Test Review 2 & Unit 2 Exam - Assignment Essays

question

Normal goods have a positive _____.

Ed

Ei

Exy

Es

answer

question

If a 10 percent increase in the price of a good generates a 25 percent decrease in the quantity demanded, the good has an _________ demand.

Elastic

Inelastic

Unit-elastic

Insufficient

answer

Elastic

question

Adding more and more paper airplane makers yields a diminishing marginal product of labor.

True

False

answer

True

question

If the TP is increasing at a decreasing rate, the MP must be decreasing.

True

False

answer

True

question

Price elasticity of demand measures:

How many more we would buy if the price falls or rises by 1 cent

How many less we would buy if the price falls by 1 cent

The intensity of consumers' response compared to a price change

The degree to which the government is involved in a market

answer

The intensity of consumers' response compared to a price change

question

Total utility can never decrease as Q increases.

True

False

answer

False

question

If a large percent INCREASE in price generates a small percent INCREASE in quantity supplied, we can say that supply is:

Elastic

Unit-elastic

Inelastic

Good enough for Steven Manley

answer

Inelastic

question

The price of cigarettes rises from $4 to $5, while the Qd falls from 100 to 96. Using the midpoint formula, what is the price elasticity of demand? (include absolute values in the formula and round to 2 decimal places)

answer

0.18

question

The price of cookies rises from $4 to $5, while the Qd falls from 100 to 50. Using the midpoint formula, what is the price elasticity of demand? (include absolute values in the formula and round to 2 decimal places)

answer

question

Total product is maximized when marginal utility is maximized.

True

False

answer

False

question

The price of Manley bobbleheads rises from $4 to $5, while the Qs rises from 100 to 140. Using the midpoint formula, what is the price elasticity of supply? (round to 2 decimal places)

answer

1.5

question

If TP is increasing at an increasing rate, the MP must be decreasing.

True

False

answer

False

question

All the points along one indifference curve have:

The same MU

The same TU

both the same MU and TU

the same slope

answer

The same TU

question

The principle determinant for the elasticity of supply is:

How desperate the customers are to buy the product

The price of the product

The advertising

The amount of time the supplier has to respond to a price change

answer

The amount of time the supplier has to respond to a price change

question

Elasticity of demand measures can be: (multiple answers possible)

Elastic

Inelastic

Unit-elastic

Excessive

answer

Elastic

Inelastic

Unit-elastic

question

You sell a good with an inelastic demand. If you raise your prices:

Sales revenue will fall

Sales fall in huge quantities

Sales fall off insignificantly

You will lure more customers into your store

answer

Sales fall off insignificantly

question

The demand curve slopes downward due to: (may have multiple answers)

Income effect

substitution effect

diminishing marginal returns effect

elasticity of demand

Steven Manley effect

answer

Income effect

substitution effect

diminishing marginal returns effect

question

Total product is maximized when marginal product is zero.

True

False

answer

True

question

Steven Manley's income rises from $40 billion to $50 billion, while his Qd of donuts increases from 6 to 10. Using the midpoint formula, what is his income elasticity of demand? (round to 2 decimal places)

answer

2.25

question

One reason why the demand for gasoline is inelastic is because:

There are many substitutes for gasoline

Substitutes for gasoline are hard to find

Gasoline is a luxury item

Gasoline's price is high compared to one's income

answer

Substitutes for gasoline are hard to find

question

Which of the following is most likely to have an inelastic demand?

iTunes

Cigarettes

T-Bone Steaks

Washing Machines

answer

Cigarettes

question

In your bakery, the price of rye bread increases by 10 percent and the quantity demanded decreases by 10 percent. The demand for rye bread is _________ and total revenue will ________.

Unit-elastic; stay the same

Inelastic; increase

Elastic; decrease

Unit-elastic;increase

answer

Unit-elastic; stay the same

question

When Q = 0, total utility will always be ___.

