ECON FINAL MEMORIZE

(Figure: The Production Possibility Frontiers for Kansas and Wisconsin) Use Figure: The ProductionPossibility Frontiers for Kansas and Wisconsin. In autarky, Kansas produces and consumes 30 gallons of milk and 80 bushels of corn, while Wisconsin produces and consumes 80 gallons of milk and 60 bushels of corn.Assume that each state specializes in the good in which it has a comparative advantage and that the price of 1 gallon of milk is 2 bushels of corn. If Kansas exports 120 bushels of corn to Wisconsin, then the newconsumption point for Wisconsin after trade is _____ bushels of corn and _____ gallons of milk. a. 120; 140 b. 120; 60 c. 60; 120 d. 400; 200

120; 140

Suppose the government imposes a $15 per month tax on Internet service. If the demand curve for Internetservice is perfectly inelastic, and the supply curve is upward-sloping, the monthly price for Internet service willincrease by: a. $5. b. less than $15. c. $15. d. $0.

15

The price of Cracker Jacks (a caramel-coated popcorn with peanuts) is $0.50 per box, andthe price of macadamia nuts is $0.25 per bag. You have $10 to spend. You decide to purchase 8bags of macadamia nuts. The maximum number of boxes of Cracker Jacks that you can purchaseis: a. 4. b. 8. c. 10. d. 16

16

Norman Love Confections in Ft. Myers, Florida, is the only producer of Golden SantaChristmas collections in the world. Norman recently expanded his production capacity from1,000 to 1,500 boxes of chocolate candy per Christmas season. If the price elasticity of demandfor Golden Santa boxes of chocolates is 2, by how much will the company have to reduce itsprice to sell the additional 500 boxes of chocolate (by the midpoint method)? a. 2.5% b. 25% c. 40% d. 20%

20%

(Table: The Production Possibilities for Large Tractors and Petroleum) Use Table: The ProductionPossibilities for Large Tractors and Petroleum. In the United States, the opportunity cost of producing 40tractors is _____ barrels of petroleum a. 80,000 b. 60,000 c. 40,000 d. 20,000

20,000

(Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. Ifthe economy produces 10 trains per period, it also can produce, at most, _____ planes per period. a. 5 b. 4 c. 3 d. 2

4

(Table: Variable Costs for Garden Maintenance) Use Table: Variable Costs for Garden Maintenance. Duringthe summer, Emma runs a gardening service in a perfectly competitive industry. Assume that costs are constantin each interval; so, for example, the marginal cost of clearing weeds from each of the gardens 1 through 10 is$20. Also assume that she can only tend to the number of gardens given in the table (and not numbers inbetween). Her only fixed cost is $1,000 for a weeding machine. Her variable costs include fuel, her time, andhot coffee. If the price to clear a garden is $30, how many lots should Emma clear? a. 50 b. 40 c. 30 d. 0

40

(Table: The Utility of California Rolls) Use Table: The Utility of California Rolls. The marginal utility ofthe fourth roll is: a. 35. b. 15. c. 10. d. 5

5

Table: The Production Possibilities for Large Tractors and Petroleum) Use Table: The ProductionPossibilities for Large Tractors and Petroleum. In Venezuela, the opportunity cost of producing 150,000 barrelsof petroleum is _____ tractors a. 50 b. 70 c. 90 d. 160

50

Table: Total Cost for Peter's Plum Pantry) Use Table: Total Cost for Peter's Plum Pantry.Peter is the largest producer of plums in California. He is also a price-taking profit maximizer. Ifthe market price of plums is $3.50 per unit, the profit-maximizing output is _____ units a. 5 b. 7 c. 8 d. 9

7

(Table: Barbara's Production Function for Hockey Jerseys) Use Table: Barbara's ProductionFunction for Hockey Jerseys. The marginal product of labor of the second worker is _____hockey jerseys a. 150 b. 25 c. 75 d. 50

75

(Table: Output and Cost Curves for Buckwheat Farm) Use Table: Output and Cost Curves forBuckwheat Farm. At what quantity of production is the farm earning zero profit? a. 6 b. 7 c. 8 d. 9

8

(Table: Optimal Choice of Yogurt and Cheese.) Use Table: Optimal Choice of Yogurt and Cheese. The price of yogurt is $2 per unit, and the price of cheese is $4 per pound. Hailey's income is $16. If she spends allof her income on yogurt, the most she can buy is _____ yogurt(s), and her total utility will be____ a. 4; 104 b. 6; 12 c. 8; 144 d. 8; 4

8; 144

Producers have an incentive to lower the quality of a good when the government imposes: a. any price control. b. an excise tax. c. a binding price floor. d. a binding price ceiling.

