MICRO CH 9?

Bonds are BEST described as a type of:

debt capital.

If Tamara is given a $3-per-hour pay increase, and in response she decides to work more hours, then:

Tamara's labor supply curve is upward sloping.

Which of the following is NOT a condition necessary for price discrimination?

The product must be a durable good.

If the public utility commission allows the water company to earn a normal profit, then it is enforcing a(n):

average cost pricing rule.

Profits are BEST described as the rewards that are earned for:

combining resources and assuming risk to produce products.

The discovery of natural gas in the American Midwest should lead to a(n) ____ in the price of land because of a(n) _____ of land.

increase; increase in demand

If wages increase at a 5% rate and the quantity demanded of labor decreases 10%, then the elasticity of demand for labor is:

2.

At movie theaters, lower prices are charged for matinees than for evening showings of the same film. The customers attending the matinees have:

higher elasticities of demand than customers attending the evening showings.

A deadweight loss:

is the same as welfare loss.

Derived demand suggests that

labor demand is derived from demand for the product it produces.

Economic rent is the payment to which factor of production?

land

Academic studies have found that the economic returns to education are:

large and positive.

Forgoing paid employment to obtain a university degree is a(n):

opportunity cost.

The goal of investment in human capital is to increase labor's:

productivity.

Assume that at a given level of output a monopoly firm has marginal revenue of $9, its ATC is $9, and marginal cost is $7. If this firm were to incrementally increase its output, then:

profit will increase.

In economics, the rewards earned by entrepreneurship are called:

profits

All of the following are barriers to entry in an industry, EXCEPT:

relatively low marginal tax rates.

Suppose a water utility company charges a residential customer $1.50 per 1,000 gallons for the first 30,000 gallons of water used, and $1.00 per 1,000 gallons for any amounts used in excess of 30,000 gallons of water. The water utility is practicing:

second-degree price discrimination.

When a business offers its customers bulk discounts, they are practicing:

second-degree price discrimination.

If the price of diesel fuel increases, the MRP curve for truck drivers will:

shift to the left.

A financial services firm might hire a college graduate who majored in something other than finance, because graduating from college shows the employer that the graduate has the discipline to be a good employee. This is an example of:

signaling.

When the individual labor supply curve is positively sloped, the _____________ effect dominates and higher wages lead to ____________ hours worked.

substitution; more

The demand curve for a monopolist is:

the industry demand curve.

In a competitive labor market, if a new manufacturing plant seeks to build its labor force, it is assumed that:

the quantity of workers available is greater than the quantity of workers that are sought.

A monopolist has four distinct groups of customers. Group A has an elasticity of demand of 0.2, B has an elasticity of demand of 0.8, C has an elasticity of demand of 1.0, and D has an elasticity of demand of 2.0. The group paying the highest price for the product will be:

A.

_____ in an industry can be so large that demand will support only one firm.

Economies of scale

In general, which is TRUE about the focus of different countries' university educational systems?

European programs focus on a specific field of study, while American programs offer more breadth of topics.

An unregulated natural monopolist would produce to the point at which:

MR = MC.

A firm will invest in additional capital goods as long as the:

MRPK exceeds the interest rate.

Which of the following statements is TRUE about the relationship between a firm's demand curve under perfect competition and monopoly?

Under perfect competition, the demand curve is perfectly elastic; under monopoly, the demand curve has elastic, unit-elastic, and inelastic portions.

All of the following would be included in on-the-job training, EXCEPT:

an economics principles class.

An example of x-inefficiency is:

an executive, at corporate expense, hiring a limousine to travel one block. whenever it is raining.

Industrial agglomeration occurs because of which economic phenomenon?

economies of scale

Robotic manufacturing has made labor demand for factory workers:

more elastic.