Econ Exam 3
Looking at the table above what is the marginal product of the first worker a. 300 units b. 200 units c. 100 units d. 500 units
a.
For an individual firm operating in a competitive market, marginal revenue equals a. Average revenue and the average price for all levels of output b. average revenue which is greater than the price for all levels of output c. average revenue, the price, and the marginal cost for all levels of output d. marginal costs, which is greater than average revenue for all levels of output
a.
State and local governments a. Use the mix of taxes and fees to generate revenue b. I record by federal mandate to Levi income taxes c. are required to tax property at a standard rate set by the federal government d. less tax wages more heavily than interest in dividend income
a.
The accountant hired by forever fitness have determined total fixed cost to be Cost to be 75,000 total variable cost to be 130,000 in total revenue to be 125,000 because of this information in the short run, forever fitness should.. a. Shut down because staying open would be more expensive b. lower their prices to increase their profits c. stay open because shutting down would be more expensive d. stay open because the firm is making an economic profit
a.
The fundamental source of monopoly power is a.barriers to entry b. proft c. increasing average total cost d. a product without close substitutes
a.
Total revenue equals a. Price x quantity b. Price/ quantity c. (price x quantity) -total cost d. output minus input
a.
which of the following is example of an exercise tax a. A tax on tobacco b. A tax on the wages at a firm pays its workers c. A tax on corporate profits d. Federal income taxes earmarked to pay for Social Security and Medicare
a.
For a large firm that produces and sells automobiles, which of the following costs would be a variable cost a. the 20 million payment that the firm pays each year for accounting services b. the cost of the steel that is used in producing automobiles c. the rent that the firm pays for office space and suburb of Saint Louis d. because of the Internet advertising incurred each year
b.
In addition tax payments, the other two primary costs at a tax system inevitably impose on taxpayers are a. deadweight losses and frustration with political system b. deadweight losses is and administrative burdens c. administrative-burdens and tax preparation costs d. administrative burden from the risk of punishment for failure to comply with tax laws
b.
Is a competitive firm is currently producing a level output at which marginal cost exceeds marginal revenue, a. one unit increase output will increase the firm's profit b. one unit decrease output will increase the firm's profit c. total revenue exceeds total cost d. total cost exceeds total revenue
b.
Nathan makes candles. If he charges $20 for each candle, his total revenue will be a. $1000 if he sells 100 candles b. $500 if he sells 25 candles c. $20 regardless of how many candles he sells d. $2000 if he sells 5 candles
b.
The person's marginal tax rate equals a. Her tax obligation divided by her average tax rate b. the increase in taxes she would pay as a percentage of the rise in her income c. her tax obligation divided by her income d. increase in taxes if your average tax rate would arise by 1 percent
b.
a monopolist consulting 100 units of output for $50 per unit. Alternatively you can sell 301 units of output for 49.6 euro per unit marginal revenue of the 301st unit of output is a. -$99.60 b. -$70.40 c. -$0.40 d. $70.40
b.
for any competitive market, the supply curve is closely related to the a. preferences of consumers who purchase products in that market b. firms' costs of production in that market c. income tax rates of consumers in that market d. interest rate on government bonds
b.
look at the figure below what is the area of the deadweight loss a. The Rectangle (X-Z)*J b. The Triangle ½[(X-Z)]*[(K-J)] c. The Triangle ½[(X-Z)*(K-J)] d. The rectangle (X-Z) * J plus the triangle ½[(X-Z)*(K-J)]
b.
monopoly firms face a. Downward sloping demand curves, so they can sell as much output as they desire at the market price b. downward sloping demand curves, so they can sell only the specific price quantity combinations that lie on the demand curve c. horizontal demand curves, so they can sell as much output as they desire at the market price d. horizontal demand curves, so they can sell only a limited quantity of output at each price
b.
the deadweight loss associated with monopoly occurs because the monopolist a. maximizes profits b. produces an output level less than socially optimal level c. produces an output level greater than the socially optimal level d. equates marginal revenue with marginal cost
b.
the following table presents cost and revenue information for a firm operating in a competitive industry. What is the marginal revenue from selling the 4th unit a. $30 b. $120 c. $ 317 d. $79
b.
A firm's opportunity costs of production are to its a. explicit costs only b. implicit cost only c. explicit costs + implicit cost d. explicit costs + implicit cost + total revenue
c.
A monopolist profits with price discrimination will be a. lower than if the firm charged a single, profit-maximizing price b. the same as if the firm charged a single, profit-maximizing price c. higher than if the firm charged just one price because the firm will capture more consumer surplus d. higher than if the firm charged a single price because the costs of selling the good will be lower
c.
From fishing fishermen who could earn $5000 as a fishing tour guide. Instead, he's a full-time shrimp fisherman. In calculating the economic benefit of the show business the $5000 public gave up is counted as part of the shrimp businesses a. total revenue b. explicit costs c. implicit costs d. marginal cost
c.
If a competitive firm is selling 900 units of its product at a price of $10 per unit and earning a positive profit, then a. Its total cost is more than 9000 b. marginal revenue is less than 10 c. it's average total cost is less than 10 d. the firm cannot be a competitive firm because competitive firms cannot earn positive profits
c.
