Multiple Choice Questions

If the firm can vary all factors of production, this is... A. operating a profit B. the short run C. the long run D. earning a negative economic profit

the long run

Public choice economics: A. Examines the public's role in appointing politicians and ensuring that elected officials act in ways to reflect the public's preferences B. Applies economic analysis to government decision making C. Examines the degree of market power that the public exerts in a market economy D. Applies economic analysis to the collective decision making of consumers

Applies economic analysis to government decision making

Import restrictions... A. can protect united states jobs in the protected industry but will also lead to job reductions in other industries B. Hurt people who work in importing companies, but makes consumers better off C. Cannot protect American jobs in any sector of the economy D. Can protect United States jobs in the protected industry, which increases economic welfare of the country as a whole

Can protect united states jobs in the protected industry but will also lead to job reduction in other industries

A firm seeking to maximize economic profits should place at the output at which... A. marginal revenue equals average revenue B. average revenue equals average cost C. Total revenue equals total cost D. marginal revenue equals marginal cost

Marginal revenue equal marginal cost

Who benefits primarily from rent controls? A. poor people looking for low-income housing B. Construction workers C. All who want to rent D. Only renters who are able to get units at below-market rates

Only renters who are able to get units at below-market prices

Two items which have a positive cross price elasticity of demand are referred to as: A. substitutes B. luxury goods C. complements D. Inferior goods

Substitutes

A price floor that is set above market equilibrium will cause... A. queuing on the part of consumers B. a surplus C. A shortage D. an excess quantity demanded

Surplus

What is the voting paradox? A. The observation that less than 60% of those eligible to vote actually vote B. people are aware that their votes will not change the political outcome since these outcomes are predetermined by a group of influential politicians C. the observation that majority voting may not always result in consistent (transitive) choices D. The idea that wealthy corporations are able to sway politicians to act in ways contrary to the desires of the majority

The observation that majority voting may not always result in consistent (transitive) choices

"wants" as an economic concept includes... A. Both material and nonmaterial desires B. Only the desire for luxury goods C. only those goods that can be purchased with one's paycheck D. Only the purchase of necessary basic goods

both material and nonmaterial desires

As a firm increases the level of output that it produces, short-run average fixed cost... A. decreases B. rises and then falls C. remains constant since fixed costs are constant D. Decreases up to a particular level of output and then increases

decreases

When two goods are substitutes for each other, the cross price elasticity of demand.. A. may be either positive or negative B. will be negative C. will be zero D. will be positive

will be positive