51-75

Figure 9-1 shows the U.S. demand and supply for leather footwear. Refer to Figure 9-1. Under autarky, the consumer surplus is

$195.

Figure 11-7 shows the cost structure for a firm. Refer to Figure 11-7. When output level is 100, what is the total cost of production?

$2,000

Table 10-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods.

3 cups of soup and 4 sandwiches

Table 10-7 shows Antonio's utility from beer and pizza. Refer to Table 10-7. Suppose Antonio has $10 to spend and the price of beer = $2 per glass and the price of pizza = $2 per slice. How many of each good will he consume when he maximizes his utility?

3 glasses of beer, 2 slices of pizza

Table 11-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May. Refer to Table 11-1. What is the marginal product of the 4th worker?

5 pounds

Table 11-2 summarizes production at the Crunchy Apple Orchard for the month of April 2005. Refer to Table 11-2. What is the marginal product of the 4th worker?

50 bushels

Which of the following statements is false?

An explicit cost is a nonmonetary opportunity cost.

Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota. Refer to Figure 9-3. What is the area that represents the deadweight loss as a result of the quota?

E + M

Refer to Figure 11-5. Identify the curves in the diagram.

E = marginal cost curve; F = average total cost curve; G = average variable cost curve; H = average fixed cost curve.

Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. Refer to Table 9-3. Select the statement that accurately interprets the data in the table.

Neither Bryce nor Tina has an absolute advantage in making soap.

Refer to Figure 11-4. What happens to the average fixed cost of production when the firm increases output from 150 to 200?

It falls.

Elegant Settings manufactures stainless steel cutlery. Table 11-8 shows the company's cost data.

economies of scale at an output of 300 or less and diseconomies of scale at an output level above 400.

Refer to Figure 10-1. When the price of hoagies increases from $5.00 to $5.75, quantity demanded decreases from Q1 to Q0. This change in quantity demanded is due to

the income and substitution effects.

Keegan has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the price of a glass of Bubble Tea is $3. Table 10-1 shows his total utility from different quantities of the two items. Refer to Table 10-1. What is Keegan's optimal consumption bundle?

3 pita wraps and 4 bubble teas

Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota. Refer to Figure 9-3. With a quota in place, what is the quantity consumed in the domestic market?

34 million pounds

Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. Refer to Figure 9-2. Without the tariff in place, the United States produces

9 million pounds of rice.

Which of the following statements explains the difference between diminishing returns and diseconomies of scale?

Diminishing returns apply only to the short run; diseconomies of scale apply only in the long run.

Refer to Figure 11-2. Short run output is maximized at

L3.

Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. Refer to Table 9-3. Select the statement that accurately interprets the data in the table.

Tina has an absolute advantage in making candles.

A tariff

makes domestic consumers worse off.

Utility is

subjective and difficult to measure.

Which of the following is the best example of a voluntary export restraint?

a limit set by the Korean government on the number of cell phones that the United States can import fro Korea.

As a consumer consumes more and more of a product in a particular time period, eventually marginal utility

declines.

A change in the price of a good has two effects on the quantity consumed. What are these effects?

the income effect and the substitution effect

If, as a person consumes more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, we are seeing the workings of

the law of diminishing marginal utility.