econ exam 3

"Diminishing marginal returns" refer to a situation in which the A. marginal product of the last worker hired is less than the marginal product of the previous worker hired. B. average cost of the last worker hired is less than the average cost of the previous worker hired. C. average product of the last worker hired is less than the average product of the previous worker hired. D. marginal cost of the last worker hired is less than the marginal cost of the previous worker hired.

A

A firm's total fixed cost (TFC) is defined as a cost A. that does not change as output changes. B. it is certain ("fixed") that the firm must pay. C. that is dependent on marginal cost. D. that is paid in only the long run.

A

An example of a variable resource in the short run is A. an employee. B. land. C. a building. D. capital equipment.

A

In the figure, a minimum wage has an effect on the market for low − skilled labor if it is set at A. $4.00. B. $3.00. C. $2.00. D. all of the above

A

In the figure, the relationship between costs indicates that the distance between curves A. A and B is equal to the fixed cost. B. A and B is equal to the variable cost. C. B and C is equal to the fixed cost. D. B and C is equal to the average total cost.

A

In the table above, the market is in equilibrium. Then a minimum wage is set at $11 per hour. The number of unemployed workers will be A) 2 million. B) 4 million. C) 6 million. D) 0.

A

In the table above, what is the equilibrium wage rate in an unregulated market? A. $6.00 per hour B. $4.00 per hour C. $7.00 per hour D. $5.00 per hour

A

The above table gives some of the costs of the Delicious Pie Company. The marginal cost of increasing pie output from 200 to 300 pies equals ________ per pie. A) $8 B) $1.800 C) $1,000 D) $6

A

The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the total fixed cost of producing 4,500 frijoles? A. $1000 B. $9000 C. $8000 D. More information is needed to determine the answer.

A

The figure shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $400, what is the rent? A. $400 B. $600 C. $800 D. None of the above answers is correct

A

The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total variable cost of producing 60 bikes? A) $300 B) $500 C) $400 D) $200

A

Use the information in the table above to calculate the value of net exports. A. $10 million B. $0 C. $30 million D. − $10 million

A

Using the data in the above table, what is the marginal product of the second worker? A. 4 pizzas per hour B. 5 pizzas per hour C. 4.5 pizzas per hour D. The marginal product is undefined.

A

An example of a variable factor of production in the short run is A) a building. B) an employee. C) capital equipment. D) land.

B

GDP equals A. C+S+G+(X − M) B. C+I+G+(X − M) C. C+I+G+(X+M) D. C+S+G+(X − M)

B

If Nike, an American corporation, produces sneakers in Thailand this would A. count as part of U.S. GDP since it is a U.S. corporation. B. add to Thailand's GDP but not to U.S. GDP. C. count for both Thailand's GDP and U.S. GDP. D. add to neither U.S. GDP nor Thailand's GDP.

B

In the figure, a rent ceiling of $300 per month would A. result in a surplus of 7000 units. B. result in a shortage of 7000 units. C. not affect the equilibrium quantity. D. result in a shortage of 2000 units.

B

A minimum wage set above the equilibrium wage rate for low − skilled workers ________. A. increases the number of good paying jobs available to young people B. creates more prosperity among younger people C. creates unemployment among low − skilled workers D. creates more employment opportunities for low − skilled workers

C

According to the BEA, in the second quarter of 2012 nominal GDP rose by 3.3 percent and real GDP rose by 1.7 percent. The difference between the change in nominal GDP and the change in real GDP could be explained by A. a decrease in quantity of final goods and services produced. B. an increase in quantity of final goods and services produced. C. an increase in prices of final goods and services produced. D. a decrease in prices of final goods and services produced.

C

At point d in the above figure, the average product of labor equals A) 4. B) 15. C) 3.75. D) approximately 1.

C

At point d in the figure, the average product of labor equals A. 15. B. 4. C. 3.75. D. approximately 1.

C

Gross domestic product is the total ________ produced within a country in a given time period. A. amount of final and intermediate goods and services B. market value of all goods and services C. market value of all final goods and services D. market value of all final and intermediate goods and services

C

In the figure above, curve A is the ________ curve. A) average fixed cost B) average variable cost C) marginal cost D) average total cost

C

In the figure, curve A is the ________ curve. A. average total cost B. average fixed cost C. marginal cost D. average variable cost

C

In the figure, if the minimum wage is set at $6 per hour, what quantity of labor is employed? A. 400 million hours B. 300 million hours C. 100 million hours D. 200 million hours

C

In the table above, the market is in equilibrium. Then a minimum wage is set at $7 per hour. The number of unemployed workers will be A. 6 million. B. 4 million. C. 2 million. D. 0.

C

Nominal GDP is the value of final goods and services A. produced in foreign countries but consumed in the domestic country. B. at the prices of the immediately previous year. C. at the prices of that year. D. at the prices of a base year.

C

The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, how many apartment units are rented? A) 4,000 B) 2,000 C) 3,000 D) None of the above answers is correct.

C

The figure illustrates a rental housing market in which there is a rent ceiling of $400 a month. The rent ceiling is strictly enforced. The number of apartments rented is A. 3 thousand. B. 4 thousand. C. 2 thousand. D. less than 2 thousand

C

Using the data in the above table, what is the marginal product of the second worker? A) 5 pizzas per hour B) 4.5 pizzas per hour C) 4 pizzas per hour D) The marginal product is undefined.

C

Using the data in the above table, when the firm increases its output from 4 to 9 units, the marginal cost of a unit is A. $6.00 a unit. B. $4.00 a unit. C. $5.00 a unit. D. $7.00 a unit.

C

A price ceiling can result in which of the following? A. black markets B. inefficiency C. increased search activities D. All of the above answers are correct.

D

A price ceiling can result in which of the following? A) black markets B) increased search activities C) inefficiency D) All of the above answers are correct.

D

Gross domestic product (GDP) is A. the value of all final goods and services produced in a country during a year. B. the sum of compensation of employees, proprietors' income, net interest, rental income, corporate profits, depreciation, and indirect business taxes minus subsidies. C. the sum of consumption expenditure, investment, government expenditure on goods and services, and net exports. D. all of the above

D

Intermediate goods are excluded from GDP because A. their inclusion would understate GDP B. they represent goods that have never been purchased so they cannot be counted. C. the premise of the question is incorrect because intermediate goods are directly included in calculating GDP. D. their inclusion would involve double counting.

D

Real GDP does not show the state of economic welfare in a country in part because GDP omits I. household production. II. leisure time available. III. the quality of the environment. A. I and III B. I only C. II and III D. I, II and III

D

The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a rent ceiling of $300 is imposed in the housing market, then A) the supply of housing would increase. B) there would be a surplus of apartments. C) the market would reach equilibrium at the quantity of 60 housing units. D) there would be a shortage of apartments.

D

The figure shows the apartment rental market in Bigtown. If the Bigtown Housing Authority imposes a rent ceiling of $1,000 per month, the ceiling will A. help some renters and hurt other renters. B. help all renters. C. help all landlords. D. have no effect at all on the Bigtown rental market.

D

The table shows some (but not all) national income accounting data for a hypothetical country. According to these data, the value of GDP is ________ billion. A. $2050 B. $2000 C. $1850 D. $2100

D

Which of the following factors is fixed in the long run? A. Capital B. Land C. Entrepreneurship D. None of the above because all factors are variable in the long run.

D