Econ Final
All of the following are examples of In-Kind Transfers except: A.Social security B.Food stamps C.Medicare D.Housing assistance
A
All of these are explicit costs, EXCEPT: A. the salary an entrepreneur could have earned in a corporate job. B. salaries paid to employees. C. money paid for raw materials. D. business taxes paid by an entrepreneur.
A
Assume a good is considered elastic. If the price of the good decreases, then total revenue: A. increases. B. is negative. C. remains constant. D. decreases.
A
If a particular good is a large share of your budget than the demand for that good will be elastic. A. True B. False
A
If you are selling an inelastic good and you want to increase your total revenue you should: A. Increase the price of your good B. Decrease the price of your good C.Do not change the price of your good
A
In economic terms, the short run is: A. the time over which at least one factor of production is fixed. B. no more than six months. C. the time period in which factors of production are variable. D. no more than two years.
A
Marginal product is: A. the change in total output, given a change in labor input. B. total output divided by total input. C. the change in total costs, given a change in labor input. D. input divided by output.
A
Marginal utility is NOT: A. the same for all units of a commodity consumed. B. a measure of satisfaction. C. used to explain how consumers make decisions. D. measured in utils.
A
Profits are equal to the difference between _____ and _____. A. total revenue; total costs B. total revenue; explicit costs C. total revenue; marginal costs D.marginal revenue; marginal costs
A
Suppose the MU/P for bottled water is greater than the MU/P for bags of chips. To maximize total utility, the consumer should buy: A. more bottled water and fewer bags of chips. B. less of both goods. C. more bags of chips and less bottled water. D. more of both goods.
A
The Wonderful Gadget Company produces 500 gadgets per week with 50 employees. It hires an additional worker and output rises to 507 gadgets. The marginal product of the last worker hired is _____ gadget(s). A. 7 B. 507 C. 500 D. 1
A
Total costs are a combination of: A. fixed costs plus variable costs. B. fixed costs plus average variable costs. C. average fixed costs plus variable costs. D. average fixed costs plus average variable costs.
A
A normal profit is equal to: A. revenue minus explicit cost. B. zero economic profit. C. revenue minus opportunity cost. D. explicit cost minus implicit cost.
B
A tax in which the percentage of income tax rises as income falls is known as a: A. lump-sum tax. B. regressive tax. C. flat tax. D. progressive tax.
B
A typical total product curve goes through four stages. What is the correct order for these stages? A. increases at an increasing rate, increases at a decreasing rate, decreases, reaches a maximum B. increases at an increasing rate, increases at a decreasing rate, reaches a maximum, decreases C. increases at a decreasing rate, increases at an increasing rate, reaches a maximum, decreases D. increases at an increasing rate, reaches a maximum, increases at a decreasing rate, decreases
B
A vertical demand curve represents demand that is: A. unitary elastic. B. inelastic. C. elastic. D. perfectly inelastic.
B
As a person consumes more of a particular good or service, the total level of utility derived from that consumption will: A. increase at an increasing rate. B. increase at a decreasing rate. C. remain constant. D. increase at a constant rate.
B
As output increases, average total cost and average variable cost get closer to each other because: A. Marginal cost increases B. Average fixed cost decreases C. Marginal cost equals average variable cost at its minimum point D. Marginal cost equals average total cost at its minimum point
B
FGCU should have more parking on campus is a positive statement. A.True B.False
B
Holding everything else constant, as the price of an iPhone increases, the: A.Supply of iphones increase B.Quantity supplied for iphones increases C.Quantity supplied for iphones decrease D.Supply of iphones decrease
B
If a price ceiling is place above equilibrium, this price ceiling is considered to be: A. Binding B. Nonbinding
B
If the variable cost for five shoes is $50 and the variable cost of six shoes is $80, which statement is true? A. Average variable cost of the sixth shoe is $10. B. Average variable cost for the fifth shoe is $10. C. The marginal cost for the sixth shoe is $80. .DTotal costs for the sixth shoe is $130.
