Microeconomics Final

the existence of a large number of people being turned away from a movie premier at Celebration Cinema positively shows that: a. the price of movie tickets is below the equilibrium price b. the price of movie tickets is above the equilibrium price c. the price of movie tickets is equal to the equilibrium price d. too few people want to see the movie

a

Assume that a single company has the following demand schedule and cost table. To maximise short-run profits, this firm should produce and sell: a. 1 unit a day b. 3 units a day c. 4 units a day d. not enough information to tell

b

Assume that a single company has the following demand schedule and cost table. To maximize short-run profits, this firm should produce and sell: a. 1 unit a day b. 3 units a day c. 4 units a day c. not enough information to tell

b

If a normal individual were to eat donut after donut, the marginal utility of each additional donut would: a. increase, but by smaller amounts for each extra dout b. at some point begin to decrease c. decrease at first, but eventually rise

b

It is possible for an economy to consume at a point outside its production possibilities frontier... a. if it is able to produce at a point outside of its production possibilities fronteir b. if it specializes in goods it has a comparative advantage in and trades the excess c. if all of its markets are perfectly competetive d. never

b

One year ago, Zach quit his $20,000/year job selling used video games and started his own business. He spent $5,000 for data processing services and other supplies used in its first year, and had revenues of $30,000. The firm: a. made an economic profit of $25,000 b. made an economic profit of $5,000 c. made an accounting profit of $5,000 d. made an accounting profit of $15,000

b

Recently Lansing Mall Cinema increased prices for movie ticket from $5.00 to $6.50, a 30% increase. If the demand for the tickets was elastic in the price range, then the quantity of tickets demanded would: a. fall by more than 30% and revenues from ticket sales would rise b. fall by more than 30% and revenues from ticket sales would fall c. fall by less than 30% and revenues from ticket sales would fall d. fall by less than 30% and revenues from ticket sales would rise

b

Refer to the graph below which shows a firm selling monopolistic competition. To maximize profits (or minimize loses) in the short-run, this company should produce and sell: a. 7 units b. 9 nits c. 10 units d. 12 units

b

Which of the following would an economy from a point inside its production possibilities frontier to a point closer to the frontier, but would not shift the frontier itself? a. the competition of large numbers of new factories b. putting abandoned buildings and unemployed workers back to work c. discovery of ways for firms to be more productive d. the loss of a large segment of the workforce due to age.

b

according to economic theory, if voluntary trade opens up between a rich country and a poor country, the result will be: a. people in the rich country will benefit at the expense of the people in the poor country b. people in the poor country will benefit at the expense of the people in the rich country c. businessmen in both countries will gain while consumers in both countries will lose d. people in both countries will have higher standards of living than without trade

b

Assume that a single company has the following demand schedule and cost table. The marginal revenue from the second unit sold per day is: a. $90 b. $50 c. $70 d. none of the above

c

In order to achieve maximum productive efficiency, firms, in any market structure , would have to produce where: a. marginal cost is minimized b. marginal cost = marginal revenue c. average cost is minimized d. price equals marginal cost

c

In order to help balance its budget, the State of Michigan tried to impose an 8 percent tax increase on cigarettes. If cigarette manufacturers expected to pass a large percentage of this tax onto consumers, they must have believed that the demand for cigarettes is: a. perfectly elastic b. elastic, but not perfectly elastic c. inelastic, but not perfectly elastic d. perfectly inelastic

c

cannon will continue to add workers to its visualizer theory as long as: a. the marginal revenue generated by each additional worker is greater than the price of the visializer b. the marginal revenue generated by each additional worker is positive c. the marginal revenue generated by each additional worker is greater than or equal the marginal cost of hiring that worker d. each additional worker can increase production by at least one visualizer an hour

c

there are many clothing manufactures, they all sell a similar product, but there are many differences between brands. The startup cost for new manufacturers is not very high and firm can leave the industry easily if they are losing money. Based on this information, this market is very likely a: a. monopoly b. ologopoly c. monopolistic competition d. perfect competition

c

In michigan, corn mazes are prevalent in the autumn months, but shut down their business during the spring, summer, and winter, because the price firms could charge would: a. be less than their marginal cost b. be less than their average fixed coust c. be less than their average total cost d. be less than their average variable cost

d

Japan produces automobiles, imports automobiles, and consumes automobiles. If Japan decreases its tariff on automobiles, which of the following will take place a. consumption of automobiles in japan will decrease b. the price of automobiles in Japan will rise c. Exports of automobiles from japan will increase d. imports of automobiles into japan will increase

d

Pepsi-Cola increased the size of their main bottling plant by three times, also increasing the use of other resources by three times. This increases doubled the output that Pepsi-Cola saw from that plant. According to this information, we know this plant experienced: a. economies of scale, and average total cost fell b. economies of scale, and total cost rose c. diseconomies of scale, and average total cost fell d. diseconomies of scale, and total cost rose

d

Suppose Sony calculates that at present output and price, its Playstation 3 brings in marginal revenue of $100 and has a marginal cost of $130. Sony could increase its profits in the short-run by: a. leaving output unchanged and raising the price b. leaving output unchanged and lowering the price c. increasing output and lowering the price d. decreasing output and raising the price

d

While shopping for my first stereo, I spent an hour debating between a $1,000 Pioneer or a $700 Sony. Perhaps fearing that my indecision would cost him a sale, the salesman intervened with the comment "Well, think of it this way--would you rather have the Pioneer, of the Sony and $300 worth of CD?" The economic concept illustrated in this concept is: a. the law of diminishing marginal utility b. the law of diminishing marginal returns c. diseconomies of scale d. opportunity cost

d

Which of the following is an example of the price floor? a. a law that specifies the minimum price for a 6-pack of beer b. a tax on cigarettes c. a law that specifies the maximum rent a landlord may charge d. a quota on imported automobiles

a

If you were looking at a monopoly firm, which of the following is a likely result? a. higher prices and lower quantity compared to perfect competition b. an increase in social surplus c. many substitute products for consumers to choose from d. high profits attracting entry from outside the industry

a

If this firm produces at its maximizing profit level, it will: a. make positive economic profits b. make economic losses c. break even d. not enough information to say

a

What price should this company change to maximize their profit? a. $30 b. $27 c. $15 d. $10

a

An increase in the use of corn in bio-fuel has done what to the market for cornflakes in 2011? a. caused neither the supply nor the demand curve for cornflakes to shit in 2011; there was a movement along the curve b. caused only the supply curve of cornflakes to shift to the left in 2011 c. caused only the demand curve of cornflakes to shift to the left in 2011 d. caused bot the the supply and demand curve to shift to the left in 2011

b