A BINDING PRICE CEILING

A persistent shortage may occur if: a. the government imposes a price ceiling below the equilibrium price. b. the government imposes a price floor below the equilibrium price. c. demand is less than supply. d. supply increases.

A GOVERNMENT IMPOSES A PRICE CEILING BELOW THE EQUILIBRIUM PRICE

An increase in price and an ambiguous change in quantity are MOST likely caused by: a. a shift to the left of the demand curve and no shift of the supply curve. b. a shift to the left of the supply curve and no shift of the demand curve. c. a shift to the right of the supply curve and a shift to the left in demand. d. a shift to the left of the supply curve and a shift to the right of the demand curve

A SHIFT TO THE LEFT OF THE SUPPLY CURVE AND A SHIFT TO THE RIGHT OF THE DEMAND CURVE

_____ illustrates a positive relationship between price and quantity. a. A demand curve b. A supply curve c. A production possibility frontier d. Equilibrium

A SUPPLY CURVE

Expenses associated with factors of production may be _____ costs. a. implicit b. opportunity c. explicit d. All of these are expenses associated with factors of production.

ALL OF THESE ARE FACTORS ASSOCIATED WITH FACTORS OF PRODUCTION

Which factor would NOT cause a supply curve to shift? a. an improvement in the technology used to produce a good b. an increase in the wages of employees c. an increase in the price of a good d. expectations that the price of a good will change

AN INCREASE IN THE PRICE OF A GOOD

Consider the figure Consumer Surplus in the Market for Garden Gnomes I. If the good isbeing given away for free, consumer surplus equals the area a. ABP2 .b. AFP1. c. BGF. d. AQ30

AQ30

(Figure: The Cost Curves for Charlie's Cookie Confections) Use Figure: The Cost Curves for Charlie'sCookie Confections. The curve labeled Y represents the firm's _____ cost curve. a. marginal b. average total c. average fixed d. average variable

AVERAGE FIXED

Figure: The Market for iPads) Use Figure: The Market for iPads. Assume that PA is the autarky price, PW isthe world price, and D and S represent domestic demand and supply, respectively. The loss of producer surplus when the market moves from autarky to free trade equals the area: a. B b. B + C + D +E. c. B + C + D. d. E

B

Figure: Price Controls in the Market for Strawberries) Use Figure: Price Controls in the Market forStrawberries. The consumer surplus lost to a price floor at point b is equal to the area: a. abe. b. egh. c. bcge. d. bcke.

BCGE

To be binding, a price ceiling must be set at a price _____ the equilibrium price. a. below b. above c. at d. Any price ceiling is binding.

BELOW

If the price of M&M peanut candies increases, and the demand for cherry-flavored softdrinks decreases, these two goods are _____ goods. a. unrelated b. complementary c. inferior d. substitute

COMPLEMENTARY

Josephine's budget line reflects the _____ available to Josephine if she spends _____ of her income. a. consumption bundles; all b. consumption bundles; part c. utility; all d. utility; part

CONSUMPTION BUNDLES; ALL

(Figure: The Market for Notebooks) Use Figure: The Market for Notebooks. Assume that Sand D are the domestic supply and demand curves and that the world price is PW. Identify thearea of deadweight loss when a tariff raises the domestic price from the world price to PT a. A + B b. C + D + E + F c. D + E + F d. D + F

D + F

(Figure: Estimating Price Elasticity in the Market for Garden Gnomes) Use Figure:Estimating Price Elasticity in the Market for Garden Gnomes. Which demand curve is mostelastic? a. D1 b. D2 c. D3 d. D4

D3

In the short run, variable costs will ______ at any given level of output when a firm adds capital. a. increase b. decrease c. remain the same d. increase at first and then decrease

DECREASE

The cross-price elasticity of demand between Fanta and Dr. Pepper has been estimated at 0.61. If the priceof Dr. Pepper falls by 10%, the quantity demanded of Fanta will: a. decrease by less than 6.1%. b. decrease by 6.1%. c. not change because many people prefer Fanta to Dr. Pepper. d. increase.

