Micro Final Exam
Refer to Table 17-13. When this game reaches a Nash equilibrium, annual profit will grow by
$1.5 million for HomeMax and by $1.0 million for Lopes.
Refer to Table 14-2.For this firm, the marginal revenue from selling the 3rd unit is
$3.
Refer to Figure 4-17: At a price of
$7, there is a surplus of 4 units
Refer to Figure 15-6.What area measures the monopolist's profit?
(K-B)*W
Refer to Figure 15-5. A profit-maximizing monopoly's profit is equal to
(P2-P5) x Q3.
Refer to table 3-25: The opportunity cost of 1 mixer for Maya is
1.6 toasters
Refer to Table 13-2. What is the marginal product of the third worker?
100 units
Refer to Table 3-25: The opportunity cost of 1 mixer for Miguel is
2 toasters
Refer to Table 12-10. If Willie has $170,000 in taxable income, his average tax rate is
24.3%.
It is possible for this economy to produce
60 dryers and 50 washers
Refer to Figure 4-8: Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless printers, a complementary good, decreases. Which of the following changes would occur?
A shift from D2 to D1
Refer to Figure 7-15: When the price is P2, producer surplus is
A+B+C
If your local gasoline station raised its price by 20 percent, its sales of gasoline would decrease substantially because your local gas station
All of the above are correct.
Refer to Figure 15-4. The demand curve for a monopoly firm is depicted by curve
B.
The market for soybeans in Canada consists solely of domestic buyers of soybeans and domestic sellers of soybeans if
Canada forbids international trade in soybeans.
Refer to table 4-2: Whose demand does not obey the law of demand
Carrie's
Refer to figure 5-2: As price falls from Pa to Pb, which demand curve represents the most elastic demand?
D1
Refer to Figure 9-1. Relative to the no-trade situation, trade with the rest of the world results in
Guatemalan consumers paying a higher price for coffee.
Refer to Figure 16-9.In response to the situation represented by the figure, we would expect
None of the above are correct.
Refer to Figure 4-6: Suppose that the federal government is concerned about obesity in the US. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. If the warning labels are successful, we could illustrate the plan as producing a movement from
Point Ato Point B in Panel 1
Economics deals primarily with the concept of
Scarcity
Refer to figure 3: Which of the following events would explain the shift of the production possibilities frontier from A to B
The economy experienced a technological advance in the production of books
The term market failure refers to
a market that fails to allocate resources efficiently.
Elasticity is
a measure fo how much buyers and sellers respond to changes in market conditions
A market structure with barriers to entry is
a monopoly.
Excludability is the property of a good whereby
a person can be prevented from using it.
The term market failure refers to
a situation in which the market on its own fails to allocate resources efficiently
Tax systems that impose recordkeeping requirements on taxpayers are said to have a(n)
administrative burden.
If the law of demand applies to these pizzas then A could be
all of the above could be correct
Productivity is defined as the
amount of goods and services produced from each unit of labor input
A supply curve slopes upward because
an increase in price gives producers an incentive to supply a larger quantity
You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired at several times your college income. You still enjoy Ramen noodles very much and buy even more, but your roommate plans to buy fewer Ramen noodles in favor of foods she prefers more. When looking at income elasticity of demand for Ramen noodles, yours would
be negative and your roommate's would be positive.
A price ceiling is binding when it is set
below the equilibrium price, causing a shortage
Private markets fail to account for externalities because
decisionmakers in the market fail to include the costs of their behavior to third parties. the government cannot easily estimate the optimal quantity of pollution.
If the quantity demanded of a certain good responds only slightly to a change in the price of the good, the the
demand for the good is said to be inelastic
When a country allows trade and becomes an importer of a good,
domestic producers become worse off, and domestic consumers become better off.
In a market characterized by monopoly, the market demand curve is
downward sloping.
When society gets the most it can from its scarce resources, then the outcome is called
efficient
Competitive markets are characterized by
free entry and exit by firms.
The basic principles of economics suggest that
government should become involved in markets when those markets fail to produce efficient or fair outcomes
Negative externalities lead markets to produce (Choose A or B)
greater than efficient output levels and positive externalities lead markets to produce smaller than efficient output levels.
Industrial organization is the study of
how firms' decisions regarding prices and quantities depend on the market conditions they face.
A movement downward and to the right along a demand curve is called an
increase in quality demanded
An increase in the number of college scholarships issued by private foundations would
increase the demand for education
Refer to Table 17-13. Pursuing its own best interest, Lopes will
increase the size of its store and parking lot regardless of the decision made by HomeMax.
The largest source of income for the federal government is
individual income taxes.
"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the
infant-industry argument.
You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)
inferior good
Factors of production are
inputs into the production process
A competitive firm
is a price taker, whereas a monopolist is a price maker.
A dominant strategy is one that
is best for the player, regardless of what strategies other players follow.
A monopolistically competitive industry is characterized by
many firms, differentiated products, and free entry.
Profit-maximizing firms in a competitive market produce an output level where
marginal cost equals marginal revenue.
Refer to Table 3-25: Maya should specialize in the production of
mixers and Miguel should specialize in the production of toasters
Refer to Figure 9: Maxine has an absolute advantage in the production of
neither good and a comparative advantage in the production of pies
As a result of a decrease in price
new buyers enter the market, increasing consumer surplus
Both public goods and common resources are
nonexcludable.
If Max experiences a decrease in his income, then we would expect Max's demand for
normla goods to decrease
Market power refers to the
power of a single person or small group to influence market prices
Refer to Figure 13-2.The graph illustrates a typical
production function.
Refer to Table 12-15. The tax system is
progressive.
State and local governments receive the largest portion of their tax revenues from
property taxes and sales taxes.
Efficiency
refers to how much a society can produce with its resources. Equality refers to how evenly the benefits from using resources are distributed among members of society
If Levi Strauss & Co. were to require every retailer that carried its clothing to charge customers $42 for each pair of jeans, Levi Strauss & Co. would be practicing
resale price maintenance.
A tax on an imported good is called a?
tarriff
Suppose that when the price of ginger ale is $2 per bottle, firms can sell 4 million bottles. When the price of ginger ale is $3 per bottle, firms can sell 2 million bottles. Which of the following statements is true?
the demand for ginger ale is price elastic, so an increase in the price of ginger ale will decrease the total revenue of ginger ale producers.
A production possibilities frontier is a straight line when
the rate of tradeoff between the two goods being produced is constant
An externality is
the uncompensated impact of one person's actions on the well-being of a bystander.
Profit is defined as
total revenue minus total cost.
Private solutions may not be possible due to the costs of negotiating and enforcing these solutions. Such costs are called
transaction costs.