ECO Final

See Figure 19.1. Sam's consumer surplus is equal to

$300

What is the total cost in Figure 21.2?

$34,560.

In Figure 24.2, the profit-maximizing monopolist will earn a profit of

$5.50.

If the price increases by 5 percent, and the quantity demanded falls by 10 percent, the absolute value of the price elasticity will be

0.5

What is cross price elasticity measure?

Cross-price elasticity is used to measure whether two goods are substitutes or complements.

Changes in short-run total costs result from changes in

Variable costs.

Suppose there are 50 firms in a market. The largest firm has sales of $50 million and each of the other firms has sales of $1 million. The Herfindahl-Hirschman Index of this industry is

2,501. ?

Josh is eating pizza at his favorite Italian restaurant. Below is his utility from this consumption:Table 19.1 Slice of Pizza Total Utility Marginal Utility First slice 20 20 Second slice 39 19 Third slice - 14 Fourth slice 59 - Refer to Table 19.1. What is Josh's total utility from consuming the third slice of pizza?

53 utils.

When the market does not lead to an optimal allocation of resources, there must be.

A market failure.

Over a given period of time, if imports are greater than exports, the result is

A trade deficit.

A workplace that requires workers to become union members within 30 days of being hired by a firm is

A union shop.

In Figure 24.1, the profit-maximizing monopolist will charge a price of

A.

In Figure 24.1, total revenue is represented by the area

ABFE.

Which of the following cost curves the marginal cost curve intersects the minimum point?

ATC.

When the average total cost curve is rising, the marginal cost curve will be

Above the average total cost curve.

The United States imports heavily in all of the following markets except

Aircraft.

Which of the following groups would be aided by a depreciation of the American dollar?

American producers of goods for export.

If a country engages in trade with other countries, it is known as

An open economy.

Which of the following can the government use to alter both firm behavior and industry structure?

Antitrust laws.

If the price of Coke rises by 10 percent and the sales of Pepsi go up by 5 percent, we can conclude that

Both goods are substitute goods because the cross-price elasticity is +0.5.

A monopolistically competitive firm can raise its price somewhat without fear of great change in unit sales because of

Brand loyalty.

A union evaluates job offers based on the

Collective interests of its members.

Which of the following is not a regulatory option when the government is trying to prevent market failure in the case of a natural monopoly?

Cost regulation.

Refer to Figure 25.1 for an oligopoly firm. If we assume that rival firms match price decreases but not price increases, the firm's demand curve will most likely be (from left to right)

D2ED1.

When foreigners come to the United States as tourists, they are generating a

Demand for U.S. dollars and a supply of a foreign currency.

What is the reason for the downward-sloping demand for labor?

Diminishing returns to labor.

Accounting costs and economic costs differ because

Economic costs include the opportunity costs of all resources used, while accounting costs include actual dollar outlays.

The long-run average total cost curve of a natural monopolist

Falls continuously as more output is produced.

The official poverty index is based on

Family size and income.

Mike's surf shop has total costs of $4,000 when it is not producing any surfboards. This means that

Fixed costs are $4,000.

Which costs do not change when output changes in the short run?

Fixed costs.

Typical goals of a labor union in the United States include

Higher wages, better working conditions, and more job security.

The demand curve confronting a competitive firm is

Horizontal, while market demand is downward-sloping.

What does a production function show?

How a firm's production changes as quantity of labor and other inputs changes

Public housing is an example of

In-kind income.

Higher wage rates allow a person to reduce the hours worked without losing income. This is known as the

Income effect.

A seller should do what if the elasticity of demand for cigarettes is 0.4

Increase price to increase total revenue.

Collective bargaining

Involves direct negotiations between labor unions and employers.

Which of the following is not true about a monopolistic competitor?

It can earn economic profits in the long run.

A firm's demand for labor is referred to as a derived demand because

It is derived from the demand for the product that the labor is producing.

If the exchange rate between the U.S. dollar and Japanese yen changes from $1 = 110 yen to $1 = 95 yen, then

Japanese tourists visiting the United States will benefit.

Brand loyalty usually makes the demand curve for a product

Less price-elastic

In Figure 33.1, suppose that the Gini coefficient for Omega is 0.45. The Gini coefficient for Alpha must be

Less than 0.45

When management shuts down a plant and does not allow workers to perform their jobs, there is a

Lockout.

A graphic illustration of the cumulative size distribution of income is known as the

Lorenz curve.

Which of the following rules is satisfied when a monopoly maximizes profits?

MR = MC.

Cross-price elasticity is used to measure whether two goods are substitutes or complements.

MRP.

Which of the following characterizes monopolistic competition?

Many firms produce a particular type of product, but each maintains some independent control over its own price.

If the marginal physical product (MPP) is falling, then the

Marginal cost of each unit of output is rising.

what is the change in total output associated with one additional unit of input?

Marginal physical product.

When is total utility maximized?

Marginal utility is zero.

The only market structure in which there is significant interdependence among firms with regard to their pricing and output decisions is

Oligopoly.

The concentration ratio for an oligopoly is considered

Over 60 percent

Transfer payments are

Payments to individuals for which no current goods or services are exchanged.

A good is normal if the sign on the income elasticity formula is

Positive.

The exchange rate is the

Price of one country's currency expressed in terms of another country's currency

If the percentage of income paid in taxes increases as income rises, then the tax system is

Progressive.

Which of the following is a form of government intervention?

Regulation.

What is the elasticity of labor supply measure?

Responsiveness of the wage rate to changes in the labor supplied.

From the graph below, when is the marginal physical product of labor is negative? Figure 21.1

Sixth worker.

Which of the following programs is the largest federal income transfer program?

Social Security.

When American companies buy office buildings in Australia, they are generating a Demand for U.S. dollars and a supply of a foreign currency.

Supply of U.S. dollars and a demand for a foreign currency.

Profit per unit is maximized when the firm produces the output where

The ATC is minimized.

Market power is

The ability to alter the market price of a good or service.

What is the best definition of Marginal utility from the list below?

The change in total utility obtained by consuming one additional unit of a good or service.

Which of the following taxes is most likely to reduce inequity?

The federal income tax.

What is rhe basic formula for price elasticity of demand

The percentage change in quantity demanded divided by the percentage change in price.

Select the best description of Total utility

The sum of the marginal utilities from the consumption of good.

In-kind transfers are

The transfer of goods and services rather than cash.

Two countries with differing comparative advantages may engage in trade because

They will be able to consume more goods in total due to specialization and trade.

From the graph below, when is the diminishing marginal returns first occur? Figure 21.1

Third worker.

When a program is means-tested, it means that

To be eligible, the recipient must have little income.

The sum of fixed cost and variable cost at any rate of output is

Total cost

A firm cannot maintain above-normal profits over the long run

Unless barriers to entry exist.

The United States is capable of producing many goods and services that it imports, but it does not because

We can import those goods at a lower opportunity cost than if we make them ourselves.