DECREASE BY 6.1%

If baseball bats and furniture are substitutes in production (important word in question) , then a rise in the price of baseball bats: a. increases the demand for furniture. b. decreases the demand for furniture. c. increases the supply of furniture. d. decreases the supply of furniture.

DECREASES THE SUPPLY OF FURNITURE

Gabriella's company produces wet suits for scuba divers. The long-run average total cost of producing 250wet suits is $56, while the long-run average total cost of producing 270 wet suits is $36. These numbers suggestthat between output levels of 250 and 270 wet suits, Gabriella is experiencing: a. economies of scale. b. diseconomies of scale. c. constant returns to scale. d. diminishing returns

ECONOMIES OF SCALE

If an economy is in equilibrium, and no individual can improve her or his well-being by taking a differentaction, then the economy is: a. equitable. b. inefficient. c. marginally optimal. d. efficient.

EFFICENT

If all of the opportunities to make someone better off (without making someone else worseoff) have been exploited, an economy is a. equitable. b. inefficient. c. marginally optimal. d. efficient.

EFFICIENT

Figure: The Market for Tea in India) Use Figure: The Market for Tea in India. With trade,the price is PW, consumer surplus equals _____, and producer surplus equals _____ a. F + G + H + I; J + K b. F; G + H + I + J + K c. F + I; J + K d. F + G + H; J + K

F; G + H + I + J + K

When the Dairy Farmers of America (an agricultural coop) restricts the supply of milk toincrease the profits of dairy farmers, the milk market: a. achieves an efficient outcome because profits increase. b. achieves an equitable outcome because farmers with greater resources receive profitscommensurate with those resources. c. fails because there is no longer an efficient allocation of resources. d. fails because there is no longer an equitable allocation of resources.

FAILS BECAUSE THERE IS NO LONGER AN EFFICIENT ALLOCATION OF RESOURCES

Prices are important economic signals because they convey information about: a. how much consumers are willing to pay for a good and how much it costs sellers to produce a good. b. the excess of consumer surplus over producer surplus. c. possible inflationary trends. d. the state of the economy.

HOW MUCH CONSUMERS ARE WILLING TO PAY FOR A GOOD AND HOW MUCH IT COSTS SELLERS TO PRODUCE A GOOD

If the price of peanut butter were to decrease, the demand for jam, a complementary good, would probably_____. a. decrease b. increase c. not change d. randomly fluctuate

INCREASE

The income elasticity of demand for fresh winter vegetables has been estimated to be 0.6. Ifincome grows by 10% in a given period, demand will: a. increase by more than 10%. b. increase by about 6%. c. decrease by more than 10%. d. decrease by less than 6%

INCREASE BY ABOUT 6%

Figure: The Market for Apple AirPods) Use Figure: The Market for Apple AirPods. Assume that Sdrepresents the domestic supply curve, and D d represents the domestic demand curve. If the world price equals$100, and there is free trade, domestic consumer surplus _____ and domestic producer surplus _____ compared with autarky. a. increases; decreases b. increases; increases c. decreases; increases d. decreases; decreases

INCREASES; DECREASES

When making a profit-maximizing "how much" decision, if the marginal benefit of a good oractivity is greater than the marginal cost of that good or activity, then the individual can be madebetter off by: a. decreasing the quantity as long as the marginal benefit of one more unit exceeds the marginal cost. b. increasing the amount of money spent on the good or activity until the marginal benefit of one more unit is less than the marginal cost c. increasing the quantity as long as the marginal benefit of one more unit exceeds the marginal cost. d. changing the way marginal values are computed

INCREASING THE QUANTITY AS LONG AS THE MARGINAL BENEFIT OF ONE MORE UNIT EXCEEDS THE MARGINAL COST

The price elasticity of demand for canned fruit is calculated as 0.75. Given this, demand is: a. inelastic. b. elastic. c. unit-elastic. d. positively sloped

INELASTIC

Total profit is maximized when marginal benefit _____ marginal cost. a. is more than b. is less than c. is equal to d. approaches