If a firm in a competitive market doubles its number of units sold, total revenue for the firm will a. more than double b. increases but by less than double c. double d. may increase or decrease depending on the price elasticity of demand
c.
Leonard Sheldon and Raj and penny each like to attend comic book conventions. The price of a ticket to conventions $50 Leonard values your ticket at $70 Sheldon at 65 miles at 60 penny at 55 suppose that if the government taxes tickets at 5 each the price will rise to 55 the consequences of tax so our consumer surplus shrinks by a. $50 in tax revenues increased by 20 so there's deadweight loss of $30 b. $30 in tax revenues increase by $20 so there's a deadweight loss of 10 c. $20 in tax revenues increase by $20, so there is no deadweight loss d. $50.00 in tax revenues increase by $20, so no deadweight loss
c.
Look at the figure above the firm short run supply curve is its marginal cost curve above a. $1.00 b. $2 c. $3 d. $6.5
c.
Ryzard decideds to open his own business and earns 60,000 in accounting porfit the first year. When deciding to open his own business, he withdrew $20,000 from his savings, which earned 6 percent interest. He also turned down three separate job offers with annual salaries of 30,000, 40,000, and 45,000. What is Ryzard's economic profit from running his own business a. 18,800 b. 58,800 c. 13,800 d. 20,800
c.
Suppose that a doggy daycare firm uses only two inputs hourly workers labor and a building capital in the short run the firm most likely considers a. Both labor and capital to be fixed b. Both labor and capital to be variable c. labor to be variable and capital to be fixed d. capital to be variable and labor to be fixed
c.
The US tax burden is a. About the same as most European countries b. higher than most European countries c. lower than most European countries d. higher than all European countries
c.
government created monopoly arises when a. government spending in a certain industry gives rise to monopoly power. b. the government exercises it's market control by encouraging competition among sellers c. the government gives a firm that exclusive right to sell some good or service d. the government collects taxes in a particular industry
c.
if the distribution of water is a natural monopoly than a. a single firm spending in a certain industry gives rise to monopoly power b. allowing for competition among different firms in the water-distribution industry is efficient c.multiple firms would likely each have to pay large fixed costs to develop their own network of pipes d. average cost increases as the quantity of water increases
c.
look at the figure below panoply firm is currently producing Q4 units of output then decrease in output will necessarily cause profit too a. remain unchanged b. decrease c. increase its output is between Q3 and Q4 d. increase regardless of the level of output
c.
one tax system is less efficient than another if it a. Places a lower tax burden on lower income families and then higher income families b. places a higher tax burden on lower income families and on higher income families c. there's the same amount of revenue at a higher cost to taxpayers d. where's last driving at a lower cost to taxpayers
c.
the profit maximizing monopolist faces a downward sloping market demand curve its a. average revenue is less than the price of the product b. average revenue is less than the marginal revenue c. marginal revenue is less than the price of the product d. marginal revenue is greater than the price of the product
c.
which of the following states is correct a. equity is more important than efficiency as all the tax system b. efficiency is more important than equity is all of the tax system c. Both equity and efficiency are important goals of the tax system d. neither equity nor efficiency is an important goal of the tax system
c.
Competitive markets are characterized by a. a small number of buyers and sellers b. unique products c. the interdependence of that d. free entry and exit by firms
d.
Is bubbles bubble gum company adds workers while using the same amount of machinery some workers may be underutilized because they have little work to do while waiting in line to use the mercenary miss occurs bubbles bubble gum company encounters a. economies of scale b. diseconomies of scale c. increasing marginal product d. diminishing marginal product
d.
Looking at the table below, over which range output is average revenue equal to price a. 2 to 10 units b. 6 to 14 units c. 10 to 18 units d. average revenue is equal to price over the entire range of output
d.
Suppose Luke values a scoop of Italian Gelato at $4 Layla valley just scoop of Italian Gelato at 6 the pretax price of the scuba the deadweight loss from the tax is a.$4, and the deadweight loss comes from both Luke and Leia b. $4 in the deadweight loss comes from Luke because she does not buy Gelato after the tax c. $2, and the deadweight loss comes from both Luke and Leia d. $2, and the deadweight loss comes from only Luke because he does not buy Gelato after the tax
d.
Zaid's tent company has total fixed cost 300,000 per year. The firm's average variable cost is $65 for 10,000 tents. At that level of output, the firms average total costs equal a. 65 b. 75 c. 85 d. 95
d.
in the absence of taxes, Carlos would prefer to purchase a large fishing boat with the 75HP model there the government was recently decided to place a tax on boats with 75HP motors or higher if Carlos decides to purchase a small boat with 50HP motor as a result the tax which is following statement is correct a. Other people who choose to purchase large boats will incur the cost of the deadweight loss of the tax b. There are no deadweight losses as long as some people still choose to purchase large boats c. The deadweight loss will decrease as a result of increases in Carlos' summer surplus d. Carlos' is worse off, and his loss of welfare as part of the loss of the tax
d.