B
In a perfectly competitive market, profit maximization exists when, A. Market price exceeds marginal costs B. Marginal revenue equals marginal cost C. Total revenue is maximized D. Production must occur where average cost is minimized
B
In which case would producers bear 100% of the tax incidence? A. an inelastic demand curve and a unitary elastic supply curve B. a perfectly elastic demand curve with an inelastic supply curve C. an inelastic demand curve and a perfectly elastic supply curve D. a perfectly inelastic demand curve with an elastic supply curve
B
Marginal cost (MC) will equal average total cost (ATC) at the point where the: A. fixed cost is the lowest. B. average total cost is the lowest. C. marginal cost is the lowest. D. average variable cost is the lowest.
B
Market equilibrium is considered to be inefficient. A.True B.False
B
Max, a high school student in Michigan, shovels snow for people in his neighborhood. The going rate is $15 for each shoveling service. Max would like to charge $25 because he believes he does a better job than many other teenages that offer the same service. If the market for snow shoveling services is perfectly competitive, what would happen in Max raised his price? A. At first his customers might complain, but eventually they will accept the new rate B. If Max raises his prices he would lose all his customers C. He would lose some of his customers, but no all D. If Max raises his price, then all the other teen supplying the same service will also raise their prices
B
Money that a firm spends on health care for employees is a(n): A. opportunity cost. B. explicit cost. C. implicit cost. D. surplus cost.
B
Staci's Sign Shoppe makes signs for businesses. Staci is currently producing 210 signs per week with three employees. She hires an additional worker and total output per week rises to 328 signs. The marginal product of the last worker is _____ signs. A. 210 B. 118 C. 82 D. 378
B
State sales taxes are considered by many economists to be _____ because _____. A. progressive; higher-income individuals buy more goods and services and pay more in taxes B. regressive; lower-income individuals pay a larger percentage of their income in sales taxes C. lump sum; the percentage of each item that is collected in taxes is the same for everyone D. flat; the amount of tax collected is the same regardless of the amount of the purchase
B
Tax burdens are higher on consumers when: A. demand and supply are inelastic. B. demand is inelastic and supply is elastic. C. demand is elastic and supply is inelastic. D. supply and demand are elastic.
B
When does a shortage occur? A.When quantity supplied is greater than quantity demanded B. When quantity demanded is greater than quantity supplied C. When quantity demanded is equal to quantity supplied
B
Which of the following is a possible measurement of inelastic demand? A. 1.5 B. 0.7 C. 2.3 D. 1.0
B
Which of these is NOT a determinant of elasticity? A. availability of substitute products B. sales tax rate placed on an item C. whether the item is a necessity or a luxury D. time
B
Which statement illustrates the law of demand? A. Susie offers to buy more ice breakers at $2 than at $1. B. Susie offers to buy more ice breakers at $1 than at $2. C. Carl offers to sell more ice breakers at $2 than at $1. D. Carl offers to sell more ice breakers at $1 than at $2.
B
_____ is found by dividing total output by the number of workers employed to produce that output. A. Marginal cost B. Average product C. Marginal product D. Average cost
B
All of the following are the three big questions the economy answers EXCEPT: A.What and how much to produce? B.How to produce it? C.What price to sell the good at D.For whom to produce?
C
Consuming a cookie gives Anna 50 units of utility and John 30 units of utility. However, consuming a brownie gives Anna 20 units of utility and John 40 units of utility. What can we concluded from these statements? A. Anna likes cookies more than John B. John likes cookies more than brownies C. Anna likes cookies more than brownies D. John likes brownies more than Anna
C
If MUx/Px > MUy/Py, what good should you consume more of? A. Consume more of good y B. Consume less of good x C. Consume more of good x
C
If income elasticity is -1.6, then the good is: A. Inferior and inelastic B. Luxury and inelastic C. Inferior and elastic D. Luxury and elastic
C
If the cross elasticity of demand for two goods is negative, that means that they are: A. luxury goods. B. substitute goods. C. complementary goods. D. inferior goods.