IS EQUAL TO

(Figure: Apple cider and Soybeans) Use Figure: Apple Cider and Soybeans. If this economy isproducing 12 tons of soybeans and 9,000 bottles of apple cider, we know that the economy: a. is using its resources efficiently. b. is using its resources inefficiently. c. is producing at an unattainable point. d. has unemployment

IS USING ITS RESOURCES EFFICENTLY

Suppose that Wendy gets 15 units of utility from one muffin and 23 units of utility fromtwo muffins. The principle of diminishing marginal utility implies that Wendy's total utility fromthree muffins will be _____ units of utility. a. exactly 8 b. less than 31 c. less than 8 d. more than 31

LESS THAN 31

Jacob owns a bed and breakfast in Napa Valley. He pays $32,000 per year for insurance, $408,000 in wages, and $23,000 for supplies. He forgoes $32,000 per year he could make as a police officer. His total revenue lastyear equaled $460,000. That means his economic _____ equaled _____. a. profit; $3,000 b. losses; $3,000 c. losses; $35,000 d. profit; $35,000

LOSSES; $35,000

The percentage of an increase in a taxpayer's income that is taxed away is the _____ rate. a. marginal tax b. tax c. total tax d. average tax

MARGINAL TAX

The ulitiy-maximizing principle of marginal analysis implies that, if Katerina maximizes her utility by spending all of her income on Lakers tickets and Uber rides, with prices equal to PTickets and PRides ,respectively, then it must be the case that: a. MU Tickets/MU Rides > PTickets/PRides. b. MU Tickets/MU Rides < PTickets/PRides. c. MU Tickets/PRides = MU Rides /PTickets. d. MU Tickets/PTicket = MU Rides /PRides.

MU TICKETS/P TICKET = MU RIDES/P RIDES

Figure: The Market for Grapes in California) Use Figure: The Market for Grapes in California. In autarky,the price of Grapes in California is PA. When the economy is opened to trade, the price falls to PW, and thechange in consumer surplus will be given by the area ______. a. M B. M + N c. M + N + O D. N + O + P

N + O + P

"The current trade deficit of $350 billion is too high" is a _____ statement. a. normative b. ceteris paribus c. positive d. marginal

NORMATIVE

(Figure: Producer Surplus in the Market for Baseballs) Consider the figure Producer Surplus in the Marketfor Baseballs. If the price rises from P1 to P2 , the producer surplus will increase by the area a. P2 M0. b. P2 P1 KM. c. LMK. d. P1 K0.

P2 P1 KM

For a perfectly competitive firm in the short run, if the firm produces the quantity at which _____, the firmis earning _____. a. P> ATC; economic profits b. P< ATC; zero profit c. P= ATC; economic losses d. P< ATC; economic profits

P>ATC; ECONOMIC PROFITS

The purpose of behavioral economics is to determine why: a. people maximize utility. b. firms maximize profit and minimize costs. c. people make decisions that appear to be irrational. d. markets usually behave in an efficient manner.

PEOPLE MAKE DECISIONS THAT APPEAR TO BE IRRATIONAL

When a country exchanges goods with another country, in the short run: a. producers in the exporting industry may be better off. b. consumers of the imported good may be worse off. c. consumers of the exported good may be better off d. producers in the importing industry are better off

PRODUCERS IN THE EXPORTING INDUSTRY MAY BE BETTER OFF

When a market begins to engage in international trade: a. producers in the exporting industry may be better off. b. consumers of the imported good may be worse off .c. consumers of the exported good may be better off. d. producers in the importing industry may be better off.

PRODUCERS IN THE EXPORTING INDUSTRY MAY BE BETTER OFF

With perfectly elastic supply and a downward-sloping demand curve: a. producers will bear the entire burden of a tax. b. producers will not bear any of the burden of a tax. c. consumers and producers will split the burden of a tax in half. d. consumers will not bear any of the burden of a tax.

PRODUCERS WILL NOT BEAR ANY BURDEN OF A TAX

Annual _____ taxes are based on the value of a home. a. income b. profits c. sales d. property

PROPERTY

Eliza has annual earnings of $100,000, and Isabella has annual earnings of $50,000. Each consumer goes tothe mall and purchases a sculpture for $100, and each pays an additional 12%, or $12, in sales tax. This tax is: a. regressive. b. a wealth tax. c. progressive. d. a property tax

REGRESSIVE

If marginal cost is GREATER than average total cost, then average total cost is: a. at its maximum. b. at its minimum. c. rising. d. falling.