Positive

Negative

1

0

answer

question

Which of the following is most likely to have an elastic demand?

Furniture

Diapers

Insulin

Telephone service

answer

Furniture

question

Labor costs are usually the highest resource costs for firms.

True

False

answer

True

question

Diamonds usually cost more than water because:

of the laws of supply and demand

while TUw > TUd, MUw < MUd

TUw < TUd

MUw < TUd

answer

while TUw > TUd, MUw < MUd

question

Housing and food are opportunity costs of attending college.

True

False

answer

False

question

In just about every situation, ___________ carry the burden of a tax on a good.

Corporations

Retailers

Wholesalers

People

answer

People

question

Total utility increases at a decreasing rate.

True

False

answer

True

question

If a large percent decrease in price generates a small percent increase in quantity demanded, we can say that demand is:

Elastic

Inelastic

Unit-elastic

Excessive

answer

Inelastic

question

Total utility increases at a decreasing rate due to the law of diminishing marginal returns.

True

False

answer

True

question

The change in output per change in input is referred to as ______.

total productivity

marginal product

fixed costs

average marginal costs

answer

marginal product

question

Who studied consumer behavior in the early 1830s?

Steven Manley

Jeremy Bentham

Karl Marx

David Ricardo

answer

Jeremy Bentham

question

If a 50 percent increase in the price of a good generates a 25 percent decrease in the quantity demanded, the good has an _________ demand.

Elastic

Inelastic

Unit-elastic

Insufficient

answer

Inelastic

question

If a percent increase in price generates an equally sized percent decrease in quantity demanded, we can say that demand is:

elastic

inelastic

unit-elastic

excessive

answer

unit-elastic

question

If the cross price elasticity is negative, the good(s)

are normal

are inferior

are complimentary

are substitutes

answer

are complimentary

question

Which of the following is not a characteristic of a good having an elastic demand?

There are readily available substitutes

The price tag is big compared to income

You can wait until later to buy the good

You want to use the product right away

answer

You want to use the product right away

question

The price of milk rises from $4 to $5, while the Qd of cereal falls from 100 to 96. Using the midpoint formula, what is the cross price elasticity of demand? (DO NOT include absolute values in the formula, and round to 2 decimal places)

answer

-0.18

question

The long-run is the time period that is long enough to change at least one of the inputs.

True

False

answer

False

question

If the price of an elastic good increases, total revenue will ____

Decrease

Increase

Not change

change in a way that only Steven Manley can understand

answer

Decrease

question

The demand for a good is more likely to be elastic if:

The good is a necessity

The good has few substitutes

The good carries a small price tag

The good is a luxury item

answer

The good is a luxury item

question

Economies of scale exist because of: (may be multiple answers)

increased specialization of resources

increased productivity of managers

bureaucratic hierarchies

increased use of capital resources

answer

increased specialization of resources

increased productivity of managers

increased use of capital resources

question

The amount of paper was one of the limiting factors in the airplane activity.

True

False

answer

False

question

If a 20 percent rise in price leads to a 40 percent decrease in quantity demanded, then demand is ________ and total revenue __________.

Elastic; increases

Elastic; decreases

Inelastic; increases

Inelastic; decreases

answer

Elastic; decreases

question

If the price of a good with an inelastic demand increases, total revenue will ___.

Decrease

Increase

Not change

Change in a way that only Steven Manley can predict.

answer

Increase

question

Governments often experience diseconomies of scale.

True

False

answer

True

question

Accounting profits are always greater than or equal to economic profits.

True

False

answer

True

question

Average fixed costs always decrease as Q increases.

True

False

answer

True

question

As long as the MP is positive, the TP will be increasing.

True

False

answer

True

question

Maximum consumer utility is found where ___.

