cost is $1,000.
What is Sleek Hair Accessories' economic profit?
What is Sleek Hair Accessories' economic profit?
answer
$1,800
question
Select the correct statement for how firms in an oligopoly make decisions on price, product quality, and production.
answer
They pay attention to competitors, acting and reacting to the decisions of other firms in their market.
question
Using the graph below, determine the profit maximizing-price and quantity to produce.
answer
Profit-maximizing price = $30Quantity to produce = 45 units
question
Consider the following chart. What is the marginal product of labor (MPL) of the fifth worker? Land(20 Acres)(1)Labor (Workers)(2)Total Product(Pounds)(3)Marginal Product of Labor (MPL)(4)20 acres00-20 acres150+5020 acres2130+8020 acres3220+9020 acres4300+8020 acres537020 acres6390+2020 acres7380-10
answer
+70
question
Consider the following chart. How much is the marginal cost when total output increases from 240 pounds to 320 pounds? Total Output(Pounds)Total Cost(TC = FC + VC)Marginal Cost01501503002404503206003907504509004201050
answer
$1.875
question
Consider the graph below. Suppose qMC = 300, pMC = $20, and ATC = $24 at 300 units. Is the profit-maximizing firm in monopolistic competition making a profit or loss, and by how much?
answer
−$1,200 loss
question
Consider the graph below. Suppose qO = 100, pO = $60, and ATC = $30 at 100 units.
Is the profit-maximizing firm in an oligopoly market making a profit or loss, and by how much?
Is the profit-maximizing firm in an oligopoly market making a profit or loss, and by how much?
answer
$3,000 profit
question
A nation decides to encourage the immigration of high-tech workers by removing immigration restrictions.
What will happen to the supply of labor and the wage in this market?
What will happen to the supply of labor and the wage in this market?
answer
The supply of labor will increase, and the wage will decrease.
question
Accounting profit is defined as __________.
answer
total revenue minus total cost, where total revenue includes only explicit revenue and total cost includes only explicit costs
question
This type of industry is classified as __________.
answer
a constant cost industry
question
Select the option that correctly orders market structures from the highest level of competition to the lowest level of competition.
answer
Perfect competition, monopolistic competition, oligopoly, monopoly
question
Calculate consumer surplus and producer surplus using the diagram below.
answer
Consumer Surplus = $18.0 millionProducer Surplus = $13.5 million
question
Which of these examples represents a fixed input?
answer
Rented office space
question
Which of the following would cause the change in supply illustrated in the graph?
answer
Producer expectations are for growing economic activity.
question
Consider the chart below. The marginal utility for the seventh unit of Chicken Fajitas is _____.
Quantity of Chicken Fajitas(1)Total Utility(2)001352653854100511061157112
Quantity of Chicken Fajitas(1)Total Utility(2)001352653854100511061157112
answer
-3 utils
question
Consider the graph, which shows the effect of a per-unit tax on a market.
Which of the following statements is correct?
Which of the following statements is correct?
answer
Sellers earn the price which is below the original equilibrium price .
question
If this firm that sells scarves were in a break-even situation, approximately how many scarves would the firm sell?
answer
33 scarves
question
You decide to do a cost-benefit analysis for an important decision.What is the first step you should follow when conducting the basic cost-benefit analysis?
answer
Collect as much information as you can on all possible options.
question
The graph below depicts a government intervention setting at a price ceiling of $1,200 per month for a rental apartment.What is the value for the deadweight loss in this market?
answer
$1,800 million
question
Which of the following is a reason why firms in a perfectly competitive market have no market power?
answer
Firms can freely enter and exit the market.
question
The study of economics is concerned with individuals and groups making __________.
answer
choices
question
Your business produces widgets, which you know to be price inelastic.
To increase total sales revenue, you should __________.
To increase total sales revenue, you should __________.
answer
increase the price
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