RISING

A(n) ______ decision maker is willing to sacrifice some economic payoff to avoid a potentialloss. a. rational b. irrational c. boundedly rational d. risk averse

RISK AVERSE

(Figure: The Market for Microeconomics Textbooks) Use Figure: The Market for Microeconomics Textbooks.Suppose the government believes that microeconomics textbooks are too expensive and wants to make themmore affordable, ensuring that they are available to students. Given a price ceiling of $80, the marketoutcome would be a _____ of _____ textbooks. a. surplus;30 b. surplus;10 c. shortage;30 d. shortage;10

SHORTAGE;30

Which of the following questions would NOT involve marginal analysis: a. How many minutes should I exercise? b. How many workers should I hire? c. What is an acceptable rate of negative side effects from a new medicine?. d. Should I attend college?

SHOULD I ATTEND COLLEGE?

When deciding how much to work you must decide how much you value your leisure timeand how much you want to consume (have to make money to buy things). The __________effect says that if you get paid more you'll work more because your time is more valuable andthe ___________ effect says if you get paid more you'll work less because you are nowwealthier so leisure is more attractive. a. Wage, Income b. Income, Substitution c. Substitution, Income d. Wage, Substitution

SUBSTITUTION, INCOME

India exports shirts, which are labor-intensive, to the United States. The likely source ofIndia's comparative advantage in shirts is: a. a hotter climate, which makes it possible to produce shirts outdoors, eliminating theneed for factory buildings and hence reducing costs. b. superior production technology. c. that, in comparison with the United States, India is a labor-abundant country. d. higher labor productivity in India.

THAT, IN COMPARISON WITH THE UNITED STATES, INDIA IS A LABOR-ABUNDANT COUNTRY

Which statement BEST describes the principle of diminishing marginal utility? As an individualconsumes more of a good: a. the total utility will always rise. b. the additional utility obtained from an additional unit will always be increasing and positive. c. the addition to total utility obtained from the nth unit of the good will be less than that obtained from the n - 1th unit of the good. d. the marginal utility will eventually become negative

THE ADDITION TO TOTAL UTILITY OBTAINED FROM THE NTH UNIT OF THE GOOD WILL BE LESS THAN THAT OBTAINED FROM THE N - 1TH UNIT OF THE GOOD

Which statement is normative? a. The number of women in the labor force increased markedly during the past 100 years. b. The federal minimum wage is higher today than it was 20 years ago. c. Children in the United States are mandated by law to attend school until they reach a certain age. d. The best way to encourage growth in the economy is through education.

THE BEST WAY TO ENCOURAGE GROWTH IN THE ECONOMY IS THROUGH EDUCATION

Sri Lanka, which is labor-abundant, has a comparative advantage in t-shirt production, which is labor-intensive. Which model explains this pattern of comparative advantage? a. the Ricardian model b. the pauper labor model c. the Heckscher-Ohlin model d. a model of autarky

THE HECKSCHER-OHLIN MODEL

In one hour, the United States can produce 25 tons of platinum or 250 electric cars. In one hour, Canadacan produce 30 tons of platinum or 275 electric cars. This information implies that: a. Canada has a comparative advantage in the production of electric cars. b. the United States has an absolute advantage in the production of platinum. c. Canada has a comparative advantage in the production of both goods. d. the United States has a comparative advantage in the production of electric cars

THE UNITED STATES HAS A COMPARATIVE ADVANTAGE IN THE PRODUCTION OF ELECTRIC CARS

In one hour, the United States can produce 25 tons of platinum or 250 electric cars. In onehour, Canada can produce 30 tons of platinum or 275 electric cars. This information impliesthat: a. Canada has a comparative advantage in the production of electric cars. b. the United States has an absolute advantage in the production of platinum. c. Canada has a comparative advantage in the production of both goods. d. the United States has a comparative advantage in the production of electric cars