MU = TU

the budget constraint line is steepest

the budget constraint line is tangent to the indifference curve

the budget constraint line has the slope - price ratio.

answer

the budget constraint line is tangent to the indifference curve

question

Elasticity of demand measures:

How many more we would buy if the price falls

How many less we would buy if the price rises

The intensity of consumers' response to a price change

The degree to which the government is involved in a market

answer

The intensity of consumers' response to a price change

question

As we spend more money our total pleasure increases to a maximum point, but with additional increases in spending our marginal utility (additional pleasure) declines.

True

False

answer

True

question

If the price and total revenue change in the same direction, then demand is elastic.

True

False

answer

False

question

Beyond a small quantity, total utility increases at a decreasing rate.

True

False

answer

True

question

The diminishing marginal utility effect states that as more of an item is consumed and the amount of additional satisfaction decreases, the seller must lower price to induce the consumer to buy more.

True

False

answer

True

question

The FC of producing four Brownies is $ _________ . (Answer to 2 decimal places)

answer

2.50

question

In the Indifference Diagram above, Points G, H and K represent combinations of consumption for A and B that will yield the same amount of total pleasure.

True

False

answer

False

question

The __________________ is the relationship between the number of inputs (such as units of labor) that a firm uses and the resulting units of output (such as quantity of widgets produced).

production function

marginal cost curve

total cost curve

production possibilities curve

answer

production function

question

In the ____________ the Elasticity of Supply is perfectly inelastic (supply line is vertical) because no adjustments can be made immediately in the amount produced.

market period

short-run

long-run

all of these choices are correct

answer

market period

question

_____ = Total Cost (TC) / Quantity Produced (Q)

TC

MC

ATC

none of these choices are correct

answer

ATC

question

Variable costs are costs that _________ .

decrease with increasing output

remain constant regardless of changes in output

increase with increasing output

none of these choices are correct

answer

Incorrect Answer (Do Not Pick) for Steven Manley's Quizzes, Test Reviews, and Exams:

remain constant regardless of changes in output

question

Elasticity of demand is unitary when there is a _____________ (but inverse) change in quantity demanded for a given price change.

none of these choices are correct

smaller percentage

proportional

larger percentage

answer

proportional

question

A good that is luxury (such as a weekend trip to an island resort) is not a required purchase and, therefore, tends to have a coefficient of elasticity _________ "1.00".

equal to

none of these choices are correct

less than

greater than

answer

greater than

question

In the figure above, this product is price ___________ between Point B and Point C.

elastic

unit-elastic

inelastic

none of these choices are correct

answer

elastic

question

The __________ run is a time period too brief to increase capacity, but sufficient to increase operations to the maximum of the existing capacity.

all of these choices can be correct depending on conditions

long

market

short

answer

short

question

In the Indifference Diagram above, Points H, I and J represent combinations of consumption for A and B that will yield the same amount of additional pleasure.

True

False

answer

False

question

Economists do not see any difficulty in measuring pleasure and believe that consumer behavior can be measured perfectly using of marginal values.

True

False

answer

False

question

These utility concepts can be applied to a decision of what to purchase given utility patterns for two goods as listed in the figure below. If you assume that good R and good S both cost $2 each, how many of each would you purchase if you have an income of $8?

4R and 0S

3R and 1S

3S and 1R

2S and 2R

answer

3S and 1R

question

Bentham concluded that consumers seek to _____ with _____.

maximum profit; maximum cost

maximum leisure; minimum responsibility

maximum utility; minimum cost

maximum Manley; minimum pain

answer

maximum utility; minimum cost

question

Consider the example of an individual in a grocery store examining two cans of peaches, Alpha Peaches and Beta Peaches. If Alpha is thought to provide 10 units of pleasure per dollar and Beta is thought to provide 8 units per dollar, then Alpha should be chosen.

True

False

answer

True

question

In the figure below, the difference between the ATC and the AVC is the ________.

MC

MR

AVC

AFC

answer

AFC

question

If the income elasticity of demand is negative, the good is a(n) ____ good.