C
If the quantity supplied of good A increases by 10% due to a decrease in price of good B by 8%, we can say that the two good are _________ in production and that the response for the quantity supplied of good A to the change in the price of good B was ________. A. Complements, inelastic B. Substitutes, inelastic C. Substitutes, elastic D. Complements, elastic
C
Jeremy's level of satisfaction from consuming the first cookie was 25 utils. The second cookie increased the level of satisfaction by 20 utils. Jeremy's total level of satisfaction after three cookies was 60. Thus, the marginal utility for the third cookie is: A. 60. B. 25. C. 15. D. 45.
C
Suppose in the market for iPhones two things occur: (1) the cost of making iPhones falls, and (2) the price of smartphone data plans fall. What happens to the equilibrium price and equilibrium quantity? A. The equilibrium price falls, but the equilibrium quantity is indeterminate B. The equilibrium price rises, but the equilibrium quantity is indeterminate C. The equilibrium price is indeterminate, but the equilibrium quantity rises D. The equilibrium price and the equilibrium quantity rise
C
The calculation for economic profit is total revenue minus: A. normal profits. B. implicit costs. C. implicit and explicit costs. D. explicit costs.
C
The change in total costs arising from the production of additional output is: A. average total cost. B. average fixed cost. C. marginal cost. D. variable cost.
C
The marginal cost curve: A. intersects the average fixed cost curve at its minimum point. B. always declines. C. intersects the average total cost curve at its minimum point. D. disappears in the long run.
C
Which of the following is NOT true about Pure Command economy? A.Equal distribution of goods B.Government determines what to produce C.Produces goods efficiently D.No motivation or work incentives
C
Which of the following is the best example of a perfectly competitive firm? A. Mcdonald's B. United Parcel Service C. A potato farmer in Idaho D. Ford Motor Company
C
A consumer is in equilibrium when: A. marginal utilities are equal. B. an equal amount is spent on every commodity. C. the same total utility is derived from each commodity. D. the addition to total utility per dollar is the same for every commodity.
D
A firm is producing 50 units of output at a total cost of $300, and the firm's average variable cost is $4 per unit. The firm's: A. Marginal cost is $6 B. Total variable cost is $100 C. Average total cost is $200 D. Average fixed cost is $2
D
As an individual consumes slices of pizza, the _____ is the amount of satisfaction that he receives from each additional piece of pizza. A. total utility B. consumption availability C. absolute utility D. marginal utility
D
For a perfectly competitive firm, average revenue is equal to A. Marginal cost B. Total revenue C. Average fixed cost D. The market price
D
If Shannon wasn't studying for microeconomics, she could be sleeping which she values at $4, hanging out with her friends which she values at $8, eating dinner at her favorite restaurant which she values at $5. What is Shannon's opportunity cost? A.$17 B.$5 C.$4 D.$8
D
In general, the flatter the supply curve is, the: A. fewer the adjustments to price changes that firms can make. B. shorter the period. C. less elastic is supply. D. more elastic is supply.
D
Most economists assume that firms behave _____ and that their objective is _____. A. irrationally; profit maximization B. rationally; sales maximization C. rationally; predictable profits D. rationally; profit maximization
D
Profits in excess of both explicit and implicit costs are: A. zero economic profits. B. accounting profits. C. normal profits. D. economic profits.
D
The law of diminishing marginal utility states: A. total utility increases at an increasing rate as more of a product is consumed. B. average utility increases as more of a product is consumed. C. total utility falls as consumption of a good increases. D. that as a consumer consumes more of a given product, the added utility from consuming an additional unit declines.
D
Using the maximization rule, if Sam's marginal utility of the last orange consumed is 20 and her marginal utility of the last pineapple consumed is 80, what is the price of pineapples if the price of oranges is $1 and Sam has maximized his utility? A. $0.25 B. $2 C. $1 D. $4
D
What are characteristics of public goods A. Rivalry and nonexcludable B. Rivalry and excludable C. Nonrivalry and excludable D. Nonrivalry and nonexcludable
D
When economists refer to _____, they are referring to a hypothetical measure of consumer satisfaction. A. surplus B. marginal cost C. indifference D. utility
D
Most economists assume that firms behave _____ and that their objective is _____. A. irrationally; profit maximization B. rationally; sales maximization C. rationally; predictable profits D. rationally; profit maximization
D.