THE UNITED STATES HAS A COMPARATIVE ADVANTAGE IN THE PRODUCTION OF ELECTRIC CARS

(Table: Production Possibilities for the United States and Brazil) Use Table: ProductionPossibilities for the United States and Brazil. Both nations can produce automobiles and sugar. In_____, the opportunity cost of _____ automobiles is _____ pounds of sugar. a. the United States; 1 million; 1 million b. the United States; 10 million; 1 million c. Brazil; 1 million; 12 million d. Brazil; 1 million; 166,000

THE UNITED STATES; 1 MILLION; 1 MILLION

Suppose the equilibrium price of yoghurt is $10, and the equilibrium quantity is 12 units. If the price ofyoghurt is $12: a. there will be a shortage of yoghurt. b. there will be an excess supply of yoghurt. c. the market will be in equilibrium. d. the quantity demanded of yoghurt will be greater than 12 units.

THERE WILL BE AN EXCESS SUPPLY OF YOGHURT

Suppose the government believes that the price of gasoline is too high and thereforeintervenes in the market by setting a price ceiling that is below the equilibrium price. Which ofthe following scenarios would likely result? a. Some consumers would experience a decrease in consumer surplus. b. Producers would gain some producer surplus. c. The outcome would be efficient. d. Total surplus would decrease.

TOTAL SURPLUS WOULD DECREASE

Table: Kombucha Market) There are two consumers, Archie and Mandeep, in the market forkombucha. Their willingness to pay for each kombucha is shown in the table Kombucha Market.There are two producers of kombucha, Carla and Davina, and their costs are also shown. Theequilibrium price of kombucha is $8, and the equilibrium quantity is 5. At the equilibrium priceand quantity, Davina sells _____ kombucha(s), and her producer surplus is _____ a. four; $11 b. three; $8 c. two; $6 d. one; $4

TWO; $6

firm is deciding how many workers to higher. The manager, Maggi, took some economicscourses at college and remembers that firms should follow a rule to choose the optimal numberof workers. She asks for your help and you tell her that she should hire workers if: a. Wage < Value of MPL. b. Wage = Value of MPL. c. Wage < MPL. d. Wage = MPL

WAGE = VALUE OF MPL

The demand for tacos is very inelastic compared to the supply of tacos, so if a tax is imposed on producers of tacos, the tax incidence: a. will fall on consumers more than producers. b. will fall on producers more than consumers. c. will fall equally on consumers and producers. d. cannot be determined without more information.

WILL FALL ON CONSUMERS MORE THAN PRODUCERS

(Figure: Monthly Supply of Lattes) The figure Monthly Supply of Lattes represents themonthly supply of lattes at a local cafe. At $3 per latte, the cafe produces 120 lattes per month.The producer surplus received by this bakery is equal to: a. $120. b. $60. c. $360. d. $180

$180

Suppose the demand equation is given by P = 100 - 2Q, and the supply equation is given byP = 20 + 2Q. If the quantity bought and sold under a price floor is Q = 10, what is thedeadweight loss associated with this quantity control? a. $400 b. $800 c. $1,200 d. $200

$200

Armand's accountant tells him that he made a profit of $21,300 running a pottery studio in Boston. Armand'swife, an economist, claims Armand lost $21,300 running his pottery studio. This means his wife is claiming thathe incurred _____ in _____ costs. a. $42,600; implicit b. $21,300; implicit c. $21,300; explicit d. $42,600; explicit

$42,000; IMPLICIT

Casey recently inherited $100,000 from her grandmother. Rather than invest the money in a mutual fund thatearns 5% per year, she quit her job as a translator for the United Nations, which paid $60,000 per year, andstarted Casey's Coffee Crush, a small café in Tribeca. The location she rented cost $20,000 for the year. Theequipment, café furniture, and coffee machines cost another $60,000. Staff, sales help, and advertising cost yetanother $40,000. In her first year, her revenue was $150,000. The implicit cost of capital of Casey's CoffeeCrush is: a. $0. b. $2,000 .c. $5,000. d. $50,000.