Manley pants

normal

inferior

substitute

answer

inferior

question

MC = ATC at the minimum of the ______ curve .

ABC

AVC

AFC

ATC

answer

ATC

1 of 73

question

Normal goods have a positive _____.

Ed

Ei

Exy

Es

answer

question

If a 10 percent increase in the price of a good generates a 25 percent decrease in the quantity demanded, the good has an _________ demand.

Elastic

Inelastic

Unit-elastic

Insufficient

answer

Elastic

question

Adding more and more paper airplane makers yields a diminishing marginal product of labor.

True

False

answer

True

question

If the TP is increasing at a decreasing rate, the MP must be decreasing.

True

False

answer

True

question

answer

The intensity of consumers' response compared to a price change

question

Total utility can never decrease as Q increases.

True

False

answer

False

question

If a large percent INCREASE in price generates a small percent INCREASE in quantity supplied, we can say that supply is:

Elastic

Unit-elastic

Inelastic

Good enough for Steven Manley

answer

Inelastic

question

answer

0.18

question

answer

question

Total product is maximized when marginal utility is maximized.

True

False

answer

False

question

The price of Manley bobbleheads rises from $4 to $5, while the Qs rises from 100 to 140. Using the midpoint formula, what is the price elasticity of supply? (round to 2 decimal places)

answer

1.5

question

If TP is increasing at an increasing rate, the MP must be decreasing.

True

False

answer

False

question

All the points along one indifference curve have:

The same MU

The same TU

both the same MU and TU

the same slope

answer

The same TU

question

answer

The amount of time the supplier has to respond to a price change

question

Elasticity of demand measures can be: (multiple answers possible)

Elastic

Inelastic

Unit-elastic

Excessive

answer

Elastic

Inelastic

Unit-elastic

question

answer

Sales fall off insignificantly

question

The demand curve slopes downward due to: (may have multiple answers)

Income effect

substitution effect

diminishing marginal returns effect

elasticity of demand

Steven Manley effect

answer

Income effect

substitution effect

diminishing marginal returns effect

question

Total product is maximized when marginal product is zero.

True

False

answer

True

question

answer

2.25

question

answer

Substitutes for gasoline are hard to find

question

Which of the following is most likely to have an inelastic demand?

iTunes

Cigarettes

T-Bone Steaks

Washing Machines

answer

Cigarettes

question

answer

Unit-elastic; stay the same

question

When Q = 0, total utility will always be ___.

Positive

Negative

1

0

answer

question

Which of the following is most likely to have an elastic demand?

Furniture

Diapers

Insulin

Telephone service

answer

Furniture

question

Labor costs are usually the highest resource costs for firms.

True

False

answer

True

question

Diamonds usually cost more than water because:

of the laws of supply and demand

while TUw > TUd, MUw < MUd

TUw < TUd

MUw < TUd

answer

while TUw > TUd, MUw < MUd

question

Housing and food are opportunity costs of attending college.

True

False

answer

False

question

In just about every situation, ___________ carry the burden of a tax on a good.

Corporations

Retailers

Wholesalers

People

answer

People

question

Total utility increases at a decreasing rate.

True

False

answer

True

question

If a large percent decrease in price generates a small percent increase in quantity demanded, we can say that demand is:

Elastic

Inelastic

Unit-elastic

Excessive

answer

Inelastic

question

Total utility increases at a decreasing rate due to the law of diminishing marginal returns.

True

False

answer

True

question

The change in output per change in input is referred to as ______.

total productivity

marginal product

fixed costs

average marginal costs

answer

marginal product

question

Who studied consumer behavior in the early 1830s?

Steven Manley

Jeremy Bentham

Karl Marx

David Ricardo

answer

Jeremy Bentham

question

If a 50 percent increase in the price of a good generates a 25 percent decrease in the quantity demanded, the good has an _________ demand.

Elastic

Inelastic

Unit-elastic

Insufficient

answer

Inelastic

question

If a percent increase in price generates an equally sized percent decrease in quantity demanded, we can say that demand is:

elastic

inelastic

unit-elastic

excessive

answer

unit-elastic

question

If the cross price elasticity is negative, the good(s)

are normal

are inferior

are complimentary

are substitutes

answer

are complimentary

question

answer

You want to use the product right away

question

answer

-0.18

question

The long-run is the time period that is long enough to change at least one of the inputs.

True

False

answer

False

question

If the price of an elastic good increases, total revenue will ____

Decrease

Increase

Not change

change in a way that only Steven Manley can understand

answer

Decrease

question

The demand for a good is more likely to be elastic if:

The good is a necessity

The good has few substitutes

The good carries a small price tag

The good is a luxury item

answer

The good is a luxury item

question

Economies of scale exist because of: (may be multiple answers)

increased specialization of resources

increased productivity of managers

bureaucratic hierarchies

increased use of capital resources

answer

increased specialization of resources

increased productivity of managers

increased use of capital resources

question

The amount of paper was one of the limiting factors in the airplane activity.

True

False

answer

False

question

answer

Elastic; decreases

question

If the price of a good with an inelastic demand increases, total revenue will ___.

Decrease

Increase

Not change

Change in a way that only Steven Manley can predict.

answer

Increase

question

Governments often experience diseconomies of scale.

True

False

answer

True

question

Accounting profits are always greater than or equal to economic profits.

True

False

answer

True

question

Average fixed costs always decrease as Q increases.

True

False

answer

True

question

As long as the MP is positive, the TP will be increasing.

True

False

answer

True

question

answer

the budget constraint line is tangent to the indifference curve

question

answer

The intensity of consumers' response to a price change

question

As we spend more money our total pleasure increases to a maximum point, but with additional increases in spending our marginal utility (additional pleasure) declines.

True

False

answer

True

question

If the price and total revenue change in the same direction, then demand is elastic.

True

False

answer

False

question

Beyond a small quantity, total utility increases at a decreasing rate.

True

False

answer

True

question

answer

True

question

The FC of producing four Brownies is $ _________ . (Answer to 2 decimal places)

answer

2.50

question

In the Indifference Diagram above, Points G, H and K represent combinations of consumption for A and B that will yield the same amount of total pleasure.

True

False

answer

False

question

answer

production function

question

answer

market period

question

_____ = Total Cost (TC) / Quantity Produced (Q)

TC

MC

ATC

none of these choices are correct

answer

ATC

question

Variable costs are costs that _________ .

decrease with increasing output

remain constant regardless of changes in output

increase with increasing output

none of these choices are correct

answer

Incorrect Answer (Do Not Pick) for Steven Manley's Quizzes, Test Reviews, and Exams:

remain constant regardless of changes in output

question

answer

proportional

question

answer

greater than

question

In the figure above, this product is price ___________ between Point B and Point C.

elastic

unit-elastic

inelastic

none of these choices are correct

answer

elastic

question

answer

short

question

In the Indifference Diagram above, Points H, I and J represent combinations of consumption for A and B that will yield the same amount of additional pleasure.

True

False

answer

False

question

Economists do not see any difficulty in measuring pleasure and believe that consumer behavior can be measured perfectly using of marginal values.

True

False

answer

False

question

answer

3S and 1R

question

Bentham concluded that consumers seek to _____ with _____.

maximum profit; maximum cost

maximum leisure; minimum responsibility

maximum utility; minimum cost

maximum Manley; minimum pain

answer

maximum utility; minimum cost

question

answer

True

question

In the figure below, the difference between the ATC and the AVC is the ________.

MC

MR

AVC

AFC

answer

AFC

question

If the income elasticity of demand is negative, the good is a(n) ____ good.

Manley pants

normal

inferior

substitute

answer

inferior

question

MC = ATC at the minimum of the ______ curve .

ABC

AVC

AFC

ATC

answer

ATC

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order