$5,000

Table: Sydney's Tutoring Service) Use Table: Sydney's Tutoring Service. Sydney tutors five students in theintroductory business class. The second column of the table shows each student's willingness to pay for a one-hour session. Sydney's estimated costs of providing tutoring hours (with no sunk costs) appear in the finalcolumn. If she can charge all students their willingness to pay, at the optimal number of hours of tutoring, Sydney's total profit will be a. $60. b. $50. c. $30. d. $15

$50

(Table: Total Cost and Output for All-Natural Frozen Yogurt) Use Table: Total Cost andOutput for All-Natural Frozen Yogurt, which describes Sasha's total costs for his perfectlycompetitive all-natural frozen yogurt firm. If the market price of a tub of frozen yogurt is $20,how much is Sasha's profit at the optimal short-run output? a. $100 b. $0 c. -$5 d. -$10

- $10

A 10 percent increase in income increases the quantity demanded of online movie rentals by 3 percent.The income elasticity of demand for online movie rentals is ______, and online movie rentals are a(n) ______good. a. -3.3; inferior b. 3.3; normal c. -0.3; inferior d. 0.3; normal

0.3; NORMAL

(Table: Daniella's Consumption of Sparkling Water and Sushi) Use Table: Daniella'sConsumption of Sparkling Water and Sushi. When Daniella maximizes her utility, her marginal utility per dollar spent (not price, but total cost of the sushi) on sushi equals _____ utils per dollar a. 0.6 b. 0.8 c. 0.5 d. 1.6

0.8

(Table: Labor and Output for Cappuccinos) Use Table: Labor and Output for Cappuccinos. The marginalproduct of the second worker is: a. 9. b. 36. c. 10. d. 6.

10

Nardelli owns Nardelli's Grinder Shoppe in Connecticut and can produce 300 sandwiches per day with twoworkers and 400 sandwiches per day with three workers. The marginal product of the third worker is _____sandwiches. a. 100 b. 300 c. 1,300 d. 2,300

100

Two consumers, Ariel and Abbie, like to download movies to their iPhones. Thetable Movie Downloads shows their willingness to pay for each downloaded movie. If an individual movie canbe downloaded for $1, what is the total consumer surplus received by these consumers? a. $19.25 b. $18 c. $10 d. $11

11

(Table: Total Cost and Output for All-Natural Frozen Yogurt) Use Table: Total Cost and Output for All-Natural Frozen Yogurt, which describes Sasha's total costs for his perfectly competitive all-natural frozenyogurt firm. If the market price of a tub of frozen yogurt is $67.50, how much is Sasha's total cost at the profit-maximizing output? a. $270.00 b. $170.00 c. $135.00 d. $67.50

$170.00

(Figure and Table: Variable, Fixed, and Total Costs for Buckwheat) Use Figure and Table: Variable, Fixed,and Total Costs for Buckwheat. The marginal cost of increasing production from 64 to 75 bushels of buckwheat is: a. $16.00. b. $15.38. c. $12.50. d. $18.18.

$18.18

Scenario: The Market for Travel Mugs) Use Scenario: The Market for Travel Mugs. If a $1per unit tax is imposed, the per-unit tax incidence on consumers is equal to (round allcalculations to two decimal places): a. $0.60. b. $0.40. c. $0.80. d. $1.00.

$0.60

Figure: The Market for Summer Sandals) Use Figure: The Market for Summer Sandals. Thegovernment recently levied a $10 tax on the producers of summer sandals. What is the taxrevenue? a. $1,000 b. $500 c. $4,000 d. $5,000

$1,000

(Figure: The Lobster Market) Use Figure: The Lobster Market. If the government wants to limit lobster sales to 250 pounds, it can impose a _____ excise tax on consumers, and the total tax revenue generated will be _____ a. $5; $2,500 b. $7.50; $7,500 c. $10; $2,500 d. The answer cannot be determined from the information provided.

$10; $2,500

(Table: Marginal Cost of Sweaters) Use Table: Marginal Cost of Sweaters. The marginal costof the second sweater is: a. $9 .b. $20. c. $11. d. $29

$11

Figure: Short-Run Costs for Wallets) Use Figure: Short-Run Costs for Wallets. At 6 wallets,average variable cost is approximately a. $100. b. $115. c. $200. d. $170

$115

(Table: Costs of Wedding Cakes) Use Table: Costs of Wedding Cakes. Assume that fixedcosts are $10. What is the average variable cost of 2 wedding cakes? a. $40.00 b. $35.00 c. $25.00 d. $12.50

$12.50